PROTECTING TENANTS AT FORECLOSURE ACT OF 2009

Effective May 20, 2009, the Protecting Tenants at Foreclosure Act of 2009 extends a range of protections to tenants in foreclosed properties.

In brief, under the new legislation, all tenants must get a 90 day notice prior to eviction due to foreclosure. In addition (with some exceptions) tenants who have leases can continue to live in their homes until the end of the term of their lease.

The rights of Section 8 tenants are also protected because the new owner at foreclosure must accept both the tenant's lease and the housing assistance payment (HAP) contract.

NOTE:  The Dodd-Frank Reform Bill, (H.R. 4173), Extends Tenant Act (PTFA)  through 2014, http://www.housingwire.com/news/dodd-frank-reform-bill-extends-tenant-act-through-2014

RELATED RESOURCES

The National Housing Law Project (NHLP) has prepared materials that will help housing counseling agencies understand the provisions and help tenants exercise their new rights under this law. NHLP's materials include sample letters that tenants can use to inform their landlords, as well as sample letters advocates can use to inform the courts and public housing authorities.

The NLIHC website contains several resources, including details of the new tenant protection provisions:

• http://www.narpm.org/docs/legislative/issues/ptfa_fullbill.pdf
  
• http://nlihc.org/article/hud-issues-guidance-protecting-tenants-foreclosure-act

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SOURCE: U.S. Department of Housing and Urban Development
PREPARED BY: 211/tb
CONTENT LAST REVIEWED: April2012