Question Submitted by: The Honorable Chris Kannady, Oklahoma House of Representatives, District 91

2024 OK AG 10
Oklahoma Attorney General Reports·Decided July 12, 2024·Published

Opinion

OSCN Found Document:Question Submitted by: The Honorable Chris Kannady, Oklahoma House of Representatives, District 91
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Question Submitted by: The Honorable Chris Kannady, Oklahoma House of Representatives, District 91
2024 OK AG 10
Decided: 07/12/2024
Oklahoma Attorney General Opinions


Cite as: 2024 OK AG 10, __ __

¶0 This office has received your request for an official Attorney General Opinion in which you ask, in effect, the following question:
Does the allocation of municipal funds to a not-for-profit organization for the purpose of eviction prevention serve a valid public purpose within the applicable provisions of Oklahoma law?

1

I.
SUMMARY

¶1 Yes. The Oklahoma Constitution permits a municipality to determine, in its legislative capacity, that eviction prevention services provide a public purpose. Article X, sections 14 and 17, each require that all expenditures of public funds are for public purposes. The term "public purpose" is broadly interpreted with great deference to the Legislature and, by extension to the governing body of a municipality, which serves as its legislative body. State ex rel. Brown v. City of Warr Acres, 1997 OK 117, ¶ 17, 946 P.2d 1140, 1144. Oklahoma has at least three legislatively enacted programs to ensure individuals and families have access to housing, mitigate homelessness, and ameliorate the deleterious effects of these issues. The correlations between evictions, housing instability, and homelessness are known. And their impact on state and local economies is equally established. Conceivably, then, a municipality can, in its legislative function, determine that eviction prevention services assist with remedying housing instability and mitigating homelessness thereby lessening burdens on governments, including core police and court services, or otherwise promoting the public welfare.2

¶2 The conclusion in this opinion does not mean or suggest that a municipality should make such a determination. Instead, that decision-making authority is vested locally with those elected to govern a municipality. Any municipality determining that eviction prevention services are for public purposes and contracting with a third party to provide such services for the city must recognize, and not interfere with, the property owner's right to exclude others, including filing and completing an eviction. Finally, any contract between a municipality and a third party for eviction prevention services must establish and maintain adequate safeguards and governmental controls, as detailed below.

II.
BACKGROUND

¶3 Individuals do not have a constitutional right to housing, any housing adequacy, or a right to occupy the landlord's property beyond the lease's terms.3 Instead, any assurance of housing or housing adequacy are matters that particularly rest within the domain of state policy. Alabama Ass'n of Realtors v. Dept. of Health & Human Servs., 594 U.S. 758, 765 (2021). Rental housing is no different. Id. And, a property owner, including any owner of rental housing, has a fundamental right to exclude others.4 Unsurprisingly, then, the Oklahoma Legislature established the Residential Landlord and Tenant Act, which authorizes landlords to exclude others from their property, including by eviction, and concurrently affords rights to tenants. 41 O.S.2021, Supp.2022 & Supp.2023, §§ 101--201.5 These property owner rights are settled. And they are often used.6 Illuminating the volume of cases, the parties involved, and the overarching goals and priorities, Tulsa County District Court Judge Doug Drummond recently stated:

The number of cases in our eviction court is staggering . . . . Reducing cases that go to court is a priority as is helping families who are legally evicted find another place to live. The Court's role is to provide a fair forum for both landlords and tenants, but the overall goal for our community is to reduce homelessness.

HOUSING SOLUTIONS, https://www.housingsolutionstulsa.org/tulsa-county-district-court-receives-grant-for-new-eviction-diversion-program/ (last visited July 9, 2024).

¶4 The Oklahoma Legislature has enacted at least three programs expressly addressing two issues raised by Judge Drummond: 1) families finding a place to live following an eviction, or housing instability, and 2) homelessness. See the Oklahoma Housing Authority Act, 63 O.S.2021, §§ 1051--1084; the Oklahoma Housing Stability Program, 74 O.S.Supp.2023, §§ 2903--2903.5; the Homeless Prevention Act, 74 O.S.2021, §§ 2900--2901.4. These programs intend to increase affordable housing, keep families housed, and recognize the costs and effects that housing instability and homelessness have on the State, citizens, and local communities. 63 O.S.2021, § 1053; 74 O.S.2021, § 2901.4. While the Legislature established these programs to keep individuals and families housed, no statutory programs expressly relating to eviction diversion assistance exist. However, correlations between the issues are known.7 And their impacts on each other, the parties involved, and state and local economies are equally understood.8 Considering this background, you submit your inquiry, which implicates article X, sections 14 and 17 of the Oklahoma Constitution. Accordingly, this office analyzes these constitutional provisions, case law, and Oklahoma statutes, which guide and answer your question.9

III.
DISCUSSION

¶5 If a municipality determines that eviction prevention services provide a public purpose, the city may lawfully contract with a non-profit organization to provide such services for the benefit of the municipality. Provided, any determination and contract for such services must: 1) not substantively interfere with a property owner's right to exclude others from privately-owned property, including the right to file and successfully complete an eviction, and 2) establish and maintain adequate governmental controls and safeguards.

¶6 Article X, sections 14 and 17 contain a requirement that public funds are used for public purposes. OKLA. CONST. art. X, §§ 14(A), 17; State ex rel. Brown, 1997 OK 117, ¶ 1, 946 P.2d at 1143; Willow Wind, Inc. v. City of Midwest City, 1989 OK 171, ¶ 7, 790 P.2d 1067, 1070. The term "public purpose" is interpreted broadly and is not construed in a narrow and restricted sense. State ex rel. Brown, 1997 OK 117, ¶ 18, 946 P.2d at 1144. Indeed, "great deference" is given to a "legislative body's determination that a particular project . . . serve[s] a public purpose," and that determination will be reversed "only upon a clear showing that it was manifestly arbitrary, capricious, or unreasonable." Id.10 As early as 1938, the Oklahoma Supreme Court stated:

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Question Submitted by: The Honorable Chris Kannady, Oklahoma House of Representatives, District 91, 2024 OK AG 10 (Okla. Super. Ct. 2024).

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