2020 Legislature                                         SB 1362
    2         An act relating to rental agreements; repealing s.
    3         83.561, F.S., relating to the termination of a rental
    4         agreement upon foreclosure; creating s. 83.5615, F.S.;
    5         providing a short title; providing for the assumption
    6         of interest in certain foreclosures on dwellings or
    7         residential real property; providing construction;
    8         defining the term “federally-related mortgage loan”;
    9         requiring the director of the Division of Consumer
   10         Services of the Department of Agriculture and Consumer
   11         Services to notify the Division of Law Revision of the
   12         repeal of the Protecting Tenants at Foreclosure Act of
   13         2009 within a specified timeframe; providing effective
   14         dates, including a contingent effective date.
   16  Be It Enacted by the Legislature of the State of Florida:
   18         Section 1. Section 83.561, Florida Statutes, is repealed.
   19         Section 2. Effective upon the repeal of the federal
   20  Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22,
   21  section 83.5615, Florida Statutes, is created to read:
   22         83.5615 Protecting Tenants at Foreclosure Act.—
   23         (1)This section may be cited as the “Protecting Tenants at
   24  Foreclosure Act.”
   25         (2)In the case of any foreclosure on a federally-related
   26  mortgage loan or on any dwelling or residential real property
   27  after the effective date of this section, any immediate
   28  successor in interest in such property pursuant to the
   29  foreclosure shall assume such interest subject to:
   30         (a)The successor in interest providing a notice to vacate
   31  to any bona fide tenant at least 90 days before the effective
   32  date of the notice; and
   33         (b)The rights of any bona fide tenant:
   34         1.Under any bona fide lease entered into before the notice
   35  of foreclosure to occupy the premises until the end of the
   36  remaining term of the lease, except that a successor in interest
   37  may terminate a lease effective on the date of sale of the unit
   38  to a purchaser who will occupy the unit as a primary residence,
   39  subject to the tenant receiving the 90-day notice under
   40  paragraph (a); or
   41         2.Without a lease or with a lease terminable at will,
   42  subject to the tenant receiving the 90-day notice under
   43  paragraph (a).
   45  This subsection does not affect the requirements for termination
   46  of any federal- or state-subsidized tenancy or of any state or
   47  local law that provides more time or other additional
   48  protections for tenants.
   49         (3)For the purposes of this section:
   50         (a)A lease or tenancy shall be considered bona fide only
   51  if:
   52         1.The mortgagor or the child, spouse, or parent of the
   53  mortgagor under the contract is not the tenant;
   54         2.The lease or tenancy was the result of an arms-length
   55  transaction; and
   56         3.The lease or tenancy requires the receipt of rent that
   57  is not substantially less than fair market rent for the property
   58  or the unit’s rent is reduced or subsidized due to a federal,
   59  state, or local subsidy.
   60         (b)The term “federally-related mortgage loan” has the same
   61  meaning as in 12 U.S.C. s. 2602.
   62         (c)The date of a notice of foreclosure shall be deemed to
   63  be the date on which complete title to a property is transferred
   64  to a successor entity or person as a result of an order of a
   65  court or pursuant to provisions in a mortgage, deed of trust, or
   66  security deed.
   67         Section 3. If the Protecting Tenants at Foreclosure Act of
   68  2009, Pub. L. No. 111-22, is repealed, the director of the
   69  Division of Consumer Services of the Department of Agriculture
   70  and Consumer Services shall notify the Division of Law Revision
   71  within 10 days after the repeal.
   72         Section 4. Except as otherwise expressly provided in this
   73  act, this act shall take effect July 1, 2020.