HUD Criminal Screening Update

On November 25, 2025, the U.S. Department of Housing and Urban Development (HUD) issued updated guidance regarding criminal screening. HUD states that Public Housing Authorities (PHAs) and private owners of project-based rental assistance have an obligation to provide “decent, safe, and affordable housing” and must take necessary steps to meet that obligation, including:

1. Screening for criminal history prior to admission into HUD-assisted housing;
2. Monitoring of assisted households to remove individuals that pose a threat to the safety and peaceful enjoyment of their units; and
3. Deploying resources to ensure the ongoing safety of such properties through physical security features and/or contracted safety services.

HUD explains that prior guidance created confusion and discouraged lawful screening. To address this, HUD rescinded three documents: (1) Notice 2015-19 on excluding arrest records in housing decisions; (2) a 2016 Office of General Counsel memorandum on Fair Housing Act standards for use of criminal records; and (3) a 2022 Fair Housing memorandum implementing that guidance.

HUD reiterates both mandatory and discretionary screening authority:

Mandatory Denial of Admission: HUD regulations require denial of admission if an applicant: (a) was evicted from federally-assisted housing within 3 years for drug-related criminal activity; (b) is currently using illegal drugs or poses a drug-related safety threat; (c) was convicted of manufacturing methamphetamine in federally assisted housing; (d) is subject to a lifetime sex offender list; or (e) has a history of alcohol abuse that reasonably threatens safety or peaceful enjoyment.

Permissive Screening for Denial of Assistance: PHAs and owners have broad discretion to screen for suitability of tenancy or program participation for all relevant circumstances, including a history of criminal activity which would adversely affect the health, safety, and peaceful enjoyment of the property.

Termination of Assistance for Criminal Behavior: PHAs and owners must establish standards permitting termination where household members: (a) engage in illegal drug use or have a pattern of drug use that threatens the health, safety or peaceful enjoyment of the property; (b) have been convicted of production of methamphetamine in federally-assisted housing; (c) are engaging in drug-related criminal activity; (d) are engaged in violent criminal behavior; or (e) are abusing alcohol.

HUD further notes that under its “One Strike and You’re Out” Screening and Eviction Guidelines, an essential element is strict, fair, and uniform enforcement of lease provisions against all violators. In addition to reviewing and revising existing screening and enforcement policies, HUD instructs PHAs and owners to publicly display and advertise the HUD Office of Inspector General (OIG) Hotline (1-800-347-3735) for reporting fraud, waste, abuse, mismanagement, criminal activity, or whistleblower matters involving HUD programs. HUD also directs residents, staff, and management to call 911 or local law enforcement if they experience or observe safety emergencies or active criminal conduct—including gang-related, drug-related, sex-trafficking, or other violent activity—at HUD-assisted properties.

California Compliance Note: Owners must continue to comply with California fair-housing rules governing criminal screening—including individualized assessments, limits on considering arrest records, and related procedural requirements—unless a state restriction directly conflicts with a HUD-mandated denial. In practice, HUD’s rules generally do not preempt California’s standards; providers must implement HUD-required denials while still following California’s notice, documentation, and individualized assessment obligations.

A copy of the new guidance is available here:

https://www.novoco.com/public-media/documents/hud-criminal-screening-11262025.pdf

The law firm of Wallace, Richardson, Sontag & Le, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice.