Resolution No. SI-R24-015: Leasing and Mortgage Act of 2024

At a duly called meeting of the Council of San Ildefonso Pueblo on the 13th day of December, 2024, the following law was adopted:

WHEREAS, the Council of the Pueblo de San Ildefonso is vested with the authority to make and pass laws by the governing Agreement of the Pueblo de San Ildefonso; and,

WHEREAS, the Council has become aware of certain inconsistencies between the governing Agreement adopted in 2011, and laws enacted prior to 2011 that address Housing and Housing-related matters, including the 2007 "Ordinance Concerning Mortgages, Foreclosures, and Evictions"; and,

WHEREAS, the Council now deems it necessary and proper to reconcile the inconsistencies by amending and repealing certain provisions of law and enacting new law.

NOW THEREFORE BE IT RESOLVED, THAT the Council hereby enacts the attached law entitled "LEASING AND MORTGAGE ACT OF 2024."

CERTIFICATION

The foregoing resolution was duly voted upon by the Council on December 13, 2024, at a meeting with a vote of 7 in favor, 0 opposed, 1 abstaining and 2 absent (Governor presiding and not voting) pursuant to the authority vested in the Council by the Agreement of the Pueblo de San Ildefonso.

_______________________________

Denise Moquino, Council Secretary

COUNCIL REPRESENTATIVE SPONSOR(S): Council Representatives

DELIVERY OF THE RESOLUTION TO THE GOVERNOR:

Resolution No. SI-R24-015 was presented to the Governor of the Pueblo de San Ildefonso on the 13^th day of December, 2024, pursuant to the Governing document of the Pueblo de San Ildefonso ("Agreement"), GOVERNOR, Sec. 4(c), and will become effective after signature by the Governor or veto override by the Council.

Denise Moquino, Council Secretary

GOVERNOR'S ACTION:

{ X } APPROVED

{ } VETO - RETURNED TO COUNCIL WITH EXPLANATION:

On this 16^th day of December, 2024.

Christopher A. Moquino, Governor

Presented by the Governor to the Council on the _______ day of ________________, 2024.

COUNCIL'S ACTION:

Override of Governor's veto:

{ } YES

{ } NO

CERTIFICATION

The foregoing resolution was duly voted upon by the Council on _________________, 2024, at a meeting with a vote of ______ in favor, _____ opposed, _____ abstaining and _____ absent (Governor presiding and not voting) pursuant to the authority vested in the Council by the Agreement of the Pueblo de San Ildefonso.

Denise Moquino, Council Secretary

LEASING AND MORTGAGE ACT OF 2024

Section 1.1. . Short Title

This enactment shall be known as the " LEASING AND MORTGAGE ACT OF 2024" ("Act").

Section 1.2. . Purpose

The purpose of this Act is to amend certain provisions of the Housing Authority Act of 2021; prescribing certain new powers and duties for the San Ildefonso Housing Authority; providing for codification; providing for repeal; and providing an effective date.

Section 1.3. Repeal

Resolution SI-R07-006, passed by the Council on the 26^th day of February, 2007, and enacting the "Ordinance Concerning Mortgages, Foreclosures, and Evictions, and Resolution SI-R24-011 passed on the 19^th day of August 2024 "Mortgage and Leasing Act of 2024", are hereby repealed in their entirety.

Section 1.4. Amendment (Code Section 15.1.8.070)

(a) Perpetual Duration. The period of the Authority's duration shall be

perpetual or until this Act is repealed.

(b) Powers. The Authority shall have the following powers:

1. The Authority is hereby designated to receive, on behalf of the Pueblo and on its own behalf, federal, state, or private financial assistance, including grants, for Housing.

2. Subject to the provisions of section 1.12, to sue and be sued in its name upon any contract, claim, or Obligation arising out of its activities under this Act.

3. To adopt and use a seal.

4. To enter into agreements, contracts, or other understandings with any person, organization, partnership, corporation, governmental agency, or other entity.

