Legislation pending in the Michigan House would prevent landlords from using a potential tenant’s criminal record to evaluate their rental application. The measure would require the state’s attorney general to hire additional staff to enforce.

However, a leading Michigan public policy think tank described the initiative as “a gift to trial attorneys.”

According to the House Fiscal Agency, House Bill 4878, the Michigan Fair Chance Access to Housing Act, would “generally prohibit a landlord from using an individual’s criminal record when evaluating the individual’s rental application at any stage in the application process, except as provided by the act or under federal or state law.”

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A landlord who complies with the act would be immune from liability if a civil action arose from not conducting a background check or if they opt to rent to someone with a criminal record.

The bill was introduced by Democratic lawmakers last year.

While the bill has been stalled, more than 100 organizations wrote to Michigan leaders last month, demanding they pass the measure. Housing advocates from across Michigan gathered in the State Capitol to continue their push to reform state laws governing landlords and tenants.

Legislation barring queries about someone’s criminal record, known as “ban-the-box” laws, typically regulates what data an employer can request from a prospective employee.

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Several local jurisdictions across the Wolverine State have passed “ban-the-box” ordinances focused on housing, including Ann Arbor, Detroit, and Kalamazoo. In 2021, New Jersey passed the Fair Chance in Housing Act, which contains conditions similar to Michigan’s HB 4878 and largely forbids landlords from asking about an applicant’s criminal history.

“The best way to have affordable housing is to make it easier for nonprofits and developers to build housing, not impose mandates and restrictions,” the Mackinac Center for Public Policy’s Jarrett Skorup wrote in a blog last year.

“People with criminal backgrounds should be able to find housing. Landlords, for their part, need information on their renters, which means knowing about the past criminal activity of those who would rent from them,” Skorup added. “The bill, as written, is a gift to trial attorneys, who would have a new tool for getting more business. While the legislation may help some people with criminal backgrounds find housing, it will have major unintended consequences.”

Under the measure, applicants could file a complaint of possible violations with the state’s attorney general. The complaint requires a detailed description of the alleged violation and details about the applicant and landlord.

The attorney general could investigate the allegations by sending a copy to the landlord, asking the landlord to reply and hand over relevant documents. Landlords would have seven days to respond.

The AG could also convene a hearing.

If the measure becomes law, the AG might require additional personnel to administer, investigate, and enforce it. However, according to a fiscal analysis, the AG could not estimate whether additional attorneys, investigators, or support staff would be necessary.

If the AG’s office determined its current staff could not comply with the measure, a fiscal estimate concluded the office could need $100,000 annually for more support staff positions and $200,000 annually for additional attorneys.

“A one-size-fits-all government mandate that limits property managers’ ability to consult criminal history records would severely affect their ability to know the people they are renting to,” Skorup wrote. “It violates their property rights and greatly increases the risk to housing providers and other renters. In short, House Bill 4878 does more harm than good.”

The measure is part of a broader package of so-called housing reforms Lansing Democrats are pushing, such as Senate Bill 207, which would bar “housing discrimination” based on someone’s source of income.