Illinois Governor J.B. Pritzker recently signed HB 4926- LANDLORD-TENANT CREDIT REPORT into law. The new law – which takes effect January 1, 2025 -allows applicants to submit a portable screening report up to 30 days from issuance for rental housing applications. When such a report is provided, a housing provider is not allowed to charge an application fee. This action makes Illinois the seventh state to adopt a portable screening report law aimed at reducing perceived barriers for renters in the application process, joining: Colorado, California, Maryland, New York, Rhode Island and Washington.
Illinois’ portable screening report law unnecessarily complicates the screening process and limits housing providers’ ability to cover their business-related expenses and adequately manage their risk. Reusable screening reports do not always reflect the unique screening criteria applicable at rental communities and may not reflect the most up-to-date information about the applicant, limiting their utility. Moreover, the information provided still needs to be independently verified.
Presented as a compromise, Illinois’ law does not prevent a housing provider from obtaining their own screening reports, but those costs cannot be recouped through application fees. Additionally, the law does not speak to or prohibit the use of criminal records checks though other laws may apply and fees remain prohibited. This only exacerbates the significant potential financial liabilities associated with poor risk management practices and increases the cost-pressure housing providers continue to encounter.
Resident screening is a fundamental part of property management. Housing providers must retain access to all publicly available consumer information so they can make informed housing decisions and balance the risks to their residents, employees and rental communities. Undue burdens on screening ultimately impact renters and their ability to access quality, affordable rental housing.
The National Apartment Association (NAA) continues to support its affiliate network on their state and local advocacy and remains engaged to educate federal policymakers on this issue.
To learn more, please contact Joe Riter, NAA’s Senior Manager of Public Policy, at [email protected].