Following this year’s General Assembly session, a slew of new bills become law today – including several that HOME of VA helped to pass.

Today we’re also celebrating new laws pushed by allies in the fight to make housing fair.

Here are a few highlights related to landlord-tenant relations:

• HB73: Did you know that even if an eviction suit against you is dropped or dismissed, it could stay on your record – and prevent you from getting approved for future housing? This was the dismal situation until today. This new law, will automatically erase from court records, after a waiting period, eviction cases that are dropped or dismissed.
• SB405: If you’ve ever signed a lease, you’ve probably struggled to understand all of the legalese. Some property managers have used this against renters, slipping hidden costs into dense rental terms. SB405 requires landlords to list – on the first page of a lease – all fees they will charge tenants.
• HB86: Until now, landlords suing for eviction could file for debts owed, and then – without notifying the tenant – raise the amount before going to court. As a result, tenants often have arrived in court owing far more than expected. HB86 requires landlords to notify tenants of any increases to the amounts they’re seeking. Now renters facing eviction will better understand what they’re up against.
• HB477/SB50: This law extends the Virginia Eviction Diversion Pilot Program, which HOME of VA helped to administer, for one year, giving the Virginia Housing Commission more time to assess its effectiveness, and perhaps recommend extending it further.
• HB572/SB232: More than 350,000 Virginians live in mobile home parks. Many of these residents own their homes, but not the lots – and it’s easy to get behind on lot rent. HB572 limits late fees to 10% of what tenants owe. The law allows those facing eviction to settle debts up to 48 hours before removal. And it requires park owners to give tenants a 60-day notice if they will not renew their lot lease.
• With mobile home parks around the United States targeted by developers — including one of the last two in Charlottesville listed for sale in June — HB1397 increases protections for residents. Now, landlords of mobile home parks will be required to provide lot tenants with relocation funds of $5,000 (up from the earlier requirement of $2,500) if the sale of land will result in redevelopment. The law also eliminates an earlier rule that compelled mobile homeowners to remove their unit to qualify for relocation funds, and it empowers localities to require mobile home park owners to provide more money for relocation beyond the law’s new $5,000 baseline.
• HB701 requires landlords to provide notice of plans for maintenance work at least 72 hours before entering a tenant’s home – and then, to complete the work within 14 days of giving notice. This is an improvement on earlier obligations under the law, when landlords were not time-bound to complete maintenance after notifying tenants that they would need access to a unit. This made it difficult for tenants to plan and caught many unaware.
• HB764 permits survivors of domestic violence end their lease early without penalty. Tenants must provide written notice, 30 days before ending their lease, and a copy of a protective order or conviction order. This expands slightly tenant protections related to domestic violence. Previously, early lease termination was permitted for survivors of domestic violence who were abused by a family member in their household. Now, tenants abused by any household member – even if not related – may end a lease early.
• HB1272 requires landlords to provide tenants with a printed copy of their lease and a Statement of Tenant Rights and Responsibilities within 10 business days of when these documents go into effect. Landlords now must also provide their tenants with additional hard copies of their lease once per year, free of charge, or maintain updated lease documents in an electronic format easily shared with their tenants.

New legislation also expands protections related to homeownership:

• HB184 addresses issues with so-called “zombie mortgages.”  In recent years, growing numbers of Virginians have received notice that mortgages they thought were discharged long ago are actually in default. This confusing situation stems from second mortgages, especially those issued before the 2008 financial crisis, when some lenders used predatory practices to lock homeowners into loans they could not afford. This included offering primary mortgages that covered 80% of a home’s value along with second mortgages covering the remaining 20%. When homeowners with these mortgages got behind on payments, many lenders stopped pursuing the debts — neglecting to communicate with borrowers — and then sold the mortgages to collection firms for pennies on the dollar. Often the debt collectors who purchased these loans also failed to notify borrowers of payments due. But now, roughly 15 years after many of these predatory loans were issued, some who took out these loans are receiving letters demanding full payment, plus interest and fees, with threats of foreclosure if the old debts are not paid. This has even endangered some primary mortgages that are up to date on payments. HB184 prohibits debt collectors from charging interest or fees for any months when statements were not sent to borrowers – spans of time that stretch over years, in many cases. The law establishes the right of debtors to petition a court to correct balances they find inaccurate, a process that could result in avoiding a foreclosure sale by the collection agency. If a foreclosure sale does go through, even after a court has determined that the balance owed was too high, HB184 entitles people who held these mortgages to recover attorney fees and court costs. And it aims to prevent future “zombie mortgages,” requiring any buyer at a foreclosure sale to certify that they will pay off the purchased loan within 90 days.
• HB880/SB341, recommended by the Virginia Housing Commission, amends the Code of Virginia to bolster the rights of individuals who own primary residences within communities with HOAs. The law prohibits foreclosure judgments against these owners for disputes involving sums less than $5,000 – an important mechanism to prevent foreclosures for modest amounts or simple oversights, such as a late payment of perhaps $20, which could be used to harass HOA members. The law also requires better record keeping by HOAs and limits the time period when an HOA may assess a lien against a property.
• HB1243/SB576 aims to stop an emerging practice limiting housing choice. Though observed in Virginia only a few times, neighboring states have seen an increase in provisions inserted into property deeds requiring future owners to use a particular real estate company for any further sale. The law, dubbed the “Unfair Real Estate Service Agreement Act,” prohibits such language. And it includes provisions to void and prohibit enforcement of such agreements. HB1209 seeks to expand fairness and consumer protection in real estate contracts.

There were more wins for fair housing, and much more we wanted to accomplish. But with your support, we will continue to work equal access to housing for all people. This ought to be a bipartisan issue. After all, it’s not about politics – it’s about fairness.

—Laura Dobbs, Director of Policy, HOME of VA

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