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DISTRICT OF COLUMBIA CODE OFFICIAL EDITION 2001 Volume 19 Title 42 Real Property JUNE SUPPLEMENT 2013 LexisNexis COPYRIGHT © 2013 By The District of Columbia All Rights Reserved. 5443210 ISBN 978-0-7698-6593-5 (Volume 19) ISBN 978-0-7698-6495-2 (Code set) Matthew Bender & Company, Inc. 701 EastWater Street, Charlottesville, VA22902 www.lexisnexis.com Customer Service: 1-800-833-9844 LexisNexis and the Knowledge Burst logo are registered trademarks ofReed Elsevier Properties Inc., used underlicense. Matthew Benderis a registered trademark ofMatthew Bender Properties Inc. (Pub.45948) COUNCIL OF THE DISTRICT OF COLUMBIA Phil Mendelson, Chairman Yvette M. Alexander Jack Evans Marion Barry Jim Graham Anita Bonds David Grosso Muriel Bowser Kenyan R. McDuffie David A. Catania Vincent B. Orange, Sr. Mary M. Cheh Tommy Wells OFFICE OF THE GENERAL COUNSEL Under Whose Direction This Volume Has Been Prepared V. David Zvenyach, General Counsel John Hoellen, Legislative Counsel Benjamin F. Bryant, Jr., Codification Counsel Karen R. Barbour, Legal Assistant * iii Digitized by tine Internet Arcliive 2014 in Iittps://arcliive.org/details/govlawdccode19s2013 PREFACE These annual cumulative pocket parts update the District of Columbia Official Code, 2001 Edition, with permanent, temporary, and emergency legislation and judicial constructions contained in annotations. These pocket parts contain the Laws, general and permanent in their nature, relating to or in force in the District ofColumbia (except such laws as are ofapplication in the General and Permanent Laws ofthe United States) in effect as ofApril 1, 2013. This Supplement also updates the D.C. Code annotations by includingnotes taken from District of Columbia cases appearing in the following sources: Atlantic Reporter, 3d Series Supreme Court Reporter Federal Reporter, 3d Series Federal Supplement, 2d Series Bankruptcy Reporter. Current legislation between pamphlets or pocket parts can be accessed online at www.lexisnexis.com/advance, www.lexisnexis.com/research, and http://dcclimsl.dccouncil.us/lims. The unannotated District ofColumbia Official Code can be accessed on the District ofColumbia Council Website at http://www.dccouncil.us. Later laws and annotations will be cumulated in subsequent annual Pocket Parts. Visit our website at http://www.lexisnexis.com for an online bookstore, technical support, customer service, and other company information. For further information or assistance, please call us toll-free at (800) 833-9844, fax us toll-free at (800) 643-1280, email us at [email protected], or write to: D.C. Editor, LexisNexis, 701 East Water Street, Charlottesville, VA 22902-5389. June, 2013 LexisNexis v DIVISION PROPERTY. VII. TITLE REAL PROPERTY. 42. SUBTITLE GENERAL. 1. Chapter 8. Mortgages and Deeds ofTrust. 11. Recordation Tax on Deeds. SUBTITLE CONDOMINIUMS. III. 19. Condominiums. SUBTITLE HOUSING ENHANCEMENT PROGRAMS. IV. 21A. Affordable Housing Clearinghouse Directory. SUBTITLE HOUSING FINANCE AND ASSISTANCE. V. 28. Housing Production Trust Fund. SUBTITLE VL NUISANCE PROPERTY. 31. Drug-, Firearm-, or Prostitution-Related Nuisance Abatement. 31A. Abatement ofNuisance Property. SUBTITLE VII. RENTAL HOUSING. 32. Landlord and Tenant. 34. Rental Housing Conversion and Sale. 35. Rental Housing Generally. 36A. Tenant Receivership. SUBTITLE GENERAL. 1. Chapter 8. Mortgages and Deeds of Trust. Sec. with mental disabilities following 42-815.02. Foreclosure mediation. court order. 