Title
Tenant Screening Outreach and Policy Options Briefing
Recommended Action
Committee Recommendation:
Hold a discussion on tenant screening community outreach and policy options.
City Manager Recommendation:
Hold a discussion on tenant screening community outreach and policy options.
Report
Issue:
Whether to hold a discussion on tenant screening community outreach and policy options.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development
Background and Analysis:
Development of Olympia tenant protections
The City of Olympia has been actively exploring renter protections since 2018. In 2019, the City Council and its committees identified and prioritized several potential policy options to support tenants and improve rental housing conditions.
In March 2020, the Council's Land Use & Environment Committee (LUEC) hosted a public forum to begin a broader community conversation around the challenges faced by renters and possible policy solutions. However, progress was temporarily paused due to the COVID-19 pandemic.
Discussions resumed in mid-2021, when City staff were tasked with researching tenant protection policies and providing updates to LUEC. This included examining best practices from other Washington cities and gathering input from community stakeholders on a range of policy proposals.
LUEC used this research and community feedback to prioritize a set of tenant protections for future adoption. Since 2022, the Olympia City Council has enacted several measures under Olympia Municipal Code Chapter 5.82, known as the Rental Housing Code, strengthening protections for renters across the city.
Alignment with work plans
Establishing tenant protections to address housing instability is a priority outlined in Strategies 2.a and 2.f of the City's Housing Action Plan: "Identify and implement appropriate tenant protections that improve household stability" and "Explore barriers and policies that can increase access to housing for formerly incarcerated individuals." These efforts are also aligned with broader regional goals, including the Thurston County Homeless Crisis Response Plan ("enact and implement tenant protection laws and fund enforcement") and the Thurston County Assessment of Fair Housing ("reduce barriers to accessing housing").
Background on tenant screening practices
Tenant screening practices are policies and procedures used by housing providers to evaluate whether to rent to a prospective tenant. These screenings often consider factors such as an applicant's criminal history, credit history, rental or eviction history, employment background, and income level.
While intended to assess risk, tenant screening practices can create significant barriers to housing-particularly for low-income individuals, formerly incarcerated people, and members of protected classes, including people of color, immigrants, and individuals with disabilities.
In response to these concerns, the U.S. Department of Housing and Urban Development (HUD) has issued guidance to clarify how these practices may violate fair housing laws. In April 2016, HUD's Office of Fair Housing and Equal Opportunity (FHEO) released Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions. More recently, in April 2024, HUD released Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing. Both documents underscore how systemic disparities in the criminal justice system, credit scoring, and eviction processes disproportionately affect protected classes-especially people of color-and caution that overly restrictive screening criteria may result in unlawful disparate impacts under the Fair Housing Act.
Despite these protections, enforcement remains a significant challenge. Fair housing agencies have long been underfunded and understaffed, leading to a backlog of unresolved complaints. Additionally, the current presidential administration has proposed cuts to HUD's fair housing enforcement programs, including contracts with state and local agencies. Proving disparate impact claims can also be complex, making it difficult for impacted individuals to obtain relief.
Council process
Over the past year, City staff have engaged with the Land Use & Environment Committee (LUEC) and City Council on multiple occasions to explore tenant screening policies aimed at improving housing access and reducing discriminatory barriers. Below is a summary of key milestones and actions taken:
* January 2024 - LUEC directed staff to hold a public hearing to gather community feedback on tenant screening practices.
* March 2024 - Public hearing held.
* November 2024 - Staff briefed LUEC on income-to-rent ratio policy options and reviewed similar policies from other jurisdictions. LUEC directed staff to draft an ordinance addressing income-to-rent ratios. A draft ordinance was completed and is attached to this report.
* March 2025 - Council reviewed proposed income-to-rent policy elements and additional tenant screening policy options. Council directed staff to bring the proposal back to LUEC before returning to Council in Q3 2025. Council also asked staff to delay final action until the 2025 state legislative session concluded and outcomes of proposed state-level tenant protection bills were known.
* May 2025 - Staff presented HUD guidance and tenant screening policies from other jurisdictions, focusing on criminal history, credit history, eviction/rental history requirements and providing a social security number
Staff provided two policy approaches:
* Individualized Assessments - screening decisions made on a case-by-case basis.
