§ 34-18-38.2. Just cause needed for eviction of foreclosed residential property tenants.
(a) Notwithstanding any provision of the general or public laws to the contrary, a foreclosing
owner shall not evict a tenant except for just cause, or unless a binding purchase-and-sale
agreement has been executed for a bona fide third party to purchase the housing accommodation
from a foreclosing owner, and the foreclosing owner has disclosed to the third-party
purchaser that said purchaser may be responsible for evicting the current occupants
of the housing accommodation after the sale occurs; or with respect to a housing accommodation
in a housing accommodation insured by the Federal Housing Administration, unless HUD
denies a request by any tenant for an occupied conveyance or if a tenant does not
submit to HUD a request for continued occupancy before the deadline set forth in a
notice to occupants of pending acquisition delivered to the tenant by the foreclosing
owner.
(b) Within thirty (30) days of the foreclosure, the foreclosing owner shall post in a
prominent location in the building in which the rental housing unit is located, a
written notice stating:
(1) The names, addresses, telephone numbers, and telephone contact information of the
foreclosing owner, the building manager, or other representative of the foreclosing
owner responsible for the management of such building;
(2) The address to which rent charges shall be sent;
(3) That in order to remain on the premises as a tenant of the foreclosing owner, the
household must submit, within thirty (30) days, a completed form to be provided with
said written notice to the same address where rent charges shall be sent, said form
to be substantially similar to the request for continued occupancy form used by HUD
and shall contain an authorization to conduct a credit check of the person or persons
submitting the form. This requirement shall be satisfied if the foreclosing owner
or someone acting on his/her behalf has:
(i) Posted the notice in a prominent location in the building;
(ii) Mailed the notice by first-class mail to each unit; and
(iii) Slid the notice under the door of each unit in the building a document stating the
names, addresses, and telephone contact information of the foreclosing owner, the
building manager or other representative of the foreclosing owner responsible for
the management of such building, and stating the address to which rent and use and
occupancy charges shall be sent.
(c) A foreclosing owner shall not evict a tenant except for actions that constitute just
cause, and:
(1) A foreclosing owner shall not evict a tenant for the following actions that constitute
just cause until thirty (30) days after the notice required by subsection (b) of this
section is posted, mailed, and delivered:
(i) The tenant has failed to pay the rent in effect prior to the foreclosure as long as
the foreclosing owner notified the tenant in writing of the amount of rent that was
to be paid and to whom it was to be paid;
(ii) The tenant has materially violated an obligation or covenant of the tenancy or occupancy,
other than the obligation to surrender possession upon proper notice;
(iii) The tenant, who had a written bona fide lease or other rental agreement that terminated,
on or after July 1, 2014, has refused, after written request or demand by the foreclosing
owner, to execute a written extension or renewal thereof for a further term of like
duration and in such terms that are not inconsistent with this section; and
(iv) The foreclosing owner: (A) Seeks to permanently board up or demolish the premises
because the premises has been cited by a state or local minimum housing code enforcement
agency for substantial violations affecting the health and safety of tenants and it
is not economically feasible for the foreclosing owner to eliminate the violations;
or (B) Seeks to comply with a state or local minimum housing code enforcement agency
that has cited the premises for substantial violations affecting the health and safety
of tenants and it is not feasible to so comply without removing the tenant; or (C)
Seeks to correct an illegal occupancy because the premises has been cited by a state
or local minimum housing code enforcement agency or zoning officials and it is not
feasible to correct such illegal occupancy without evicting the tenant.
(2) A foreclosing owner shall not evict a tenant for the following actions that constitute
just cause until the notice required by subsection (b) is posted and delivered:
(i) The tenant is committing a nuisance in the unit; is permitting a nuisance to exist
in the unit; is causing substantial damage to the unit; or is creating a substantial
interference with the quiet enjoyment of other occupants;
(ii) The tenant is using or permitting the unit to be used for any illegal purpose; and
(iii) The tenant has refused the foreclosing owner reasonable access to the unit for the
purpose of making necessary repairs or improvements required by the laws of the United
States, the state of Rhode Island or any subdivision thereof, or for the purpose of
showing the unit to a prospective purchaser or mortgagee.
(d) The following procedures shall be followed for the eviction of a tenant pursuant to
subsection (c) of this section:
(1) For evictions brought pursuant to subsection (c)(1)(i), the foreclosing owner shall
follow § 34-18-35;
(2) For evictions brought pursuant to subsection (c)(1)(ii), or subsection (c)(2) the
foreclosing owner shall follow § 34-18-36;
(3) For evictions brought pursuant to subsection (c)(1)(iii) or (c)(1)(iv); or for evictions
brought where a binding purchase-and-sale agreement has been executed for a bona fide
third party to purchase the housing accommodation from a foreclosing owner; or for
evictions brought with respect to housing accommodations located in a premises insured
by the federal housing administration as provided in subsection (a); or for an eviction
brought against a tenant who fails to return the form requesting continued occupancy
pursuant to subsection (b); the foreclosing owner shall follow the procedures for
terminating a month-to-month tenancy set forth in § 34-18-37, provided that any obligations of the foreclosing owner arising under the federal
Protecting Tenants at Foreclosure Act of 2009, as such act is amended and extended
from time to time, shall first have been satisfied; and provided, further, that in
any eviction brought against a tenant pursuant to subsection (c), the tenant may raise
an affirmative defense that the form was not posted or served upon the tenant as required
by subsection (b).
(e) A foreclosing owner may evict any person other than a tenant by following the procedures
for terminating a month-to-month tenancy set forth in § 34-18-37.
(f) If a foreclosing owner disagrees with the amount of rent paid by the tenant to the
foreclosing owner, the foreclosing owner may bring a claim in district court to claim
that the rental charge is unreasonable and set a new rental rate. A bona fide lease
or bona fide tenancy between the foreclosed-upon owner and the lessee, or proof of
rental payment to the foreclosed-upon owner, shall be presumed to be a reasonable
rental rate.
(g) Nothing herein shall be deemed to limit the right of any tenant to knowingly waive
the provisions of this section for consideration acceptable to such tenant.
(h) Notwithstanding any other provisions of this section, a foreclosing owner shall be
exempt from the requirement of this section if:
(1) The foreclosing owner is headquartered in Rhode Island and maintains a physical office
or offices in Rhode Island from which office or offices it carries out full-service
mortgage operations, including the acceptance and processing of mortgage payments
and the provision of local customer service and loss mitigation, and where Rhode Island
staff have the authority to approve loan restructuring and other loss mitigation strategies;
or
(2) The foreclosing owner conducted fewer than fifteen (15) foreclosures in Rhode Island
during the prior calendar year, excluding any conveyances of property by a deed in
lieu of foreclosure.