SLS 13RS-332 ORIGINAL Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2013 SENATE BILL NO. 156 BY SENATOR BROOME Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. LEASES. Provides relative to leases and residential lessee's right to notification of foreclosure action. (8/1/13) AN ACT1 To enact R.S. 9:3260.1, relative to leases; to provide for a residential lessee's right to2 notification of foreclosure action on the leased premises; to provide certain terms,3 conditions, requirements and procedures; to provide for the duties of the lessor,4 including manner and form of notice; to provide for the rights of the lessee, including5 termination of the lease and recovery of certain amounts; and to provide for related6 matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 9:3260.1 is hereby enacted to read as follows:9 ยง3260.1. Lessee's right to notification of foreclosure action10 A. Prior to entering into a lease agreement for a residential dwelling11 unit, the owner or lessor shall disclose in writing whether the premises of the12 unit is subject to any pending foreclosure procedure, and the right of the lessee13 or tenant to receive a notification of a foreclosure action pursuant to this14 Section.15 B. Within seven calendar days after being served pursuant to Code of16 Civil Procedure Article 2293 with a notice of seizure in a foreclosure action, an17 SB NO. 156 SLS 13RS-332 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. owner or lessor of residential premises being seized shall provide a written1 disclosure of such notice of seizure to all lessees or tenants of the premises, and2 to any third party who has a consistent pattern and practice of paying rent to3 the owner or lessor on behalf of a lessee or tenant.4 C. The written disclosure required in Subsection B shall be signed by the5 owner or lessor and shall include the name of the district court in which the6 foreclosure action is pending, the case name and docket number and the7 following statement: "This is not a notice to vacate the premises. This notice8 does not mean ownership of the building has changed. All lessees or tenants are9 still responsible for payment of rent and other obligations under the rental10 agreement. The owner or lessor is still responsible for his obligations under the11 rental agreement. You will receive additional notice if there is a change in12 owner".13 D. A lessee or tenant may in writing terminate the lease agreement if the14 lessor or owner does not provide the written disclosures required by this15 Section. Such termination notice shall specify the date of termination no later16 than thirty days from the date of the termination notice. In addition, if a lessee17 or tenant in a civil legal proceeding against an owner or lessor establishes that18 a violation of this Section occurred, the lessee or tenant shall be entitled to19 recover two hundred dollars in damages, in addition to any other damages or20 remedies and costs to which the lessee or tenant may also be entitled.21 E. The requirements of this Section shall apply to all owners or lessors22 in residential leases, including owners or lessors who are leasing residential23 properties subject to a federally-related mortgage loan, and to all residential24 lessees or tenants, including lessees or tenants receiving vouchers or housing25 assistance dollars pursuant to Section 8 of the United States Housing Act of26 1937.27 SB NO. 156 SLS 13RS-332 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Julie J. Baxter. DIGEST Proposed law provides for residential lessee's right to notification of foreclosure actions. Proposed law provides that, prior to entering into a lease agreement for a residential dwelling unit, the owner or lessor shall disclose in writing whether the premises of the unit is subject to any pending foreclosure procedure, and the right of the lessee to receive notification of a foreclosure action pursuant to proposed law. Proposed law provides that, within seven calendar days after being served pursuant to Code of Civil Procedure Article 2293 with a notice of seizure in a foreclosure action, an owner or lessor of residential premises being seized shall provide a written disclosure of such seizure to all lessees or tenants of the premises, and to any third party who has a consistent pattern and practice of paying rent to the owner or lessor on behalf of the lessee or tenant. Proposed law provides that the written disclosure required under proposed law shall be signed by the owner or lessor and shall include the name of the district court in which the foreclosure action is pending, the case name and docket number and the following statement: "This is not a notice to vacate the premises. This notice does not mean ownership of the building has changed. All lessees or tenants are still responsible for payment of rent and other obligations under the rental agreement. The owner or lessor is still responsible for his obligations under the rental agreement. You will receive additional notice if there is a change in owner". Proposed law provides that the lessee or tenant may in writing terminate the lease agreement if the owner or lessor does not provide the written disclosures required under proposed law. Proposed law provides that such termination notice shall specify the date of termination no later than 30 days from the date of the termination notice. Proposed law further provides that, if a lessee or tenant in a civil legal proceeding against an owner or lessor establishes that a violation of this Section occurred, the lessee or tenant shall be entitled to recover two hundred dollars in damages, in addition to any other damages or remedies and costs to which the lessee or tenant may also be entitled. Proposed law further provides that the requirements of proposed law shall apply to all owners or lessors in residential leases, including owners or lessors who are leasing residential properties subject to a federally-related mortgage loan, and to all residential lessees or tenants, including lessees or tenants receiving vouchers or housing assistance dollars pursuant to Section 8 of the United States Housing Act of 1937. Effective August 1, 2013. (Adds R.S. 9:3260.1)