Jury finds Housing Authority negligent Sons of woman killed by a crack addict at Charlotte complex are awarded $132,000 over claim of inadequate tenant screening. Negligence by the Charlotte Housing Authority led to an elderly woman’s 2007 death at the hands of a crack cocaine addict, a jury ruled Tuesday. Attorneys sued the agency on behalf of the estate of Eva Dunlap Green, 63. She was strangled three years ago in her ninth-floor apartment at Charlottetown Terrace, a public housing complex for the elderly and disabled near uptown. Her 46-year-old neighbor Kenneth Cyrus – a man attorneys said has a history of violence, drugs and mental illness – was convicted of her killing. Jurors awarded Green’s sons a total of $132,000 – far less than the $10.4 million in damages they were asking for. Jurors said they couldn’t agree on a monetary amount, and the final figure was a compromise. At issue in the two week trial was whether the Housing Authority properly screened Cyrus before letting him live in the Charlottetown Apartments on Baxter Street. “There were so many signs along the way that Kenneth Cyrus should not have been living in public housing,” said Green’s attorney Harvey Kennedy. He argued that the Housing Authority violated its own procedures by doing only a N.C. background check – not nationwide – on Cyrus. That check missed violent crime and drug convictions in Maryland that would have prevented him from living at Charlottetown, according to Kennedy. The jury agreed. “We feel like (Green’s killing) could have been prevented,” said foreman Brian Henry. Charlotte Housing Authority officials wouldn’t say Tuesday what, if any, changes might be made to the tenant screening process. A spokeswoman said officials are meeting with their legal team to determine whether to appeal the verdict. They plan to issue a statement Wednesday. Green’s relatives declined to comment Tuesday. Kennedy said he hopes the judgment will make the Housing Authority do more comprehensive background checks. Said Kennedy: “We should not lose sight of the fact that a good woman, who was a nurse in Charlotte for 40 years, died here.”

Disparate Impact (Legal Theory) Wikipedia

In United States employment law, the doctrine of disparate impact holds that employment practices may be considered discriminatory and illegal if they have a disproportionate "adverse impact" on members of a minority group. Under the doctrine, a violation of Title VII of the 1964 Civil Rights Act may be proven by showing that an employment practice or policy has a disproportionately adverse effect on members of the protected class as compared with non-members of the protected class. The doctrine says that "A facially neutral employment practice is one that does not appear to be discriminatory on its face; rather it is one that is discriminatory in its application or effect."Where a disparate impact is shown, the plaintiff can prevail without the necessity of showing intentional discrimination unless the defendant employer demonstrates that the practice or policy in question has a demonstrable relationship to the requirements of the job in question. This is the so-called "business necessity" defense. Disparate impact contrasts with disparate treatment. A disparate impact is unintentional, whereas a disparate treatment is an intentional decision to treat people differently based on their race or other protected characteristics. Fair housing advocates are beginning to promote application of the disparate impact legal theory (historically applied to employment practices) to bring discrimination claims against landlords. They argue that people of certain races and ethnicities are disproportionately represented in the criminal justice system and therefore use of criminal records for tenant screening purposes has a disparate impact on those individuals. Countering that argument is the right and obligation of landlords to protect themselves, their residents and the community from those who commit serious crimes against persons or property. This debate is far from settled. See http://www.yalelawjournal.org/images/pdfs/539.pdf. That said, many landlords are taking steps to reduce their exposure to disparate impact claims by limiting use of criminal records to convictions (versus records of arrests) and to specific offenses (which are on their face relevant to the tenancy). Note the section 605 of the FCRA prohibits CRA's from reporting records of arrest and evictions which from the date of final disposition antedate the report by less than seven years. Several states (including Washington) similarly limit reporting of conviction records.

RCW 59.18.580 Victim protection — Limitation on landlord's rental decisions.

(1) A landlord may not terminate a tenancy, fail to renew a tenancy, or refuse to enter into a rental agreement based on the tenant's or applicant's or a household member's status as a victim of domestic violence, sexual assault, or stalking, or based on the tenant or applicant having terminated a rental agreement under RCW 59.18.575. (2) A landlord who refuses to enter into a rental agreement in violation of this section may be liable to the tenant or applicant in a civil action for damages sustained by the tenant or applicant. The prevailing party may also recover court costs and reasonable attorneys' fees. (3) It is a defense to an unlawful detainer action under chapter 59.12 RCW that the action to remove the tenant and recover possession of the premises is in violation of subsection (1) of this section. (4) This section does not prohibit adverse housing decisions based upon other lawful factors within the landlord's knowledge.

