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Senate Bill 872 Residential Property Insurance: State of Emergency -SB 872 improves the state of homeowner’s insurance in three ways. First, it prohibits an insurer from denying what is known as “Additional Living Expense” or “ALE” coverage from limiting the right to recover from a covered peril but allows an insurer to oer a reasonable remedy that addresses the habitability issue. Second, in the event of a civil order restricting access to the property, ALE coverage will be provided for a period of two weeks with two weeks extensions available. Finally, it provides that the measure of damages provided to a policyholder in the event of a total loss shall be the same regardless of whether the insured decides to rebuild in place or buy or rebuild in a new location. If a new location is chosen, an insurer shall not deduct any amount for the value of the land. C.A.R. supported this measure as it eases burdens on homeowners who are faced with what was once “unthinkable” disaster.
Foreclosure: Tenant's, prospective owner- occupants and non-pro􏰀t's right of 􏰀rst refusal following trustee's sale of one to four single family property. No Bundling of such properties at a trustee's sale.
First, this law grants tenants, prospective owner-occupants, nonpro􏰀t aordable housing providers, community land trusts, limited-equity housing cooperatives, and public entities a 45-day window to purchase residential property through foreclosure if they can match (in the case of tenants) or exceed (in the case of other purchasers) the last and highest bid made on residential one to four single- family homes at the foreclosure auction. Second, this law prohibits sales of bundled properties at foreclosure auctions. Third, it increases local governments’ authority to assess 􏰀nes on owners of blighted properties acquired at foreclosure sales.
C.A.R opposed this law as it creates a complicated and lengthy bidding and foreclosure sale process, causing uncertainty within the foreclosure transaction process.
This Law:
1) Forbids a foreclosure trustee from bundling properties for sale at a foreclosure auction, instead requiring that each property be bid on separately.
2) Provides an eligible bidder 45 days after a home foreclosure auction to make an oer for the home that exceeds the highest bid. Denes “eligible bidder” to include: a) A tenant in the home, a prospective owner-occupant, or a nonprot in which a prospective owner-occupant or eligible tenant is a voting member or director. b) An eligible nonprot based in California whose primary activity is developing and preserving aordable rental housing, a limited partnership for which an eligible nonprot is the managing general partner; or a limited liability company in which eligible nonprot corporation is the managing
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