Bill > S807

This bill aims to prevent properties from becoming unnecessarily vacant after a foreclosure by making several changes to existing laws, primarily concerning the definition of "tenant" and the responsibilities of new property owners. It removes the existing definition of a "bona fide lease or bona fide tenancy" and introduces a new definition for "Fair Market Rent," which is based on amounts set by the U.S. Department of Housing and Urban Development for comparable units in the area. The bill also clarifies that entities like the Federal Home Loan Mortgage Corporation and the Federal Deposit Insurance Corporation can be considered in these matters. A "Foreclosure Sale Purchaser" is defined as someone who buys a property after foreclosure without intending to live there themselves. 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 monthly rent or the Fair Market Rent, provided the new owner clearly communicated these payment terms in writing. The definition of "tenant" is updated to include only those occupying the property at the time of foreclosure, excluding those who move in afterward without permission. The bill also mandates that foreclosure sale purchasers must post a notice within 30 days of the foreclosure detailing contact information for management and where rent payments should be sent. Furthermore, it establishes a penalty of at least $5,000 to be paid to the tenant for each illegal eviction by a foreclosure sale purchaser.