Okla. Stat. tit. 41 § 201

Right to Impose Lease Conditions Regarding Tenant Felony Conviction - Types of Offenses - Supersedes Administrative Rules

In Force
Verified 10/17/2026 · Next check 10/18/2026
effective 4/29/2019OklahomaLIHTC (IRC §42)

Operative Text

Okla. Stat. tit. 41 § 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 to the provisions of Section 42 of the Internal Revenue Code of 1986, as amended, or in connection with an allocation of income tax credits pursuant to the provisions of Section 2357.403 of Title 68 of the Oklahoma Statutes shall have the right to impose conditions 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 based 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 formally 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, whether 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 against another person; and
6. Such other felony offenses as the owner of the real property as described in subsection A of this section includes in the terms of the lease agreement.
C. The provisions of this section shall supersede the administrative rule of 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 this section shall be applicable with respect to lease transactions occurring on or after the effective date of this act without regard to the construction date of the improvements to real property as described by subsection A of this section.
Source: Legislative text reproduced verbatim
Plain English

Oklahoma law under 41 O.S. § 201 permits owners of certain tax-credit-financed rental properties — those receiving allocations under Section 42 of the Internal Revenue Code or Section 2357.403 of Title 68 of the Oklahoma Statutes — to include lease conditions based on a prospective or current tenant's prior felony convictions. The covered offense categories include drug possession, drug distribution, sex offenses, assault or battery, other violent felonies, and any additional felony offenses the owner specifies in the lease. This statute expressly overrides any conflicting state administrative rules and applies to lease transactions entered into on or after its effective date, regardless of when the property was built.

Written by anthropic/claude-sonnet-4.6 · Reviewed on October 18, 2026

Plain English — not legal advice.

For Property Managers

Owners of qualifying tax-credit properties under 41 O.S. § 201 generally document their felony-screening criteria clearly within the lease agreement itself, covering the offense categories enumerated in the statute — such as drug offenses, sex offenses, and violent felonies — as well as any additional felony categories they choose to include. Compliant operators typically apply these criteria consistently across all applicants and occupants, including those who do not formally sign the lease, and retain records of any disclosed or discovered conviction information that informs an acceptance, declination, or termination decision. Because § 201 supersedes conflicting state administrative rules, operators of these properties should still be aware that federal fair housing requirements and other applicable federal laws remain in effect independently of this provision.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Under 41 O.S. § 201, tenants and applicants at tax-credit-financed properties should be aware that a landlord may lawfully include felony-conviction screening conditions in the lease, covering a range of offense types listed in the statute, as well as additional felony categories the owner has specified in the lease terms. If a lease is declined or terminated based on conviction history, tenants may want to review whether the owner's criteria were actually stated in the lease agreement and whether the process was applied consistently, as the statute ties the owner's authority to the terms documented in that agreement. Tenant-rights organizations and legal aid services can help individuals understand how this provision interacts with federal fair housing protections, which are not displaced by § 201.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Apr 29, 2019
Click on timeline segments to view historical versions.

References Out

Rules and statutes cited by this regulation

References In

Rules and statutes that cite this regulation

41 O.S. § 132
41 O.S. § 115
41 O.S. § 121
41 O.S. § 116
41 O.S. § 126
41 O.S. § 116
41 O.S. § 132
41 O.S. § 118
41 O.S. § 118
41 O.S. § 126
41 O.S. § 127
41 O.S. § 111

Related Rules

§ 1.42-0
§ 1.42-0 Table of contents.
§ 1.42-0T
§ 1.42-0T Table of contents.
§ 1.42-1
§ 1.42-1 Limitation on low-income housing credit allowed with respect to qualified low-income buildings receiving housing credit allocations from a State or local housing credit agency.

Source Information

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