Amendment ID: S1981-3-R1
Redraft Amendment 3
Preventing Vacancies
Mr. Eldridge moves to amend the bill by inserting the following section:-
SECTION XX.
SECTION 1. Section 1 of chapter 186A of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out the definition of “Bona fide lease or bona fide tenancy.”
SECTION 2. Said section 1 of said chapter 186A of the General Laws, as so appearing, is hereby further amended by inserting the following definition:- “Fair Market Rent”, reasonable monthly rent amount based on the amount equal to that established by the United States Department of Housing and Urban Development pursuant to 42 U.S.C. c § 1437f(o), as it exists or may be amended, and considering (1) the condition of the unit, (2) rental amount of a unit of comparable size in the immediate area or same building in which the property is located, (3) other relevant factors.
SECTION 3. Said section 1 of said chapter 186A of the General Laws, as so appearing, is hereby further amended by inserting in line 27 after the words “Federal Home Loan Mortgage Corporation” the following words:- or the Federal Deposit Insurance Corporation
SECTION 4. Said section 1 of said chapter 186A of the General Laws, as so appearing, is hereby further amended by inserting the following definition:-
SECTION 5. Said section 1 of said chapter 186A of the General Laws, as so appearing, is hereby further amended in the definition of “Just cause” by striking subsection (1) and inserting in place thereof the following subsection:-
(1) after receiving notice pursuant to section three, the tenant has failed to pay the rent in effect prior to the foreclosure or, in the case of the former mortgagor and any household members, monthly rent payments in an amount agreed to by the mortgagor and foreclosing owner or Fair Market Rent, as determined by the foreclosing owner or, if contested, determined by a court, as long as the foreclosing owner notified the tenant in writing of the amount of rent, the agreed upon monthly rent payments or Fair Market Rent that was to be paid and to whom it was to be paid.
SECTION 6. Said section 1 of said chapter 186A of the General Laws, as so appearing, is hereby further amended by striking the definition of “tenant” and inserting in place thereof the following definition:-
“Tenant”, a person or group of persons who at the time of foreclosure is an occupant of such housing accommodation, including a tenant-at-will or lessee of the foreclosed-upon owner, a former mortgagor, or other household member. A person who moves into the housing accommodation owned by the foreclosing owner, subsequent to the foreclosure sale, without the express written permission of the foreclosing owner shall not be considered a tenant under this chapter.
SECTION 7. Section 3 of said chapter 186A of the General Laws, as so appearing, is hereby amended by striking the first sentence and inserting in place thereof the following sentence:-
Within 30 days of the foreclosure, the foreclosing owner shall post in a prominent location in the building a written notice stating the names, addresses, telephone numbers and telephone contact information of the foreclosing owner, the building manager or other representative of the foreclosing owner responsible for the management of such building and stating the address to which the rent, or, in the case of the former mortgagor and any household members, the agreed upon monthly rent payments or Fair Market Rent shall be sent. In the case of the former mortgagor and other household member, the notice shall include the Fair Market Rent as proposed by the foreclosing owner, inform the tenant that he or she may contact the foreclosing owner to contest the stated rent amount, and inform the tenant that should agreement on the rent not be reached either party may bring an action in court to determine the Fair Market Rent within 90 days of receipt of the notice.
SECTION 8. Section 3 of said chapter 186A of the General Laws, as so appearing, is hereby amended by striking the following words in lines 15 and 16:- “and use and occupancy charges”
SECTION 9. Section 4 of said chapter 186A of the General Laws, as so appearing, is hereby amended in subsection (a) by striking clause (i) and inserting in place thereof the following clause:-
(i) the tenant has failed to pay the rent in effect prior to the foreclosure or, in the case of the former mortgagor and any household members, the agreed upon monthly rent payments or Fair Market Rent, as long as the foreclosing owner notified the tenant in writing of the amount of rent that was to be paid and to whom it was to be paid, or such amount was unpaid after being determined by a court;
SECTION 10. Section 5 of said chapter 186A of the General Laws, as so appearing, is hereby amended by striking the following words in the first sentence:- “and use and occupancy charges”
SECTION 11. Section 5 of said chapter 186A of the General Laws, as so appearing, is hereby amended by striking the second sentence and inserting in place thereof the following sentence:-
A bona fide lease between the foreclosed-upon owner and the lessee or proof of rental payment to the foreclosed-upon owner shall be presumed reasonable.
SECTION 12. Section 5 of said chapter 186A of the General Laws, as so appearing, is hereby amended by inserting a new section after Section 5:-
Section 5A. Claim by foreclosing owner or former mortgagor or other household member to set Fair Market Rent. If a former mortgagor or other household member disagrees with the foreclosing owner’s determination of Fair Market Rent, and agreement cannot be reached, a proceeding may be brought within 90 days of the tenant receiving the notice sent pursuant to section three of this chapter in district, superior or housing court to set a Fair Market Rent for the unit.
SECTION 13. Section 6 of said chapter 186A of the General Laws, as so appearing, is hereby amended by striking the second paragraph.