Tenant Issues Summary

Renters are often absent from the debate about how to help those affected by foreclosures. However, just like in the single family market, foreclosures on multifamily buildings are rising at record rates and concentrating in low- to moderate-income communities. 
 
While a federal law passed in 2009 gave protections to renters in foreclosure, such as the survival of the lease beyond foreclosure and at least 90 days of notice before month-to-month tenants have to move, many tenants are not aware of these rights. Some tenants are not notified that their buildings are in foreclosure, and even if they are, it can be unclear to whom tenants should pay rent. Some tenants receive inaccurate information from the new owners stating that tenants have less time to move than they actually have. During and after the foreclosure process, new owners can be reluctant to maintain the property and tenants may not know who to contact for repairs. Tenants may accept offers of money in exchange for moving, without fully realizing what rights they are waiving or what are their other options. While there are federal programs in place to return single-family or small owner-occupied multifamily properties to productive use, there are few resources available for large or investor-owned multifamily properties, risking the loss of a great number of affordable housing units. 
 
There must be stronger provisions in place to require lenders and servicers who take over ownership of multifamily rental properties to maintain these properties, collect rent, pay utilities, and notify tenants of a contact person who handles those services. Programs need to be developed to maintain and redevelop multifamily housing after foreclosure and preserve the affordable housing stock.
 
This page details the efforts of Regional HOPI partners to directly assist tenants in foreclosure, document the effects of the foreclosure crisis on multifamily properties in the Chicago region, and advocate for stronger policy solutions.