Under Pressure From UTA, the City of Richmond, California Repealed its Ordinance Requiring Trustees to “Serve” Notices of Default on All Residential Tenants

By: Phillip M. Adleson, Esq., Corporate Counsel for the United Trustees Association

On June 16, 2009, the City Council for City of Richmond, California, passed Ordinance No. 16-09 N.S. that, among other things, required trustees to “serve” a notice of default on “all tenants occupying the rental unit”. The detailed, original story on the Richmond Ordinance can be found here. It is easy to see the difficulties that would be created if each City and County in California enacted ordinances requiring notices or foreclosure procedures in addition to those required by the statewide comprehensive legislative scheme regulating nonjudicial foreclosures. Trustees would have to use a different foreclosure process for properties located in each City and County in California.

The ordinance repealing the notice of default section of the Richmond Ordinance was finally enacted on October 20, 2009. It will become effective 30 days later on November 19, 2009. The Lawsuit will be dismissed shortly.

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