S.Amdt. 228

SA 228. Mr. KERRY (for himself and Mr. Kennedy) submitted an
amendment intended to be proposed to amendment SA 98 proposed by Mr.
Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; which was
ordered to lie on the table; as follows:

On page 252, line 7, after ``activities:'', insert the
following: ``Provided further, That in the case of any
foreclosure on any dwelling or residential real property
acquired with any amounts made available under this heading,
any successor in interest in such property pursuant to the
foreclosure shall assume such interest subject to: (1) the
provision by such successor in interest of a notice to vacate
to any bona fide tenant at least 90 days before the effective
date of such notice; and (2) the rights of any bona fide
tenant, as of the date of such notice of foreclosure: (A)
under any bona fide lease entered into before the notice of
foreclosure to occupy the premises until the end of the
remaining term of the lease, except that a successor in
interest may terminate a lease effective on the date of sale
of the unit to a purchaser who will occupy the unit as a
primary residence, subject to the receipt by the tenant of
the 90-day notice under this paragraph; or (B) without a
lease or with a lease terminable at will under State law,
subject to the receipt by the tenant of the 90-day notice
under this paragraph, except that nothing in this paragraph
shall affect the requirements for termination of any Federal-
or State-subsidized tenancy or of any State or local law that
provides longer time periods or other additional protections
for tenants: Provided further, That, for purposes of this
paragraph, a lease or tenancy shall be considered bona fide
only if: (1) the mortgagor under the contract is not the
tenant; (2) the lease or tenancy was the result of an arms-
length transaction; and (3) the lease or tenancy requires the
receipt of rent that is not substantially less than fair
market rent for the property: Provided further, That the
recipient of any grant or loan from amounts made available
under this heading may not refuse to lease a dwelling unit in
housing assisted with such loan or grant to a holder of a
voucher or certificate of eligibility under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) because
of the status of the prospective tenant as such a holder:
Provided further, That in the case of any qualified
foreclosed housing for which funds made available under this
heading are used and in which a recipient of assistance under
section 8(o) of the U.S. Housing Act of 1937 resides at the
time of acquisition or financing, the owner and any successor
in interest shall be subject to the lease and to the housing
assistance payments contract for the occupied unit: Provided
further, That vacating the property prior to sale shall not
constitute good cause for termination of the tenancy unless
the property is unmarketable while occupied or unless the
owner or subsequent purchaser desires the unit for personal
or family use: Provided further, That this paragraph shall
not preempt any State or local law that provides more
protection for tenants: Provided further, That amounts made
available under this heading may be used for the costs of
demolishing foreclosed housing that is deteriorated or
unsafe: Provided further, That no amounts from a grant made
under this paragraph may be used to demolish any public
housing (as such term is defined in section 3 of the United
States Housing Act of 1937 (42 U.S.C. 1437a)): Provided
further, That section 2301(d)(4) of the Housing and Economic
Recovery Act of 2008 (Public Law 110-289) is repealed:''
______