BILL NUMBER: AB 603	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 2, 2009
	AMENDED IN ASSEMBLY  MAY 19, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member  Price   Skinner


                        FEBRUARY 25, 2009

   An act to add and repeal Sections 1940.97 and 2924.9 of the Civil
Code, relating to mortgages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 603, as amended,  Price   Skinner  .
Mortgages and deeds of trust: foreclosure: tenants in possession of
property.
   Existing law governs foreclosure proceedings, including requiring
specified notice to residents of property subject to a foreclosure
sale. Existing law also governs residential tenancies.
   This bill would  prohibit  , until January 1,
2013,  limit the authority of  an owner  to terminate a
tenancy  of a qualified rental unit,  as  
which would be  defined  to mean   as 
real property that is rented or leased for residential purposes
 ,  whose owner acquired the property as a result of
a default on a mortgage, as specified  , from taking action
  to terminate any tenancy within one year of
acquiring ownership, as specified, except under certain
circumstances,   . The bill would provide that, if the
term of the tenancy has not been specified by the parties or is
terminable at will, the owner shall not terminate the tenancy sooner
than 90 days having passed after acquiring ownership. The bill would
provide that, if the term of the tenancy has been specified by the
parties, the owner shall not terminate the tenancy until the 
 end of the remaining term of the tenancy, but not sooner than 90
days having passed after acquiring ownership. The bill would provide
that these limitations do not apply in certain circumstances, 
including  the failure of  when  a tenant
 has failed  to pay rent or  a violation of
  has violated  a condition of the tenancy, as
described. The bill would also provide that a landlord who violates
this provision would be liable to the tenant in a civil action for
actual damages and a fine not to exceed $100 for each day the
landlord remains in violation of this provision, but not less than
$250 for each separate cause of action. The bill would authorize a
tenant to seek injunctive relief, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1940.97 is added to the Civil Code, to read:
   1940.97.  (a)  (1)    An owner of a qualified
rental unit  shall not   , as defined in
subdivision (h), may  take action to terminate any tenancy
 within one year of acquiring ownership, including, but
  of the rental unit only subject to the following
limitations:  
   (A) If the term of the tenancy has not been specified by the
parties or is terminable at will, not sooner than 90 days having
passed after acquiring ownership.  
   (B) If the term of the tenancy has been specified by the parties,
at the end of the remaining term of tenancy, but not sooner than 90
days having passed after acquiring ownership. 
    (2)     For purposes of this section, an
action to terminate a tenancy includes, but is  not limited to,
making a demand for possession of a rental unit, threatening to
terminate a tenancy, serving a notice to quit or other eviction
notice, or bringing an action to recover possession or to be granted
recovery of possession  of a qualified rental unit, unless
one of the following applies:   of a qualified rental
unit.  
   (b) The limitations provided by subdivision (a) shall not apply in
the following circumstances: 
   (1) The tenant has not paid the rent due. The rent does not become
due within the meaning of this paragraph until the owner has served
the tenant a written notice informing the tenant of the location
where, and the manner in which, the tenant shall pay the rent. The
owner may not retroactively demand or collect rent for rental periods
before service of this notice.
   (2) The tenant has violated a condition or covenant of the
tenancy, other than the obligation to surrender possession upon
proper notice, and has failed to cure the violation after having
received written notice thereof from the owner.
   (3) The tenant is committing waste upon the premises, contrary to
the conditions or covenants of his or her lease, is maintaining,
committing, or permitting the maintenance or commission of a nuisance
upon the premises, or is using the premises for an unlawful purpose.

   (4) The owner is a natural person who seeks in good faith to
recover possession of the qualified rental unit for use and occupancy
by himself or herself, or by his or her spouse, child, parent, or
grandparent. The owner may use this ground only once for each spouse,
child, parent, or grandparent. 
   (b) 
   (c)  The owner shall comply with the procedural and
notice requirements of the law of this state, including Section 1161
of the Code of Civil Procedure, before pursuing an unlawful detainer
action. 
   (c) 
    (d)  If the prior owner was responsible for maintaining
utility services, the owner of a qualified rental unit shall ensure
that utility services to the units are not interrupted or terminated.

   (d) 
    (e)  The owner of a qualified  housing 
 rental  unit shall comply with the notification
requirements of Section 1962  of the Civil Code  .

   (e) 
    (f)  (1) A landlord who violates this section shall be
liable to the tenant in a civil action for all of the following:
   (A) Actual damages incurred by the tenant.
   (B) An amount not to exceed one hundred dollars ($100) for each
day or part thereof the landlord remains in violation of this
section. In determining the amount of the award, the court shall
consider proof of matters as justice may require; however, in no
event shall less than two hundred fifty dollars ($250) be awarded for
each separate cause of action. Each subsequent or repeated violation
that is not committed contemporaneously with the initial violation
shall be treated as a separate cause of action and shall be subject
to a separate award of damages.
   (2) The tenant may seek appropriate injunctive relief to prevent
continuing or further violation of the provisions of this section
during the pendency of the action. The remedy provided by this
section is not exclusive and does not preclude the tenant from
pursuing any other remedy which the tenant may have under any other
provision of law. 
   (f) 
    (g)  Nothing in this section shall be construed to
affect the authority of a public entity to take any other action that
is authorized by law to regulate the grounds for eviction, and this
section shall not, and shall not be construed to, preempt any local
ordinance governing the rights of tenants. This section is not
intended and it shall not be construed to be a limitation or
constraint on the authority or ability of a local government, as may
otherwise be provided by law, to require or provide tenant
protections in addition to the requirements of this section. 

   (g) 
    (h)  For purposes of this section, a "qualified rental
unit" means real property that is rented or leased for residential
purposes, including a single-family dwelling, duplex, apartment,
condominium, cooperative, townhouse, community apartments, or
residential hotels whose owner acquired the property through
foreclosure under a mortgage or a deed of trust or at a trustee's
sale or a sale held pursuant to a judicial foreclosure proceeding, or
through a deed in lieu of foreclosure, including a sale of property
under the power of sale contained in any deed of trust or mortgage.
 This section shall apply to a qualified rental unit for one
year after the trustee sale or other sale or transfer of interest
described in this subdivision.  
   (h) 
    (i)  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 2924.9 is added to the Civil Code, to read:
   2924.9.  (a) Notwithstanding any other provision of law, if
residential real property that is rented or leased for residential
purposes is acquired pursuant to a trustee's sale or a sale of
foreclosure, Section 1940.97 shall apply.
   (b) 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.