Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)

Citation: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Parent Document: Nativi v. Deutsche Bank National Trust Co., 223 Cal. App. 4th 261 (2014)
Jurisdiction: California (state)
Effective Date: 2014-01-23
Original Source: https://www.courtlistener.com/opinion/2650742/nativi-v-deutsche-bank-national... ↗

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       Section 703, subdivision (2), of the PTFA inserted new language at the end of
(o)(7)(F) of United States Code, title 42, section 1437f, which concerns low income
housing assistance: "In the case of any foreclosure on any federally-related mortgage loan
(as that term is defined in section 2602 of Title 12) or on any residential real property in
which a recipient of assistance under this subsection resides, the immediate successor in
interest in such property pursuant to the foreclosure shall assume such interest subject to
the lease between the prior owner and the tenant and to the housing assistance payments
contract between the prior owner and the public housing agency for the occupied unit,
except that this provision and the provisions related to foreclosure in subparagraph (C)
shall not affect any State or local law that provides longer time periods or other additional
protections for tenants." (Italics added.)
       Under section 704 of the PTFA, a sunset provision, the Act is repealed and its
requirements terminate on December 31, 2014.
2. "Shall Assume Such Interest Subject to"
       Appellants assert that the federal statute "created a landlord-tenant relationship for
the remaining period of [their] lease, i.e. through June 1, 2010." They argue that the Bank
owed at least the same duties to them as any California landlord owes to its tenant.
       Respondents maintain that "the PTFA only provides a defense to eviction
proceedings in state court." They state that "tenants can contest eviction proceedings
(i.e., defend an unlawful detainer action) on the grounds that the post-foreclosure owner
has not complied" with the PTFA's requirement to provide notice or permit continued
occupancy. They contend there is not a single case in which the PTFA has been asserted
as a basis for a tenant's claims against a "post-foreclosure owner." They also suggest that
the Act "at most provides only that a bona fide tenant has the right to occupy the premises
until the end of the remaining term of the lease" and did not make Deutsche Bank the
landlord.

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