Safeguard Properties - HR 2529 The Neighborhood Preservation Act

HR 2529 The Neighborhood Preservation Act

Sunday, 02 August 2009

HR 2529 titled, The Neighborhood Preservation Act passed in the House of Representatives and was received in the Senate on 7/30/2009.

Synopsis: Allows a depository institution to lease for up to 5-years a residential property that the institution possesses after foreclosure.

Summary

Section 18 of the Federal Deposit Insurance Act is amended by adding “subsection (y)”:

Any depository institution (or affiliate thereof) may lease a residential property to any individual (including a lease with the option to purchase) for up to 5 years, if the property:

Was or is security for an extension of credit by the depository institution or affiliate; and
Came under the ownership/control of the institution/affiliate through foreclosure or a deed in lieu of foreclosure.

Federal banking agencies will establish criteria and requirements for such leasing activity
If any federal or state law permits the institution/affiliate to hold property for more than 5-years, then the lease may be extended to the permitted time period.
Applies only to leases entered into during the two year period beginning on the date of enactment of this act.

To view the currenttext of the Bill, please click here. About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.