REQUIRE LANDLORDS TO NOTIFY TENANTS

OF FORECLOSURE & MORTGAGE PROBLEMS

House Bill 4211

Sponsor:  Rep. Shanelle Jackson

Committee:  Urban Policy

Complete to 2-27-09

A SUMMARY OF HOUSE BILL 4211 AS INTRODUCED 2-10-09

The bill would amend the Truth in Renting Act to require a rental agreement to contain a provision that a landlord must notify a tenant of any foreclosure actions being taken against the property.  The notice would have to be provided at least 30 days before the property was foreclosed on.  The landlord would also have to notify the tenant in writing within 10 days after becoming 90 days behind on mortgage payments.  The bill would not allow a tenant to withhold rent payments because of receipt of the required notice.

The section would only apply to rental agreements entered into on or after the effective date of the bill.

MCL 554.640a

FISCAL IMPACT:  

The bill would have no significant budgetary impact on the state or local units of government.  The act provides that the Attorney General or any affected individual may bring an action to enforce the act in a court of competent jurisdiction in the county where the defendant resides or does business.  Any costs related to enforcement of the act through the court system would not be significant. 

                                                                                           Legislative Analyst:   E. Best

                                                                                                  Fiscal Analyst:   Mark Wolf

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.