[2004 c 17 § 4.]

Washington State Senate Bill 6315 Summary

The Washington State legislature recently passed (SB 6315/HB 2642) which amends the Residential Landlord-Tenant Act (RCW 59.18), imposing two new requirements on Washington landlords. The law is effective June 7, 2012. Specifically, Section 3 of RCW 59.18.257 is amended to read (in part) as follows: "Prior to obtaining any information about a prospective tenant <and in order to charge the prospective tenant for tenant screening - whether that charge is payable to a tenant screening company or it covers actual costs incurred by the landlord to obtain the background information>, the prospective landlord <must> first notify the prospective tenant in writing, or by posting of:

• What types of information will be accessed to conduct the tenant screening; • What criteria may result in a denial of the application; and • If a consumer report is used, the name and address of the consumer reporting agency and the prospective

tenant's right to obtain a free copy of the consumer report in the event of a denial or other adverse action, and to dispute the accuracy of information appearing in the consumer report."

"If a prospective landlord takes an adverse action, the prospective landlord shall provide a written notice of the adverse action to the prospective tenant that states the reasons for the adverse action. The adverse action notice must contain <information required by, and in substantially the same format as specified in the bill>." Previously, adverse action notices were not required to be in writing. In a nutshell, the law requires what have become industry best practices - providing written criteria (up front) and written adverse action notice (out back - when adverse action is taken). If your (Moco) services include a "recommendation," we provided you with a criteria document that we recommend you provide to your applicants. If your (Moco) services do not include a "recommendation" you will need to develop your own criteria document. Moco's standard "Application to Rent" includes disclosure of the types of information accessed and the applicant's rights under state and federal consumer reporting law. We made minor changes to our standard "Adverse Action Notice" and our "Adverse Action Notice (Score) documents to align them with the format required by the bill. Bottom line - if you provide your rental criteria up front (in writing or by posting), and if you use Moco's standard Application to Rent and Adverse Action Notice forms, you are in compliance with the new law. Note that this legislation arose out of rare consensus among the major stakeholders - landlords, tenant advocates and consumer reporting agencies. The objective is to reduce costs and increase transparency associated with the tenant screening process for low income applicants and others - which most agree is a good thing.

MANAGERS – Visual Proof of Drivers License or State I.D.: Yes No I.D. Checked by:_______________ Each adult over the age of 18 must complete a separate application.

Mgmt Company Apt Community Community Contact Community Tel # Advertising Source CLIENT #:_____________

CRIMINAL CREDIT CREDIT/CRIMINAL CREDIT/CRIMINAL/EVICTION COMPREHENSIVE APPLICATION TO RENT Apartment #_____________ Move-in Date____________ Rent $______________ Lease_____________

Applicant Roommate w/________________________ Cosigner Section 8

APPLICANT INFORMATION (LEGAL) Last Name First Middle Soc. Sec. # Date of Birth

Other Names Used Drivers License #/State Email Address Contact Phone Number

1 Full Name Relationship DOB 3 Full Name Relationship DOB Other Persons to Occupy Rental:

2 Full Name Relationship DOB 4 Full Name Relationship DOB

Pets to occupy unit: Attach separate sheet if needed

1 Name Type Weight 2 Name Type Weight

RESIDENCE HISTORY Present Address City State Zip

From___________ To___________ Monthly Pmt $

Landlord Name Mortgage Co Apartment Community Relative/Friend Employer/Corp Housing Independent Landlord Landlord Daytime Phone: Landlord Evening Phone:

Own Rent

Previous Address City State Zip From___________ To___________

Monthly Pmt $

Landlord Name Mortgage Co Apartment Community Relative/Friend Employer/Corp Housing Independent Landlord Landlord Daytime Phone: Landlord Evening Phone:

Own Rent

EMPLOYMENT HISTORY Current Employer Monthly Salary

$

Supervisor’s Name How long?

