Sunday, March 07, 2010

Corbett Bill Protects Tenants in Foreclosed Homes

The ongoing foreclosure crisis harms innocent renters. Estimates shows that approximately 25% of foreclosed dwelling units are occupied by tenants. These tenants had nothing to do with the bad loans, but under long-standing law, if the landlord lost the property, the tenant had to move. In the last 2 years, new laws on the both the state and federal level have been enacted with bipartisan support to soften the blow on tenants. State law (SB 1137 of 2008) now requires a 60-day notice before an innocent tenant may be evicted after a foreclosure; federal law enacted in 2009 now generally requires a 90-day notice, and fixed-term leases must generally be honored.

Yet in many cases, foreclosers flaunt the new laws, daring tenants to assert their rights. A common tactic is to serve the tenant with a notice giving them little time to move out of the property, contrary to state and/or federal law. Tenants are intimidated into moving quickly, even though federal law gives them 90 days. SB 1149 would ensure that tenants are better informed of their rights and ensure that they can adequately assert those rights. The bill is sponsored by WCLP, CRLA Foundation and the California Reinvestment Coalition.

2009-10 Priority Housing Bills

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