5. To agree to any terms and conditions attached to the receipt of federal financial assistance for Housing.

6. To lease real property from the Pueblo and others for periods as are authorized by federal or tribal law, and to hold and manage or to sublease the same.

7. To borrow or lend money, to issue temporary or long-term evidence of indebtedness and to repay the same. The Obligation shall be issued and repaid in accordance with the provisions of section 1.8.

8. To pledge the assets and receipts of the Authority as security for any Obligations; and to acquire, sell, lease, exchange, transfer, or assign personal property or interests therein.

9. To purchase real property or any interests in real property or take the same by gift and to lease real property or any interests in real property to the extent provided by law.

10. To undertake and carry out studies and analysis of Housing needs, to prepare Housing plans, to execute the same, to operate Housing projects or programs, and to provide for the construction, reconstruction, improvements, extension, alteration or repair of any Housing.

11. With respect to any dwellings, accommodations, lands, buildings or facilities embraced within any Housing project (including individual cooperative or condominium units), to lease or rent, sell, enter into lease- purchase agreements or leases providing options to purchase; to establish and revise rents or monthly payments; to make rules and regulations as the Board may deem necessary and desirable to effectuate any power granted by this Act.

12. To finance the purchase of Housing by a qualified Tribal Member.

13. To terminate any agreement when any tenant or Homebuyer has violated the terms of the agreement or has failed to meet any of its obligation thereunder, or when termination is otherwise authorized under the provisions of such agreement; and to bring legal action against the tenant or Homebuyer, including an action for eviction.

14. To establish eligibility requirements and policies to ensure that Housing will be made available in accordance with funding requirements and this Act.

15. To purchase insurance from any insurance company to insure any real or personal property or against any risk or hazards.

16. To invest any funds that are not required for immediate disbursement.

17. To establish and maintain bank accounts in the name of the Authority as may be necessary and convenient.

18. To employ and terminate an executive director (subject to approval of the Council), and employ and terminate housing managers, and other officers and employees, permanent or temporary, as the Authority may require and to delegate to the executive director, housing managers, and other officers and employees any powers or duties as the Board shall deem proper.

19. To take any further actions that are commonly engaged in by public bodies of this character as the Board may deem necessary and desirable to effectuate the purposes of the Authority.

20. To join or cooperate with any other public housing agency operating under the laws of the state or another Indian tribe in the exercise, either jointly or otherwise, of any or all of the powers of the Authority and other public housing agency for the purpose of financing (including but not limited to the issuance of an Obligation and giving security therefore), planning, undertaking, owning, constructing, operating, or contracting with respect to Housing of the Authority or other public housing agency. For such purpose, the Authority may by resolution prescribe and authorize any other public housing agency to join or cooperate with the Authority to act on the Authority's behalf with respect to any or all powers, as the Authority's agent or otherwise, in the name of the Authority or the other public housing agency.

21. To adopt bylaws consistent with this Act.

22. To manage, on behalf of the Pueblo, the process by which a Member of the Pueblo may obtain Leases of and Leasehold Interests in Restricted Land or Trust Land subject to the jurisdiction of the Pueblo, and the process by which a Member of the Pueblo may Mortgage such Leasehold Interests. The Authority is hereby authorized to promulgate rules and regulations utilizing notice and comment rulemaking for the purpose of carrying out the duties prescribed by this subsection. . As used in this subsection, the terms "Lease," "Member," "Mortgage," "Restricted Land," and "Trust Land" have the definitions given to them in Section 15.3.1.010 of the Pueblo de San Ildefonso Code.

(c) Financial Assistance. The Authority shall do any and all things necessary or desirable to secure federal, state, and private financial aid or cooperation in the undertaking, construction, maintenance, or operation of the Authority or Housing.