Yrs MosAddress City State Zip Phone Occupation/Department

Previous Employer 2nd job Monthly Salary $

Supervisor’s Name How long?

Yrs MosAddress City State Zip Phone Occupation/Department

ADDITIONAL INCOME – Additional income such as child support, alimony or separate maintenance need not be disclosed unless such additional income is to be included for qualification hereunder Amount $ per Sources

VEHICLE INFORMATION Auto #1 Year Make Model License State License Number

Auto #2 Year Make Model License State License Number

EMERGENCY INFORMATION Nearest Relative Relationship Address City State Zip Phone

( )

Emergency Contact Relationship Address City State Zip Phone ( )

Personal Reference Relationship Address City State Zip Phone ( )

HAVE YOU OR ANYONE WHO WILL BE RESIDING IN THE UNIT EVER BEEN CONVICTED OF A CRIMINAL OFFENSE? Yes No IF YES, please list the date, city, state and type of all convictions: Attach separate sheet if necessary.

ARE YOU OR ANYONE WHO WILL BE RESIDING IN THE UNIT REQUIRED TO REGISTER AS A SEX OFFENDER? Yes No HAVE YOU EVER BEEN ASKED TO VACATE BY A CURRENT/PREVIOUS LANDLORD? Yes No IF YES: APT NAME:_______________________________ CITY_______________________ STATE__________ In compliance with state and federal consumer reporting law, you are hereby advised that a screening will be conducted regarding the information contained in this application. The report may contain information regarding your credit-worthiness, character, general reputation, personal characteristics and mode of living. By signing this application, you authorize Moco, Inc., whose address is PO Box 2826, Seattle, WA 98111, and whose telephone number is (800) 814-8213, to conduct the screening and to release information obtained to landlord and landlord’s agents. If the application is denied or approved conditionally based upon information contained in the report, you may request and obtain a copy of the report. You have the right to dispute the accuracy of information contained in the report. You may have additional rights under both state and federal law. I certify that to the best of my knowledge all statements are true and complete. False, fraudulent or misleading information may be grounds for denial of tenancy or subsequent eviction. Non-Refundable Processing Fee $_______________ Check/Money Order # ___________________ Applicant understands that he/she acquires no rights in an apartment until a holding deposit in the amount of $______________ has been paid. Applicant requests landlord to hold Unit___________ for applicant while the screening process is completed. If this application is not accepted, the holding deposit will be refunded. If the application is accepted and applicant chooses not to occupy the unit being held, applicant forfeits the holding deposit and no portion of it shall be refunded. Signed_____________________________________

Dated___________________

Applicant Signed_____________________________________

_______________________________

Dated___________________

Landlord Position

I am aware that an incomplete application causes a delay in processing and may result in denial of tenancy.

Rental Application – R0108 Copyright 2006 – Moco Inc

Landlord Criteria Worksheet Instructions

Moco Inc recommends that landlords establish and consistently follow formal rental criteria when evaluating prospective residents. Doing so helps ensure fairness and avoid fair housing claims. Rental criteria establishes specific thresholds for approval, conditional approval and denial of applicants. Objective thresholds are typically established for:

• Rental History • Credit History • Employment • Income • Public Records - Criminal & Eviction History

Additionally, formal criteria establishes what decision applies based on where the applicant falls against the various thresholds. Common decisions include:

• Approved - used when applicant meets or exceeds thresholds in all areas • Approved with Increase Deposit - used when rental history, credit history and employment fall below established thresholds • Approved with Cosigner (typically used when income falls below the income threshold) • Denied

The following worksheet will assist you to develop your own criteria. Simply enter your thresholds and answer specific questions in the worksheet. Decide which decisions apply based on where the applicant falls against your thresholds. Once complete, we recommend committing your criteria to writing and sharing with applicants up front - prior to taking an application or screening fee. Disclaimer This document and the attached worksheet do not constitute legal advice. You may wish to review your criteria with a qualified real estate attorney.

