The Protecting Tenants at Foreclosure Act of 2009 (PTFA) Has Been Reinstated
On May 24, 2018, Senate Bill 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, was signed into law. The bill, designed to amend regulations put in place by the 2010 Dodd-Frank Act, reinstates the Protecting Tenants at Foreclosure Act (PTFA).
Originally introduced in 2009, the PTFA “contained protections intended to ensure that tenants facing eviction from a foreclosed property would have adequate time to find alternative housing.” The PTFA expired on December 31, 2014. In the years since, some states, including California, have implemented their own versions of the law to continue those protections for tenants.
The Act restores and revives the PTFA thirty days after the enactment of the Act. In that regard, the Act provides as follows:
SEC. 304. Restoration of the Protecting Tenants at Foreclosure Act of 2009.
(a) Repeal of sunset provision.—Section 704 of the Protecting Tenants at Foreclosure Act of 2009 (12 U.S.C. 5201 note; 12 U.S.C. 5220 note; 42 U.S.C. 1437f note) is repealed.
(b) Restoration.—Sections 701 through 703 of the Protecting Tenants at Foreclosure Act of 2009, the provisions of law amended by such sections, and any regulations promulgated pursuant to such sections, as were in effect on December 30, 2014, are restored and revived.
(c) Effective date.—Subsections (a) and (b) shall take effect on the date that is 30 days after the date of enactment of this Act.
Because California has passed its own version of the Act, the effect in California will be minimal. (See, Code Civ. Proc. § 1161(b).
For further information, please contact Wallace, Richardson, Sontag & Le, LLP at (949) 748-3600.
The law firm of Wallace, Richardson, Sontag & Le, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice.