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House passes bill extending tenant protections after foreclosure, adds lease safeguards
Summary
Lawmakers passed first substitute Senate Bill 22 to continue consumer protections after foreclosure, add notice requirements and provide a 45-day transition period for tenants; sponsors said an amendment limiting qualifying leases to one year signed before default balanced owner and tenant interests.
The Utah House passed first substitute Senate Bill 22 on Thursday to extend and clarify tenant protections when residential rental property is foreclosed.
Representative Karianne Lisonbee, the House sponsor, said the measure backfills federal protections that were sunsetting and "continues the existing state law for another 2 years" while adding specifics on notice and transition procedures. She said the bill requires a trustee to give written notice of sale at least three times and that the final publication be at least 10 days and no more than 30 days before sale; it also provides a 45-day period for negotiation or moving that begins either when the tenant’s lease expires or 45 days, whichever is later.
During floor debate members discussed a sponsor amendment intended to prevent abusive, retroactive leases. Representative Webb described the amendment as setting a one-year maximum for a lease to qualify as bona fide only if it was signed before a notice of default was filed, a change Webb said "helped balance out the bill." Representative Cox asked questions about the reduction from 90 days to 45 days for a transition period; the sponsor replied the 90-day provision was considered extraneous and the 45-day period is tied to the lease expiration.
The sponsor characterized the measure as a consensus bill between tenants and property owners and said it strengthens consumer notification to help tenants plan. "It allows for a 45 day period for negotiations or moving of an affected tenant," Representative Lisonbee said in explanation.
After debate the House voted to pass first substitute Senate Bill 22 as amended, 70 yes to 2 no, and the bill was returned to the Senate for further consideration.
Next steps: SB 22 will proceed to the Senate for action on the House amendments.
