summary
Introduced
11/18/2024
11/18/2024
In Committee
06/05/2025
06/05/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill prohibits landlords from performing, or causing to be performed, hard credit inquiries on prospective tenants who apply for low- or moderate-income housing, defined in the bill as "affordable housing applicants." Landlords may, however, perform soft credit inquiries on affordable housing applicants. Hard credit inquiries can lower an individual's credit score while soft inquiries are conducted with consent of the applicant, and are meant to have no impact on one's credit score. Landlords who violate the provisions of the bill would be subject to a penalty of not more than $100 for the first offense in a one-year period, and up to $200 more for subsequent offenses in a one-year period. This bill also requires a consumer reporting agency that receives multiple hard credit inquiries, concerning the same individual, for the purpose of rental housing applications over a one-month period, to consider those inquiries to be one hard inquiry for purposes a consumer report concerning the individual. This bill requires the Director of the Division of Housing and Community Resources in the Department of Community Affairs, within six months of the bill's enactment, to make information available on its Internet website concerning certain requirements of the bill.
AI Summary
This bill addresses credit inquiries for rental applications, specifically protecting low- and moderate-income housing applicants from potential credit score damage. The legislation defines "affordable housing applicants" as households with tenant-based housing subsidies or those applying to income-restricted rental units, and establishes important distinctions between "hard" and "soft" credit inquiries. Landlords are prohibited from performing hard credit inquiries (which can negatively impact credit scores) on affordable housing applicants, but are allowed to conduct soft credit inquiries with the applicant's consent. Landlords who violate this prohibition face escalating financial penalties: $100 for a first offense within a one-year period, and $200 for subsequent offenses. Additionally, the bill requires consumer reporting agencies to treat multiple hard credit inquiries for rental applications within a one-month period as a single inquiry, which can help protect applicants' credit scores. The bill also mandates that the Department of Community Affairs publish information about these requirements on their website, helping to educate both landlords and prospective tenants about their rights and the potential impact of credit inquiries. The legislation will take effect six months after its enactment, allowing time for stakeholders to understand and implement the new requirements.
Committee Categories
Housing and Urban Affairs
Sponsors (3)
Last Action
Reported from Senate Committee, 2nd Reading (on 06/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S3865 |
| Analysis - Statement SCU 6/5/25 | https://pub.njleg.gov/Bills/2024/S4000/3865_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/S4000/3865_I1.HTM |
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