LEGISLATIVE UPDATES

IMMEDIATE ACTION NEEDED FOR PROPERTY MANAGERS/OWNERS:

HB3499 – This bill will add language requiring LIHTC properties only to conduct an individualized review of all criminal history records and the impact on the household’s suitability for admission. It requires defined criminal history screening policies that state that applicants with felony convictions may only be denied housing if an individualized review shows that the safety of residents and the property. This policy must include criteria for lookback periods, no blanket denials and procedures for individualized reviews. Many of our property management members have indicated that this bill is too subjective and may inadvertently lead to Fair Housing issues as it cannot be consistently applied. This issue could also be more easily addressed through the OHFA rulemaking process rather than a state statute.   This has passed the Senate Finance Committee with new language. Our organization was not given the opportunity to review this draft bill at any point prior to its presentation. You may CLICK HERE to read the new bill. The bill can now hit the Senate Floor at any time. 

For those that are looking to take action, the best course is to have your staff contact every Senator by phone and email ASAP. We recommend you do this prior to the close of business on Monday, April 15, 2024. We also recommend that you also request Senator Treat and Senator McCortney to not schedule this bill for the Senate Floor. CLICK HERE for contact information for all the. 

Talking points include:

• This bill will cause affordable housing owners and managers to essentially lease to any felon, regardless of the situation, for fear of being sued.
• The proposed language is too subjective, allowing for varied interpretations and risk of leading to inconsistent application.
• The cost of compliance with HB3499 that will mitigate risk to property owners and managers will have a negative effect on the production of affordable housing. Either the rents will need to increase or fewer units will be produced to cover the administrative burden. Applications for tax credits are highly competitive due to the limited resources and developments with the tightest budgets are the ones that win.
• Felons that meet certain objective criteria, which is currently fairly lenient, are already allowed to live tax credit developments. Our developers are in the business of providing housing to low-income households and these developments only provide a return to the investors if the units are leased. Property managers are already willing to lease to felons provided there is not a safety risk to other residents or the property. 
• HUD and the IRS already extremely monitor the LIHTC program. Any proposed state statutes should not impede those rules.
• The better way to handle these changes would be the OHFA Administrative Rules process.
• The Oklahoma based affordable housing industry advocates have not been consulted in this work and the impact to their business and industry has not been taken into consideration.
• This is a very nuanced issue and this bill needs additional input from LOCAL IN-STATE stakeholders before passage.
• This could lead to reduced investor demand as investors view the felons as increased risk. The lower demand for tax credit developments in Oklahoma will lead to lower pricing for developments and increased perm debt and increased rental rates.

When calling the Senators, a simple message with your name and a request to VOTE NO ON HB3499 is sufficient. You may also add a succinct reason on why. 

For those that are looking to take action, the best course is to have your staff contact every Senator on the Finance Committee by phone and/or email ASAP.  CLICK HERE for contact information for all the Senators (listed under the SENATE tab).  Some submitted talking points are available here.