Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S994 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 188 FILED ON: 1/11/2023
3	3	SENATE . . . . . . . . . . . . . . No. 994
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Adam Gomez
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act preventing unnecessary vacancies in foreclosed homes.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Adam GomezHampden 1 of 7
16	16	SENATE DOCKET, NO. 188 FILED ON: 1/11/2023
17	17	SENATE . . . . . . . . . . . . . . No. 994
18	18	By Mr. Gomez, a petition (accompanied by bill, Senate, No. 994) of Adam Gomez for legislation
19	19	to prevent unnecessary vacancies in foreclosed homes. The Judiciary.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1047 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act preventing unnecessary vacancies in foreclosed homes.
28	28	Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
29	29	protect citizens of the Commonwealth involved in the mortgage foreclosure crisis, therefore it is
30	30	hereby declared to be an emergency law, necessary for the immediate preservation of the public
31	31	convenience.
32	32	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
33	33	of the same, as follows:
34	34	1 SECTION 1. Chapter 186A of the General Laws is hereby amended by striking out
35	35	2sections 1 and 2 in their entirety and inserting in place thereof the following:-
36	36	3 Section 1. (a) As used in this chapter, the following words shall, unless the context
37	37	4clearly requires otherwise, have the following meanings:—
38	38	5 ''Entity'', a business organization, or any other kind of organization including, without
39	39	6limitation, a corporation, partnership, trust, limited liability corporation, limited liability 2 of 7
40	40	7partnership, joint venture, sole proprietorship or any other category of organization and any
41	41	8employee, agent, servant or other representative of such entity.
42	42	9 ''Eviction'', an action, without limitation, by a foreclosing owner of a housing
43	43	10accommodation which is intended to actually or constructively evict a tenant or otherwise
44	44	11compel a tenant to vacate such housing accommodation.
45	45	12 “Fair Market Rent,” an amount equal to that established by the United States Department
46	46	13of Housing and Urban Development pursuant to 42 U.S.C. section 1437f(c), as it exists or may
47	47	14be amended, for a unit of comparable size in the area in which the property is located.
48	48	15 ‘'Foreclosing owner'', an entity that holds title in any capacity, directly or indirectly,
49	49	16without limitation, whether in its own name, as trustee or as beneficiary, to a housing
50	50	17accommodation that has been foreclosed upon and either: (1) held or owned a mortgage or other
51	51	18security interest in the housing accommodation at any point prior to the foreclosure of the
52	52	19housing accommodation or is the subsidiary, parent, trustee, or agent thereof; or (2) is an
53	53	20institutional mortgagee that acquires or holds title to the housing accommodation within 3 years
54	54	21of the filing of a foreclosure deed on the housing accommodation; or (3) is the Federal National
55	55	22Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal Deposit
56	56	23Insurance Corporation.
57	57	24 ''Foreclosure'', a legal proceeding to terminate a mortgagor's interest in property,
58	58	25instituted by the mortgagee, and regulated under chapter 244.
59	59	26 “Foreclosure Sale Purchaser” or “purchaser”, either a foreclosing owner or a person or
60	60	27entity which purchases a housing accommodation from a foreclosing owner, not intending to 3 of 7
61	61	28reside or have a family member reside in such housing accommodation as the primary residence
62	62	29of such person or individual in control of such entity.
63	63	30 ''Housing accommodation'', a building or structure, or part thereof or land appurtenant
64	64	31thereto, and any other real or personal property used, rented or offered for rent for living or
65	65	32dwelling purposes, together with all services connected with the use or occupancy of such
66	66	33property.
67	67	34 ''Institutional mortgagee'', an entity or an entity which is the subsidiary, parent, trustee or
68	68	35agent thereof or otherwise related to such entity, that holds or owns mortgages or other security
69	69	36interests in 3 or more housing accommodations or that acts as a mortgage servicer of 3 or more
70	70	37mortgages of housing accommodations.
71	71	38 ''Just cause'', 1 of the following: (1) the tenant has failed to pay the rent in effect prior to
72	72	39the foreclosure or, in the case of the former mortgagor and any household members, monthly
73	73	40rent payments in an amount agreed to by the mortgagor and purchaser or, in the absence of such
74	74	41agreement, a Fair Market Rent as long as the foreclosure sale purchaser notified the tenant in
75	75	42writing of the amount of rent, the agreed upon monthly rent payments or Fair Market Rent that
76	76	43was to be paid and to whom it was to be paid; (2) the tenant has materially violated an obligation
77	77	44or covenant of the tenancy or occupancy, other than the obligation to surrender possession upon
78	78	45proper notice, and has failed to cure such violation within 30 days after having received written
79	79	46notice thereof from the foreclosing owner; (3) the tenant is committing a nuisance in the unit, is
80	80	47permitting a nuisance to exist in the unit, is causing substantial damage to the unit or is creating a
81	81	48substantial interference with the quiet enjoyment of other occupants; (4) the tenant is using or
82	82	49permitting the unit to be used for any illegal purpose; (5) the tenant who had a written bona fide 4 of 7
83	83	50lease or other rental agreement which terminated, on or after August 10, 2010, has refused, after
84	84	51written request or demand by the foreclosing owner, to execute a written extension or renewal
85	85	52thereof for a further term of like duration and in such terms that are not inconsistent with this
86	86	53chapter; (6) the tenant has refused the foreclosing owner reasonable access to the unit for the
87	87	54purpose of making necessary repairs or improvement required by the laws of the United States,
88	88	55the commonwealth or any subdivision thereof, or for the purpose of inspection as permitted or
89	89	56required by agreement or by law or for the purpose of showing the unit to a prospective
90	90	57purchaser or mortgagee provided. Nothing in the section shall limit the rights of a third-party
91	91	58owner to evict a tenant at the expiration of an existing lease.
