1.1.................... moves to amend H.F. No. 626 as follows:
1.2Page 7, line 13, before the period, insert "and recorded in a new lease between
1.3the holder and the tenant"
1.4Page 7, line 18, before the period, insert ", that is, at a level not exceeding the current
1.5rent or 41 percent based on the tenant's documented and verified monthly gross income,
1.6whichever is greater, provided the tenant has sufficient residual income as defined in Code
1.7of Federal Regulations, title 38, section 36.4337(e)"
1.8Page 7, line 20, after the period, insert "For purposes of this subdivision, "cause"
1.9shall mean one or more of the following:"
1.10"(1) the tenant has failed to pay a reasonable rent to the foreclosing owner, but only
1.11if the foreclosing owner notified the tenant in writing of the reasonable rent amount, to
1.12whom it was to be paid, and the due date;
1.13(2) the tenant has violated an obligation or covenant of the tenancy or occupancy
1.14other than the obligation to surrender possession upon proper notice and has failed to
1.15cure the violation within a reasonable time after having received written notice from the
1.16foreclosing owner;
1.17(3) the tenant is permitting a nuisance to exist in, or is causing substantial damage
1.18to, the unit, or is creating a substantial interference with the quiet enjoyment of other
1.19occupants;
1.20(4) the tenant is convicted of using or permitting the unit to be used for any illegal
1.21purpose; or
1.22(5) the tenant has refused the foreclosing owner reasonable access to the unit to
1.23make necessary repairs or improvements required by law, to inspect the premises as
1.24permitted or required by agreement or by law, or to show the rental housing unit to a
1.25prospective purchaser or mortgagee."
1.26Page 7, line 21, delete "Except for lease violations,"
1.27Page 7, line 22, after "cause" insert "as defined in subdivision 6"
2.1Page 7, delete lines 34 and 35 and insert:
2.2    "Subd. 2. Stay of foreclosure process. In any proceeding to foreclose a mortgage
2.3upon residential property, whether by judicial process under chapters 581 and 582 or by
2.4advertisement under chapters 580 and 582, foreclosed borrowers and tenants of rental
2.5property being foreclosed shall be entitled to stay the foreclosure process and remain
2.6in possession of the mortgaged premises by serving a notice of right to stay upon the
2.7mortgage holder or holder of a certificate of sale if different from the mortgage holder, the
2.8court having jurisdiction over a judicial action to foreclose the mortgage, and the sheriff in
2.9the jurisdiction where the mortgaged premises are located. The foreclosure process shall
2.10be stayed effective as of the date of service of the notice of right to stay. The stay shall
2.11continue in effect for a period of two years from the date of service of the notice, provided
2.12that the conditions set forth in subdivision 3 are met.
2.13    Subd. 3. Maintenance of stay. In order to maintain a stay obtained under
2.14subdivision 2:
2.15(1) a foreclosed borrower in possession must maintain homestead status of the
2.16property and continue to reside in the foreclosed property. A tenant in foreclosed property
2.17must continue to reside in the foreclosed property;
2.18(2) after receipt of written notice from the foreclosing lender or holder of a certificate
2.19of sheriff's sale of the name and address to which the monthly payments are to be made,
2.20the amount of the payment, the date that the first monthly payment is due, and the dates
2.21of each subsequent payment, the holder of the stay shall make reasonable, affordable
2.22monthly payments to the foreclosing lender or holder or holder of a certificate of sheriff's
2.23sale. For foreclosed borrowers, the monthly payment shall be the monthly payment when
2.24the mortgage was foreclosed or 41 percent based on the borrower's documented and
2.25verified monthly gross income, whichever is less. For renters in possession of foreclosed
2.26rental property, the monthly payment shall be the current monthly rental amount or
2.2741 percent based on the borrower's documented and verified monthly gross income,
2.28whichever is less; and
2.29(3) the holder of the stay must refrain from conduct that would constitute just cause
2.30for dissolution of the stay, as defined in subdivision 4.
2.31    Subd. 4. Dissolution of stay. Upon 30 days written notice to the holder of the stay
2.32and any other party designated by the holder of the stay, the foreclosing lender or holder of
2.33a certificate of sheriff's sale shall be entitled to apply to a court in the jurisdiction where
2.34the property is located for an order dissolving the stay. An order dissolving the stay and
2.35granting possession of the property to the foreclosing lender or holder of the certificate
2.36of sheriff's sale may be granted if the court finds that the public interest is served by
3.1granting the order and upon a showing that the foreclosed borrower in possession or
3.2tenant in possession of foreclosed property has failed to comply with the requirements of
3.3subdivision 3 or that other just cause exists. For purposes of this subdivision, "other just
3.4cause" means one or more of the following:
3.5(1) if the holder of the stay is a tenant, that the tenant has violated an obligation or
3.6covenant of the tenancy or occupancy other than the obligation to surrender possession
3.7upon proper notice and has failed to cure the violation within a reasonable time after
3.8having received written notice from the foreclosing owner;
3.9(2) the foreclosed borrower or tenant is permitting a nuisance to exist in, or is
3.10causing substantial damage to, the unit, or is creating a substantial interference with the
3.11quiet enjoyment of other occupants;
3.12(3) the foreclosed borrower or tenant is convicted of using or permitting the unit to
3.13be used for any illegal purpose; or
3.14(4) the foreclosed borrower or tenant has refused the foreclosing owner reasonable
3.15access to the unit for the purpose of making necessary repairs or improvements required
3.16by law, to inspect the premises as permitted or required by agreement or by law, or to show
3.17the rental housing unit to a prospective purchaser or mortgagee."
3.18Page 8, delete lines 1 to 5
3.19Renumber the subdivisions in sequence
3.20Correct the title numbers accordingly