b'SB 1447HOBR continued from page 7to apply similar procedures to applicableThe Bill currently only applies tomore palatable, less open to litigation rental properties as they currently do onindividual owners who own no moreand easier to implement. CMAs advocates single-family owner-occupied properties.than three (3) residential properties,in Sacramento think that this bill is likely If that were all that was required, SB 1447with no more than four (4) units each.to pass in some form. While the CMA would probably not disrupt the loanThis language needs to be clarified towill undoubtedly not get everything it servicing process. However, there areonly apply to individual borrowers,is asking for, we are optimistic that, as a several holes in proposed language thatnot their successors. In addition, theresult of the proposed amendments, the must be closed. For instance: CMA proposed language that wouldfinal language will be more palatable, less require borrowers to declare, underopen to litigation and easier to implement.When is the Bill effective and will it applypenalty of perjury, that they fall under to Notices of Default recorded prior tothis limit (otherwise, how would theThanks, everyone. If you have any questions the statutes enactment? servicer know), that the tenant has aabout SB 1447, HOBR or any proposed laws bona fide lease and that the tenant isin California or the Western United States, While the Bill requires that the owner havenot paying rent due to COVID-19. please feel free to contact Robert Finlay at a bona fide lease and that the tenantsrfinlay@wrightlegal.net.ability to pay rent is impacted by COVID-19,The Bill is intended to go through 2022, there is presently no requirement thatwhich seems excessive. As a result, theDisclaimer: The above information is the lease be in writing, that the ownerCMA has asked that it be reduced to runintended for information purposes alone provide the servicer a copy of the leasethrough 2021. and is not intended as legal advice.or any evidence that the tenant is not paying rent as a result of COVID. TheWhile the CMA will undoubtedly not California Mortgage Association (CMA)get everything it is asking for, we areRobert Finlay is a founding Partner of has proposed amendments to addressoptimistic that, as a result of the proposedWright, Finlay & Zak, LLP.each of these issues. amendments, the final language will be Page 8Summer 2020Points of Interest'