Bill Text: NJ A4990 | 2024-2025 | Regular Session | Introduced
Bill Title: Concerns credit inquiries for rental applications.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-10-24 - Introduced, Referred to Assembly Housing Committee [A4990 Detail]
Download: New_Jersey-2024-A4990-Introduced.html
Sponsored by:
Assemblywoman CARMEN THERESA MORALES
District 34 (Essex)
SYNOPSIS
Concerns credit inquiries for rental applications.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning credit inquiries for rental applications and supplementing P.L.1984, c.180 (C.52:27D-280 et seq.) and P.L.1997, c.172 (C.56:11-28 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Affordable housing applicant" means a low- or moderate-income household that possesses a State or federal tenant-based housing subsidy; or a household that applies to lease any rental dwelling unit that is restricted to occupancy by low- or moderate-income households pursuant to any State or federal affordable housing or subsidy program, including but not limited to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), and any low or moderate income housing mandated pursuant to a court order or settlement.
"Credit score" means a numerical representation that is derived from an algorithm, computer application, model, or other process that is based, in whole or in part, on credit information or credit history, and which purports to characterize or categorize a person's creditworthiness, fitness to be a tenant, perceived ability to fulfill financial commitments, or other position or status. The term includes, but is not limited to, FICO, Vantage, or other credit scores, tenant scores, insurance scores, or other enumerations.
"Hard credit inquiry" means a credit inquiry that may cause information to be recorded on an individual's consumer report for a period greater than 30 days or that may have an impact on an individual's credit score.
"Soft credit inquiry" means a credit inquiry conducted by the affordable housing applicant, or with the consent of the affordable housing applicant, and that is intended to have no impact on an individual's credit score and does not cause information to be recorded on an individual's consumer report for a period greater than 30 days.
b. A landlord shall be prohibited from performing, or causing to be performed, a hard credit inquiry in evaluating an affordable housing applicant. A landlord may perform, or cause to be performed, a soft credit inquiry to evaluate an affordable housing applicant.
c. A landlord who violates subsection b. of this section shall be subject to the penalty provisions of section 5 of P.L.1975, c.310 (C.46:8-47), except that the penalty shall be an additional $100 for a second violation by a landlord within a one-year period, and the penalty shall be an additional $200 for each subsequent violation by a landlord within a one-year period.
d. The Director of the Division of Housing and Community Resources in the Department of Community Affairs shall make available on its Internet website information concerning the requirements of this section, including, but not limited to information for landlords and prospective tenants on tenant rights and the impact of hard credit inquiries and soft credit inquiries.
2. A consumer reporting agency that receives multiple hard credit inquiries, concerning the same individual, for the purpose of rental housing applications, over a one-month period, shall consider those inquiries to be one hard inquiry for purposes a consumer report concerning the individual. For the purposes of this section, "hard credit inquiry" means a credit inquiry that may cause information to be recorded on an individual's consumer report for a period greater than 30 days or that may have an impact on an individual's credit score.
3. This act shall take effect on the first day of the sixth month next following enactment.
STATEMENT
This bill prohibits landlords from performing, or causing to be performed, hard credit inquiries on prospective tenants who apply for low- or moderate-income housing, defined in the bill as "affordable housing applicants." Landlords may, however, perform soft credit inquiries on affordable housing applicants. Hard credit inquiries can lower an individual's credit score while soft inquiries are conducted with consent of the applicant, and are meant to have no impact on one's credit score. Landlords who violate the provisions of the bill would be subject to a penalty of not more than $100 for the first offense in a one-year period, and up to $200 more for subsequent offenses in a one-year period.
This bill also requires a consumer reporting agency that receives multiple hard credit inquiries, concerning the same individual, for the purpose of rental housing applications over a one-month period, to consider those inquiries to be one hard inquiry for purposes a consumer report concerning the individual.
This bill requires the Director of the Division of Housing and Community Resources in the Department of Community Affairs, within six months of the bill's enactment, to make information available on its Internet website concerning certain requirements of the bill.
