In an ongoing effort to improve housing access and fairness, Olympia city officials are weighing proposals to restrict the types of information landlords can use during tenant screening. The recommendations, discussed at a May 22 meeting of the Land Use and Environment Committee, aim to address long-standing barriers in the rental process, especially those affecting low-income residents, people of color, and individuals with disabilities.
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Push for Fairer Screening Sparks Public Support
More than 60 community members and city council members rallied outside Olympia City Hall in March 2024, backing stronger tenant protections. This followed the city’s December 2023 move to adopt a rental housing registry and inspection program designed to protect renters and promote safe living conditions. The city council also has limited fees landlords can charge, such as move-in costs and pet deposits.
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New Rules Target Screening Bias
City staff proposed rules that would limit how landlords evaluate applicants, focusing specifically on criminal records, credit history, rental background, and the use of Social Security numbers. Christa Lenssen, a senior housing program specialist, emphasized that these measures are not intended to ban tenant screening but to prevent practices that might unfairly exclude certain groups. Lenssen cited legal precedent establishing that even neutral screening practices can violate fair housing laws if they disproportionately impact specific communities, a concept known as “disparate impact liability.”
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Criminal History Limits Proposed
One of the major proposals involves restricting how landlords can use criminal records in screening. Staff recommended that landlords should not reject applicants based on arrests or charges that didn’t lead to a conviction, convictions older than five to seven years, or those that have been sealed, expunged, or dismissed. The policy would also protect applicants with juvenile convictions or those who participated in diversion programs. However, landlords could still screen for certain serious past offenses, such as arson or methamphetamine manufacturing in a rental property, violent crimes against tenants or landlords, or if the applicant must register as a sex offender. An exemption may be considered for owner-occupied properties, following a precedent set by Seattle.
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Credit History: No Longer a Barrier?
The proposed changes would prevent landlords from rejecting applicants solely for lacking a credit history or having limited credit data. Additionally, the proposed changes would prohibit landlords from considering medical or educational debt, a factor that often disproportionately impacts people with disabilities and low-income residents. The proposed changes would protect applicants using Housing Choice Vouchers or those with a co-signer from rejection based on their credit score. Olympia is also considering a rule, similar to Philadelphia’s that prohibits automatic rejection based on credit scores falling below a set threshold. Landlords would be required to provide written explanations for denials and allow applicants to offer more information.
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Rental History Rules in the Works
The staff recommended prohibiting landlords from taking adverse action based on certain types of rental history. These include evictions where tenants were not found at fault, eviction cases that were dismissed, settled, or withdrawn, and court decisions with limited dissemination orders. We will also exclude judgments that have already been satisfied.
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Social Security Not Mandatory
The city is looking to follow Tacoma and Portland in allowing alternative documentation in place of a Social Security number during tenant screening. The proposal prohibits landlords from rejecting applicants for not providing an SSN or inquiring about their immigration status. Acceptable forms of documentation would include a driver’s license, birth certificate, ITIN (Individual Taxpayer Identification Number), visa, or Certificate of Naturalization.
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Tenants Voice Support for Change
According to public engagement conducted during Olympia’s fair housing assessment, 87% of tenants said they supported limiting tenant screening practices. About 25% of respondents reported that screening or application barriers were significant obstacles to finding housing. Lenssen shared that many tenants described personal experiences with systemic barriers; for example, credit damage caused by a former partner, lack of rental history due to being left off leases, and financial hardship stemming from medical issues.
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Landlords Express Concerns
While tenants broadly supported the reforms, landlord opinions were more divided. Only about 25% of landlords surveyed said they were supportive or somewhat supportive of the proposed policies. In contrast, around 53% expressed little to no support. Landlords said their primary concerns were ensuring tenants could reliably pay rent, maintain the property, and not pose a safety risk to others. A regional survey from 2020 revealed that 55% of landlords conduct credit checks, 53% screen rental history, and 40% check criminal records.
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