A new law in California will restrict anyone selling foreclosed homes from bundling them at auction for sale to a single buyer.
In addition, the law paves the way for tenants, families, local governments, affordable housing nonprofits, and community land trusts to beat the best auction bid to purchase the foreclosed land. Under the new rule, these entities will receive a 45-day head start, or “first dibs” on said property, according to a report in the Daily Bulletin.
The bill, approved early this week by Gov. Gavin Newsom, “is designed to keep corporations from snapping up homes and letting some fall into disrepair as they did during the Great Recession,” the paper reported.
A report by Reveal suggests that the enactment “seeks to prevent a repeat of history.” And there is evidence, the organization reports, that it won’t work.
The bill’s author, Democratic state Sen. Nancy Skinner of Berkeley, told