Fair Chance Housing Policy
&
Draft Ordinance
City Council – April 14, 2025 www.paloalto.gov1
2 Meeting Purpose
• Overview of prior Fair Chance Housing policy discussions and direction • Present a draft Fair Chance Housing Ordinance
• Conduct public hearing to discuss and receive public feedback • Consider adoption of a Fair Chance Housing Ordinance (First Reading)
3 Fair Chance Housing Past Policy Discussions & Motions • City Council (Nov 29, 2021)
Fair Chance ordinance to be reviewed by the Policy & Services Committee for analysis on consequences/unintended consequences.
• Housing Ad Hoc Committee (August 8, 2024)
Recommended Human Relations Commission (HRC) consideration of policy approaches prior to Council consideration.
• Human Relations Commission (February 9, 2023)
Recommended that Council proceed with a Fair Chance Ordinance to limit landlords’ ability to inquire about an applicant’s criminal history.
• Human Relations Commission (October 10, 2024)
Recommended support for policy option 1 to limit use of criminal history with a two-year lookback period and support for Council consideration of Fair Chance Housing policies.
4 Fair Chance Housing Ordinance Overview
Overview
Promotes fair housing,
anti-discrimination, and renter’s rights
Establishes procedures for the use of
criminal history in rental housing
decisions
Facilitates equal opportunities for
applicants to compete for rental
housing
Location
New
Chapter
in PAMC
Details
If adopted, procedures would be
established.
Example Procedures:
• Only checking criminal history after
a conditional housing offer is made
• Conducting an individualized
assessment of any information
5 Fair Chance Housing Policy Comparison
Existing State Law Draft Fair Chance Housing Ordinance
Regulates use of criminal history as a proxy
for discrimination based on protected
characteristics (e.g., race)
Regulates discrimination based on criminal
history as its own harm
Landlords may only consider only
“directly related convictions” Same as State law
Does not prescribe a lookback period Prohibits consideration of convictions that occurred outside a designated two-year lookback period
Procedural protections for renters are
encouraged, but not required
Procedural protections for renters are required
and outlined in the ordinance
6 Fair Chance Housing Ordinance: Procedures
Part 1
(Applicable only if
Criminal History
Check
is Used)
Step 1 – Landlord makes conditional housing offer
Step 2 – Landlord:
➢ Provides advance notice of criminal history check
➢ Provides opportunity to present evidence
➢ Requests/obtains written consent (3 days) or
provides opportunity to withdraw
Step 3 – Landlord conducts individualized assessment
Part 2
(Applicable only if
Adverse Action
is Intended)
Step 4 – Landlord:
➢ Provides copy of Background Check Report
➢ Notifies of prospective Adverse Action with specifics ➢ Notifies of right to provide evidence
Step 5 – Renter opportunity to respond (7 days)
Step 6 – Landlord consideration of response (7 days)
Step 7 – Landlord Adverse Action with written information
7 Potential Alternative Policy Considerations
Criminal history lookback period length (refer to Attachment B) • Affirm proposed two-year lookback period; or
• Alternative: Consider a different lookback period length Property applicability and exemptions
• Affirm proposed exemptions; or
• Alternative: Consider different, fewer, or expanded exemptions Implementation
• Affirm proposed City publication of requirements and procedures; and/or • Alternative: Consider any additional City implementation requirements Remedies
• Affirm proposed private right of action; and/or
• Alternative: Consider any additional remedy or enforcement provisions
8 TimelineAPRIL 2025
City Council
Public Hearing
(First Reading)
and Adoption
MAY 2025
City Council
Public Hearing
(Second Reading)
JUNE 2025
Ordinance Effective
after 30 days
Implementation
activities
9 Staff Recommendation
• Hold a public hearing to discuss Fair Chance Housing policy and public feedback; and • Adopt an Ordinance to add Chapter 9.75 (Fair Chance in Housing) to the Palo Alto Municipal Code to limit the use of criminal history information in rental housing decisions (Attachment A).