One ordinance protects tenants threatened with eviction from foreclosed property by allowing renters to remain in the property and by requiring the new owners to continue to provide essential services such as water and electricity. The other provision helps homeowners in danger of losing their homes to foreclosure by forcing banks and lending institutions to meet with borrowers to try to work out an agreement to keep the homeowner in his or her home and prevent foreclosure.

“These new City ordinances will protect families from the impact of a nationwide foreclosure crisis that has devastated too many families in our neighborhoods,” said Mayor Cicilline. “The ordinances I am signing today will give residents another powerful tool to help them hold onto their homes and prevent tenants from being evicted.”

Councilman Kevin Jackson was the lead sponsor for the ordinance in the City Council.

“It is unacceptable for tenants to suddenly find themselves kicked out of their apartments, with no notice, because the property has gone into foreclosure,” said Councilman Jackson. “These new laws will give tenants some added protection and force lenders to exhaust all efforts to prevent foreclosure before taking someone’s home.”

“These new ordinances are well overdue and provide important protection for residents during an extremely challenging and difficult time,” said Brenda J. Clements, Executive Director, Housing Action Coalition of Rhode Island. “I applaud Mayor Cicilline for his continued leadership on this important issue.”

“People need to know that they have rights,” said Pamela Page, a Providence resident who was forced out of her apartment when the building she was living in was foreclosed. “All of a sudden our water was shut off with no warning, and we had no recourse. This new law will ensure that other tenants won’t have to go through what I went through.”

Tenants Protection Against Foreclosures Ordinance

§ Allows renters to remain in the foreclosed property for the duration of their lease agreement. Month-to-month rental agreements would be subject to state law governing such arrangements.

§ The financial institution/lender would be required to provide tenants with written notice (in Spanish and English) stating the name and address of the successor, so that the tenant will know to whom they should pay their rent.

§ Require the successor of the property to continue to provide essential services such as heat, running water, hot water, electric or gas to tenant.

§ If a property is about to enter into foreclosure, the new mortgage holder or financial institution must provide the tenant with written notice of the property’s sale.

§ The mortgage holder must also provide contact information for Rhode Island Legal Services as well as other HUD-approved counseling agencies.

Foreclosure Mediation Ordinance

§ Provides a safety valve for owner-occupied homeowners who are facing imminent foreclosure by establishing a mandatory mediation process between the homeowner and mortgage holder/lender.

§ Both sides would be required to meet with a third party, HUD-approved independent counseling agency for mediation prior to entering into foreclosure.

§ City would not accept deed filed by lender/mortgage holder until all required steps set forth in the ordinance have been completed.