CFED Assets & Opportunity Scorecard
Although media coverage of the 2010 foreclosure crisis focused mainly on homeowners, an estimated 40% of foreclosures involved rental properties. Foreclosure can be disruptive to renters, who may struggle to find alternative housing, and can cause strain on their work and family lives. Many renters face significant relocation costs, as well as a loss of the security deposit and a rent payment. At worst, foreclosure can leave renters homeless.
Tenants face a range of improper and egregious landlord abuses, including failing to provide notice of foreclosure, failing to inform tenants about utilities shutoff, and failing to maintain properties during the foreclosure process. Until recently, the federal Protecting Tenants at Foreclosure Act (PTFA) of 2009 provided some basic protections for renters, such as honoring tenants’ term leases and providing 90-day notice of eviction. With the expiration of this law in December 2014, it is essential that states ensure fair treatment of renters during the foreclosure process by providing pre-foreclosure sale notices for tenants and requiring good cause for eviction.
Strength of State Policies: Tenant Protections from Foreclosure
|Does state provide foreclosure protections for tenants? 1|
|Protections offered (90-Day Pre-Forecloure Notice or Good Cause Protection) 2|
|California||90-Day Pre-Foreclosure Sale Notice to Tenants|
|Connecticut||90-Day Pre-Foreclosure Sale Notice to Tenants|
|District of Columbia||90-Day Pre-Foreclosure Sale Notice to Tenants; Good Cause Eviction Protection|
|Illinois||90-Day Pre-Foreclosure Sale Notice to Tenants|
|Maryland||90-Day Pre-Foreclosure Notice to Tenants|
|Massachusetts||90-Day Pre-Foreclosure Notice to Tenants; Good Cause Eviction Protection|
|Minnesota||90-Day Pre-Foreclosure Notice to Tenants|
|New Jersey||90-Day Pre-Foreclosure Notice to Tenants; Good Cause Eviction Protection|
|New York||90-Day Foreclosure Notice to Tenants|
|North Carolina 3||90-Day Foreclosure Notice to Tenants|
|Rhode Island||90-Day Foreclosure Notice to Tenants; Good Cause Eviction Protection|
Notes on the Data
1. Data on tenant protections were provided through email correspondence in June 2015 with Kent Qian at National Housing Law Project. Following the expiration of the Protecting Tenants at Foreclosure Act (2009) at the end of 2014, states now receive credit if they have enacted 90-day notice and good cause protections from property foreclosure.
2. Definitions of good cause will vary by state, but they may include nonpayment of rent, violations of the lease or rental agreement, destruction or damage to the property, or using the property for an unlawful purpose.
3. In July 2015, North Carolina passed a 90-day pre-foreclosure notice law similar to what was in the newly expired federal law (PTFA of 2009).
How States Are Assessed
States receive credit if their renter protections include a requirement of good cause or a 90-day notice for eviction. Definitions of “good cause” vary by state, but may include nonpayment of rent, violations of the lease or rental agreement, destruction or damage to the property, or using the property for an unlawful purpose.
What States Have Done
Ten states and the District of Columbia require the provision of pre-foreclosure sale notices and/or good cause for eviction.