42-820. Conveyance by and for individuals 1 § 42-815 Real Property § 42-815. Application to court to fix terms and determine notice of sale; notice under power of sale pro- vision. — Section references. This section is ref- erenced in § 42-815.01 and § 42-815.02. CASE Analysis er'sagent, asrequiredunderDistrictofColum- bia law, and, thus, loan servicer's foreclosure —NotMiacnenoefrfoorfencoltoiscuer,ensoatliec.e offoreclosure sale. wtrausstnoftrowmrolnegnfduelretvoenloiafntrsaenrsvfiecrerofwdaesednootf Notice offoreclosure sale. recorded, where agent who issued notice of —Manner ofnotice, notice offoreclosure foreclosure was also listed as lender's trustee on original deed of trust. Movahedi v. U.S. sale. Bank, N.A., 2012 WL 1014582 (2012). Noticeofforeclosurewasissuedbynotehold- § 42-815.01. Right to cure residential mortgage foreclosure default. — Section references. This section is ref- of the Saving D.C. Homes from Foreclosure erenced in § 42-815.02. Enhanced Congressional Review Emergency TemporaryAmendment ofSection. AmendmentAct of2012 (D.C. Act 19-493, Oc- Section2(a) ofD.C. Law 19-173 amended (a) tober26, 2012, 59DCR 12722), applicable as of to read as follows: September 13, 2012. — "(a) For the purposes of this chapter, the LegislativehistoryofLaw 19-173. Law term 'residential mortgage' means a loan se- 19-173, the "Saving D.C. Homes from Foreclo- cured by a deed oftrust or mortgage, used to sure Enhanced Temporary Amendment Act of acquire or refinance real property which is 2012"was introduced in Council and assigned improvedby4orfewersingle-familydwellings, Bill No. 19-786. The Bill was adopted on first including condominium or cooperative units." and secondreadings onJune 5, 2012, andJuly Section4(b)ofD.C.Law 19-173providedthat 10, 2012, respectively. Signed by the Mayor on the actshallexpire after225 days ofitshaving July 18, 2012, it was assigned Act No. 19-397 taken effect. andtransmittedtoCongressforitsreview.D.C. Emergency legislation. Law 19-173 became effective on Oct. 9, 2012, For temporary amendment of(a), see § 2(a) and expires on May 22, 2013. CASE NOTES Expenses. of foreclosure; amount of such expenses de- District of Columbia foreclosure statute re- pendedonpointintimemortgagorbroughtthe quiringthatmortgagorbegivenopportunityto account current, and the notice stated amount curethedefaultonceanoticeofforeclosurewas mortgagor was required to pay to bring the issued did not require loan servicer to specify mortgage current, and noted that mortgagor amount ofattorney fees, foreclosure costs, and wouldalsohavetopayreasonableattorneyfees allothercharges andaccrualsowedinaddition and expenses. Movahedi v. U.S. Bank, N.A., to deficiencyin the loanpayments in its notice 2012 WL 1014582 (2012). § 42-815.02. Foreclosure mediation. (a) For the purposes ofthis section, the term: (1) "Borrower" means a residential mortgage borrower and, if different from the residential mortgage borrower, the person who holds record title. (2) "Commissioner"means the Commissioner ofthe Department ofInsur- ance, Securities, and Banking. 2 Mortgages and Deeds of Trust § 42-815.02 (3) "Lender"means aresidential mortgagelender. The term "lender"shall include a trustee. (4) "Loss mitigation analysis"means ananalysis, performedbythelender, of a borrower's financial condition, using information in the borrower's loss mitigation application and any other information available to the lender, to evaluate and recommend options in lieu of foreclosure available to borrower from the lender. (5) "Mediation" means a meeting between lender or trustee and the borrower, with the help of a neutral third-party mediator appointed by the Mediation Administrator, to attempt to reach agreement on a loss mitigation program for the borrower, including the renegotiation of the terms of a borrower's residential mortgage, loan modification, refinancing, short sale, deed in lieu offoreclosure, and any other options that may be available in lieu offoreclosure. (6) "Mediation Administrator" means an individual designated by the Commissioner to administer mediation services under this section. (7) "Mediation certificate"means a document issuedbythe Commissioner to a lender evidencingcompliancewith the mediation requirements ofthis act. (8) "Mediation election form" means a form, prescribed by the Commis- sioner, upon which the borrower may elect to participate in mediation and certify compliance with the lender's loss mitigation documentation requirements. (9) "Mediationreport"means a summaryofthe mediationprovidedbythe mediatorto the MediationAdministrator on a form