1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3499 By: West (Tammy)
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6 AS INTRODUCED
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7 An Act relating to landlord and tenant; amending 41
7 O.S. 2021, Section 201, which relates to certain
8 lease agreements; providing for evaluation of certain
8 prospective tenants; specifying criteria for review;
9 requiring Oklahoma Housing Finance Agency to collect
9 certain information; requiring formal screening
10 policy with respect to allocations of affordable
10 housing tax credits; prescribing requirements; and
11 providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 41 O.S. 2021, Section 201, is
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16 amended to read as follows:
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17 Section 201. A. The owner of any real property, including any
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18 improvements consisting of dwelling units, acquired or improved in
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19 connection with an allocation of income tax credits pursuant to the
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20 provisions of Section 42 of the Internal Revenue Code of 1986, as
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21 amended, or in connection with an allocation of income tax credits
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22 pursuant to the provisions of Section 2357.403 of Title 68 of the
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23 Oklahoma Statutes shall have the right to impose conditions in any
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24 lease agreement for the occupancy of any dwelling located on real
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 1 property as described by this section which allow the owner to
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2 accept or decline to enter into the lease agreement, or to terminate
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3 a previously executed lease agreement based upon the discovery of
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4 incomplete or false information, with respect to the prior felony
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5 conviction of any person identified as a tenant pursuant to the
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6 terms of the lease agreement, including occupants of the dwelling
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7 whether or not those occupants formally execute a lease agreement.
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8 B. The owner of real property as described in subsection A of
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9 this section may either accept or decline to enter into a lease
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10 agreement or to terminate a previously executed lease agreement
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11 based upon felony convictions, whether pursuant to federal law or
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12 the laws of any state or other governmental jurisdiction, for the
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13 following types of offenses:
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14 1. Possession of any drug or chemical;
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15 2. Possession of any drug or chemical with intent to
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16 manufacture or distribute;
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17 3. Sex offenses, including but not limited to any form of
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18 sexual assault, rape, indecent exposure, or other sexually related
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19 offense if such offense was a felony;
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20 4. Assault or battery or both if the offense was a felony;
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21 5. Any felony involving violence against another person; and
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22 6. Such other felony offenses as the owner of the real property
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23 as described in subsection A of this section includes in the terms
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24 of the lease agreement.
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 1 C. When making a decision pursuant to subsection B of this
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2 section, the owner of real property shall conduct an individualized
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3 review of the criminal record and its impact on the household's
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4 suitability for admission. The individualized review should include
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5 consideration of the following factors:
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6 1. The seriousness of the case, especially with respect to how
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7 it would affect other residents;
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8 2. The age of the household member at the time of the offense;
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9 3. The length of time since the violation occurred;
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10 4. Evidence of participation in rehabilitative programming;
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11 5. Other evidence of rehabilitation such as employment;
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12 participation in job training, education, treatment programs,
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13 letters of recommendation;
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14 6. A determination that, if the crime were to occur again, it
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15 would pose a threat to the health, safety, and peaceful enjoyment of
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16 residents and property;
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17 7. If the crime is connected to how the prospective tenant or
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18 household member would perform as a tenant and neighbor; and
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19 8. Any risk mitigation services the application will be
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20 receiving during the tenancy.
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21 D. The Oklahoma Housing Finance Agency shall collect data from
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22 each owner of real property on an annual basis regarding the
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23 following:
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24 1. The number of applications for tenancy received;
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 1 2. The number of applications that resulted in an approved
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2 application;
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3 3. The number of applications that were denied due to criminal
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4 history; and
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5 4. A list of criminal offenses reported by an individual who
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6 was denied due to criminal history along with the time elapsed since
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7 the commission of the offense.
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8 E. The provisions of this section shall supersede the
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9 administrative rule of any state agency, board, commission,
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10 department, statewide beneficiary public trust or other entity of
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11 state government to the extent of any conflict.
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12 D. F. The provisions of subsection A through E of this section
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13 shall be applicable with respect to lease transactions occurring on
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14 or after the effective date of this act without regard to the
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15 construction date of the improvements to real property as described
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16 by subsection A of this section.
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17 G. On or after January 1, 2025, an applicant for the Affordable
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18 Housing Tax Credit Program pursuant to the provisions of Section 42
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19 of the Internal Revenue Code of 1986, as amended, or in connection
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20 with an allocation of income tax credits pursuant to the provisions
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21 of Section 2357.403 of Title 68 of the Oklahoma Statutes must have a
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22 clearly defined criminal history screening policy that establishes
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23 criteria for renting to prospective residents and, at a minimum,
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24 include the following:
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 1 1. Applicants with a felony conviction may be denied housing
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2 only if an individualized review demonstrates that the safety of
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3 residents and/or property is at risk;
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4 2. Lookback periods, or the amount of time following a felony
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5 conviction during which landlords can consider these records in
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6 determining admissions;
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7 3. No blanket terms such as "Any criminal convictions will be
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8 denied.";
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9 4. An established procedure for conducting individualized
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10 reviews of applicants with a criminal record, which will include, at
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11 a minimum, a notification to the applicant that an individualized
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12 review will be conducted, the applicant's right to provide
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13 supporting documents and mitigating evidence for the individualized
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14 review, and a timeframe between forty-eight (48) hours and fourteen
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15 (14) days for the applicant to provide supporting information and
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16 for the individualized review to be conducted. The established
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17 procedure may include a cap of maximum days for consecutive
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18 applicants with a criminal record.
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19 H. The Oklahoma Housing Financing Agency shall review applicant
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20 policies to ensure compliance with subsection G of this section.
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21 The Agency shall provide guidance to owners of real property as to
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22 creating policies and practices to comply with this section.
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 1 SECTION 2. This act shall become effective November 1, 2024.
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3 59-2-9824 MAH 01/12/24
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