R 101336Z JUL 09

ALCOAST 391/09
COMDTNOTE 4050
SUBJ: RENTAL PROPERTY FORECLOSURE - UPDATE
A. PUBLIC LAW 111-22, SECTIONS 701-704, PROTECTING TENANTS AT
FORECLOSURE ACT
B. COMDT COGARD WASHINGTON DC 182131Z SEP 08/ALCOAST 453/08
C. JOINT FEDERAL TRAVEL REGULATIONS (JFTR) U5355-D.C
1. THE PRESIDENT SIGNED PUBLIC LAW 111-22 (REF A) ON MAY 20, 2009
TO PROTECT TENANTS EFFECTED BY FORECLOSURES. EFFECTIVE 20 MAY 2009,
ANY RENTAL PROPERTY SOLD DUE TO FORECLOSURE TO ANOTHER LANDLORD
CONVEYS THE EXISTING LEASE AGREEMENT. IN OTHER WORDS, RENTERS WHO
ENTERED INTO A LEASE AGREEMENT BEFORE THE NOTICE OF FORECLOSURE ARE
ALLOWED TO REMAIN IN THE RESIDENCE TO THE END OF THEIR EXISTING
LEASE AGREEMENT. THIS DOES NOT APPLY TO PROPERTY THAT IS SOLD TO A
BUYER WHO WILL OCCUPY THE PREMISES AS A PRIMARY RESIDENCE. IN THE
CASE WHERE THE UNIT WILL BE OCCUPIED AS THE BUYER'S PRIMARY
RESIDENCE, THE RENTER MUST BE GIVEN A 90 DAY NOTICE TO VACATE
BEFORE THE LEASE CAN BE TERMINATED.
2. IN ALL RENTAL FORECLOSURE CASES UNDER A LEASE AGREEMENT ENTERED
INTO BEFORE NOTICE OF THE FORECLOSURE THE LAW PROTECTS RENTERS FROM
EVICTION FOR AT LEAST 90 DAYS AFTER RECEIPT OF THE NOTICE TO
VACATE. THUS, EVEN IN A SITUATION WHERE THE LEASE AGREEMENT
TERMINATES AFTER THE NOTICE OF FORECLOSURE, BUT PRIOR TO THE END OF
THE 90 DAY NOTICE, THE RENTER IS STILL PROTECTED FOR THE FULL 90
DAYS AFTER RECEIPT OF THE NOTICE TO VACATE.
3. MILITARY MEMBERS AND THEIR DEPENDENTS WHO ARE ALLOWED TO REMAIN
IN THE LEASE UNTIL IT EXPIRES WILL NOT BE AUTHORIZED A LOCAL MOVE
DUE TO FORECLOSURE. MEMBERS AND THEIR DEPENDENTS WHO EXECUTED A
LEASE WHICH HAS NOT EXPIRED AND ARE FORCED TO VACATE A HOME THAT
WAS FORECLOSED ON AND SOLD TO NEW OWNERS WILL BE AUTHORIZED A LOCAL
MOVE IF THE NEW OWNERS OCCUPY THE HOME AS THEIR PRIMARY DWELLING.
MONTH TO MONTH LEASES ARE CONSIDERED LEASES THAT HAVE EXPIRED. REF
B IS AMENDED TO REQUIRE A COPY OF THE PRESENT LEASE AGREEMENT
BEFORE ANY LOCAL MOVE WILL BE AUTHORIZED.
4. THE JFTR (REF C) DOES NOT AUTHORIZE A LOCAL MOVE WHEN A MEMBER
MOVES FROM LOCAL ECONOMY QUARTERS AS A RESULT OF A LANDLORDS
REFUSAL TO RENEW A LEASE OR OTHERWISE PERMIT CONTINUED OCCUPANCY.
THE MOVE IS CONSIDERED FOR THE CONVENIENCE OF THE MEMBER ABSENT
MILITARY NECESSITY OR REQUIREMENT (52 COMP. GEN. 293 1972).
5. PROCESS FOR APPROVAL. COMMANDS MUST SUBMIT A MEMO TO COMDT
(CG-1222) REQUESTING A LOCAL MOVE DUE TO FORECLOSURE OF THE
PROPERTY THE MEMBER IS LEASING DUE TO SALE OF PROPERTY TO NEW
OWNERS. THE MEMO MUST INCLUDE THE MEMBERS AND OR DEPENDENTS NAMES
WHO MUST VACATE HOUSING DUE TO FORECLOSURE, EMPLOYEE ID, CURRENT
ADDRESS THAT THEY ARE FORCED TO VACATE, THE DATE WHICH THE MEMBER
AND OR DEPENDENTS MUST VACATE, A COPY OF THE CURRENT LEASE, A COPY
OF THE 90 DAY NOTICE TO VACATE (WHICH IS REQUIRED BY PUBLIC LAW
111-22), AND IF APPLICABLE A COPY OF THE IMMEDIATE SUCCESSOR'S
INTENT TO OCCUPY THE UNIT AS A PRIMARY RESIDENCE. COMDT (CG-1222)
WILL COORDINATE WITH COMDT (CG-1012) TO OBTAIN A TONO AND
ACCOUNTING STRING. UPON APPROVAL, MEMBER MUST COORDINATE THEIR
LOCAL MOVE WITH THE NEAREST TRANSPORTATION OFFICER.
6. RENTERS MAY HAVE DIFFICULTY GETTING THEIR SECURITY DEPOSIT BACK
FROM THE ORIGINAL LANDLORD OR HAVE OTHER LEGAL ISSUES. FOR MILITARY
LEGAL ASSISTANCE PLEASE CONTACT YOUR NEAREST LEGAL ASSISTANCE
OFFICER AT HTTP://LEGALASSISTANCE.LAW.AF.MIL/CONTENT/LOCATOR.PHP.
(USE LOWER CASE LETTERS)
7. FOR QUESTIONS CONTACT CWO3 TENNYSON AT E-MAIL
SHIRLEY.C.TENNYSON(AT)USCG.MIL.
8. RELEASED BY MR. CURTIS B. ODOM, DIRECTOR OF PERSONNEL
MANAGEMENT.
9. INTERNET RELEASE AUTHORIZED.