Protections for Section 8 Tenants in Foreclosed Properties

Protections for Section 8 Tenants in Foreclosed Properties

President Obama signed S. 896, P.L. 111-22, on May 20, 2009. This bill includes a nationwide 90 day pre-eviction notice requirement for tenants in foreclosed properties. The provisions of the bill are effective on enactment, May 20, 2009.

For section 8 tenants the new law amends section 8(o) to provide that in the case of an owner who is an immediate successor in interest pursuant to foreclosure during the term of the lease vacating the property prior to sale shall not constitute other good cause, except that the owner may terminate the tenancy effective on the date of transfer of the unit to the owner if the owner (i) will occupy the unit as a primary residence and (ii) has provided the tenant a notice to vacate at least 90 days before the effective date of such notice.

In addition, in the case of any foreclosure on any property in which a recipient of section 8 assistance resides, the immediate successor in interest in such property pursuant to the foreclosure assumes such interest subject to the lease between the prior owner and the tenant and to the housing assistance payments contract between the prior owner and the public housing agency for the occupied unit.

IN OTHER WORDS, THE NEW OWNER MUST HONOR THE LEASE PREVIOUSLY SIGNED BETWEEN THE PREVIOUS OWNER, THE SECTION 8 TENANT, AND THE HOUSING AUTHORITY PROVIDING THE SECTION 8 ASSISTANCE.

For more information, go to http://www.nlihc.org/doc/Memo-Renter-Protections-S-896.pdf

For eviction assistance, see my blog at: http://www.stopevictions.blogspot.com/