TENANTS LEGAL CENTER
OF SAN DIEGO
SAN DIEGO TENANT UPDATE
New landlord Tenant laws
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2009 2010
UPDATE ON FEDERAL LAW PROTECTING
RESIDENTIAL TENANTS AFTER FORECLOSURE!!
On July 21, 2010, the existing PROTECTING TENANTS AT FORECLOSURE ACT was amended as part of the financial reform laws.
The Amendment clarified that the term "Notice of Foreclosure" in the original law meant the actual sale and transfer of title so all residential leases entered into prior
to that sale may be protected see the changes
FEDERAL LAW REGARDING TENANCIES AFTER FORECLOSURE
On May 20, 2009, the President signed a Federal Law ( Public Law 111-22 ). This law was then amended by Public Law 111-203 (word version) as a part of the financial reforms in the ‘Dodd-FrankWall Street Reform and Consumer Protection Act’’ (see section 1484) on July 21, 2010. This law has a significant impact on tenants residing in a residential property that has been foreclosed upon. It is intended to assist residential tenants by doing three important things;
!. Transferring existing leases (including section 8 tenancies) to the new owners after a foreclosure sale (except that 90 days notice to vacate may be given prior to the end of a lease if the new owner plans to live in the dwelling).
2. Requiring 90 day notices to vacate (State law was 60 days) for month to month tenancies after a foreclosure sale.
3. Declaring that a foreclosure is not "good cause" alone to evict a section 8 tenant.
There are conditions that need to be met under this Federal Law
The lease or rental agreement must have been in existence prior to the "notice of the foreclosure" (which now means all the way up to title transferring at the actual auction sale.)
There must be a "bona fide tenant" or "bona fide tenancy"
If these conditions are not met, then State law applies.
Additional consequences and effects
Paying Rent Coming under this law means that the tenant may now have to pay the lease rent after a foreclosure. Existing State Law allowed a tenant 60 days after a foreclosure of a dwelling to vacate without paying rent. This was regarded as an unofficial relocation benefit. This new Federal Law appears to wipe out the free rent California tenants were enjoying. The (pre- foreclosure notice) lease may be recognized and assumed by the new owner who may now want the rent immediately after the foreclosure sale. Stranger as New Landlord After the foreclosure sale, the tenant will "inherit" a new landlord who may not be the person or entity that the tenant would have a wanted as a landlord if they had a choice in the matter. Terminating Leases The new owners may terminate an existing lease including, section 8 tenancies, if the new owner intends to move in with 90 days notice.
NEW RULES FOR WATER SUBMETERING
There are some new rules for tenants in the City of San Diego who pay a water bill when their unit has a submeter installed. A submeter is a water meter installed by the Landlord, not the Water Department, to measure the tenant's specific water use. As of June 1, 2010, leases must inform tenants about the submeter rules including any late or administrative fees and the name of the landlord or agent who will be doing the billing. The submeter water bill presented to the tenant must also contain certain information. See the full text of the law.
APARTMENT RENTS TO RISE IN SAN DIEGO
According a USC forecast released on 3/7/2010 and reported by the San Diego News Network, San Diego County is the only region in Southern California where apartment rents are expected to rise slightly this year by 0.7 percent. Other regions like Los Angeles a Orange County are expected to see further declines in rents while others should remain flat.
NEW LEAD SAFE LAWS
Beginning April 22, 2010 a new law from the U.S. Environmental Protection Agency (EPA) affects homes, child care facilities, and schools built before 1978.It requires contractors and maintenance professionals to be certified to handle renovations where lead based paint will be disturbed (6 square feet for interiors and 20 square feet for exteriors) In addition, they must follow lead safe work practice standards. Full text of rule
TENANTS CHECKING CREDIT OF LANDLORDS?
With so many foreclosures, maybe it is time tenants check the credit of landlords before renting. Some landlords who face foreclosure will rent the home to unsuspecting tenants collecting rent all the way to losing the home at a foreclosure sale. They collect rent but do not pay the mortgage since they are planning to let the home go. The problem is that the tenants do not know about the owner's plans and think they are leasing a secure home. These tenants become victims because they leased a home on the edge of foreclosure which will lead to their eviction, regardless of the lease. Tenants can actually research the risk of foreclosure before renting and moving in. Anyone can access public records in San Diego to see if there is a NOTICE OF DEFAULT (NOD) on the property. Once one of these is issued, the owner has time to cure the default before the sale. Clearly, tenants who discover a NOD should understand that beginning to or continuing to rent that home carries the risk of being evicted by the lender after a foreclosure. Innocent tenants displaced by a foreclosure may ake a claim against the owner for breach of the lease and perhaps even a claim for damages based on fraud.
REPRESENTING YOURSELF
IN DEFENDING AN EVICTION?
DON'T DO IT
Tenants here are still losing valuable rights by handling their own eviction defense. Defending yourself in an eviction case in San Diego, in the vast majority of cases, is court "suicide". Statistically, most all tenants who represent themselves in eviction court will lose or be tricked into signing a bad settlement. Using any self help assistance service or book creates a serious risk that you will lose your case, regardless of your rights. Having someone prepare your papers without them being available to represent you in court is very dangerous. This is because eviction cases and trials are so complex that a skilled attorney is really necessary to properly handle these matters. Even with settlements, remember the landlord is motivated to settle the case with your attorney, not you. This is because, they are not afraid of you in court, only your attorney. By the way, this situation is pretty much the same for landlords. Many landlords have represented themselves in court against a skilled tenant's rights attorney and learned the hard way just how technical and difficult these cases can be. Coming in second in trial (i.e. losing) for a landlord who just assumed they would easily win can be a real eye opener.
LANDLORDS ABUSING THEIR
POWER OF EVICTION
Many San Diego tenants are still receiving eviction notices for minor and trivial reasons. San Diego County is still a "no cause" eviction jurisdiction. San Diego City, however, is now a just cause eviction jurisdiction after the first two years of a tenancy according to the City ordinance. Landlords continue to seek only the "best" or "their favorite" tenants and tend to evict the rest. These desired tenants can be the good timely paying tenants or simply those tenants willing to accept abuse and unfair treatment without complaint.
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California law for San Diego is applied in these pages. Such laws may or may not be applicable in other jurisdictions. The information provided herein is of a general nature and is not intended to be taken as specific legal advice. For legal advice in a particular situation, promptly consult with an
appropriate attorney