Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that prohibits trustees from bundling foreclosed properties for the purpose of sale, among other provisions.

Highlights:

• Requires a trustee or authorized agent to maintain an internet website and telephone number to provide information on applicable properties to individuals who wish the information (Sec. 1.5, Pg. 15).

• Prohibits a trustee from bundling properties known as lots or parcels for the purpose of sale and requires each property to be bid on separately by eligible bidders including a prospective owner-occupant or eligible tenant-buyer, unless the deed of trust or mortgage requests otherwise (Sec 3, Pg. 30).

• Specifies that the aforementioned provisions shall remain in effect until January 1, 2026 (Sec. 3, Pg. 30).

• Defines “prospective owner-occupant” as a natural person who presents the trustee with the following affidavits, including (Sec. 7, Pg. 39-40):

• That they will occupy the property as their primary residence within 60 days of the trustee’s deeds being recorded;

• That they will maintain their occupancy for at least one year; and

• That they are not acting as the agent of any other individual or entity in purchasing the real property;

• Defines “eligible tenant-buyer” as a natural person who at the time of the trustee’s sale (Sec. 7, Pg. 40):

• Is occupying the real property as their primary residence;

• Is occupying the real property under a rental or lease agreement entered into; or

• Is not the mortgager or trustor, or the child, spouse, or parent of the mortgagor or trustor.

• Defines “eligible bidder” as any of the following, including, but not limited to (Sec. 7, Pg. 40):

• An eligible tenant buyer or prospective owner-occupant;

• A nonprofit association, corporation, or cooperative corporation;

• An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable housing;

• A limited partnership or limited liability company in which the managing member is an eligible nonprofit corporation; or

• A community land trust or a limited-equity housing cooperative.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that prohibits trustees from bundling foreclosed properties for the purpose of sale, among other provisions

Highlights:

• Requires a trustee or authorized agent to maintain an internet website and telephone number to provide information on applicable properties to individuals who wish the information (Sec. 1.5, Pg. 15).

• Prohibits a trustee from bundling properties known as lots or parcels for the purpose of sale and requires each property to be bid on separately by eligible bidders including a prospective owner-occupant or eligible tenant-buyer, unless the deed of trust or mortgage requests otherwise (Sec 3, Pg. 30).

• Specifies that the aforementioned provisions shall remain in effect until January 1, 2026 (Sec. 3, Pg. 30).

• Defines “prospective owner-occupant” as a natural person who presents the trustee with the following affidavits, including (Sec. 7, Pg. 39-40):

• That they will occupy the property as their primary residence within 60 days of the trustee’s deeds being recorded;

• That they will maintain their occupancy for at least one year; and

• That they are not acting as the agent of any other individual or entity in purchasing the real property;

• Defines “eligible tenant-buyer” as a natural person who at the time of the trustee’s sale (Sec. 7, Pg. 40):

• Is occupying the real property as their primary residence;

• Is occupying the real property under a rental or lease agreement entered into; or

• Is not the mortgager or trustor, or the child, spouse, or parent of the mortgagor or trustor.

• Defines “eligible bidder” as any of the following, including, but not limited to (Sec. 7, Pg. 40):

• An eligible tenant buyer or prospective owner-occupant;

• A nonprofit association, corporation, or cooperative corporation;

• An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable housing;

• A limited partnership or limited liability company in which the managing member is an eligible nonprofit corporation; or

• A community land trust or a limited-equity housing cooperative.

Full Bill Text