Page:United States Statutes at Large Volume 123.djvu/1681

 123STA T . 1 6 61 PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9after t h e d ate o fe n a c t m ent of th is tit l e , an y immediate s u ccessor in interest in such p roperty pursuant to the foreclosure shall assume such interest su bj ect to —(1) the pro v ision, by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice and ( 2 )theri g hts of any bona fide tenant, as of the date of such notice of foreclosure— ( A ) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, e x cept that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser w ho will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or ( B ) without a lease or with a lease terminable at will under S tate law, subject to the receipt by the tenant of the 90 day notice under subsection (1), except that nothing under this section shall affect the re q uire - ments for termination of any F ederal- or State-subsidi z ed ten- ancy or of any State or local law that provides longer time periods or other additional protections for tenants . (b) B ONA F IDEL EA S EO RT ENAN CY .—For purposes of this sec- tion, a lease or tenancy shall be considered bona fide only if— (1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant; (2) the lease or tenancy was the result of an arms-length transaction; and ( 3 ) the lease or tenancy requires the receipt of rent that is not substantially less than fair mar k et rent for the property or the unit ’ s rent is reduced or subsidized due to a Federal, State, or local subsidy. (c) D E F INI T ION.—For purposes of this section, the term ‘ ‘feder- ally-related mortgage loan’’ has the same meaning as in section 3ofthe R eal E state Settlement P rocedures Act of 19 74 (12 U .S. C . 2 6 02). SEC.703 .E F FEC TO FFO R EC L OS U REO N SECT I ON 8 TEN A NCIES. Section 8 (o)(7) of the United States H ousing Act of 1937 (42 U.S.C. 1437f(o)(7)) is amended— (1) by inserting before the semicolon in subparagraph (C) the following ‘‘and in the case of an owner who is an immediate successor in interest pursuant to foreclosure during the term of the lease vacating the property prior to sale shall not con- stitute other good cause, except that the owner may terminate the tenancy effective on the date of transfer of the unit to the owner if the owner— ‘‘(i) will occupy the unit as a primary residence; and ‘‘(ii) has provided the tenant a notice to vacate at least 90 days before the effective date of such notice.’’; and (2) by inserting at the end of subparagraph (F) the fol- lowing: ‘‘ I n the case of any foreclosure on any federally-related mortgage loan (as that term is defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602)) or on any residential real property in which a recipient of Notice.D e adl i n e. Notice. Deadline.