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HUD announces plan to help house people with criminal records

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Consumer Protection, DEI, Government Oversight, Nonbank Financial
Tuesday, April 25, 2023

Department of Housing and Urban Development (HUD) Secretary Marcia Fudge announced the additional steps the agency is taking to ensure that otherwise-qualified individuals are not denied housing opportunities solely due to a criminal record.

HUD stated it is preparing to issue a notice of proposed rulemaking in which it proposes to change its regulations governing public housing agencies and HUD-subsidized housing providers to prevent unnecessary denials of housing assistance to people with criminal history records.

“This Fair Housing Month and Second Chance Month, HUD recognizes that current criminal justice and housing policies have denied those seeking rehabilitation the ability a chance to lead better lives,” Fudge said. “A year ago, I called on HUD programs to conduct a policy review of ways that we can remove barriers to safe, affordable housing for people with criminal history records. As we execute our action plan, I invite state and local housing agencies, owners, and property managers to partner with HUD to remove barriers to housing to people with criminal records and support people’s successful reentry to the community. Research shows that providing safe and affordable housing and supportive services so that people succeed during reentry makes our communities stronger and safer.”

The announcement followed a “comprehensive review of HUD regulations, policies, and guidance” intended to increase opportunities for qualified individuals and families to receive housing assistance from HUD. That review found many of HUD’s regulations and sub-regulatory provisions could be improved and clarified to ensure that public housing agencies and HUD-affiliated owners are following recognized best practices, including:

  • Not automatically denying an applicant housing assistance simply based on the presence of a criminal conviction, other than where explicitly prohibited by federal law.
  • Disregarding criminal history that is unlikely to bear on fitness for tenancy, such as arrest records, sealed or expunged records, older convictions, and convictions not involving violence or harm to persons or property.
  • Using individualized assessments to determine whether applicants truly pose a future risk to persons or property, taking into account other factors such as the applicant’s employment, engagement in alcohol or drug treatment, and constructive community involvement.
  • Providing applicants with criminal history records with reasonable time and opportunity to provide supporting information regarding mitigating factors before an admission decision is made.
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