Chapter 15.3 — Leases, Mortgages, Foreclosures, and Evictions

Part 15.3.1 — Leasing and Mortgage Act of 2024 – General Provisions

Section 15.3.1.010. Definitions

As used in this Act, the term:

(a) "Act" means the Leasing and Mortgage Act of 2024.

(b) "Authority" means the San Ildefonso Housing Authority, and may also be

abbreviated as "SIHA."

(c) "Borrower" or "Mortgagor" means the Pueblo, its Tribally Designated Housing

Entity (if applicable), or any Member who has the legal right and capacity to execute a Mortgage and who has executed a Mortgage on his or her Leasehold Interest, including any heir(s), successor(s), executor(s), administrator(s), or assign(s) of such Borrower.

(d) "Cure Period" means the time between an initial event of default and the time at

which the Lender can commence a Mortgage Foreclosure Proceeding. The use of the term does not limit the Borrower's right to cure the default, which right extends to the date the Lender commences the Mortgage Foreclosure Proceeding.

(e) "Default" means the occurrence of a violation of any material term or condition of

the Mortgage. A Borrower will be considered to be in default if a Mortgage payment is five (5) days past due or if he or she has violated any other material term or condition of the Mortgage.

(f) "Federal Agency" means any agency of the federal government that makes,

guarantees, or insures mortgage loans, including but not limited to the Veteran's Administration ("VA"), the Department of Housing and Urban Development ("HUD"), the Federal Home Administration ("FHA"), and the Department of Agriculture ("USDA").

(g) "Forbearance Relief" means an action that results in the Lender or the federal, state,

or tribal government refraining from pursuing Mortgage Foreclosure.

(h) "Governor" means the Governor of the Pueblo.

(i) "Lease" means the residential ground lease or other agreement for use of Trust Land or Restricted Land on which a Mortgage has been or may be given. A Lease shall

include a sublease of a Lease.

(j) "Leasehold Interest" means the Borrower's right, title, and interest under a Lease from the Pueblo, as Lessor, and may include improvements.

(k) "Leasehold Tax" means any tax that may be assessed by the Pueblo against a Lessee for the use of land subject to a Leasehold Interest.

(l) "Lender or Mortgagee" means any mortgage lender or any successors or assigns of any such lender, and includes any subsequent holder, whether by assignment, succession, or otherwise, of the original Lender's or Mortgagee's right, title, or interest in and to the Mortgage.

(m) "Lessee" means a person who has acquired a legal right of possession of tribal Trust or Restricted Lands by a Lease.

(n) "Lessor" means the Pueblo de San Ildefonso.

(o) "Manufactured Home" means a structure manufactured in compliance with the federal Mobile Home Construction and Safety Standards Act of 1974 [42 U.S.C. Section 5402(b)] and the regulations thereunder [24 CFR Section 3280.2(a)(16], as that statute and that regulation may from time to time be amended.

(p) "Member" means an enrolled member of the Pueblo de San Ildefonso.

(q) "Mortgage" means the leasehold mortgage given to secure a mortgage loan or other loan made by a Lender to a Borrower.

(r) "Mortgage Foreclosure Proceeding" means a proceeding in the Trial Court to: 1) foreclose on the Leasehold Interest or other interests of the Borrower, and/or 2) assign such interest of the Borrower to the Lender or other person or entity.

(s) "Nuisance" means maintenance on the mortgaged property of a condition that:

1. Unreasonably threatens the health or safety of a resident of the community, the mortgaged property, or neighboring land users; or

2. Unreasonably and substantially interferes with the ability of neighboring real property users to enjoy the reasonable use and occupancy of their property.

(b) "Order of Repossession" means an order of the Trial Court that:

1. Restores the Lessor or Lender to possession of Trust Land or Restricted Land; and/or

2. Evicts a Borrower or other occupant from such property.

(c) "Pueblo" means the Pueblo de San Ildefonso.

