Avalon would be required to pick up the tab for all of these changes.
Company officials said they have already completed upgrades on the building at 302 W. to improve security and safety and are working quickly to make all changes required by DOC.
Oklahoma City-based Avalon operates halfway houses in Oklahoma, Texas and Wyoming for inmates nearing the end of their sentences as they prepare to reintegrate into society.
Its Turley halfway house for women and Carver facilities in Oklahoma City remain open under their current DOC contracts.
The investigation began after inmate fights were captured on cellphone videos from inside the facility.
The fights at Avalon Tulsa are among allegations of inmates civil rights violations that the Department of Corrections and FBI are now investigating.
Interim director Ed Evans told the Board of Corrections that the agency issued several pages of requirements that the private company must address before getting a new contract to repopulate its Avalon Tulsa halfway house.
Board member Steve Burrage said he simply wanted to make sure the department was acting in fairness toward Avalon. Attorneys representing several of the Avalon Tulsa inmates have alleged that administrators not only knew, but participated by selecting inmates and setting up the fights.