Landlord Criteria Worksheet Rental History:

Requirements ______ Months of valid, favorable third party rental history or verifiable home ownership will be required for an approval of tenancy. Military shall be considered to have favorable rental history ____Yes ____No

Waive rental requirement for international students ____Yes ____No Decision Meets or exceeds required rental history requirement (Example: Approved) Less than required rental history (Example: Increased Deposit or Qualified Cosigner*) ______# Late payments in ______ months (Example: Denial) ______# Of NSF Checks in ______ months (Example: Denial) ______# Noise complaints in ______ months (Example: Denial)

Credit History:

Requirements ______ or more trade accounts established for at least ______ years Disregard medical collections ____Yes ____No Disregard student loan collections ____Yes ____No Waive credit requirement for international students ____Yes ____No Decision Meets or exceeds required credit history requirement (Example: Approved) Paid rental collection will result in (Example: Increased Deposit or Qualified Cosigner*) More than $__________ derogatory credit (Example: Denial) Open bankruptcy will result in (Example: Denial) Discharged bankruptcy will result in (Example: Increased Deposit or Qualified Cosigner*) Past due or foreclosed mortgage will result in (Example: Increased Deposit or Qualified Cosigner*) Definition: “Derogatory credit” includes past due accounts, collections, charge off accounts, tax liens, judgments in excess of $100 and/or bankruptcy (discharged or not). * Qualified Cosigner recommendation generally applies if applicant does not meet the income threshold.

Employment:

Requirements At least ______ months with current employer or ______ years in similar job Waive employment requirement for international students ____Yes ____No (Consider I9 verification of international student status) Decision Meets or exceeds required employment requirement (Example: Approved) Less than required employment (Example: Qualified Cosigner or Increased Deposit)

Income: Requirements Gross monthly salary (including spouse & roommates) of at least ______ times monthly rent to qualify for an approval. Include non-garnishable income for qualification ____Yes ____No Monthly income range of _________ to _________ will result in an Increased Deposit or Last Month’s Rent (whichever is applicable). (Non-garnishable income includes tips, babysitting earnings, DSHS payments, child support, trust funds, student loan proceeds, and disability income) Self-employed applicants will be required to provide current tax returns for verification of income. International students are required to provide proof of income source. If employer will not verify income, current pay stubs will be required. Decision Meets or exceeds required income (Example: Approved) Monthly income of _________ (Example: Cosigner) Monthly income of _________ (optional) (Example: Denial)

Deny for:

Criminal:

____Murder, 1st & 2nd Degree ____Manslaughter, 1st Degree ____Assault, 1st, 2nd and 3rd Degree ____Robbery, 1st & 2nd Degree ____Rape, all counts ____Rape of Child, all counts ____Child Molestation, all counts ____Kidnapping, all counts ____Theft, 1st & 2nd Degree ____Burglary, 1st & 2nd Degree ____Residential Burglary ____Vehicle Prowling, 1st Degree ____Malicious Mischief, 1st Degree ____Arson, 1st & 2nd Degree ____Reckless Burning, 1st Degree ____Possession Controlled Substance - Intent to Deliver, all counts ____Delivery or Sale of Controlled Substance, all counts

Other:

____Falsification of rental application ____Unverifiable social security number ____Unpaid rental collection/judgment on credit report and/or verified unpaid eviction ____Any unpaid balance reported by an apartment community ____If any roommate does not meet approval criteria, all roommates are denied

Cosigner Requirements:

______ Months of valid, favorable (no late payments, NSF’s or complaints) third party rental history or verifiable home ownership. At least ______ months with current employer or ______ years in similar job

Garnishable Income in the amount of at least times the rental amount. ______ Or more trade accounts established for at least ______ years More than $__________ derogatory credit = denial of cosigner

ADVERSE ACTION NOTICE - TENANT

PARTIES

Property Name: Date:

Property Address: Unit #:

Owner/Agent (Landlord):

Resident(s): Pursuant to the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), this notice is to inform you that your application to rent the above described property did not meet our requirements and the following Adverse Action has been taken: (__) Your application was denied (__) Your application was approved conditionally as follows: (__) Tenancy requires an increased deposit (__) Tenancy requires a qualified guarantor (__) Tenancy requires payment of last month's rent. (__) Other: ________________________________. (__) If this box is checked, the Adverse Action was taken, in whole or in part, based on information in a Consumer Report (as

defined by the Fair Credit Reporting Act). The Consumer Reporting Agency that provided that report is (check all that apply): (__) Equifax Credit: P.O. Box 740241, Atlanta, GA 30374

