The ordinance, dubbed the “Just Cause” law, makes it harder for banks and investors to terminate tenancies after a foreclosure. According to a news report, the local real estate industry asked City Council for the repeal.
A tenant advocacy group, Tenants Together, has called for a referendum to challenge the repeal of the Just Cause law.
According to the report, the tenants group will need to gather signatures of 2,900 proponents of the referendum to have a chance at stopping the repeal. Advocates told reporters they are confident they will get the signatures.
Ultimately, the decision whether to limit evictions for just cause could rest with the voters in Merced.
The Just Cause law limits evictions in foreclosed properties to those situations where the tenant has caused a breach of the lease, like nonpayment of rent or causing a nuisance, according to the report.
Proponents of the law say it keeps families from losing homes simply because the property fell into foreclosure, despite tenants paying rent.
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