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Panel narrows tenant‑screening rules, limits credit-score use and alters look‑back rules
Summary
The committee amended SB 937 to restrict which landlords are covered, bar routine use of credit scores for tenants using income-based subsidies, limit certain adverse-history consideration to post‑subsidy periods when verifiable, and add optional positive-payment reporting; members flagged operational challenges for small landlords and asked for clarifying guidance.
The Judicial Proceedings Committee on Thursday adopted changes to Senate Bill 937 that alter how landlords may consider criminal history and financial information when screening prospective tenants who use income-based rental subsidies.
Under the adopted amendment, the bill applies to landlords who manage four or more residential units, prohibits routine consideration of a credit score for subsidized applicants, shortens or clarifies look-back periods for certain convictions, and allows landlords to verify the tenant’s ability to pay the tenant-paid portion of rent and utilities. The amendment also added an optional mechanism for landlords to report positive rental-payment history to consumer reporting agencies; that reporting would be optional and the cost may be borne by the tenant who signs up for the service.
Witnesses and committee members debated several operational questions. Small landlords and some senators asked how a sole proprietor or landlord with one or two units would practically comply with the new rules; advocates responded that commercially available screening products are customizable and that landlords can also rely on landlord references and public records. Committee counsel and an advocate clarified that if a landlord cannot verify the start date of a subsidy for a tenant, the bill permits the landlord to rely on the full adverse-credit history rather than excluding pre‑subsidy adverse history.
Members also discussed whether landlords may consider the portion of rent not covered by a voucher and how utilities factor into affordability calculations; advocates explained HUD-derived utility allowances are part of the voucher calculation and that landlords remain able to assess a tenant’s ability to pay the unsubsidized delta.
The committee adopted the amendment and voted to report SB 937 favorably as amended. Several senators asked staff to provide technical drafting corrections and implementation guidance for smaller-scale landlords before the bill moves to the floor.