(v) "Redemption" means the right of the Borrower or other person with an interest in property subject to a Mortgage pursuant to this Act to regain possession of the property from the purchaser after judicial sale resulting from foreclosure upon payment or performance of other conditions prescribed by this Act and the Mortgage documents.

(w) "Residential Unit" means a building constructed or used for residential purposes, including a manufactured home (a) which is affixed or to be affixed to a permanent foundation in accordance with lender guidelines for such affixation; and (b) as to which a duly completed Affidavit of Title has been recorded under New Mexico law or the law of the Pueblo.

(x) "Restricted Land" means any land within the jurisdiction of the Pueblo that is subject to restrictions against alienation imposed by federal treaty, statute, Executive Order, or the Pueblo.

(y) "Secretary," unless otherwise indicated, means the Secretary of the United States Department of the Interior or a duly designated representative.

(z) "Subordinate Lienholder" means the holder of any lien, including a mortgage perfected subsequent to the recording of a Mortgage under this Act, provided, however, such definition shall not include the Pueblo with respect to a claim for a tribal tax on the Mortgaged property, where applicable.

(aa) "Trial Court" means the Trial Court of the San Ildefonso Pueblo.

(bb) "Council" means the Council of the San Ildefonso Pueblo.

(cc) "Trust Land" means any land within the jurisdiction of the Pueblo, title to which is held by the United States for the benefit of the Pueblo or an individual Member of the Pueblo.

(dd) "Unlawful Detainer Action" means a suit brought before the Trial Court to terminate a Borrower's interest in Trust Land or Restricted Land and/or to evict any person from occupancy of such property.

(ee) "Waste" means spoliation or destruction of land, buildings, landscaping, trees, or other improvements on the mortgaged property which results in or is likely to result in substantial injury to such property.

Section 15.3.1.020. Applicability

Except as otherwise specifically stated, this Act shall apply to any and all Mortgages, leasehold Mortgages, and agreements to secure an interest in all Residential Units, housing, dwellings, or accommodations for human occupation or residence, or other buildings on Trust or Restricted Land and supersedes and replaces all other codes and ordinances previously adopted by the Pueblo specifically relating to residential Mortgages. In addition, the section on eviction contained herein may be applied against any person or entity occupying Trust or Restricted lands without right.

Section 15.3.1.30. Purpose and Interpretation

The Trial Court shall interpret and construe this Act to assist Members, and others with the consent of SIHA, in obtaining Mortgage financing for the construction or purchase of residences, Residential Units, or other buildings on certain Trust Land or Restricted Land within the jurisdiction of the Pueblo, by prescribing procedures for recordation, priority, and foreclosure and evictions in connection with Mortgages given to secure loans made by or through any Lenders.

Section 15.3.1.040. Jurisdiction

The Trial Court shall exercise jurisdiction over all matters arising under this Act and any persons or entities acting pursuant to this Act.

Section 15.3.1.050. Conflict with Mortgage Documents

If any provision in the Mortgage or other loan documents is determined to conflict with this Act, then this Act shall control.

Section 15.3.1.060. Conflict with Other Laws

If this Act is determined to be in conflict with any other law of general application adopted by the Pueblo, this Act shall control.

Section 15.3.1.070. Mortgage of Leasehold Interests Prohibited Without Lease

(a) Notwithstanding any provision to the contrary contained in this Act or in any Mortgage document, no Borrower may mortgage a Leasehold Interest without first:

1. Obtaining a valid Lease for such property in the manner and form prescribed by the Authority; and

2. Obtaining the prior written consent of the Authority to mortgage the Leasehold Interest.

(a)

(b) The SIHA's residential lease form may allow a Lessee to mortgage the leasehold for the purchase, construction, rehabilitation, or refinancing for residential purposes without further SIHA consent .

(c) Any Mortgage given in violation of this Section shall be void and of no effect.

Section 15.3.1.080. Merger of Estates

There shall be no merger of estates by reason of the execution of a Lease or a Mortgage or the assignment or assumption of the same, including an assignment effected by the approval of the Authority or by operation of law, except as such may arise upon satisfaction of the Mortgage.

