Tenants in Foreclosure. New Laws and Updates Tovah Flygare, Attorney, Southern Minnesota Regional Legal Services e-mail: email@example.com. Tenants in Foreclosure: New Laws and Updates. Generic Timeline New Federal Law State Law and updates Q&A.
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New Laws and Updates
Tovah Flygare, Attorney, Southern Minnesota Regional Legal Services
bona fide tenant has minimum of 90 days notice from immediate successor in interest.
Bona fide tenant with bona fide lease can live out lease unless new owner will occupy as primary residence.
PTFA 703 (Section 8)
Foreclosure is not “good cause” to terminate a lease.
New owner cannot terminate lease because of foreclosure unless new owner is moving in as primary residence and gives 90-day notice.
New owner bound by HAP and lease.New Federal Law
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.
Give notice to Landlord
Can pay current charges
Not responsible for arrears, late fees
Not subject to deposit.
Gas & Electric
Give notice to Landlord
Service must be restored for at least one billing period
If less than 5-unit building, tenant can put account in own nameUtilities Minn. Stat. § 504B.215