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(a) (1) Except as provided in subsection (a)(2), the owner of a foreclosed rental property shall pay a one-time relocation assistance fee of $10,600 to a qualified tenant unless the owner offers such tenant the option to renew or extend the tenant's current rental agreement with an annual rental rate that: (1) for the first 12 months of the renewed or extended rental agreement, does not exceed 102 percent of the qualified tenant's current annual rental rate; and (2) for any 12-month period thereafter, does not exceed 102 percent of the immediate prior year's annual rental rate.
(2) For any unlawful hazardous unit or unlawful conversion occupied by a qualified tenant, the owner shall pay a one-time relocation assistance fee of $10,600 to the qualified tenant unless the owner offers, and the tenant accepts the owner's offer of, a rental agreement at a replacement rental unit with an annual rental rate that does not exceed 102 percent of the qualified tenant's current annual rental rate; and (2) for any 12-month period thereafter, does not exceed 102 percent of the immediate prior year's annual rental rate. The replacement rental unit may be located either in the same foreclosed rental property or at another location.
Provided that the commissioner may prescribe by rule conditions under which an owner may offer a qualified tenant residing in an unlawful hazardous unit to extend or renew, at the tenant's option, the tenant's current rental agreement with an annual rental rate that complies with subsection (a)(1) if the owner makes all necessary repairs to correct any life safety or unsafe sanitary conditions.
(3) No later than 21 days after the date upon which the tenant returns or should have returned the Tenant Information Disclosure Form pursuant to Section 5-14-040, the owner shall send a written: (1) notice to a Qualified tenant advising the qualified tenant that the owner is paving the required relocation fee: or (ii) offer to extend or renew the qualified tenant's rental agreement, or provide a rental agreement for a replacement rental unit, whichever is applicable, with an annual rental rate in an amount that complies with subsection (a). All notices or offers shall clearly show the date the offer or notice was sent.
If a qualified tenant fails to accept the owner's offer to extend or renew the tenant's rental agreement, or accept a rental agreement for a replacement rental unit, whichever is applicable, within 21 days of receipt of the offer, or if the qualified tenant meets the criteria for an extended response time, as established by the commissioner of business affairs and consumer protection by rule, within 42 days of the offer, the owner shall not be liable to such tenant for the extension or renewal of the tenant's rental agreement; provided that a qualified tenant's refusal to accept the owner's offer for a replacement rental unit or to extend or renew the tenant's current rental agreement for an unlawful hazardous unit pursuant to subsection (2) does not affect the tenant's right to the payment of a relocation fee.
(4) If a rental unit is occupied by two or more qualified tenants, the owner's total liability to all the qualified tenants of the rental unit shall be no more than if the rental unit was occupied by one qualified tenant.
(b) The owner shall pay the relocation fee to the qualified tenant no later than seven days after the day of complete vacation of the rental unit by the qualified tenant. The relocation fee shall be paid by certified or cashier's check payable to the qualified tenant.
(c) The relocation fee shall be in addition to any damage, deposit or other compensation or refund to which the qualified tenant is otherwise entitled.
(d) The owner may deduct from the relocation fee all rent due and payable for the rental unit occupied by the qualified tenant prior to the date on which the rental unit is vacated, unless such rent has been validly withheld or deducted pursuant to state, federal or local law. The owner shall not retain all or any part of the relocation fee for the payment of any other amount, including without limitation, for any damage to the premises or for any other violation or breach of a rental agreement.
(e) The owner shall not be liable to pay the relocation fee to any qualified tenant:
(1) who does not enter into a rental agreement after being offered a renewal or extension of the tenant's rental agreement pursuant to subsection (a)(1) with a rent in an amount that complies with subsection; or
(2) against whom the owner has obtained a judgment for possession of the rental unit.
(f) In addition to any other fine or penalty provided, if an owner fails to comply with this section, the qualified tenant shall be awarded damages in an amount equal to two times the relocation assistance fee. This subsection does not preclude the qualified tenant from recovering other damages to which he may be entitled under this chapter.
(g) The owner shall comply with this section until the foreclosed rental property is sold or otherwise transferred to a bona fide third-party purchaser.
(h) Nothing in this section shall be construed as prohibiting an owner from exercising any right to evict a tenant for cause. If a qualified tenant is evicted for cause, the owner shall not be liable for any relocation assistance provided under this section.
(Added Coun. J. 6-5-13, p. 54734, § 2; Amend Coun. J. 4-15-15, p. 106172, § 1)