S.B. No. 191 Summary

• Requires landlords of properties with 1-4 dwelling units who receive notice of a foreclosure action to provide written disclosure to prospective tenants before executing a lease agreement

• Mandates disclosure inform tenants that foreclosure proceedings have begun, the property may be sold at foreclosure, and that sale may affect the tenant's right to occupy the property

• Allows tenants whose landlords fail to provide required disclosure to either void the lease and recover one month's rent or twice actual damages (whichever is greater) plus prepaid rent, or deduct one month's rent from future rent obligations if foreclosure sale has not occurred

• Exempts property managers from liability if the landlord has not notified them in writing of the foreclosure action and directed them to deliver the disclosure

• Sunsets the foreclosure disclosure requirements on January 1, 2018, though rights to recover for violations occurring before that date continue in effect