On May 24, 2018, President Trump signed Senate Bill 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, into law (Public Law No: 115-174). Though the Act, calculated to streamline regulations within the Dodd-Frank Act of 2010, has many facets, of particular note to the world of mortgages and foreclosure is the resurrection of the Protecting Tenants at Foreclosure Act (PTFA) regulations. The effective date of the revival is June 24, 2018.
The PTFA was originally enacted in 2009, with a sunset date of December 31, 2014. It was designed to help bona fide tenants of foreclosed properties, in allowing them adequate time to find alternative housing. Specifically, it allows a bona fide tenant to remain for at least 90 days, which may, under certain circumstances, be sustained until the end of the lease terms.
For some jurisdictions, this will have little effect. States such as Maryland and the District of Columbia will see no difference to the eviction timeline, as these states enacted similar state counterparts to the PTFA and continued through the sunset of the PTFA. However, for the vast majority of states, this will increase the timeline to incorporate the 90 day increase in cases of tenant occupied property. We will most likely see an increase in leases brought to hearing, and the use of the PTFA as a defense in an eviction.
In preparation, we have changed all notices to contemplate the PTFA and give proper notice of rights to occupants. Our attorneys understand the nuances and complexities of this ever-changing legal landscape and are committed to providing our clients with specialized expertise and intelligent representation.