Fair employment and housing protections: credit reports.
If enacted, AB 2203 would reinforce existing California Fair Employment and Housing Act (FEHA) protections by further limiting the criteria that landlords can use to evaluate applicants. Rather than relying on consumer credit reports, which often do not accurately reflect a person’s ability to afford housing in light of supplemental income from government assistance, landlords would need to focus on the portion of the rent that the tenant is required to pay. This shift is expected to enhance housing accessibility for marginalized groups, particularly those reliant on public assistance.
Assembly Bill 2203, introduced by Assembly Member Luz Rivas, seeks to amend Section 12955 of the Government Code related to fair employment and housing protections. Specifically, the bill aims to prohibit landlords from requiring a consumer credit report as part of the application process for rental housing accommodations when a government rent subsidy is involved. The impetus for the bill arises from ongoing concerns that credit checks can disadvantage low-income individuals and families who rely on such subsidies, thereby perpetuating cycles of discrimination and limiting housing access.
The bill's passage has not been without debate. Supporters argue that removing credit report requirements fosters inclusivity within the housing market and ensures that low-income families have more equitable access to housing. Conversely, opponents raise concerns about potential risks, suggesting that screening processes might become less stringent, possibly leading to higher rates of tenant defaults. Critics fear that landlords might face challenges in determining the financial reliability of applicants, thereby creating a climate that could lead to more difficulties in managing rental properties effectively.