Section 15.3.1.090. Alternative Remedies

If the persons or property concerned in an action arising under this Act are subject to the jurisdiction of the courts of the United States, the remedies and procedures enumerated in this Act are in the alternative to the remedies and procedures provided by the United States.

Section 15.3.1.100. Recording of Leases and Mortgages

(a) As used in this Section:

1. "Bureau of Indian Affairs Regional Land, Titles, and Records Office" means that office or any successor agency, office, or instrumentality of the United States performing substantially the same function.

2. "Pueblo de San Ildefonso Realty Office" means that office or any successor agency, office, or instrumentality of the Pueblo performing substantially the same function.

3. "Pueblo de San Ildefonso Realty Officer" means that officer or any successor officer, agent, or employee of the Pueblo performing substantially the same duties and functions.

(b) The appropriate offices for recording Leases and Mortgages are the Pueblo de San Ildefonso Realty Office and the Bureau of Indian Affairs Regional Land, Titles, and Records Office. The Pueblo recognizes that a Lender may additionally require that Leases and Mortgages be recorded in a state and/or county land records office, however, such recording is for notice and convenience purposes only and is not I intended nor shall be deemed to grant jurisdiction over the Lease, Mortgage, or underlying property to the state or county.

(c) The process for recording documents at the Pueblo de San Ildefonso Realty Office is as follows:

1. The Pueblo de San Ildefonso Realty Officer shall endorse upon any Lease and/or Mortgage or other security instrument received for recording the following:

i. The date and time of receipt of the Lease and/or Mortgage or other security instrument;

ii. The filing number, to be assigned by the Pueblo de San Ildefonso Realty Officer, which shall be a unique number for each Lease and/or Mortgage or other security instrument received; and

iii. The name of the Pueblo de San Ildefonso Realty Officer receiving the Lease and/or Mortgage or other security instrument.

2. Upon completion of the above endorsements, the Pueblo de San Ildefonso Realty Officer shall make true and correct copies of the Lease and/or Mortgage or other security instrument and shall certify each copy in substantially the following format:

PUEBLO DE SAN ILDEFONSO ) ss.

I certify that this is a true and correct copy of a document received for recording this date.

Given under my hand and seal this day of , 20 .

(SEAL) ______________________________

Signature

______________________________

Title

3. The Pueblo de San Ildefonso Realty Officer shall maintain such copies in the records of the recording system and shall return the original Lease and/or Mortgage or other security instrument to the person or entity that presented the same for recording.

4. The Pueblo de San Ildefonso Realty Officer shall also maintain a log of each Lease and/or Mortgage or other security instrument recorded in which log shall be entered the following:

i. The name(s) of the Borrower(s) of each Mortgage or Lessor of each Lease and/or Mortgage, identified as such;

ii. The name(s) of the Lender(s) of each Mortgage or Lessee of each Lease, identified as such;

iii. The name(s) of the parties and their designation in any other security instrument;

iv. The date and time of receipt;

v. The filing number assigned by the Pueblo de San Ildefonso Realty Officer; and

vi. The name of the Pueblo de San Ildefonso Realty Officer receiving any Lease, Mortgage, or other security instrument.

5. Certified copies of Leases, Mortgages, and other documents and the log maintained by the Pueblo de San Ildefonso Realty Officer shall be made available for public inspection and copying. The Pueblo de San Ildefonso Realty Office is hereby authorized to impose reasonable fees on the copying and printing of records.

Section 15.3.1.110. Priority

All Mortgages recorded in accordance with the recording procedures set forth in this Actshall have priority over any lien not perfected at the time of such recording and any subsequent lien or claim except a lien or claim arising from a tribal Leasehold tax assessed after the recording of the Mortgage.

