Relating to foreclosure sales of residential real property occupied by a tenant.
Impact
If enacted, HB 1218 would alter the landscape of tenant rights in Texas by enhancing the requirements for landlords following a foreclosure sale. This act would provide tenants a window of opportunity to secure alternative housing solutions, thereby aiming to mitigate abrupt displacements that can occur due to foreclosure. By ensuring that tenants have extended notice, the law would help promote stability for individuals and families renting homes, as well as potentially reduce the burden on social support systems dealing with sudden homelessness.
Summary
House Bill 1218 focuses on the foreclosure sales of residential real properties that are occupied by tenants. The bill aims to amend existing laws in the Texas Property Code, specifically regarding the notice period landlords must provide to tenants before beginning eviction proceedings after a foreclosure. Currently, if a tenant is occupying a property under certain conditions, they are entitled to receive a significantly longer notice period before being required to vacate the premises. The proposed change extends the notice period to a minimum of 90 days for tenants who are not in default and have been paying their rent, thereby strengthening tenant protections in the face of property foreclosure.
Sentiment
The general sentiment around HB 1218 appears to be supportive amongst tenant advocacy groups and those concerned with housing insecurity. Proponents argue that the bill is a necessary step in safeguarding tenant rights and ensuring that vulnerable populations have adequate notice and time to transition out of their homes. However, there may be concerns among landlords and some real estate interests about the increased burden of longer notice periods, which could complicate property management processes and sales following foreclosure.
Contention
Notable points of contention surrounding HB 1218 include the balance between tenant protections and the rights of property owners. Some stakeholders may argue that the bill could make it more difficult for landlords to regain possession of their properties in a timely manner, potentially impacting the overall real estate market. Furthermore, discussions may arise about the implications of this bill on lease agreements and negotiations, as well as how universally applicable these protections will be in practice, especially across various types of rental arrangements.
Relating to verification of identity and employment authorization in connection with certain contracts for or concerning the conveyance of residential real property and residential leases.
Relating to the establishment of a program administered by the Texas Department of Housing and Community Affairs and certain county housing authorities to incentivize landlords to accept tenants participating in the housing choice voucher program.
Expands scope of Foreclosure Mediation Assistance Program during State of Emergency to allow use of program funds for payment to counselors who help disaster victims process applications for assistance.
Expands scope of Foreclosure Mediation Assistance Program during State of Emergency to allow use of program funds for payment to counselors who help disaster victims process applications for assistance.
An Act Concerning Foreclosure Mediation And Assistance Programs, The Highly Compensated Employee Exemption For Mortgage Loan Originators, General-use Prepaid Cards And Neighborhood Protection.