H.R. 8588: Housing for Formerly Incarcerated Reentry and Stable Tenancy Act (119th Congress) Bill Summary

This bill, titled the Housing for Formerly Incarcerated Reentry and Stable Tenancy Act or Housing FIRST Act, aims to amend the Fair Credit Reporting Act (FCRA) concerning tenant screening processes. Its primary focus is on providing a fairer chance for individuals who have formerly been incarcerated to secure rental housing. Here’s a breakdown of its main provisions:

1. Expanded Definition of Tenant Screening

The bill expands the definition of "tenant screening purposes" in the FCRA. It clarifies that this term refers to evaluating a consumer for rental housing or assessing their retention as a tenant.

2. Prohibition on Certain Information in Tenant Screening Reports

The bill prohibits consumer reporting agencies from including specific types of information in tenant screening reports. This includes:

Records of arrests
Juvenile adjudications or convictions
Non-criminal citations
Criminal cases resolved through diversion programs
Convictions for which the consumer has completed their sentence
Records of offenses related to court costs or incarceration fees
Expunged, sealed, or vacated convictions

3. Conditions for Using Consumer Reports

The bill sets conditions under which consumer reports may be furnished and used for tenant screening, emphasizing that any adverse action taken against a consumer based on such reports must be communicated to the consumer. Specifically, it requires that landlords or housing providers notify consumers of adverse actions and provide the reasons for these decisions.

4. Duties of Users of Consumer Reports

If a landlord or housing provider relies on a consumer report for tenant screening purposes and decides to take adverse action (like denying rental housing), they are required to:

Notify the consumer within three days.
Include the specific reasons for the adverse decision.

5. Clarification on Information Sources

The bill includes a clarification that consumer reporting agencies must disclose the sources of information used in a consumer report, enhancing transparency regarding where the information comes from.

6. Elimination of Certain Time Limits

The bill prohibits states from regulating the time limits on how long certain information can be excluded from consumer reports. This aims to standardize the rules nationwide concerning how long negative information might flag a consumer’s report.

7. Miscellaneous Amendments

Additional technical amendments are made to the FCRA for consistency and clarity, ensuring that the language accurately reflects the intent of these changes.