RDCSB156 2991 3748
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
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 and during the term of
a lease agreement for a residential dwelling, the lessor shall disclose in writing to the
prospective lessee any pending foreclosure action to which the residential dwelling is
subject, 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 residential dwelling subject to a notice of seizure in a foreclosure action shall provide
written notice of the seizure to all lessees of the premises.
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 proposed law 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.
Further provides that the requirements of proposed law shall apply to all lessors in
residential leases, including lessors who are leasing residential dwellings subject to a
federally-related mortgage loan, as defined by 12 USC 2602, or who have entered into a
housing assistance payments contract with the public housing agency to receive housing
subsidies on behalf of a lessee, and to all lessees in residential leases, including such lessees
receiving vouchers or housing assistance pursuant to Section 8 of the United States Housing
Act of 1937.
Provides that the proposed law 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 RDCSB156 2991 3748
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1. Limits proposed notice requirements to lessors entering into a lease
agreement with a prospective lessee for a residential dwelling unit within a
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.
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Civil Law and Procedure
to the engrossed bill.
1. Removed designation of "multi-family residential dwelling" making provisions
applicable to leases of all residential property.
2. Expanded requirement that notice be given prior to entering into a lease
agreement to notice of foreclosure being required during the term of the lease
agreement as well