| Entities | New York City (9) |
| Topics and Issues |
In October 2023, New York Mayor Eric Adams (D) issued a press release stating that “New York City households with housing vouchers will no longer undergo credit checks when selected for affordable housing — immediately accelerating the process of entering new, affordable homes for over 4,000 families every year. For New Yorkers with rental assistance vouchers, undergoing credit checks and providing rental history represent unnecessary barriers to obtaining affordable housing, since their ability to pay rent is guaranteed by either their qualification for a rental subsidy or by the rental subsidy connected to the affordable unit.” The announcement was made with ew York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión Jr., and New York City Housing Development Corporation (HDC) President Eric Enderlin.
The Adams administration issued an “amendment — detailed in the HPD-HDC Marketing Handbook — that prohibits marketing agents from conducting credit checks, utilizing credit score information, or requiring rental history in lieu of a credit check to determine eligibility for voucher holders. HPD already allows applicants to opt into providing 12 months of consistent rent payments instead of credit checks, allowing prospective tenants to choose the screening criteria. If the marketing agent is permitted to conduct a credit check, they may only reject applicants on specific grounds, including bankruptcy, delinquencies, collections, money judgments, or liens.”
Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer said that “[r]emoving credit checks from the housing voucher process will speed up the time it takes for families to move into new homes, providing stability and security to thousands of households each year. This action will improve tenants’ access to affordable housing in a timely manner, including for those experiencing homelessness, who so often have greater barriers to entry in the housing market.” HPD Commissioner Carrión said that “[c]redit checks create a massive and unnecessary obstacle, disproportionately harming low-income New Yorkers. For people with bad or no credit, the elimination of credit checks could mean the difference between having a home and being homeless…”
The press release added that
Eliminating credit checks will significantly shorten the screening process for New Yorkers with housing vouchers, including Section 8 or CityFHEPS, when applying through Housing Connect for HPD- or HDC-subsidized homes linked to rental subsidies or homes directly set aside for those who formerly experienced homelessness. This pivotal step will promote equity by saving thousands of low-income New Yorkers a hard credit check in the rental application process and potentially harming their credit scores.
Over 80,000 households have indicated that they qualify for a housing voucher in Housing Connect, the city’s affordable housing lottery. By removing this financial barrier, the amendment ensures that individuals who have lower credit scores or are experiencing financial hardships are not unfairly excluded from critical affordable housing opportunities. Eliminating credit checks not only addresses the immediate housing needs of residents but also paves the way for a more equitable and inclusive housing landscape in New York City.