Bill > H1579

This bill aims to protect tenants and prevent vacant properties after a foreclosure by making several changes to existing laws. It removes the definition of "Bona fide lease or bona fide tenancy," which likely refers to a legitimate rental agreement, and introduces a new definition for "Fair Market Rent," which is an amount determined by the U.S. Department of Housing and Urban Development (HUD) for comparable housing in the area. The bill also clarifies that entities like the Federal Home Loan Mortgage Corporation and the Federal Deposit Insurance Corporation are included in relevant definitions, and it defines a "Foreclosure Sale Purchaser" as someone who buys a property after foreclosure without intending to live there. Crucially, the bill modifies the definition of "Just cause" for eviction, stating that a tenant can be evicted if they fail to pay rent, or if former mortgagors and their household members don't pay an agreed-upon amount or the Fair Market Rent, provided the purchaser clearly communicated these payment terms in writing. The bill also redefines "Tenant" to include occupants at the time of foreclosure, excluding those who move in afterward without permission, and replaces the term "foreclosing owner" with "foreclosure sale purchaser" throughout the relevant sections. Furthermore, it requires foreclosure sale purchasers to post a notice within 30 days of the foreclosure detailing contact information and where to send rent payments, and it establishes a penalty of at least $5,000 for each illegal eviction. Finally, it presumes that a legitimate lease or proof of rental payment, or the Fair Market Rent, is reasonable.