Tenants, affordable housing groups and local governments will get the first chance to buy foreclosed homes under a measure approved Monday by Gov. Gavin Newsom.
The bill, Senate Bill 1079 is designed to keep corporations from snapping up homes and letting some fall into disrepair as they did during the Great Recession. The issue drew national attention a year ago Moms 4 Housing moved into a vacant, corporate-owned house in West Oakland.
It was among 15 bills Newsom signed into law as renters and home-buyers again struggle during mass layoffs prompted by the pandemic. The governor said the measures “will directly lead to more affordable opportunities for renters and homeowners.”
The law bars sellers of foreclosed homes from bundling them at auction for sale to a single buyer. In addition, it will allow tenants, families, local governments, affordable housing nonprofits and community land trusts 45 days to beat the best auction bid to buy the property.
Owners of poorly maintained properties can be fined as much as $2,000 a day under the bill.