* Set Limitations - placing clear restrictions on what aspects of an applicant's background can be considered to prevent overly restrictive practices.
Due to concerns about the City's capacity to enforce individualized assessments, LUEC directed staff to pursue policy options that establish clear limitations ("guardrails") on what may or may not be considered during tenant screening.
Enforcement Considerations
* Housing Division staff currently investigate complaints and enforce the City's Rental Housing Code, in coordination with the Code Enforcement Division.
* Proposed tenant screening policies aim to reduce discriminatory barriers while ensuring practical enforceability.
* Policies would allow landlords to consider less restrictive factors than required-but not more restrictive than the established limits.
.
LUEC Recommendations & Next Steps
LUEC supported the recommended approach of setting reasonable guardrails but noted that Council may also want to explore educational campaigns or non-regulatory alternatives.
LUEC directed staff to:
* Conduct community engagement to inform the policy direction.
* Return to Council with proposed policy language and community engagement findings.
* Conduct outreach to jurisdictions with similar policies to evaluate staffing and enforcement impacts, and policy effectiveness.
Staff reached out to the cities of Tacoma, Minneapolis, Portland, Philadelphia, and the state of Colorado. Multiple attempts were made to connect with other jurisdictions.
The City of Portland was the only jurisdiction that responded in detail and provided an interview regarding their program. Portland does not enforce their tenant screening policy provisions and instead enables tenants to pursue their own legal remedies. Portland uses revenue from its rental registry program to provide additional landlord and tenant programs and services, such as a technical assistance hotline for landlords and tenants and contracted services such as a barrier reduction legal clinic which can help with expungement of records.
Development of Proposed Policy
Staff reviewed HUD guidance and sample policies from other jurisdictions to create policy elements for each tenant screening issue:
* Income to rent ratios,
* Requirement of Social Security numbers,
* Criminal history,
* Credit history, and
* Rental history.
These proposed policies reflect LUEC's direction to establish reasonable guardrails-clear limitations on what aspects of an applicant's background may be considered in the tenant screening process. Landlords would retain the flexibility to apply less restrictive criteria than those outlined in the proposed policies but would not be permitted to impose stricter standards. Additional details on the development of these policy proposals are provided in the attached Staff Memo.
Community Engagement
To gather community feedback and insights on the proposed tenant screening policy elements, two Engage Olympia surveys were posted for a three-week period. The surveys were tailored to engage the following groups:
* Renters and Community Service Providers, including housing case managers, tenant advocates, and related professionals
* Landlords and Property Managers, including former landlords and individuals considering becoming landlords in Olympia
Community members were asked to provide feedback on:
* Their level of support for each policy element
* Reasons for supporting or opposing the policies
* Suggestions for changes or improvements
* Concerns or potential unintended consequences
* Ideas for how Olympia could more effectively address tenant screening issues
In addition to the shared questions:
* Landlords and property managers were asked about their current screening practices and which applicant information they find most concerning.
* Renters and community service providers were asked whether rental applications had been rejected, the reasons for rejection, and the impacts of those experiences.
Further details can be found in the attached Staff Memo, Full Landlord/Property Manager Survey Results, and Full Renter/Community Service Provider Survey Results.
Council study session
At the upcoming Council study session, staff will provide an overview of the Council's process to date and the key steps leading up to this briefing. The presentation will include:
* Data from community engagement on current tenant screening practices, including why landlords use them and their reported impacts on tenants
* Issue-by-issue information on each tenant screening topic under consideration
* Background context for each issue, including the underlying problems, relevant HUD guidance, proposed policy elements, and community feedback on those proposals
* A summary of key concerns, unintended consequences, and alternative approaches suggested by survey respondents
Only themes expressed by 10% or more of survey respondents will be included in the presentation. More detailed information can be found in the attached Staff Memo.
Next Steps
Staff is requesting Council's feedback on the proposed tenant screening policy options and other approaches to address challenges in the screening process. Staff can adapt the proposed policy elements based on community feedback and suggested changes, pursue some or all of the tenant screening policies, and/or explore a combination of policy and educational approaches.
Climate Analysis:
The proposed rental housing policies are not expected to have a significant impact on greenhouse gas emissions. If a household can qualify for more housing options and relocate closer to their existing residence, they may have reduced commute times, resulting in a long-term reduction in greenhouse gas emissions.
