I 
112TH CONGRESS 
1ST SESSION H. R. 1548 
To allow homeowners of moderate-value homes who are subject to mortgage 
foreclosure proceedings to remain in their homes as renters. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 14, 2011 
Mr. GRIJALVA (for himself, Ms. BROWN of Florida, Ms. CLARKE of New York, 
Mr. CONYERS, Mr. CLAY, Mr. ELLISON, Mr. FILNER, Mr. HOLT, Ms. 
KAPTUR, Mr. KUCINICH, Ms. NORTON, Mr. JACKSON of Illinois, Mr. 
STARK, and Ms. WOOLSEY) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To allow homeowners of moderate-value homes who are sub-
ject to mortgage foreclosure proceedings to remain in 
their homes as renters. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Right to Rent Act of 
2011’’. 
SEC. 2. RIGHT TO RENT HOME SUBJECT TO FORECLOSURE. 
(a) EXERCISE OF RIGHT.—If, at any time after no-
tice under subsection (b) for an eligible mortgage is pro-
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vided to the eligible mortgagor and before the commence-
ment of the 7-day period that ends on the first date that 
the foreclosing creditor may first commence or execute 
such foreclosure pursuant to such notice, the eligible mort-
gagor under the eligible mortgage that is subject to such 
foreclosure provides notice in accordance with section 3, 
notwithstanding such foreclosure or any other interests in 
the property, the eligible mortgagor may, at the sole op-
tion of the eligible mortgagor, continue to occupy the fore-
closed property during the 5-year period that begins upon 
the commencement of such occupancy, subject to the re-
quirements of subsection (c). 
(b) LIMITATION ON TIMING OF FORECLOSURE; NO-
TICE
OF DEFAULT
AND RIGHT TO RENT.—Notwith-
standing any other provision of law or any contract, a 
foreclosure of an eligible mortgage may not be commenced 
or executed before the expiration of the 25-day period (not 
including Saturdays, Sundays, and legal public holidays) 
beginning upon the receipt, by the eligible mortgagor, of 
written notice provided by the foreclosing creditor for the 
mortgage that— 
(1) clearly states that— 
(A) the eligible mortgagor is in default on 
the mortgage; and 
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(B) foreclosure on the mortgage may or 
will be commenced on account of such default; 
(2) clearly states that the eligible mortgagor 
has the right, notwithstanding foreclosure, to con-
tinue to occupy the foreclosed property in accord-
ance with this Act, and sets forth the terms of such 
occupancy under subsections (a) and (c); and 
(3) clearly identifies the first date, pursuant to 
this section and any other provisions of law and con-
tract, that such foreclosure may be commenced. 
(c) TERMS OF PERIODIC TENANCY.—Occupancy, by 
an eligible mortgagor, of a foreclosed property pursuant 
to subsection (a) shall be under a periodic month-to-month 
tenancy under which the owner of the property may termi-
nate the tenancy for material breach but shall have no 
authority, at will, to terminate the tenancy during the oc-
cupancy pursuant to subsection (a) if the mortgagor— 
(1) timely pays to the owner of the foreclosed 
property rent on a monthly basis in the amount of 
the fair market rent for the property determined in 
accordance with section 4; and 
(2) uses property as the principal residence of 
the mortgagor. 
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SEC. 3. REQUIRED NOTICE. 
With respect to an eligible mortgage for which notice 
under section 2(b) has been provided, notice in accordance 
with this section is notice that— 
(1) is made in writing; 
(2) is submitted, by a means under which the 
act of delivery is recorded, to— 
(A) the court having jurisdiction and venue 
to conduct the covered foreclosure proceeding 
for the eligible mortgage or, in the case of non-
judicial foreclosure, the court in which an ac-
tion is brought pursuant to section 5; and 
(B) the foreclosing creditor; and 
(3) states that the eligible mortgagor is exer-
cising the authority under section 2(a) to continue 
to occupy the foreclosed property. 
SEC. 4. DETERMINATION OF FAIR MARKET RENT. 
(a) INITIAL DETERMINATION.—For purposes of this 
Act, the fair market rent for a foreclosed property involved 
in a covered foreclosure proceeding shall be the amount 
that is determined by the court conducting such pro-
ceeding or hearing an action pursuant to section 5. 
(b) PERIODIC ADJUSTMENTS.—The fair market rent 
determined under subsection (a) for a foreclosed property 
shall be adjusted annually to reflect changes in the owners’ 
equivalent rent of primary residence component, for the 
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property for purposes of this Act, by filing notice in ac-
cordance with section 3 with such court and otherwise 
complying with the rules of such court. 
SEC. 6. NO BAR TO FORECLOSURE. 
This Act may not be construed to delay, or otherwise 
modify, affect, or alter any right of a creditor under an 
eligible mortgage to foreclose on the mortgage and to sell 
the foreclosed property in connection with such fore-
closure, except that the right of any owner of the property 
to possession of the property shall be subject to the lease-
hold interest established pursuant to section 2(c). 
