Fair Housing Friday: Credit Checks & Scores for Voucher Holders — Your NYC Compliance Playbook

By: Sydney Harewood. LRSP, NYC
Broker: LEVEL
5 West 37th Street
New York, NY 10018
www.nycexclusiveapts.com
"Your Premier Bridge to Manhattan Living."
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Phone: 646-535-3819
Email: sharewood@levelgroup.com

Good Friday morning, my friend. Fresh coffee, clear rules. Let’s keep your screening both smart and lawful.

What sparked today’s post

This blog distills REBNY’s Fair Housing Friday email, “What Real Estate Licensees Should Know About Credit Checks and Scores for Voucher Holders” (9/26/25), by Neil B. Garfinkel (REBNY Broker Counsel)—and cross‑checks it with official NYC/NY State guidance.

TL;DR (Two‑Minute Brief)

If a voucher covers 100% of the rent: the email advises no credit check—credit isn’t relevant because the rent is paid by a government agency. For city‑subsidized Housing Connect homes, NYC has already eliminated credit checks for voucher applicants by policy. (New York City Government)
If the tenant pays a portion: a credit check may be run, but rejecting based on minimum score thresholds or using credit in a way that undermines the subsidy can be discriminatory. Case‑by‑case review only. (New York City Government)
“Lawful Source of Income” (SOI) is a protected class under NYC & New York State law. Different or higher hurdles for voucher users (e.g., minimum income ignoring the voucher, special fees, special guarantor rules) can violate the law. (New York City Government)

The Three Common Screening Scenarios

1) Voucher covers 100% of rent (tenant pays $0)

REBNY’s guidance: Do not run a credit check; it’s not relevant when the rent is guaranteed by the agency.
NYC policy (city‑subsidized homes): HPD/HDC prohibit credit checks for voucher holders applying through Housing Connect; marketing agents can’t use credit scores or rental‑history substitutes to screen. (New York City Government)
NYC enforcement lens: The Commission on Human Rights (CCHR) flags that applicants should not be rejected based on credit when the voucher covers the full rent, and warns that requiring a minimum credit score may violate the law. (New York City Government)

Agent takeaway: When the subsidy covers everything, treat credit as off‑topic; focus on program and tenancy requirements that actually apply.

2) Voucher covers part of the rent (tenant pays a share)

You may run a credit check, but remember: the housing agency already vetted the tenant’s ability to pay their share. Use credit only to evaluate legitimate risk factors unrelated to ability to pay the subsidized rent, e.g., multiple bankruptcies or recent serious delinquencies—not as a proxy to screen out voucher users. No minimum credit score bars. (New York City Government)
Do not apply a minimum income rule to the full rent. If you use income criteria at all, it must be tied to the tenant’s share only; applying “40× rent” to a voucher household is a classic SOI violation. (New York City Government)

Agent takeaway: Case‑by‑case review, no blanket score cutoffs, and never ignore the voucher when assessing affordability.

3) City‑subsidized lotteries & affordable units

NYC’s HPD/HDC Marketing Handbook update (10/5/23) removed credit checks for voucher holders and, where a credit check is otherwise permitted, limits rejection to specific grounds (e.g., bankruptcy, serious delinquencies, liens). Developers may not reject solely on credit score. (NYCHDC)

Agent takeaway: For Housing Connect, follow the handbook; for everything else, follow NYC/NYS SOI rules plus your brokerage’s uniform policy.

Do / Don’t (Quick Compliance Grid)

Standardize screening criteria and apply them equally to all applicants.
For voucher users, evaluate only the tenant’s share when applying any income‑related criteria. (New York City Government)
Keep written records of criteria, applications, and decisions (consistency is your best friend).
For city‑subsidized units, follow HPD/HDC rules: no credit checks for voucher holders; no score thresholds; permitted denials only for enumerated red‑flag items. (NYCHDC)

Don’t

Require a minimum credit score for voucher holders. (CCHR warns this may violate the law.) (New York City Government)
Apply a “40× rent” rule to the full rent when a voucher covers most/all of it. (New York City Government)
Set special hurdles (fees, extra guarantors, “program caps”) for voucher users. SOI is protected under NYC & NYS law. (New York City Government)

NYC Agent Playbook (Copy/Paste Scripts)

Explaining your process (neutral & uniform):
“We use the same screening criteria for every applicant. For voucher users, we assess only the tenant’s share and do not use minimum credit score thresholds.” (New York City Government)
When a voucher covers 100%:
“Because your voucher fully covers the rent, we won’t need a credit check. We’ll proceed with the program paperwork and any standard tenancy verifications.” (New York City Government)
If a partial share is due:
“We may review credit on a case‑by‑case basis and will not use a minimum score cutoff. We look only for serious red flags unrelated to the voucher.” (New York City Government)

Text‑Infographic: “Voucher‑Aware Screening” (NYC)

Start

│

├─► Is the voucher covering 100% of rent?

│ ├─ Yes → No credit check; proceed with program steps (Housing Connect: policy bars checks)

│ │ [CCHR + HPD/HDC policy]

│ └─ No → Partial tenant share:

│ • Credit may be reviewed case-by-case (no score minimums)

│ • Income criteria (if used) = tenant’s share only

│ • Document uniformly, apply equally

│

└─► Final decision:

• Never deny due to use of a voucher (SOI protected)

• If denying where a credit review is permitted, base it on specific,

legitimate grounds (e.g., recent bankruptcy + other risk factors),

and follow notice procedures per your brokerage

(NYCHDC)

FAQs (Clients Ask, You Answer)

“Is it legal to check my credit if I have a voucher?”
If 100% covered: NYC’s policy eliminates checks for city‑subsidized units; REBNY’s guidance treats credit as irrelevant. If partial share: a credit check may occur, but no minimum score rules; assessments must be individualized. (New York City Government)
“Can the landlord require me to make 40× the full rent?”
No—income rules (if used) must relate to your share only, not the full rent covered by a voucher. (New York City Government)
“Is using a voucher a protected right?”
In housing, yes in NYC and NYS: lawful source of income is protected. Discriminating because you use a voucher is unlawful. (New York City Government)

Helpful Outlinks (authoritative sources)

NYC CCHR — Source of Income protections (overview & enforcement): city site + tenant FAQ. (New York City Government)
NYC HPD/HDC — Credit checks eliminated for voucher holders (Housing Connect policy): press release (Mayor’s Office) + HDC announcement. (New York City Government)
NYSDHR — Statewide SOI protection & guidance: state site + detailed PDF. (Division of Human Rights)
HPD/HDC Tenant Selection Criteria (developers/marketing agents): credit score cannot be sole basis for rejection. (New York City Government)

Source & Attribution

This summary is based on REBNY’s Fair Housing Friday email (9/26/25) by Neil B. Garfinkel, and cross‑checked against NYC/NY State primary guidance cited above.

Compliance Note (not legal advice)

This blog is educational and not legal advice. For deal‑specific questions, consult your brokerage counsel or your own attorney.

Final thought

Consistency is compliance. Keep your screening criteria uniform, voucher‑aware, and fully documented. Future‑you—and your license—will thank you.

Sydney Harewood is a real estate professional with a passion for NYC’s architectural gems. For inquiries, call or message Syd at 📞646-535-3819. Experience the finest in NYC real estate with Syd’s expert guidance and deep knowledge of the city’s most exquisite properties.

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