1-800-685-5000 www.equifax.com (__) Experian: P.O. Box 2104, Allen, TX 75013-2104

1-888-397-3742 www.experian.com (__) Trans Union: 2 Baldwin Place, P.O. Box 1000, Chester, PA 19022-2000

1-800-888-4213 www.transunion.com (__) Moco Inc: P.O. Box 2826, Seattle, WA 98111

1-800-814-8213 www.moco-inc.com Your rental application failed to meet our requirements in one or more of the following areas: (__) Insufficient credit history

(__) Unsatisfactory rental history (references) (__) Inability to verify employment or income (__) Insufficient income to meet rental qualifications (__) Criminal records information (__) Civil or eviction records information (__) Incomplete, inaccurate or false information provided by applicant (__) Other: ______________________________________________

Further, we are: (__) Returning your screening charge.

(__) Not returning your screening charge. (__) No screening charge was paid or received.

(__) If this box is checked, the adverse action was taken, in whole or in part, based upon information received from a person or

company other than a Consumer Reporting Agency. If so you have the right to make a written request to us for disclosure of the nature and scope of that information. Such a request must be made within sixty (60) days of receiving this letter.

Please note that the above designated Consumer Reporting Agency or Agencies did not make the decision to take the Adverse Action and are unable to provide you with the specific reasons why the Adverse Action was taken. Pursuant to the Fair Credit Reporting Act, you have the following rights: (1) You have a right to obtain a free copy of your Consumer Report. To obtain a copy of your Consumer Report, you must request that copy within sixty (60) days of the date you received this letter by writing or telephoning the consumer reporting agency(ies) checked above. (2) If you believe your report is inaccurate or incomplete, you have a right under the FCRA to dispute its accuracy or completeness and to put into your report a statement of up to 100 words explaining your position on the item(s) under dispute. Trained personnel are available to help prepare consumer statements. (3) You may have additional rights under Credit Reporting and Consumer Protection Laws in your state. For more information, contact your state or local consumer protection agency or attorney general’s office. Landlord (print): Signature: Date:

Adverse Action Notice/General -- March 7, 2012 Copyright 2012 – Moco Incorporated

Page 1 of 2

ADVERSE ACTION NOTICE - TENANT

Credit Score Disclosure The following disclosure is made in accordance with Section 1100 of Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act amends Section 615 of the Fair Credit Reporting Act(FCRA) to add a new requirement that a person (End-user) taking Adverse Action… “provide to the consumer written or electronic disclosure (A) of a numerical Credit Score as defined in section 609(f)(2)(A) [of the FCRA] used by such person in taking any Adverse Action based in whole or in part on any information in a consumer report; and (B) of the information set forth in subparagraphs (B) through (E) of section 609(f)(1).” If adverse action was taken, in whole or in part based upon a consumer report and if that consumer report includes a Credit Score, information regarding that score is displayed below. Numerical Score: from the credit report Score Range: Transunion (350-900) - Experian (300-900) Score Factors: from the credit report Score Date: from the credit report Score Source: credit bureau - from the credit report

Note that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time to reflect changes in the your credit history. Adverse Action Notice/General -- March 7, 2012 Copyright 2012 – Moco Incorporated

Page 2 of 2

ANTI-CRIME HOUSING ADDENDUM - WASHINGTON

PARTIES

Property Name: Date:

Property Address: Unit #:

Owner/Agent (Landlord):

Resident(s): Due to a desire to maintain a safe and crime-free lifestyle in Premises, Resident and Owner/Agent agree to incorporate this Anti-Crime Housing Addendum (“Addendum”) into the rental agreement (“Rental Agreement”) currently in existence or renewed on this day between Resident and Owner/Agent. It is already established that Resident shall not commit a substantial violation of the Rental Agreement or materially non-comply with the Rental Agreement. This Anti-Crime Housing Addendum sets forth a specific list of activities that constitute substantial violations of the Rental Agreement and will be considered a material non-compliance of the Rental Agreement if performed by Resident, any member of Resident’s household, Resident’s guest(s), or any other individuals associated with the Resident on the Premises during the Rental Agreement term. Resident understands that below is not an all-inclusive list of substantial violations or material non-compliant activities under the Rental Agreement. Resident understands and agrees that any occurrence of any of the activities stated below will constitute grounds for immediate termination of Resident’s Rental Agreement and eviction of Resident and all other occupants of the Premises. Any of the following acts on the Premises will be considered a substantial violation and a material non-compliance of the Rental Agreement and will subject Resident to immediate termination of the Rental Agreement and eviction pursuant to California Law.

