AB 1837 Summary

• Extends provisions governing trustee sales of residential properties (1-4 units) until January 1, 2031, including requirements for notice to tenants and processes for eligible tenant buyers and bidders to purchase properties after initial sale.

• Authorizes trustees to collect additional fees of $200 or 1/6 of 1% of unpaid principal (whichever is greater) when eligible tenant buyers or bidders submit bids or notices of intent to bid.

• Expands definition of "eligible tenant buyer" to include persons occupying property under rental agreements with the mortgagor's predecessor in interest, and revises requirements for nonprofit corporations and limited liability companies to qualify as eligible bidders.

• Requires successful eligible bidders (nonprofits, cooperatives, community land trusts, and government entities) to subject purchased properties to a recorded covenant ensuring affordable housing or rental rates for lower-income households for 30 years or longer.

• Requires trustees to report to the Attorney General within 15 days when an eligible bidder wins a foreclosure sale, and prohibits trustees from receiving bids on the final day unless sent by certified or overnight mail.