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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 multi-family residential dwelling lessees' 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 dwelling unit11
within a multi-family residential dwelling, the lessor shall disclose in writing to12
the prospective lessee any pending foreclosure action to which the multi-family13
residential dwelling is subject at the time of the signing of the lease, and the14
right of the lessee to receive a notification of a foreclosure action pursuant to15
this Section.16
B. Within seven calendar days after being served pursuant to Code of17 SB NO. 156
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Coding: Words which are struck through are deletions from existing law;
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Civil Procedure Article 2293 with a notice of seizure in a foreclosure action, a1
lessor of a multi-family residential dwelling subject to a notice of seizure in a2
foreclosure action shall provide written notice of the seizure to all lessees of any3
units within the premises.4
C. The written disclosure required in Subsection B shall be signed by the5
lessor and shall include the name of the district court in which the foreclosure6
action is pending, the case name and docket number and the following7
statement: "This is not a notice to vacate the premises. This notice does not8
mean ownership of the building has changed. All lessees are still responsible for9
payment of rent and other obligations under the rental agreement. The lessor10
is still responsible for his obligations under the rental agreement. You will11
receive additional notice if there is a change in owner".12
D. If a lessee in a civil legal proceeding against an owner or lessor13
establishes that a violation of this Section occurred, the lessee shall be entitled14
to recover two hundred dollars in damages, in addition to any other damages15
or remedies and costs to which the lessee may also be entitled.16
E. The requirements of this Section shall apply to all lessors in17
residential leases involving multi-family residential dwellings, including lessors18
who are leasing multi-family residential dwellings subject to a federally-related19
mortgage loan, and to all lessees in residential leases within a multi-family20
residential dwelling, including such lessees receiving vouchers or housing21
assistance dollars pursuant to Section 8 of the United States Housing Act of22
1937.23
F. The requirements of this Section shall not apply to a federally insured24
financial institution which is asserting its rights as an assignee of a lessor whose25
property is under foreclosure or as a mortgage holder.26 SB NO. 156
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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
Broome (SB 156)
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 within a multi-family residential dwelling, the lessor shall disclose in writing to the
prospective lessee any pending foreclosure action to which the multi-family residential
dwelling is subject at the time of the signing of the lease, 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, a lessor of
a multi-family residential dwelling subject to a notice of seizure in a foreclosure action shall
provide written notice of the seizure to all lessees of any unit within the premises.
Proposed law provides that the written disclosure required under proposed law shall be
signed by the 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 are still responsible for
payment of rent and other obligations under the rental agreement. The 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, if a lessee in a civil legal proceeding against a lessor establishes
that a violation of this Section occurred, the lessee shall be entitled to recover two hundred
dollars in damages, in addition to any other damages or remedies and costs to which the
lessee may also be entitled.
Proposed law further provides that the requirements of proposed law shall apply to all lessors
in residential leases involving multi-family residential dwellings, including lessors who are
leasing multi-family residential dwellings subject to a federally-related mortgage loan, and
to all lessees in residential leases within a multi-family residential dwelling, including such
lessees receiving vouchers or housing assistance dollars pursuant to Section 8 of the United
States Housing Act of 1937.
Proposed law provides that the proposed notice requirements shall not apply to a federally
insured financial institution which is asserting its rights as an assignee of a lessor whose
property is under foreclosure or as a mortgage holder.
Effective August 1, 2013.
(Adds R.S. 9:3260.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
original bill
1. Limits proposed notice requirements to lessors entering into a lease
agreement with a prospective lessee for a residential dwelling unit within a SB NO. 156
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Coding: Words which are struck through are deletions from existing law;
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multi-family residential dwelling, and only if a foreclosure action is pending
prior to the lessor entering into a lease agreement with the prospective lessee.
2. Deletes proposed notice requirement for lessor to notify any third party who
has a consistent pattern and practice of paying rent to the owner or lessor on
behalf of a lessee or tenant.
3. Deletes all references in the bill to "owners" or "tenants".
4. Deletes option that lessee may in writing terminate the lease agreement if the
lessor does not provide the required written disclosures.
5. Revises language to provide that proposed law shall apply to all lessors and
lessees in residential leases involving multi-family residential dwellings
subject to a federally-related mortgage loan and to all multi-family
residential dwelling lessees receiving vouchers or housing assistance dollars
pursuant to Section 8 of the United States Housing Act of 1937.
6. Adds that proposed law shall not apply to a federally insured financial
institution which is asserting its rights as an assignee of a lessor whose
property is under foreclosure or as a mortgage holder.