A property management company in Seattle implements a 'criminal background screening policy' that automatically disqualifies any applicant with any criminal conviction, regardless of the nature or age of the conviction. A prospective tenant with a decade-old misdemeanor conviction for a non-violent offense is rejected. The tenant is also a member of a racial minority group. Under Seattle's local ordinances and applicable fair housing guidance, which analysis best describes the legal risk of this policy?
Correct Answer
D) The policy may be unlawful under a disparate impact theory if it disproportionately excludes members of a protected racial class, and Seattle's Fair Chance Housing Ordinance further restricts the use of criminal history in tenant screening
Seattle has enacted a Fair Chance Housing Ordinance (SMC 14.09) that significantly restricts landlords' ability to use criminal history in tenant screening. The ordinance generally prohibits landlords from inquiring about or taking adverse action based on criminal history during the initial screening process, with limited exceptions for certain serious offenses. Beyond the local ordinance, HUD guidance and fair housing case law recognize that blanket criminal history exclusion policies can violate the Fair Housing Act under a disparate impact theory if they disproportionately screen out applicants of a particular race or national origin — because arrest and conviction rates are not racially neutral. A policy that automatically disqualifies any applicant with any conviction, regardless of age or nature, is particularly vulnerable to both the Seattle ordinance and disparate impact challenges.
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