prescribed bythe Commis- sioner. (10) "Mortgage"means a lien instrument, including a mortgage or deed of trust, with atleast 2 parties, inwhichtheborrowergrants alienonresidential real property to the lender as security for the repayment ofa note or loan. (11) "Notice of default on residential mortgage" means a notice given pursuantto § 42-815(b)(1), intheformthatthe Mayorshall, byrule, prescribe, which shall contain: (A) The name and telephone number ofthe lender; (B) The following loan information: (i) The amount of the principal balance and outstanding interest owed; (ii) All past due payments; (iii) Penalties; and (iv) The amount required to cure the default and reinstate the loan, including all past due payments, penalties, and fees; and (C) Any other information that the Mayor shall, by rule, prescribe. (12) "Notice of intention to foreclose a residential mortgage" means a notice given pursuant to § 42-815(c). (13) "Power of sale" means the right of a lender to sell residential real property after an uncured default at a public auction as provided in this act to repay the note or other obligation secured by a deed oftrust or mortgage. (14) "Residential mortgage" shall have the same meaning as in § 42- 815.01(a). 3 § 42-815.02 Real Property (15) "Settlementagreement"means the form, prescribed bythe Mediation Administrator, upon which the terms and conditions of an agreement made pursuant to the mediation are set forth. (16) "Trustee" means the person holding a lien on real property pursuant to a residential mortgage or the assignee for foreclosure of the residential mortgage. (b) Notwithstandingthe provisions ofanyotherlaw, after a notice ofdefault ofaresidentialmortgagehas beengivenpursuantto § 42-815(b)(1), the lender shall engage in mediation if the borrower elects under subsection (c) of this section. Prior to the foreclosure ofany residential mortgage or deed oftrust, a lender shall: (1) Include with the notice ofdefault on a residential mortgage which is mailed to the borrower pursuant to § 42-815(b)(1): (A) Contact information which the borrower may use to reach an agent orrepresentativeofthelenderwith authorityto explainthemediationprocess; (B) A statement recommending that the borrower seek housing coun- seling services; (C) Contactinformationforatleastonelocalhousingcounselingagency approved by the United States Department of Housing and Urban Develop- ment; (D)(i) A description of all loss mitigation programs available from the lender and applicable to the residential mortgage subject to the notice of default ofa residential mortgage; and A (ii) descriptionoftheeligibilityrequirements fortheloss mitigation programs applicable to the residential mortgage subjecttothe notice ofdefault ofa residential mortgage for these programs; (E)(i) An application in the form that the Mayor, by rule, shall prescribe, for the loss mitigation programs available in connection with the residential mortgage subject to the notice ofdefault ofa residential mortgage; and (ii) Instructions for completing and mailingthe loss mitigation application, with one envelope addressed to the lender; and (F) A mediation election form, in a form prescribed by the Mediation Administrator, with one envelope addressed to the lender, and one envelope addressed to the Mediation Administrator; and (2) Provide a copy ofthe notice ofdefault on a residential mortgage to the Mediation Administrator in accordance with the rules issued pursuant to subsection (i) ofthis section. (c)(1) No laterthan 7 days after the date ofthe mailingofthe form required by subsection (b) ofthis section, the Mediation Administrator shall mail the following to the borrower: (A) A statement that the borrower is subject to foreclosure and must take immediate action to avoid foreclosure; A (B) statement that the borrower is eligible to participate in foreclosure mediation; (C) The contact information for the Mediation Administrator and a statement instructing that the borrower should immediately contact the MediationAdministrator to obtain additional information; 4