Massachusetts HD 3218: An Act preventing unnecessary vacancies in foreclosed homes

Bill Text

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HOUSE DOCKET, NO. 3218 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 1410

The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Peter Capano
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act preventing unnecessary vacancies in foreclosed homes.
_______________
PETITION OF:

NAME: DISTRICT/ADDRESS: DATE ADDED:
Peter Capano 11th Essex 1/20/2023
Natalie M. Higgins 4th Worcester 2/27/2023
David Henry Argosky LeBoeuf 17th Worcester 2/27/2023

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HOUSE DOCKET, NO. 3218 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 1410
By Representative Capano of Lynn, a petition (accompanied by bill, House, No. 1410) of Peter
Capano, Natalie M. Higgins and David Henry Argosky LeBoeuf relative to vacancies in
foreclosed homes. The Judiciary.

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 1373 OF 2019-2020.]

The Commonwealth of Massachusetts

_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act preventing unnecessary vacancies in foreclosed homes.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:

1 SECTION 1. Chapter 186A of the General Laws is hereby amended by striking out
2 sections 1 and 2 in their entirety and inserting in place thereof the following:-
3 Section 1. (a) As used in this chapter, the following words shall, unless the context
4 clearly requires otherwise, have the following meanings:—
5 ''Entity'', a business organization, or any other kind of organization including, without
6 limitation, a corporation, partnership, trust, limited liability corporation, limited liability
7 partnership, joint venture, sole proprietorship or any other category of organization and any
8 employee, agent, servant or other representative of such entity.

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9 ''Eviction'', an action, without limitation, by a foreclosing owner of a housing
10 accommodation which is intended to actually or constructively evict a tenant or otherwise
11 compel a tenant to vacate such housing accommodation.
12 “Fair Market Rent,” an amount equal to that established by the United States Department
13 of Housing and Urban Development pursuant to 42 U.S.C. section 1437f(c), as it exists or may
14 be amended, for a unit of comparable size in the area in which the property is located.
15 ‘'Foreclosing owner'', an entity that holds title in any capacity, directly or indirectly,
16 without limitation, whether in its own name, as trustee or as beneficiary, to a housing
17 accommodation that has been foreclosed upon and either: (1) held or owned a mortgage or other
18 security interest in the housing accommodation at any point prior to the foreclosure of the
19 housing accommodation or is the subsidiary, parent, trustee, or agent thereof; or (2) is an
20 institutional mortgagee that acquires or holds title to the housing accommodation within 3 years
21 of the filing of a foreclosure deed on the housing accommodation; or (3) is the Federal National
22 Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal Deposit
23 Insurance Corporation.
24 ''Foreclosure'', a legal proceeding to terminate a mortgagor's interest in property,
25 instituted by the mortgagee, and regulated under chapter 244.
26 “Foreclosure Sale Purchaser” or “purchaser”, either a foreclosing owner or a person or
27 entity which purchases a housing accommodation from a foreclosing owner, not intending to
28 reside or have a family member reside in such housing accommodation as the primary residence
29 of such person or individual in control of such entity.

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30 ''Housing accommodation'', a building or structure, or part thereof or land appurtenant
31 thereto, and any other real or personal property used, rented or offered for rent for living or
32 dwelling purposes, together with all services connected with the use or occupancy of such
33 property.
34 ''Institutional mortgagee'', an entity or an entity which is the subsidiary, parent, trustee or
35 agent thereof or otherwise related to such entity, that holds or owns mortgages or other security
36 interests in 3 or more housing accommodations or that acts as a mortgage servicer of 3 or more
37 mortgages of housing accommodations.
38 ''Just cause'', 1 of the following: (1) the tenant has failed to pay the rent in effect prior to
39 the foreclosure or, in the case of the former mortgagor and any household members, monthly
40 rent payments in an amount agreed to by the mortgagor and purchaser or, in the absence of such
41 agreement, a Fair Market Rent as long as the foreclosure sale purchaser notified the tenant in
42 writing of the amount of rent, the agreed upon monthly rent payments or Fair Market Rent that
43 was to be paid and