In a needs-assessment conducted by the Office of New Americans, it was determined that new arrivals to the US struggle with finding housing due to a lack of credit score and limited time in the United States.
Per current housing law, landlords and property managers can deny housing to refugees due to their lack of credit score. However, the lack of credit score is not an indication of the potential tenant’s ability to pay or to be a good tenant. The score doesn’t exist simply because the potential tenant does not have a history in the United States.
Given the importance of an equity lens to housing and the expected new arrivals to Chicago, it is increasingly important to develop a solution that provides more equitable housing options for refugees entering the country.
This solution suggests building a coalition of landlords who will not require credit scores for housing applications submitted by refugee or asylum seeker applicants for 2 years from their arrival to the United States. In a combined effort with Department of Family and Support Services (DFSS), the Department of Housing (DOH), and the Office of New Americans (ONA), this solution would involve interdepartmental and external programming that protects newly arrived Americans from being discriminated against due to the lack of a credit score.
This solution would be paired with: (1) landlord and property management educational programming to inform these groups about the refugee population and the benefits and importance of housing refugees; and (2) landlord incentives ranging from additional financial guarantees to potential tax benefits by building partnerships and increasing awareness of federal support programs for refugees (ex: 3 months of guaranteed housing assistance)
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