Update 12/28

Please see following articles for comprehensive review of the new legislation

National Law Review: SB 1079: Changes to Nonjudicial Foreclosure Process Aim to Benefit Tenants, Primary Residence Occupants and Community Groups; Uncertainty Looms for Lenders and Debtors

Sierra Sun: Law Review: Dramatic change of residential foreclosure laws in California

Update 9/28/20

SB 1079 was signed by the Governor into law.

On February 19th 2020, State Sen. Nancy Skinner (D-Berkeley) introduced Senate Bill 1079 titled, “Residential Property Warehousing”

Please see below for media coverage and for an overview of the requirements that would drastically amend the current policies and procedures regarding abandoned properties and those going through foreclosure.

To view the text of the introduced bill, please click here.

  • Would authorize a city, county, or city and county to acquire a residential property within its jurisdiction by eminent domain if the property
    • has been vacant for at least 90 days,
    • the property is owned by a corporation or a limited liability company in which at least one member is a corporation,
    • and the local agency provides just compensation to the owner based on the lowest assessment obtained for the property by the local agency.
  • Would require this local agency that obtains residential property pursuant to
    • maintain the property
    • make the property available at affordable rent to persons and families of low or moderate income or sell it to a community land trust or housing sponsor.
  • Would authorize a local agency to adopt an ordinance that imposes a civil penalty in an unspecified amount on an owner of residential property located within its jurisdiction if the residential property
    • has been vacant for at least 90 calendar days and
    • the property is owned by a corporation or a limited liability company in which at least one member is a corporation.
      Funds are to be earmarked for homeless diversion, rental assistance, and other affordable housing purposes.
  • Would require a corporation that owns residential property that has been vacant for at least 90 consecutive days to, before offering this property for sale on the open market, offer that property to a “priority entity” (community land trust or housing sponsor)
  • This “priority entity” would be required to
    • provide a notice of interest within five business days of receiving an offer or of receiving a specified notice
    • make an offer for purchase within 90 calendar days.
      If the seller determines that the offer is a competitive offer, as defined, the bill would require the seller to accept that offer.
  • If the foreclosure court directs the sale of encumbered property it would require the mortgagee to offer that property,
    • first, to any tenant or association of tenants currently occupying the property and,
    • second, to a “priority entity,” before offering the residential real property for sale on the open market.
      • a tenant, association of tenants, or priority entity
        • would provide a notice of interest within five business days of receiving an offer or of receiving a specified notice
        • make an offer for purchase within 90 calendar days.
          If the mortgagee determines that the offer is a competitive offer, as defined, the bill would require the mortgagee to accept that offer
          Mortgagee would be required to allow a tenant, association of tenants, or priority entity to make a second offer for purchase.
    • Would require the Department of Housing and Community Development to establish a process whereby a city, county, or various housing entities may register with the department to receive related notifications.

Sacramento Bee

KPIX 5 

East Bay Times 

Mercury News

0
Would love your thoughts, please comment.x
()
x