Landlords’ Guide to the New CA Ban on Crime-Focused Housing Policies (AB-1418)

Jan 15, 2024 | Library

California’s new ban on crime-focused housing policies, particularly the crime-free multi-housing program (CFHP), is bound to bring significant change to the way landlords vet and approve tenants.

For more than three decades, CFHP policies have allowed and, in some cases, compelled landlords to evict tenants with certain levels of contact with the police and criminal justice system. The CFHP and similar California housing laws have become an integral part of the property management system, and adjusting to the new normal as these policies fall away may be challenging.

At Genuine Property Management, we understand that changes to property laws can radically alter the landscape of real estate rentals and management. Our expert team of industry veterans stand ready to assist our clients with navigating this new normal.

To provide guidance and insight to our clients, as well as landlords who haven’t yet partnered with our industry-leading property management firm, here’s what you need to know about the ban on crime-free housing policies in California, and how it will affect your operations.

What Are Crime-Free Housing Policies?

Crime-free housing policies are widespread ordinances encouraging or requiring landlords to evict or reject tenants with criminal backgrounds that reach a certain level of severity.

Created with the intent to reduce crime in residential neighborhoods, these policies evolved to allow police officers to decide whether a tenant’s criminal history disqualifies them from rental housing in the community. What constituted an “excessive” criminal background was not clearly defined and often looked different, depending on the state, county, or even district.

Unfortunately, these policies were often poorly enforced or taken advantage of, more so with the addition of a crime-free lease addendum stating prior criminal convictions were not the only factor that could be considered. Even just an arrest or investigation by police could be enough to warrant a rental application being denied.

These laws compelled landlords to conduct extensive criminal background checks to avoid the fines and repercussions accompanying knowingly renting to an unqualified tenant. It was also one of the most common reasons to evict a tenant and is noted in hundreds of thousands of notices of termination of tenancy across the country.

The Crime-Free Housing Ban

On January 1, 2024, California’s crime-free housing policies were banned. As such, landlords may no longer be asked or required to reject applications from unsuitable tenants. It also prohibits local governments from punishing landlords for not evicting tenants with criminal backgrounds.

It’s important to note that this law does not prevent landlords from still conducting criminal background checks. As part of new fair chance housing legislation, it simply means landlords are no longer compelled to do so and may not take a blanket approach to rejecting applications based solely on criminal history.

How Will This Impact Landlords?

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As a California landlord, you will no longer be required to conduct criminal history checks on potential tenants. You will also not be permitted to evict a tenant or reject a rental application based solely on their criminal background.

While some landlords are unhappy with the ban, citing their fear of an increase in crime and criminal activity in their neighborhoods, other property owners support the ban as an important step toward breaking down discrimination and the difficulties often associated with finding affordable housing with a criminal record. There has also been widespread debate over the effectiveness of these policies, as they have not had a clear or consistent impact on criminal activity.

Choose Genuine Property Management for Hassle-Free Rental Ownership

Instead of struggling to adapt to the new laws as a California landlord, why not leave the legal headaches and nitty-gritty to the professionals? Genuine Property Management offers a comprehensive suite of services to take care of every aspect of rental property management, from tenant screening to maintenance and legal disputes.

Get in touch with us today to learn how we can make your life as a California property owner easier.