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SENATE FLOOR VERSION
February 11, 2025
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 274 By: Rader of the Senate
and
West (Tammy) of the House
An Act relating to landlord and tenant; amending 41
O.S. 2021, Section 201, which relates to lease
conditions for tenant felony conviction; requiring
criminal history screening policy for award of
certain tax credit; requiring certain components for
screening policy; prohibiting inclusion of certain
statements; requiring consideration of certain
factors in individualized review; requiring review of
certain plans by Oklahoma Housing Finance Agency;
updating statutory language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 41 O.S. 2021, Section 201, is
amended to read as follows:
Section 201. A. The owner of any real property , including any
improvements consisting of dwelling units , acquired or improved in
connection with an allocation of income tax credits pursuant t o the
provisions of Section 42 of the Internal Revenue Code of 1986, as
amended, or in connection with an allocation of income tax credits
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pursuant to the provisions of Section 2357.403 of Title 68 of the
Oklahoma Statutes shall have the right to impose co nditions in any
lease agreement for the occupancy of any dwelling located on real
property as described by this section which allow the owner to
accept or decline to enter into the lease agreement, or to terminate
a previously executed lease agreement base d upon the discovery of
incomplete or false information, with respect to the prior felony
conviction of any person identified as a tenant pursuant to the
terms of the lease agreement, including occupants of the dwelling
whether or not those occupants forma lly execute a lease agreement.
B. The owner of real property as described in subsection A of
this section may either accept or decline to enter into a lease
agreement or to terminate a previously executed lease agreement
based upon felony convictions, whe ther pursuant to federal law or
the laws of any state or other governmental jurisdiction, for the
following types of offenses:
1. Possession of any drug or chemical;
2. Possession of any drug or chemical with intent to
manufacture or distribute;
3. Sex offenses, including, but not limited to, any form of
sexual assault, rape, indecent exposure, or other sexually related
offense if such offense was a felony;
4. Assault or battery or both if the offense was a felony;
5. Any felony involving violence agai nst another person; and
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6. Such other felony offenses as the owner of the real property
as described in subsection A of this section includes in the ter ms
of the lease agreement.
C. The provisions of this section shall supersede the
administrative rule o f any state agency, board, commission,
department, statewide beneficiary public trust or other entity of
state government to the extent of any conflict.
D. The provisions of subsections A and B of this section shall
be applicable with respect to lease tra nsactions occurring on or
after the effective date of this act April 29, 2019, without regard
to the construction date of the improvements to real proper ty as
described by subsection A of this section.
E. For awards beginning on or after January 1, 2026, an award
recipient for the income tax credits pursuant to the provisions of
Section 42 of the Internal Revenue Code of 1986, as amended, or in
connection with income tax credits allocated pursuant to Section
2357.403 of Title 68 of the Oklahoma Statutes sh all have a clearly
defined criminal history screening policy in a tenant selection plan
that establishes criteria for renting to prospective residents an d
shall include, but not be limited to, the following:
1. An individualized review that considers the safety of
residents and property; provided, an applicant with a criminal
conviction may be denied housing only after conducting such review;
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2. The amount of time following a conviction during which
criminal records will be considered in determining the a pproval of a
lease application; and
3. An established procedure for conducting individualized
reviews of applicants with a criminal record which shall i nclude,
but not be limited to, a notification to the applicant that an
individualized review will be co nducted and the right of the
applicant to provide supporting documentation and mitigating
evidence for the individualized review.
The screening policy shall not include any statements such as
“Any applicants with criminal convictions will be denied ”.
F. An individualized review conducted pursuant to subsection E
of this section shall include consideration of the following
factors:
1. The seriousness of t he offense, especially with respect to
the effect of the offense on other residents;
2. The age of the individual at the time the offense was
committed;
3. The length of time since the offense occurred;
4. Evidence of rehabilitation such as employment, job training,
educational achievement, treatment program completion, or letters of
recommendation; and
5. Whether the offense has any connection to how the tenant or
household member would perform as a tenant, resident, or neighbor.
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G. The Oklahoma Housi ng Finance Agency shall review the tenant
selection plan to ensure compliance with subsection E of this
section during compliance monitoring review. The Agency shall
provide guidance to owners of real property who receive an award of
affordable housing tax credit as it pertains to creation of policies
and practices to comply with this section.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
February 11, 2025 - DO PASS AS AMENDED BY C S