21August2014

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New Eviction Protections For Tenants in Foreclosed Properties

New federal law protecting tenants' rights becomes law

The new Protecting Tenants at Foreclosure Act contains three key protections for Section 8 tenants of units that have been foreclosed:

  • If you have a lease for a fixed term (for example, one year), and the lease has not yet expired, you have a a right to remain in the unit until the end of the lease term.  No one (not the bank; not the new owner) mayevict you until the end of the lease term--except for actions that you, members of your family, or your guests take which are "good cause".  "Good cause" is a valid legal reason for terminating your tenancy or for evicting you.  For example, if you don't pay your rent to the new owner.  There is one owner exception.  If the new owner wants to occupy the the unit as his or her primary residence, the owner only has to give you 90 days notice to leave after he or she becomes the owner--even if your lease runs for longer than 90 days.
  • If your lease ends in less than 90 days, neither the bank nor the new owner may evict you without giving you, at least, 90 days notice--except for actions that you, members of your family, or your guests take which are "good cause".  "Good cause" is a valid legal reason for terminating your tenancy or for evicting you.  For example, if you don't pay your rent to the new owner.
  • Because the bank or the new owner wants the property vacant is not a good cause (that is, a valid legal reason) for terminating your tenancy or evicting you. 

These protections apply to all Section 8 tenants, even those living in units that have already been foreclosed.  Click here for more information about how this new law affects you, including what to do if you receive an improper notice to leave.

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