Renters caught up in the foreclosure meltdown could gain some much-needed assistance if a bill authored by Assembly Majority Leader Alberto Torrico (D-Newark) becomes law.
AB 2586 was approved by the state Assembly 43-28 and now goes to the Governor for his consideration.
AB 2586 improves California´s notification laws dealing with renters living in homes that are in foreclosure and requires new owners of the units to return renters´ security deposits.
One in every five foreclosed homes is occupied by renters, according to some reports. In the second quarter of this year, 121,341 default notices were filed in California. Families are being forced out of their homes, frequently with little notice. Often renters don´t know their homes are in danger because California´s inadequate notification laws are aimed at owners, not tenants.
"Innocent families are being hurt by these foreclosures," Torrico said. "Many of them don´t even know there´s a foreclosure until a utility worker knocks on the door threatening to turn off the water because the landlord hasn´t paid the bill. These are renters who put down security deposits, paid their rent on time every month, and did nothing wrong. This bill will help renters cope with a sudden housing crisis not of their making."
The bill protects renters living in buildings with four or fewer homes. It also would extend current law allowing tenants in multifamily units to deduct utility payments from their rent, to renters in single-family homes and condominiums. Under the bill, as successors in interest of the property, new owners would assume the responsibility of returning the renters´ security deposits.
AB 2586 is sponsored by the Western Center on Law and Poverty and is supported by more than 20 organizations including housing advocates, labor groups and social justice organizations throughout California.
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