Bill Summary – FastDemocracy

ENROLLED ORIGINAL

                                           AN ACT

                                      _______________

                  IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

                                _________________________

To amend, on an emergency basis, the Foreclosure Moratorium Extension Temporary

      Amendment Act of 2022 to remove the 60-day deadline for submitting a homeowner

      assistance fund application, to protect homeowners from foreclosure actions if they

      submit an application for homeowner assistance before September 30, 2022, to require

      housing and financing entities to which a homeowner is indebted to provide notice of the

      Districts Homeowner Assistance Fund program prior to initiating a foreclosure; and to

      amend the Condominium Act of 1976 to exempt the time period from March 11, 2020 to

      September 30, 2022 from the 3-year period a condominium association is permitted to

      enforce a lien against a unit owner for assessments due.

       BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

act may be cited as the Foreclosure Moratorium Extension Revision and Homeowner

Assistance Fund Promotion Emergency Amendment Act of 2022.

       Sec. 2. Section 2(a) of the Foreclosure Moratorium Extension Temporary Amendment

Act of 2022, effective April 8, 2022 (D.C. Law 24-112; D.C. Official Code  42851.01(a)) is

amended as follows:

       (a) Paragraph (2) is amended as follows:

               (1) Subparagraph (A) is amended to strike the phrase Homeowner Assistance

Fund ("Homeowner Assistance Funds"), and inserting the phrase, DC Homeowner Assistance

Fund Program ("DC HAF"), in its place.

               (2) Subparagraphs (B) and (C) are amended to read as follows:

                        (B) The financial assistance application is under review, pending

approval, pending payment, or under appeal; and

                        (C) Proof of the financial assistance application status described in

subparagraph (B) of this paragraph is presented, as a paper copy or through an electronic

medium, including through electronic communications facilitated by the online DC HAF

application portal, to the mortgage lender, condominium association, homeowners association, or

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tax sale purchaser, or to an agent acting as a representative for any housing or financing entity to

which a homeowner is indebted..

                (3) Subparagraph (D) is repealed.

        (b) A new paragraph (2A) is added to read as follows:

                (2A)(A) Beginning on the effective date of the Foreclosure Moratorium

 Extension Revision and Homeowner Assistance Fund Promotion Emergency Amendment Act

 of 2022, passed on emergency basis on June 28, 2022 (Bill 24-883), a mortgage lender,

 condominium association, homeowners association, or tax sale purchaser, or an agent acting as

 a representative for any housing or financing entity to which a homeowner is indebted, may

 begin to send notices to warn of intention to initiate or continue foreclosure actions, but no

 foreclosure action described in paragraph (2) of this subsection may proceed prior to 30 days

 after a homeowner is first sent a warning notice.

                        (B) Before September 30, 2022, all foreclosure notices and foreclosure

warning notices sent pursuant to subparagraph (A) of this paragraph shall:

                                 (i) Be sent by postal and electronic mail to a homeowners last

known home and email address;

                                 (ii) Inform the homeowner of DC HAF and the programs

potential ability to cure eligible housing debts, including the specific type of debt or debts owed

to the entity sending the notice; and

                                 (iii) Explain the September 30, 2022, deadline to apply to DC

HAF to delay or prevent further foreclosure action.

                        (C) Within 5 business days after the effective date of the Foreclosure

Moratorium Extension Revision and Homeowner Assistance Fund Promotion Emergency

Amendment Act of 2022, passed on emergency basis on June 28, 2022 (Bill 24-883), the Mayor

shall publish on the DC HAF website an editable sample foreclosure warning notice for use by

housing or financing entities to which a homeowner may be indebted. The notice shall include:

                                 (i) Information about the foreclosure moratorium provided under

this section;

                                 (ii) The availability of funding to cure housing-related debts

through DC HAF and program eligibility criteria;

                                 (iii) Contact information for housing counseling organizations

helping to administer DC HAF; and

                                 (iv) The September 30, 2022, deadline to submit a financial

assistance application and to provide proof of financial assistance application status, consistent

with the requirements of paragraph (2)(C) of this subsection, in order to prevent or delay possible

forthcoming foreclosure actions..

        (c) A new paragraph (2B) is added to read as follows:

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                  (2B)(A) The Mayor shall make every effort to make DC HAF payments by

 September 30, 2022, to qualified homeowners, their representatives, or housing or financing

 entities to which a homeowner is indebted to cure any debts or defaults eligible for assistance.

                        (B) If a homeowner submitted a financial assistance application prior to

September 30, 2022, provided proof of the application status pursuant to paragraph (2)(C) of this

subsection, and the application remains under review, pending approval, pending payment, or

under appeal as of September 30, 2022, until such time as DC HAF payments can be made or a

homeowners application is denied following appeal, if any, the homeowner shall not be subject

to:

                                (i) A residential foreclosure initiated or conducted under section

 539 or section 95;

                                (ii) A sale initiated or conducted under section 313(c) of the

 Condominium Act of 1976, effective March 29, 1977 (D.C. Law 1-89; D.C. Official Code

  42-1903.13(c)); or

                                (iii) A judgment foreclosing the right of redemption under D.C.

 Official Code  47-1378..

         (d) Paragraph (3) is amended by striking the phrase Homeowner Assistance Funds and

 inserting the phrase DC HAF in its place.

        Sec. 3. Section 313(e) of the Condominium Act of 1976, effective March 29, 1977 (D.C.

Law 1-89; D.C. Official Code  42-1903.13(e)), is amended by striking the phrase 3 years and

inserting the phrase 3 years, not including any period of time from March 11, 2020, to

September 30, 2022," in its place.

       Sec. 4. Fiscal impact statement.

       The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact

statement required by section 4a of the General Legislative Procedures Act of 1975, approved

October 16, 2006 (120 Stat. 2038; D.C. Official Code  1-301.47a).

       Sec. 5. Effective date.

       This act shall take effect following approval by the Mayor (or in the event of veto by the

Mayor, action by the Council to override the veto), and shall remain in effect for no longer than

90 days, as provided for emergency acts of the Council of the District of Columbia in section

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412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;

D.C. Official Code  1-204.12(a)).

              ______________________________

              Chairman

              Council of the District of Columbia

_________________________________

Mayor

District of Columbia

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