(1) Resident shall not partake in criminal activity on the Premises. Criminal activity includes, but is not limited to, any nuisance activity as defined in RCW 7.48.120 or RCW 59.18.

(2) Criminal activity also includes any illegal drug-related activity, any illegal manufacture, sale, distribution, use, or possession of any illegal or controlled substance as defined in 21 U.S.C. 802 and/or the Washington State Controlled Substances Act.

(3) Criminal activities also include any illegal activity on or near the Premises such as prostitution, assault, illegal possession or use of firearms, stalking, substantial damage to property, illegal gang activity, or any other act on or near the Premises that endangers or threatens the health and safety of another individual or to Owner/Agent.

(4) Resident shall not engage in any act intended to facilitate any of the above-stated nuisance or criminal activities.

(5) Resident shall not allow the Premises to be used for or to facilitate any of the above-stated nuisance or criminal activities.

(6) Resident, any member of the Resident’s household, any of Resident’s guests or any other person associated with the Resident on the Premises shall not violate any civil law, ordinance or statute in the use and occupancy of the Premises, commit waste or nuisance, annoy, molest or interfere with any other person while on or near the Premises.

RESIDENT UNDERSTANDS AND AGREES THAT EVEN A SINGLE VIOLATION OF ANY PROVISION OF THIS ADDENDUM MAY BE CONSIDERED A SUBSTANTIAL VIOLATION AND A MATERIAL NON-COMPLIANCE OF THE RENTAL AGREEMENT AND MAY CONSTITUTE GROUNDS FOR IMMEDIATE TERMINATION OF THE RENTAL AGREEMENT AND EVICTION. Unless otherwise provided by law, proof of a violation of this Addendum shall not require a criminal conviction, but shall be proven by a preponderance of the evidence. If there is a conflict between the provisions of this Addendum and a provision of the Rental Agreement, the provisions of this Addendum will govern.

ACKNOWLEDGEMENTS

BY SIGNING THEIR NAMES HEREUNDER, THE PARTIES ACKNOWLEDGE TO HAVING READ, AND TO HAVING FULLY UNDERSTOOD ALL TERMS AND CONDITIONS SET FORTH HEREIN. Resident (print): __________________________Signature: ______________________________ Date: _______________ Resident (print): __________________________Signature: ______________________________ Date: _______________ Landlord (print): __________________________Signature: ______________________________ Date: _______________

Anti-crime Housing Addendum/Washington -- December 9, 2011 Copyright 2011 – Moco Incorporated

Page 1 of 1

Washington State Tenant Screening – Criminal Records Criteria (Sample)

A criminal records search will be performed for felony and misdemeanor offenses. All felony and misdemeanor offenses must be disclosed on the rental application. A conviction or outstanding warrant for one or more of the following criminal offenses, the date of final disposition of which the report by less than seven years, will result in denial of tenancy:

• Murder (1st and 2

nd degree)

• Kidnapping (All counts)

• Manslaughter (1st degree)

• Theft (1st & 2nd degree)

• Assault (1st, 2nd & 3rd degree)

• Burglary (1st, 2nd degree & vehicle prowling 1st degree)

• Robbery (1st & 2nd degree)

• Malicious Mischief (1st degree)

• Rape (All counts)

• Arson (1st, 2nd degree & Reckless Burning 1st degree)

• Child molestation (All counts)

• Delivery or Sale illegal substance(s) (All counts)

• Rape of a child (All counts)

• Possession with intent to Deliver illegal substance(s) (All counts)

• Any conviction requiring applicant to register as a sex offender.

Denial of tenancy will also result if the applicant is:

• Required to register as a sex offender; or

• Listed on the federal Specially Designated Nationals (SDN) list maintained by Treasury’s Office of Foreign Asset Control (OFAC).