Renters Faced with Foreclosure Related Evictions Could be Saved
There's good news coming out of City Council President Eric Garcetti's district about a problem largely unreported in the home foreclosre crisis. When a landlord goes into foreclosure, renters, even the ones who are in perfect standing, are being pressured by the new property owner--banks--to vacate. Tomorrow, the 13th distric councilman will present a motion to halt this activity via a moratorium. From the press release:
According to Los Angeles city laws, tenants in buildings built before 1978 are protected until the city’s Rent Stabilization Ordinance (RSO). This states that a change in building ownership due to foreclosure alone is not an adequate reason to evict a tenant and tenants must be notified of their rights in these situations. In the event that eviction is justified following a foreclosure, tenants are also entitled to a relocation fee in the minimum amount of $7,000. However, some tenants are not aware of these rights and have been illegally pressured to quickly vacate their rental units.
The Rent Stabilization Ordinance does not affect units built after 1978, but if Garcetti's motions passes, the moratorium would stop all evictions related to change in ownership.