92	92	59 ''Mortgagee'', an entity to whom property is mortgaged, the mortgage creditor or lender
93	93	60including, but not limited to, mortgage servicers, lenders in a mortgage agreement and any agent,
94	94	61servant or employee of the mortgagee or any successor in interest or assignee of the mortgagee's
95	95	62rights, interests or obligations under the mortgage agreement.
96	96	63 ''Mortgage servicer'', an entity which administers or at any point administered the
97	97	64mortgage; provided, however that such administration shall include, but not be limited to,
98	98	65calculating principal and interest, collecting payments from the mortgagor, acting as escrow
99	99	66agent or foreclosing in the event of a default.
100	100	67 “Tenant”, a person or group of persons who at the time of foreclosure is an occupant of
101	101	68such housing accommodation. A person who moves into the housing accommodation owned by
102	102	69the foreclosure sale purchaser, subsequent to the foreclosure sale, without the express written
103	103	70permission of the foreclosure sale purchaser shall not be considered a tenant under this chapter. 5 of 7
104	104	71 ''Unit'' or ''residential unit'', the room or group of rooms within a housing accommodation
105	105	72which is used or intended for use as a residence by 1 household.
106	106	73 Section 2. Notwithstanding any general or special law to the contrary, if a mortgage of
107	107	74real estate is foreclosed by a sale under a power contained therein, or otherwise, and a
108	108	75foreclosure sale purchaser has a valid title to such estate, that foreclosure sale purchaser shall not
109	109	76evict a tenant except for just cause or unless a binding purchase and sale agreement has been
110	110	77executed for a bona fide third party to purchase the housing accommodation from a foreclosure
111	111	78sale purchaser.
112	112	79 SECTION 2. Said chapter 186A of the General Laws, as appearing in the 2016 Official
113	113	80Edition, is hereby further amended in sections 3,4,5, and 6 by striking out each appearance of the
114	114	81words “foreclosing owner” and inserting in place thereof the following words:- foreclosure sale
115	115	82purchaser.
116	116	83 SECTION 3. Section 3 of said chapter 186A of the General Laws, as so appearing, is
117	117	84hereby amended by striking out the first sentence and inserting in place thereof the following
118	118	85sentence:- Within 30 days of the foreclosure, the foreclosure sale purchaser shall post in a
119	119	86prominent location in the building a written notice stating the names, addresses, telephone
120	120	87numbers and telephone contact information of the foreclosure sale purchaser, the building
121	121	88manager or other representative of the foreclosure sale purchaser responsible for the management
122	122	89of such building and stating the address to which the rent, or, in the case of the former mortgagor
123	123	90and any household members, the agreed upon monthly rent payments or Fair Market Rent shall
124	124	91be sent. 6 of 7
125	125	92 SECTION 4. Section 4 of said chapter 186A of the General Laws, as so appearing, is
126	126	93hereby amended in subsection (a) by striking out clause (i) and inserting in place thereof the
127	127	94following clause:-
128	128	95 (i) the tenant has failed to pay the rent in effect prior to the foreclosure or, in the case of
129	129	96the former mortgagor and any household members, the agreed upon monthly rent payments or
130	130	97Fair Market Rent, as long as the foreclosing owner notified the tenant in writing of the amount of
131	131	98rent that was to be paid and to whom it was to be paid;
132	132	99 SECTION 5. Section 5 of said chapter 186A of the General Laws, as so appearing, is
133	133	100hereby amended by striking out the second sentence and inserting in place thereof the following
134	134	101sentence:-
135	135	102 A bona fide lease between the foreclosed-upon owner and the lessee or proof of rental
136	136	103payment to the foreclosed-upon owner or a Fair Market Rent shall be presumed reasonable.
137	137	104 SECTION 6. Section 6 of said chapter 186A of the General Laws, as so appearing, is
138	138	105hereby amended by striking out the first paragraph and inserting in place thereof the following
139	139	106paragraph:-
140	140	107 A foreclosure sale purchaser that evicts a tenant in violation of this chapter or any
141	141	108ordinance or by-law adopted pursuant to this chapter, shall be punished by penalty of not less
142	142	109than $5,000 to be paid to the tenant upon order of the court. Each such illegal eviction shall
143	143	110constitute a separate offense. 7 of 7
144	144	111 SECTION 7. Section 13 of said Chapter 186 of the General Laws, as so appearing, is
145	145	112hereby amended by inserting, in line 18, after the word “foreclosure” the following;- “shown to
146	146	113be valid.”
147	147	114 SECTION 8. Section 6 of Chapter 239 of the General Laws, as so appearing is hereby
148	148	115amended by striking the first sentence and inserting in place thereof the following:-
149	149	116 If the action is for the possession of land after foreclosure of a mortgage thereon by a sale
150	150	117under a power contained therein, or otherwise, and the person having a valid title to such estate,
151	151	118the condition of the bond shall be for the entry of the action and payment to the plaintiff, if final
152	152	119judgment is in his favor, of all costs and of a reasonable amount as rent of the land from the day
153	153	120when the mortgage was foreclosed until possession of the land is obtained by the plaintiff.