NLIHC statement on actions to protect renters affected by foreclosuresMortgagePress.comrenters, Helping Families Save Their Homes Act, Mortgage Reform and Anti-Predatory Lending Act of 2009, National Low Income Housing Coalition
With actions taken by both the U.S. Senate and House of
Representatives this week, renters in the United States are very
close to being protected from precipitous loss of their homes when
their landlords are foreclosed upon.
An amendment by Sen. John Kerry (D-MA) to the Helping Families
Save Their Homes Act, which was passed by the Senate Wednesday, May
6, will require that tenants with leases remain in their homes for
the terms of their leases. If the property is purchased by new
owner-occupants, tenants must receive 90 days' notice before being
required to vacate. Tenants with a Section 8 housing choice voucher
would be able to remain in the property with both their lease and
rental assistance payments intact.
A similar provision was included in the Mortgage Reform and
Anti-Predatory Lending Act of 2009, which was passed by the House
May 7. Champions in the House to protect renters from imminent
eviction at foreclosure are Representatives Keith Ellison (D-MN),
Carolyn McCarthy (D-NY), Michael Capuano (D-MA), and Barney Frank
"Both the Senate and House have acted now to protect the most
innocent victims of the foreclosure crisis--renters," said Sheila
Crowley, president of the National Low Income Housing Coalition.
"We urge Senate and House leadership to expedite the legislative
process to get this critical bill before the President for his
signature without delay. The need is urgent for a national policy
that requires that all renters at least receive reasonable notice
The National Low Income Housing Coalition estimates that 40
percent of the households who have lost their homes because of
foreclosure are renters. Only in New Jersey and the District of
Columbia does tenancy survive foreclosure. In most other states,
renters have very few rights when their landlords are foreclosed
upon and can be evicted with very little or no notice.
For a state-by-state review of protections, click here.
For more information, visit www.nlihc.org.