SEC. 7. RIGHT TO REINSTATEMENT. 
This Act may not be construed to affect any right 
of any eligible mortgagor to reinstatement of an eligible 
mortgage, including any right established under contract 
or State law. 
SEC. 8. JURISDICTION OF FEDERAL COURTS. 
At the option of the eligible mortgagor, a proceeding 
under section 4 or 5 shall be removed to the appropriate 
district court of the United States in accordance with sec-
tion 1441 of title 28, United States Code. 
SEC. 9. EFFECT ON STATE LAW. 
(a) FORECLOSURE LAWS.—This Act does not annul, 
alter, affect, or exempt any person subject to the provi-
sions of this Act from complying with the laws of any 
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State regarding foreclosure on residential properties, ex-
cept to the extent that such laws are inconsistent with any 
provision of this Act, and then only to the extent of such 
inconsistency. 
(b) LANDLORD-TENANT LAWS.—Nothing in this Act 
may be construed to not annul, alter, affect, or exempt 
any such tenancy created pursuant to section 2(c) from 
any applicable State or local laws regarding the rights or 
responsibilities of landlords or tenants. 
SEC. 10. OVERSIGHT BY HUD. 
The Secretary of Housing and Urban Development 
shall— 
(1) monitor compliance with the requirements 
under this Act; 
(2) make available, and provide, appropriate as-
sistance to eligible mortgagors in exercising their 
rights under this Act; 
(3) conduct outreach activities appropriate to 
inform eligible mortgagors of the provisions of this 
Act; and 
(4) submit to the Congress, not less than annu-
ally, reports describing the implementation of this 
Act, the extent to which this Act is utilized by eligi-
ble mortgagors, and any issues regarding such im-
plementation or utilization. 
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SEC. 11. DEFINITIONS. 
For purposes of this Act, the following definitions 
apply: 
(1) COVERED
FORECLOSURE
PROCEEDING.— 
The term ‘‘covered foreclosure proceeding’’ means a 
foreclosure proceeding with respect to an eligible 
mortgage, and includes any foreclosure proceeding 
authorized under the law of the applicable State, in-
cluding judicial and non-judicial foreclosure pro-
ceedings. 
(2) ELIGIBLE MORTGAGOR.—The term ‘‘eligible 
mortgagor’’ means a mortgagor under an eligible 
mortgage. 
(3) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means a first or subordinate mortgage— 
(A) on a property that— 
(i) is a single family property; 
(ii) has been used as the principal res-
idence of the eligible mortgagor for a pe-
riod of not less than 2 years immediately 
preceding the initiation of the covered fore-
closure proceeding involved; and 
(iii) had a purchase price, at the time 
purchased by the eligible mortgagor, that 
is less than the median purchase price for 
residences that are located in— 
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(I) the same metropolitan statis-
tical area; or 
(II) if the property is not located 
in a metropolitan statistical area or 
information for the area is not avail-
able, the same State; and 
(B) that was originated before July 1, 
2007. 
For purposes of subparagraph (A)(iii), the median 
purchase price of residences located within a metro-
politan area or State shall be determined according 
to information collected and made available by the 
National Association of Realtors for such area or 
State for the most recently completed month for 
which such information is available. 
(4) FORECLOSED PROPERTY.—The term ‘‘fore-
closed property’’ means, with respect to a covered 
foreclosure proceeding, the single family property 
that is subject to the eligible mortgage being fore-
closed under the proceeding. 
(5) FORECLOSING CREDITOR.—The term ‘‘fore-
closing creditor’’ means, with respect to a covered 
foreclosure proceeding, the creditor that is fore-
closing the eligible mortgage through such pro-
ceeding. 
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(6) OWNER.—The term ‘‘owner’’ means, with 
respect to a foreclosed property, the person who has 
title to the property pursuant to the foreclosure pro-
ceeding for the property, and any successor or as-
sign of such person. 
(7) SINGLE
FAMILY
PROPERTY.—The term 
‘‘single family property’’ means— 
(A) a structure consisting of 1 to 4 dwell-
ing units; 
(B) a dwelling unit in a multi-unit condo-
minium property together with an undivided in-
terest in the common areas and facilities serv-
ing the property; or 
(C) a dwelling unit in a multi-unit project 
for which purchase of stock or a membership 
interest entitles the purchaser to permanent oc-
cupancy of that unit. 
SEC. 12. APPLICABILITY AND SUNSET. 
(a) APPLICABILITY.—Subject to subsection (b), this 
Act shall apply to any covered foreclosure proceeding that 
has not been finally adjudicated as of the date of the en-
actment of this Act. 
(b) SUNSET.—This Act shall not apply to any fore-
closure proceeding commenced after the expiration of the 
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5-year period beginning on the date of the enactment of 
this Act. 
Æ 
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