I 
110TH CONGRESS 
2D SESSION 
H. R. 5963 
To protect the interests of bona fide tenants in the case of any foreclosure 
on any dwelling or residential real property, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2008 
Mr. ELLISON (for himself, Mrs. MCCARTHY of New York, and Mr. CAPUANO) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To protect the interests of bona fide tenants in the case 
of any foreclosure on any dwelling or residential real 
property, and for other purposes. 
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 ‘‘Protecting Tenants 
at Foreclosure Act of 2008’’. 
SEC. 2. EFFECT OF FORECLOSURE ON PREEXISTING TEN-
ANCY. 
(a) IN GENERAL.—In the case of any foreclosure on 
any dwelling or residential real property after the date of 
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enactment of this Act, any immediate successor in interest 
in such property pursuant to the foreclosure shall assume 
such interest subject to— 
(1) the provision, by such successor in interest 
of a notice to vacate to any bona fide tenant at least 
90 days before the effective date of such notice; and 
(2) the rights of any bona fide tenant, as of the 
date of such notice of foreclosure— 
(A) under any bona fide lease entered into 
before the notice of foreclosure to occupy the 
premises until the end of the remaining term of 
the lease, except that a successor in interest 
may terminate a lease effective on the date of 
sale of the unit to a purchaser who will occupy 
the unit as a primary residence, subject to the 
receipt by the tenant of the 90 day notice under 
paragraph (1); or 
(B) without a lease or with a lease ter-
minable at will under State law, subject to the 
receipt by the tenant of the 90 day notice under 
subsection (1), 
except that nothing under this section shall affect 
the requirements for termination of any Federal- or 
State-subsidized tenancy or of any State or local law 
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that provides longer time periods or other additional 
protections for tenants. 
(b) BONA FIDE LEASE OR TENANCY.—For purposes 
of this section, a lease or tenancy shall be considered bona 
fide only if— 
(1) the mortgagor under the contract is not the 
tenant; 
(2) the lease or tenancy was the result of an 
arms-length transaction; or 
(3) the lease or tenancy requires the receipt of 
rent that is not substantially less than fair market 
rent for the property. 
SEC. 3. EFFECT OF FORECLOSURE ON SECTION 8 TENAN-
CIES. 
Section 8(o)(7) of the United States Housing Act of 
1937 is amended— 
(1) by inserting before the semi-colon in sub-
paragraph (C) the following: ‘‘and in the case of an 
owner who is an immediate successor in interest 
pursuant to foreclosure— 
‘‘(i) during the initial term of the 
lease vacating the property prior to sale 
shall not constitute other good cause; and 
‘‘(ii) 
in 
subsequent 
lease 
terms, 
vacating the property prior to sale may 
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constitute good cause if the property is un-
marketable while occupied, or if such 
owner will occupy the unit as a primary 
residence’’; and 
(2) by inserting at the end of subparagraph (F) 
the following: ‘‘In the case of any foreclosure on any 
residential real property in which a recipient of as-
sistance under this subsection resides, the immediate 
successor in interest in such property pursuant to 
the foreclosure shall assume such interest subject to 
the lease between the prior owner and the tenant 
and to the housing assistance payments contract be-
tween the prior owner and the public housing agency 
for the occupied unit, except that this provision and 
the provisions related to foreclosure in subparagraph 
(C) shall not shall not affect any State or local law 
that provides longer time periods or other additional 
protections for tenants.’’. 
Æ 
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