The U.S. Department of Housing and Urban Development (HUD) just issued a major update on criminal-record screening and rolled back several prior guidance documents. This article explains what’s changed, what HUD expects from owners and operators of HUD-assisted housing, and what actions developers, owners, and management agents should take right away. For additional details, refer to HUD’s Screening Criminal Responsibilities Letter.

Overview 

HUD has rescinded three major guidance documents governing the use of criminal records in housing decisions:

1. Notice PIH 2015-19, Guidance for Public Housing Agencies and Owners of Federally Assisted Housing on Excluding the Use of Arrest Records in Housing Decisions (“Notice PIH 2015-19”)
2. 2016 Office of General Counsel Guidance, Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions (“2016 OGC Guidance”)
3. 2022 Office of Fair Housing and Equal Opportunity Memo, Implementation of the Office of General Counsel’s Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions (“2022 FHEO Memo”)

Notice PIH 2015-19 had instructed owners not to use arrest records alone to deny admission, terminate assistance, or evict tenants. The 2016 OGC Guidance had limited the use of criminal-history policies that could have disparate impacts under the Fair Housing Act and discouraged blanket bans. The 2022 FHEO Memo had reiterated those limitations and provided investigative procedures and “best practices” for evaluating criminal-screening policies under the Fair Housing Act.

HUD’s new letter withdraws these prior interpretations and emphasizes that owners should fully exercise their existing regulatory authority to screen applicants, monitor households, and take enforcement action to maintain safety and peaceful enjoyment at HUD-assisted properties.

HUD Screening and Monitoring Responsibilities

HUD’s letter reiterates long-standing statutory and regulatory requirements that owners must ensure housing is “decent, safe, and affordable” and emphasizes the need for consistent use of mandatory denial standards, permissive screening authority, and ongoing monitoring and enforcement of lease provisions when criminal activity occurs. These expectations reflect HUD’s existing regulatory framework, while clarifying that owners should not hesitate to use the tools available to maintain safety.

Steps Developers, Owners, and Management Agents Should Take Now

• Review and update screening policies. Ensure Tenant Selection Plans and internal operating procedures fully reflect permissible screening authority and mandatory denial standards.
• Assess termination practices. Confirm lease provisions and enforcement protocols capture the criminal-activity categories highlighted in HUD’s letter.
• Evaluate monitoring protocols. Strengthen procedures for identifying and responding to criminal activity affecting safety or peaceful enjoyment.
• Coordinate internally. Ensure compliance teams, asset managers, property managers, and counsel are aligned on revised expectations and documentation requirements.

Strategic Considerations for Developers

These HUD directives have direct implications for project structuring, operations, and compliance:

• Monitor Operational Stability: Understand how enhanced screening and enforcement expectations may affect occupancy levels, turnover patterns, and long-term compliance for HUD-assisted units.
• Plan for Policy Updates in Agreements: Consider whether partnership agreements, management contracts, regulatory compliance manuals, or investor-facing documents need revision to align with HUD’s renewed emphasis on criminal-history screening.
• Engage Property Management Early: Confirm that management agents have the capacity and procedures to implement updated screening criteria and enforce criminal-activity lease provisions consistently.
• Assess Compliance Exposure: Review regulatory agreements, loan documents, and financing commitments to evaluate whether strengthened screening or termination actions could implicate performance standards or default triggers.

Summary

• HUD has rescinded the Notice PIH 2015-19, 2016 OGC Guidance, and 2022 FHEO guidance documents, removing prior constraints on owners’ ability to rely on criminal-history information.
• Owners and developers of HUD-assisted housing are encouraged to update screening policies, monitoring practices, and termination protocols to reflect HUD’s clarified expectations.
• Strategic coordination with management agents and compliance teams is essential to align operations with HUD’s renewed focus on safety.
• Additional HUD guidance and policy discussions may further refine implementation practices for owners and operators in the coming year.