Sec. 4-432. - Foreclosure requirements for rental properties.

(a)

Definitions. [The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:]

(1)

Bona fide tenant shall mean a person who has entered into a written or oral rental agreement with a homeowner or landlord (mortgage) with respect to a dwelling unit of a mortgaged residential premises no less than 30 days prior to the foreclosure of the mortgagor's interest. Neither the mortgagor nor any member of his or her immediate family is a "bona fide tenant." The protections afforded a bona fide tenant exist regardless of whether the residential premises is or is not owner-occupied.

(2)

The city shall mean the City of East Providence, Rhode Island.

(3)

Rules and regulations shall mean any rules adopted by the city necessary for the proper enforcement of this ordinance to interpret and secure its intent.

(b)

Notice to bona fide tenants. Effective upon passage of this article, no bona fide tenant legally occupying a rental residential property within the city shall be forced to vacate that property in the event of a mortgage foreclosure action upon that property unless and until the following series of actions are taken:

(1)

Where any dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant, and where the foreclosed mortgagor had provided essential services including, without limitation, heat, running water, hot water, electric, sewer or gas to such tenant, any successor in interest to the foreclosed mortgagor shall continue to provide the same essential services under the same terms and conditions to the tenant.

(2)

A successor in interest to a mortgagor shall provide notice to each bona fide tenant, as defined in subsection (a) by mailing an envelope addressed to "Resident of Property Previously Subject to Foreclosure Sale" and by posting, in the same manner required for posting the notice of sale on the property to be sold, a written notice in English and Spanish stating the name and address of the successor in interest, and/or managing agent so that the tenant may know to whom the ongoing rental payments should be made.

(3)

Where a dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant of the foreclosed mortgagor, the bona fide tenant assumes a month to month periodic tenancy governed by the provisions of Chapter 18, Title 34 of the Rhode Island General Laws, except in those instances in which the bona fide tenant has entered into a written rental agreement with a homeowner or landlord (mortgagor) with respect to a dwelling unit of a mortgaged residential premises. In such instances tenancy is assumed for the duration specified in the written agreement.

(4)

The lender/mortgagee shall provide notice to each bona fide tenant, as defined in subsection (a), by mailing an envelope addressed to "Resident of Property Subject to Foreclosure Sale" and by posting, in the same manner required for posting the notice of sale on the property to be sold, at the same time notice is provided to the mortgagor, a written notice in English and Spanish: (i) stating that the real estate is to be sold in foreclosure, which may affect the tenant's right to continue to live in the property; (ii) stating the date, time and place of sale; (iii) providing the address and telephone number of Rhode Island Legal Services, and (iv) provide the name, address and telephone number of HUD-approved counseling agencies in Rhode Island. Failure of the lender/mortgagor to provide notice as provided herein shall not affect the validity of the foreclosure; however, no successor in interest to the mortgagor shall be permitted to initiate an action for possession of the premises against such bona fide tenant until notice as required herein, in addition to the notice required in subsection (4), is provided.

(c)

Registration with the city clerk. From and after the effective date of this article where any dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant, the successor in interest to be foreclosed mortgagor shall file with the city, through the city clerk's office a certificate of registration. Each certificate of registration shall state:

(1)

Name, address and telephone number of the lender/mortgagee.

(2)

Such description of each multiple dwelling/tenanted dwelling, by street number or otherwise, as will enable the easy location of same.

(3)

The name, address and telephone number of the agent appointed by the lender/mortgagee for the purpose of receiving service of process and other orders or notices.

(4)

The number of dwelling units in the building.

(5)

The names of all tenants and an identification of the type of lease said tenant is operating under.

(6)

The name and address, including the dwelling unit, apartment or room number of any person employed by the lender/mortgagor to provide regular maintenance service.

(7)

The name, address and telephone number of an individual representative of the lender/mortgagor who may be contacted at any time and who has the authority to make emergency decisions concerning the building and any repair thereto or expenditure in connection therewith.

(8)

The name and address of the fuel supplier, if any, and the grade of fuel oil used.

(d)

Penalties. Any failure of a lender/mortgagee or successor in interest to a mortgagor to comply with the terms of this article will be penalized by a fine of not less than $1,000.00 per offense.

(Ch. 556, § I, 5-1-12)