Application Fees and AB 2493 Compliance As of January 1, 2025, Assembly Bill 2493 (AB 2493) introduces significant changes to how housing providers in California handle application fees:
- Two Compliance Options:
- Sequential Processing: Process applications in the order received, provide written screening criteria upfront, and approve the first qualified applicant.
- Refundable Fees: Charge application fees but refund them to unselected applicants within 7 days of selecting a tenant or within 30 days of application submission, whichever comes first.
- Mandatory Disclosures:
- Provide applicants with a copy of their consumer credit report within 7 days of receipt.
- Issue itemized receipts for any application fees collected, detailing the costs incurred.
These measures aim to enhance transparency and fairness in the tenant selection process.
Fair Housing and Criminal History Considerations California law prohibits discrimination based on criminal history unless the conviction directly relates to the applicant's ability to fulfill tenancy obligations. Housing providers must:
- Avoid blanket bans on applicants with criminal records.
- Consider the nature and severity of the offense, the time elapsed since the conviction, and any evidence of rehabilitation.
- Provide applicants the opportunity to present mitigating information.
Additionally, arrests not leading to convictions, sealed or expunged records, and juvenile adjudications should not be considered during the screening process.
Evaluating Applicants with Housing Subsidies Under California law, housing providers cannot discriminate against applicants based on their source of income, including housing subsidies like Section 8 vouchers. Key requirements include:
- Assessing only the tenant's portion of the rent when evaluating income qualifications.
- Allowing applicants to provide alternative evidence of their ability to pay rent, such as pay stubs, bank statements, or benefit award letters, especially if they lack traditional credit history.
These provisions ensure equitable access to housing for all applicants, regardless of income source. |
