New legislation passed in the city council regarding the use of tenant screening checks

New York City property managers and owners need to be aware of new legislation passed in the city council regarding the use of tenant screening checks. The new legislation, Local Law 2 / 2010, signed into law by mayor Bloomberg on March 2nd went into effect on July 2nd. The new legislation requires property managers and owners who request application information from prospective tenants to disclose certain information in writing to those applicants. The application must explicitly state that the information provided by the prospective tenant may be used to obtain a tenant screening report and what the name and address of the consumer reporting agency is that will be used. If the applicant is rejected based on information obtained from the application, the owner/manager must notify the tenant as such. The owner/agent must also notify the tenant on the application that they are entitled to receive a free copy of their credit report from the agency named. It must also state that they are entitled to receive one free copy of their report from each national consumer reporting agency and that they may obtain this report via www.annualcreditreport.com. The application should also state that applicants have the right to dispute inaccurate information in their screening report directly with the consumer reporting agency. All of the information listed above must be set off in a box on the application and must be printed in a color that contrasts with the standard printed information on the application. In addition to the changes to the application, any office that orders such tenant screening reports must post a sign with the disclosure notices in the rental office. Although the contents of that sign have not been finalized, pending approval they will be the following: The words, "Notice about tenant screening reports" shall be printed at the top of the sign in 2 inch high capital letters. The sign shall state below in 24 point font, "We may use information you provide to us in your application to obtain a tenant screening report. We will contact the following consumer reporting agencies to obtain the report: (insert name and address of each consumer reporting agency). State and federal law require us to notify you if we do not lease or rent to you based on information in that report. You also have the right to dispute the accuracy of the information in the report directly with the consumer reporting agency." The sign should then state, "You also are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. You can request this free credit report through the website www.annualcreditreport.com. You may dispute the accuracy of any information about you that is contained in such report directly with the credit reporting agency." Additionally, the color of the text of the notice in capital letters at the top shall contrast sharply with the color of the remaining text, and the colors of the printed text shall contrast sharply with the background color of the sign. All the required information shall be included on one sign that shall be posted at the location at a place where it is conspicuously visible to a consumer who is seated while the transaction is conducted at such location. Violations of this law will result in civil penalties of not less than $250 and not more than $500 for the first infraction and between $500 and $700 for any subsequent violations. Matt Engel is a vice president at Langsam Property, Bronx, N.Y.