BILL ANALYSIS
SB 483
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Date of Hearing: June 30, 2009
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
SB 483 (Corbett) - As Amended: June 23, 2009
PROPOSED CONSENT (As Proposed to be Amended)
SENATE VOTE : 36-0
SUBJECT : Mortgage Foreclosure: TENANT NOTICE
KEY ISSUE : SHOULD STATE LAW BE CLARIFIED TO INCORPORATE FEDERAL
REQUIREMENTS REGARDING NOTICE TO TENANTS OF FORECLOSED
RESIDENTIAL PROPERTIES, AND THE CONTENT OF THAT NOTICE BE
IMPROVED SO THAT TENANTS RECEIVE MORE ACCURATE INFORMATION
REGARDING THEIR POTENTIAL RIGHTS?
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
SYNOPSIS
This largely technical bill simply updates state statutes so
that they reflect recent changes in federal law which in some
circumstances may permit tenants in foreclosed residential
properties to receive 90 days written notice, rather than the
60-day period California enacted last year.
SUMMARY : Conforms state law to federal with respect to eviction
notices to tenants of foreclosed residential property and
improves the content of that notice. Specifically, this bill
would revise a reference to the written notice period so that it
incorporates federal law which, in some circumstances provides a
tenant or subtenant in possession of a rental housing unit at
the time the property is sold in foreclosure 90 days before the
tenant or subtenant may be removed from the property. This bill
would similarly revise the content of the notice required to be
posted on the foreclosed residential properties.
EXISTING LAW :
1)Upon a breach of the obligation of a mortgage or transfer of
an interest in property, existing law requires the trustee,
mortgagee, or beneficiary to post a notice of sale, as
SB 483
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specified. Existing law also requires that the notice of sale
in the case of default be mailed to the resident of the
property and posted on the property, as specified. (Civil
Code section 2924.8.)
2)Requires that a tenant or subtenant in possession of a rental
housing unit at the time the property is sold in foreclosure
shall be given 60 days' written notice to quit, as specified,
before the tenant or subtenant may be removed from the
property, as specified. (Code of Civil Procedure section
1161b.)
COMMENTS : The author explains the reason for the bill as
follows: "On May 20, 2009, President Obama signed S. 896, the
Protecting Tenants at Foreclosure Act of 2009 (Act). This Act
generally requires the purchaser of a home at a foreclosure sale
to honor the tenant's lease unless the purchaser intends to
occupy the home as their primary residence. If there is no
lease, the lease is terminable at will (a month-to-month
tenancy), or if the purchaser will occupy the home as their
primary residence, the tenant must be provided with a 90-day
notice to vacate (unless a longer period is required by state or
local law.) Last year, SB 1137 (Perata, Corbett, Machado)
(Chapter 69, Statutes of 2008) enacted several tenant
protections, including requiring that tenants receive a
statutory notice that their rental property may be sold at
foreclosure. This bill seeks to update that statutory notice to
reflect the recent changes in federal law. The bill also
includes a technical change to Code of Civil Procedure 1161b to
also acknowledge that change.
Author's Technical Amendment. To provide better clarity
regarding the minimum period in the prescribed notice,
consistently with the changes to CCP section 1161b, the author
appropriate proposes the following technical amendment:
In order for the new owner to evict you, the new owner must
provide you with at least 60 days a written eviction notice.
However, some laws may prohibit an eviction. You should contact
a lawyer or your local legal aid or housing counseling agency to
discuss any rights you may have."
REGISTERED SUPPORT / OPPOSITION :
Support
SB 483
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California Rural Legal Assistance Foundation
Western Center on Law and Poverty
Opposition
None on file
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334