Fair screening for non-U.S. citizens: consistency is key when screening non-U.S. citizen applicants.

Screening applicants from an ethnically and culturally diverse population need not present a higher risk of discrimination for a rental community. Careful applicant screening and policy control can improve an apartment community performance, while at the same time reducing the risk of Fair Housing Act violations by eliminating bias in the application process.

Understanding the Law

When screening non-U.S. citizen applicants, property management firms must consider federal, state and local laws to remain in compliance with fair housing laws.

Management should conduct staff training or ask its current screening provider to educate company staff members about the Fair Housing Act, the Fair Credit Reporting Act, as well as state and municipal codes in their markets. In 2003, the Fair and Accurate Credit Transactions Act (FACT Act) made permanent the uniform national standards of credit markets and instituted new, strong consumer protections.

HUD Offers Screening Guidelines

The U.S. Department of Housing and Urban Development offers clear guidelines regarding citizenship status (www.hud.gov/offices/fheo/library/sept11.cfm). According to HUD, asking prospective residents to provide documentation of their citizenship or immigration status during the screening process does not violate the Fair Housing Act. HUD regulations actually outline the process for collecting and verifying such documents.

However, the policy of apartment owners and managers regarding documentation must be consistent for all residents. The HUD Web site offers an example. A person from the Middle East who is in the United States applies for an apartment. Because the person is from the Middle East, the owner requires that the person provide additional information and forms of identification and then refuses to rent him the apartment.

Later, a person from Europe who is in the United States applies for an apartment at the same community. Because the person is from Europe, the owner does not have the person complete additional paperwork, does not verify the information on the application or check identification and rents the apartment. This is disparate treatment on the basis of national origin and, therefore, violates the Fair Housing Act. In this example, citizenship or immigration status should have been asked of both non-U.S. citizen applicants.

NAA provides a Supplemental Rental Application for Non-U.S. Citizens as an addendum to its lease. The form, which is only to be filled out by non-U.S. citizens, asks the applicant to show the apartment owner documentation from the U.S. Immigration and Naturalization Service (INS) that authorizes the applicant to be in the United States.

It is not illegal to refrain from using the form, nor is it unlawful to use the form as long as it is used in a manner consistent with fair housing laws, which prohibit housing discrimination on the basis of religion or national origin. Therefore, an owner cannot refuse to rent to a foreign national who meets the rental criteria, just because the applicant is a foreign national and not a U.S. citizen.

Checking Criminal Records

Criminal background reports also are recommended as a measure to screen out potentially dangerous or disruptive residents. Because criminals are not a protected class under the Fair Housing Act, communities can take additional measures to safeguard against criminal activity.

Online resources, such as the Office of Foreign Asset Control (OFAC) database, assist apartment owners in identifying known terrorists without the fear of discrimination. Resident screening companies typically offer OFAC checks as a service for a nominal lee or include it as part of their screening package.

Linda Richer is Director of Resident Screening for AmRent, a national resident screening provider. She can be reached at [e-mail].