Bill Text: CA SB1473 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Tenants: foreclosure and unlawful detainer.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2012-08-30 - Ordered to inactive file on request of Assembly Member Charles Calderon. [SB1473 Detail]

Download: California-2011-SB1473-Amended.html

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BILL NUMBER: SB 1473	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Hancock
   (Coauthors: Senators DeSaulnier, Leno, and Pavley)

                        FEBRUARY 24, 2012

   An act  relating to mortgages   to amend
Section 2924.8 of the Civil Code, and to amend Section 1161b of the
Code of Civil Procedure, relating to foreclosures  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1473, as amended, Hancock.  Mortgages and deeds of
trust: foreclosure: tenants.   Foreclosure: tenants.
 
   Existing law requires a notice of sale to be posted before any
power of sale can be exercised under the power of sale contained in
any deed of trust or mortgage. Existing law, until January 1, 2013,
requires a resident of property upon which a notice of sale has been
posted to be provided a specified notice advising the resident that,
among other things, if the person is renting the property, the new
property owner may either give the tenant a new lease or rental
agreement, or provide the tenant with a 60-day eviction notice, and
that other laws may prohibit the eviction or provide the tenant with
a longer notice before eviction. Existing law makes it an infraction
to tear down the notice within 72 hours of posting. Existing law
requires a state government entity to make translations of the notice
available in 5 specified languages, for use by a mortgagee, trustee,
beneficiary, or authorized agent, in order to satisfy the notice
requirements.  
   This bill would revise certain portions of the notice to instead
require a resident of property upon which a notice of sale has been
posted to be advised that if the person is renting the property, the
new property owner may either give the tenant a new lease or rental
agreement, or provide the tenant with a 90-day eviction notice. The
bill would require the notice to advise a tenant who has a lease that
the new property owner is required to honor the lease and that the
tenant may have the right to stay in the property for longer than 90
days. The bill would require the Department of Consumer Affairs to
make translations of the notice available, as described above. The
bill would extend the operation of these provisions indefinitely.
 
   By extending the operation of provisions establishing a crime,
this bill would impose a state-mandated local program.  
   Existing law, until January 1, 2013, requires a tenant or
subtenant in possession of a rental housing unit at the time that
property is sold in foreclosure to be provided 60 days' written
notice to quit before the tenant or subtenant may be removed from the
property, as specified.  
   This bill would instead require a tenant or subtenant in
possession of a rental housing unit under a month-to-month lease at
the time that property is sold in foreclosure to be provided 90 days'
written notice to quit before the tenant or subtenant may be removed
from the property. The bill would provide tenants or subtenants
holding possession under a residential lease with the right to
possession until the end of the lease term. The bill would also
extend the operation of these provisions indefinitely.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   Existing law generally regulates mortgages and deeds of trust,
including establishing procedures for foreclosure in case of default.
Existing law, until January 1, 2013, grants certain rights to a
tenant residing in a housing unit that is sold in foreclosure.
 
   This bill would express the intent of the Legislature to enact
legislation to improve protections for tenants residing in housing
units that are subject to foreclosure. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 2924.8 of the   Civil
Code   is amended to read: 
   2924.8.  (a) Upon posting a notice of sale pursuant to Section
2924f, a trustee or authorized agent shall also post the following
notice, in the manner required for posting the notice of sale on the
property to be sold, and a mortgagee, trustee, beneficiary, or
authorized agent, concurrently with the mailing of the notice of sale
pursuant to Section 2924b, shall send by first-class mail in an
envelope addressed to the "Resident of property subject to
foreclosure sale" the following notice in English and the languages
described in Section  1632: "Foreclosure   1632:


    "Foreclosure  process has begun on this property, which
may affect your right to continue to live in this property. Twenty
days or more after the date of this notice, this property may be sold
at foreclosure. If you are renting this property, the new property
owner may either give you a new lease or rental agreement or provide
you with a  60-day   90-day  eviction
notice.  However, other laws may prohibit an eviction in this
circumstance or provide you with a longer notice before eviction.
  If you have a lease, the new owner must honor the
lease. You may have the right to stay in your home for longer than 90
days.  You may wish to contact a lawyer or your local legal aid
 office  or housing counseling agency to discuss any rights
you may have."

   (b) It shall be an infraction to tear down the notice described in
subdivision (a) within 72 hours of posting. Violators shall be
subject to a fine of one hundred dollars ($100).
   (c)  A state government entity   The 
 Department of Consumer Affairs  shall make available
translations of the notice described in subdivision (a) which may be
used by a mortgagee, trustee, beneficiary, or authorized agent to
satisfy the requirements of this section.
   (d) This section shall only apply to loans secured by residential
real property, and if the billing address for the mortgage note is
different than the property address. 
   (e) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date. 
   SEC. 2.    Section 1161b of the   Code of
Civil Procedure   is amended to read: 
   1161b.  (a) Notwithstanding Section 1161a, a tenant or subtenant
in possession of a rental housing unit  under a month-to-month
lease  at the time the property is sold in foreclosure shall be
given  60   90  days' written notice to
quit pursuant to Section 1162 before the tenant or subtenant may be
removed from the property as prescribed in this chapter.  Tenants
or subtenants holding possession under a residential lease 
 shall have the right to possession until the end of the lease
term. 
   (b) This section shall not apply if any party to the note remains
in the property as a tenant, subtenant, or occupant. 
   (c) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date. 
   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to improve protections for tenants residing in
housing units that are subject to foreclosure.