Chapter 8B. Foreclosure moratorium from July 1, 2022, to September 30, 2022.

§ 42–851.11. Foreclosure moratorium.

*NOTE: This section was created by temporary legislation that will expire on May 1, 2025.*

(a)(1) From July 1, 2022, through September 30, 2022, no residential foreclosure may be initiated or conducted under § 42-815 or § 42-816, no sale may be initiated or conducted under § 42-1903.13(c), and no judgment foreclosing the right of redemption shall be entered under § 47-1378 if:

(A) A homeowner or their representative applies for financial assistance to cure a debt or default with funds from the Department of Housing and Community Development's DC Homeowner Assistance Fund ("DC HAF"), or a similar government fund established to assist homeowners impacted by the COVID-19 public emergency or public health emergency declared pursuant to Chapter 23 of Title 7 ("financial assistance application");

(B) The financial assistance application is under review, pending approval, pending payment, or under appeal; and

(C) Proof of the financial assistance application status described in subparagraph (B) of this paragraph is presented, as a paper copy or through an electronic medium, including through communications facilitated by the online DC HAF application portal, to the mortgage lender, condominium association, homeowners association, or tax sale purchaser, or to an agent acting as a representative for any housing or financing entity to which the homeowner is indebted.

(2)(A) Beginning on July 25, 2022, a mortgage lender, condominium association, homeowners association, or tax sale purchaser, or an agent acting as a representative for any housing or financing entity to which a homeowner is indebted, may begin to send notices to warn of intention to initiate or continue foreclosure actions, but no foreclosure action described in paragraph (1) of this subsection may proceed prior to 30 days after a homeowner is first sent a warning notice.

(B) Before September 30, 2022, all foreclosure notices and foreclosure warning notices sent pursuant to subparagraph (A) of this paragraph shall:

(i) Be sent by postal and electronic mail to a homeowner's last known home and email address;

(ii) Inform the homeowner of DC HAF and the program's potential ability to cure eligible housing debts, including the specific type of debt or debts owed to the entity sending the notice; and

(iii) Explain the September 30, 2022, deadline to apply to DC HAF to delay or prevent further foreclosure action.

(C) After October 1, 2022, all foreclosure notices and foreclosure warning notices sent pursuant to subparagraph (A) of this paragraph shall:

(i) Be sent by postal and electronic mail to a homeowner's last known home and email address; and

(ii) Inform the homeowner of DC HAF and the program's potential ability to cure eligible housing debts, including the specific type of debt or debts owed to the entity sending the notice.

(D) If, prior to November 22, 2022, a mortgage lender, condominium association, homeowners association, or tax sale purchaser, or an agent acting as a representative for any housing or financing entity to which a homeowner is indebted sent a notice of an intention to initiate, notice to initiate, or notice to continue foreclosure actions without information about DC HAF, a new notice must be sent prior to the continuation of any foreclosure action informing the homeowner of the availability of DC HAF and the program's potential ability to cure eligible housing debts, including the specific type of debt or debts owed to the entity sending the notice;

(3) The Mayor, or the Mayor's designee, shall ensure:

(A) A homeowner applying for DC HAF relief, or for similar government funds established to assist homeowners impacted by the COVID-19 public emergency or public health emergency declared pursuant to Chapter 23 of Title 7, is provided with documentation in a timely and ongoing manner that will enable the applicant to present proof of financial assistance application status as described in paragraph (1)(C) of this subsection; and

(B) Editable sample foreclosure warning notices that include information about debt relief available through DC HAF are published on the DC HAF website for use by housing or financing entities to which a homeowner may be indebted.

(b)(1) If a homeowner submitted a DC HAF financial assistance application prior to September 30, 2022 and provided proof of the application status pursuant to subsection (a)(1)(C) of this section, and the application remains under review, pending approval, pending payment, or under appeal as of September 30, 2022, until such time as DC HAF payments can be made or the homeowner's application is denied following appeal, if any, the homeowner shall not be subject to a:

(A) Residential foreclosure initiated or conducted under § 42-815 or § 42-816;

(B) Sale initiated or conducted under § 42-1903.13(c); or

(2) The Mayor shall make every effort to make DC HAF payments as quickly as practicable to qualified homeowners, their representatives, or housing or financing entities to which a homeowner is indebted to cure any debts or defaults eligible for assistance.