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| To enact sections 121.086, 2703.10, 5321.20, 5321.21, | 1 |
| 5321.22, and 5321.23 of the Revised Code to | 2 |
| require a clerk of courts to notify tenants when a | 3 |
| foreclosure action is filed, to require the | 4 |
| Director of Commerce to prepare a publication to | 5 |
| assist owners and tenants of foreclosed | 6 |
| properties, to require clerks of courts to | 7 |
| distribute that publication, to require landlords | 8 |
| to notify tenants when a property is foreclosed | 9 |
| and when a sale is scheduled, to enable tenants to | 10 |
| terminate a rental agreement on a foreclosed | 11 |
| property, to provide for continuance of a rental | 12 |
| agreement after a foreclosure sale, and to provide | 13 |
| civil remedies for a tenant whose landlord | 14 |
| violates the bill's provisions. | 15 |
| Section 1. That sections 121.086, 2703.10, 5321.20, 5321.21, | 16 |
| 5321.22, and 5321.23 of the Revised Code be enacted to read as | 17 |
| follows: | 18 |
| Sec. 121.086. The director of commerce shall prepare a | 19 |
| publication for distribution to owners and tenants of residential | 20 |
| properties that are the subject of foreclosure actions. The | 21 |
| publication shall include a list of available resources to assist | 22 |
| owners of residential properties to retain their property and to | 23 |
| assist tenants in obtaining assistance if relocation is necessary. | 24 |
| The director shall make the publication available to clerks of | 25 |
| courts in this state for distribution to owners and tenants of | 26 |
| residential properties that are undergoing foreclosure. | 27 |
| Sec. 2703.10. (A) When a holder of a mortgage files a | 28 |
| complaint to initiate a foreclosure action on a residential | 29 |
| property, along with the summons that is served on the owner of | 30 |
| the property, the clerk of courts shall provide a copy of the | 31 |
| publication on foreclosure the director of commerce prepares | 32 |
| pursuant to section 121.086 of the Revised Code. | 33 |
| (B)(1) Within seven days after issuing a summons for service | 34 |
| on the property owner in a foreclosure action described in | 35 |
| division (A) of this section, the clerk of courts shall send | 36 |
| written notice of the foreclosure action by ordinary mail to the | 37 |
| attention of the residents at the address of the property. The | 38 |
| notice shall include the following statement: | 39 |
| "The holder of a mortgage has filed a complaint with this | 40 |
| court to initiate a foreclosure action against the property at | 41 |
| this address . . . . . . . . For more information, you should | 42 |
| contact the clerk of this court at . . . . . . . . (phone number). | 43 |
| A sale at auction could occur as a result of this foreclosure." | 44 |
| (2) The clerk shall enclose with the notice of foreclosure a | 45 |
| copy of the publication on foreclosure the director of commerce | 46 |
| prepares pursuant to section 121.086 of the Revised Code. | 47 |
| Sec. 5321.20. (A) A landlord who is the owner of a property | 48 |
| that is the subject of a foreclosure action shall do all of the | 49 |
| following: | 50 |
| (1) Within thirty days after receiving a summons that | 51 |
| contains a notice of foreclosure, provide written notice of that | 52 |
| foreclosure to any tenant of the property; | 53 |
| (2) Include a notice of the foreclosure in any written rental | 54 |
| agreement the landlord enters into after receiving the summons | 55 |
| with a notice of the foreclosure action; | 56 |
| (3) Provide a written notice of foreclosure to a tenant at | 57 |
| the time of any oral rental agreement the landlord enters into | 58 |
| after the landlord has received a summons with a notice of | 59 |
| foreclosure; | 60 |
| (4) Provide each tenant at the property with written notice | 61 |
| of the date, time, and place of the scheduled sale of the | 62 |
| foreclosed property at least twenty-one days before the date of | 63 |
| the sale at auction. | 64 |
| (B) Any written notice the landlord provides pursuant to this | 65 |
| section shall include a statement in substantially the following | 66 |
| form: | 67 |
| "This property is undergoing foreclosure. For more | 68 |
| information on this action, you should contact the ..........(your | 69 |
| county) Clerk of Courts for the Court of Common Pleas, | 70 |
| ..........(address), at ..........(phone number). | 71 |
| A sale at auction could occur as a result of this | 72 |
| foreclosure. Currently, [the sale of this property has been set | 73 |
| for ..........(time, date, and place)] or [no date for sale of | 74 |
| this property has been established]. Ohio law requires that I | 75 |
| provide you with written notice of the sale at least twenty-one | 76 |
| days before it takes place. | 77 |
| If there is a sale of this property at auction, your current | 78 |
| rental agreement will convert to a month-to-month rental agreement | 79 |
| upon the sale of the property. | 80 |
| Note: With a month-to-month rental agreement, either the | 81 |
| tenant or the landlord may terminate the agreement by providing | 82 |
| written notice of termination to the other at least thirty days | 83 |
| prior to a date on which the rent payment normally is due. The | 84 |
| rental agreement then terminates on that rent payment date." | 85 |
| Sec. 5321.21. (A) Any tenant of a residential property that | 86 |
| is the subject of a foreclosure action brought by a mortgage | 87 |
| holder may terminate that tenancy at any time after the holder of | 88 |
| the mortgage files a complaint with a court to initiate the | 89 |
| foreclosure action. To terminate the tenancy, the tenant shall | 90 |
| provide written notice of termination to the landlord at the place | 91 |
| where rent normally is paid. The notice shall state the date upon | 92 |
| which the tenancy will terminate, which shall not be earlier than | 93 |
| thirty days following the next date on which rent is due. The | 94 |
| tenant is responsible for all rent until the termination date. | 95 |
| (B) A landlord shall return any deposit to a tenant who | 96 |
| terminates a rental agreement pursuant to this section in the same | 97 |
| manner as this chapter provides for tenancies that end pursuant to | 98 |
| the terms of the rental agreement. A tenant who terminates a | 99 |
| rental agreement pursuant to this section has allthe rights of a | 100 |
| tenant whose rental agreement expires pursuant to its own terms. | 101 |
| Sec. 5321.22. Any rental agreement for a residential | 102 |
| property that is the subject of a foreclosure action shall convert | 103 |
| to a month-to-month rental agreement upon a court's approval of a | 104 |
| sale at auction pursuant to section 2329.31 of the Revised Code. | 105 |
| Sec. 5321.23. In addition to any other remedy under law, a | 106 |
| tenant may recover the greater of actual damages or one month's | 107 |
| rent plus the security deposit amount and reasonable attorney's | 108 |
| fees, obtain injunctive relief to enforce the rental agreement, or | 109 |
| both, if a landlord or a successor in interest violates section | 110 |
| 5321.20 of the Revised Code, fails to provide a written notice | 111 |
| that section 5321.20 of the Revised Code requires, or fails to | 112 |
| honor a rental agreement established under section 5321.22 of the | 113 |
| Revised Code. | 114 |