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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into law on May 20, 2009. [¶] These protections are so important that my colleague
Senator Kerry and I want to ensure that families and mortgage holders know their rights
and obligations under the law. [¶] Under the new law, all bona fide tenants who began
renting prior to transfer of title by foreclosure of their rental property must be given at
least 90 days' notice before being required to vacate the property. In addition, these bona
fide tenants are allowed to remain in place for the remainder of any leases entered into
prior to the transfer of title by foreclosure. These leases may be terminated earlier only if
the property is transferred to someone who intends to reside in the property and only if
the tenants are given at least 90 days' notice of the fact of such sale. Successors in interest
to properties with section 8 housing choice voucher tenants automatically assume the
obligations of the former owner under the housing assistance payments contract. [¶]
These basic protections are the law for tenants in every State, unless States have laws or
practices that provide greater protections." (155 Cong. Rec. S8978 (August 6, 2009).)
Senator Kerry concurred: "I also agree with Chairman Dodd's statement of the intent of
the legislation. As the chairman stated, the law was intended to provide all bona fide
tenants, who began renting prior to transfer of title by foreclosure of their rental property,
be given at least 90 days' notice before being required to vacate the property. In addition,
these bona fide tenants are allowed to remain in place for the remainder of any leases
entered into prior to the transfer of title by foreclosure. These leases may be terminated
earlier only if the property is transferred to someone who intends to reside in the property
and only if the tenants are given at least 90 days' notice of the fact of such sale.
Successors in interest to properties with section 8 housing choice voucher tenants
automatically assume the obligations of the former owner under the Housing Assistance
Payments contract." (Ibid.)
16
formulating a policy, the court will respect the agency interpretation as one of several
interpretive tools that may be helpful." (Agnew v. State Bd. of Equalization (1999) 21
Cal.4th 310, 322.)
Shortly after the PTFA was enacted, the Department of Housing and Urban
Development (HUD) issued a notice, entitled "Protecting Tenants at Foreclosure: Notice
of Responsibilities Placed on Immediate Successors in Interest Pursuant to Foreclosure of
Residential Property," dated June 24, 2009. (74 Fed.Reg. 30106-30108 (June 24, 2009).)
HUD indicated that it was "directing this notice to entities and individuals that participate
in HUD programs or with whom HUD interacts in its HUD programs" but that "these
obligations are not limited to FHA-insured or HUD-assisted housing." (74 Fed.Reg.
30106 (June 24, 2009).) The notice announced: "[The PTFA] . . . requires that tenants
residing in foreclosed residential properties be provided notice to vacate at least 90 days
in advance of the date by which the immediate successor, generally, the purchaser, seeks
to have the tenants vacate the property. Except where the purchaser will occupy the
property as the primary residence, the term of any bona fide lease also remains in effect."
(Ibid.) It specified: "Section 702 [of the PTFA] provides a tenant under any bona fide
lease entered into before the notice of foreclosure has the right to occupy the premises
until the end of the remaining term of the lease. The only exception to preserving the
remaining term of the lease is for a purchaser who will occupy the unit as a primary
residence. Even under this exception, however, the tenant must still be provided with the
90-day advance notice to vacate." (74 Fed.Reg. 30107 (June 24, 2009).)
That June 2009 HUD notice further explained that "Section 703 [of the PTFA]
makes conforming changes consistent with the Section 702 requirements to the Section 8
rental voucher assistance of the United States House Act of 1937 (1937 Act)" (74
Fed.Reg. 30106 (June 24, 2009).) The notice stated: "Section 8(o)(7) of the 1937 Act is
further amended by Section 703 to provide that the successor in interest in the case of any

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