Equity Analysis:
Adopting tenant screening reforms addressing overly restrictive use of criminal history, credit and rental history, income-to-rent ratios, and Social Security number requirements-would improve access to housing for BIPOC communities, immigrants, domestic violence survivors, people with disabilities, and other disproportionately impacted groups.
BIPOC households in Olympia are more likely to rent than own. According to HUD CHAS data, 61% of BIPOC households and 73% of Hispanic/Latine households rent, compared to 50% of white households. ACS data shows 82% of single mother households in Olympia rent. These households are especially affected by restrictive screening practices.
Use of criminal history in screening has a well-documented disparate impact. HUD's 2024 guidance highlights that Black and Hispanic individuals are significantly overrepresented in the prison system. In Washington, Black individuals are 2.7 times more likely to be convicted than white individuals, and Black and Indigenous people face disproportionate arrest rates. Olympia's Social Justice & Equity Commission has recommended a "ban-the-box" policy for rental housing as a reparative justice action.
Credit history also presents barriers. The Urban Institute reports only 20.6% of Black households have a FICO score above 700, compared to over 50% of white households. CFPB data shows that 15% of Black and Hispanic individuals are credit invisible, and an additional 13% of Black and 12% of Hispanic individuals have unscored credit records. Immigrants and DV survivors also frequently lack credit histories due to systemic barriers or financial abuse.
Eviction history is similarly disproportionate. Black renters make up 18.8% of U.S. renters but account for over 51% of eviction filings. Black families with children face eviction filing rates exceeding 25%. In Pierce County, 1 in 6 Black adults were named in an eviction filing between 2013-2017, compared to 1 in 55 white adults.
Income-to-rent ratio policies also exclude vulnerable groups. In Olympia, 24% of households of color and 22% of Hispanic/Latine households earn less than 30% of Area Median Income, compared to 15% of white households. People with disabilities earn significantly less on average, and over 33% of single mother households live below the federal poverty level. Reducing income threshold requirements would improve access for these renters.
Requiring a Social Security number limits access for immigrants, whose population in Olympia grew by 3% between 2010 and 2020. Ten percent of Olympia residents are foreign-born and may not have a U.S. credit record.
These reforms would also support public safety and the homeless response system. Formerly incarcerated people are nearly 10 times more likely to be homeless. Studies show those with unstable housing are up to seven times more likely to reoffend. A 2022 University of Michigan study found nearly half of U.S. children live in households with criminal justice involvement, underscoring the intergenerational impact of housing instability.
While these changes may require adjustments from landlords, especially in screening procedures, the City's approach balances equity goals with implementation feasibility. Instead of requiring individualized assessments, proposed policies establish clear limitations on what may be considered, reducing burdens while curbing discriminatory practices.
Neighborhood/Community Interests (if known):
Potential changes to Olympia Municipal Code's Rental Housing Code (OMC 5.82) are of high interest to both renters and rental housing owners and operators in Olympia and throughout Thurston County. As part of the City's outreach, 283 individuals responded to the Engage Olympia survey on this topic. Full survey results and a summary have been provided as attachments to this report. In addition, staff received several public comments via phone and email, which are also attached.
Community feedback beyond the survey highlights growing concern about barriers to housing caused by tenant screening practices. Recent engagement for the Thurston County 5-Year Homeless Crisis Response Plan identified criminal history as a significant barrier to securing housing. Unhoused residents and service providers participated in listening sessions to help identify gaps and shape priorities for the plan. Strategies have since been developed to support individuals re-entering the community, strengthen coordination with regional partners, and engage landlords in efforts to reduce barriers for justice-involved individuals.
Financial Impact:
Additional staff time may be required to investigate and enforce violations of any ordinance that the City adopts. Additional funding may be required if the City pursues other approaches and options.
Options:
1. Receive a briefing on tenant screening policy options and discuss next steps.
2. Do not receive a briefing on tenant screening policy options.
3. Receive a briefing on tenant screening policy options and discuss next steps at another time.
Attachments:
Staff Memo
HUD Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing
Public comments
Full renter/community service provider survey results
Full landlord/property manager survey results
Draft Income to Rent ratio ordinance