(a) If a Lessee fails to pay a tribal Leasehold tax, the Lessor shall copy Mortgagees of record on any notice of failure to pay and said Mortgagees may pay the tribal Leasehold tax.

Section 15.3.1.120. Assignment

Unless otherwise prohibited in the mortgage documents or under applicable law, Borrower may assign any mortgaged property at any time prior to commencement of foreclosure proceedings; provided that:

(a) The successor Borrower is a Member of the Pueblo, a Pueblo instrumentality or entity, or a Federal Agency; and

(b) Borrower receives all required consents in writing from the SIHA, Lender, and/or applicable Federal Agency, if any.

(c) SIHA's residential lease form may allow the Borrower to assign mortgaged property to persons/entities in (a) above without further SIHA consent. SIHA consent is required where assignment is to any other person or entity not listed in (a) above.

Section 15.3.1.130. Limited Waiver of Sovereign Immunity

(a) The Pueblo hereby authorizes a limited waiver of sovereign immunity from suit that SIHA may enjoy with respect to any and all controversies or claims arising out of or related to the obligations of SIHA under a Lease or any Mortgage document or instrument to which SIHA may be a party pursuant to a Mortgage assumption.

(b) In connection with such waiver, the Pueblo hereby authorizes SIHA to

consent to personal jurisdiction exclusively in the courts of the Pueblo with respect to any action to enforce any obligations owed by it to any other party, including a Federal Agency, or to enforce any other party's rights and/or remedies under such Lease(s) or Mortgage documents.

(c) The authority provided herein is not intended nor shall it be construed to waive the immunity of the Pueblo or of SIHA for any other purpose or with respect to any other claim or other matter not specifically mentioned in this Section, and is not intended to, nor shall it, extend to the benefit of any person other than the parties to such agreements or their successors or assigns.

(d) To the extent necessary, the Office of Governor may delegate its authority under the Grant Authorization Act to grant a limited waiver of the Pueblo's sovereign immunity to SIHA for the limited purpose of applying for and receiving grant funds related to the operations of SIHA.

Part 15.3.2 — Lease and Mortgage Modernization Act of 2024 – Foreclosure

Section 15.3.2.010. Notice of Default Required

(a) In the event that a Borrower defaults in performance under a Mortgage, the Lender shall provide a written Notice of Default prior to enforcing the terms and conditions of the Mortgage and prior to availing itself of the remedies under this Act.

(b) All Notices of Default on a Mortgage shall be properly served by Lender on Borrower and all Subordinate Lienholders.

Section 15.3.2.020. Actions Upon Default

(a) A Borrower shall be considered to be in default when they are in violation of any material term or condition of the Mortgage.

(b) When a Borrower is at least five (5) days past due on a payment owed under Mortgage, or the Lender has received actual notice that the Borrower is in violation of any other material term or condition of the Mortgage, and before any foreclosure action or activity is initiated, the Lender shall:

1. Provide written notice to the Borrower specifying the default and outlining curative actions that may be taken. The notice must include:

i. A statement that, if the Mortgage remains past due on monthly installment payments or the Borrower fails to cure any other material default within sixty (60) days from receipt of the notice, the Lender may accelerate the amounts due under the Mortgage, requiring payment of the entire loan;

ii. A statement of the qualifications for Forbearance Relief from the Lender, if any, and that Forbearance Relief may be available from the federal government, along with the names and addresses of government officials to whom further communication may be addressed for said Forbearance Relief, if applicable;

2. Make reasonable efforts to arrange a face-to-face interview with the Borrower, including at least one in-person visit to the mortgaged property to meet with the Borrower; and

3. Document that it has made at least one phone call to the Borrower (or to a phone designated by the Borrower as able to receive and relay messages to the Borrower) for the purpose of arranging a face-to-face meeting.

4. If an attempt to reach a Borrower by phone is not successful, then Lender shall send a letter via certified mail, return receipt requested, to Borrower's last known address, with a copy to the property, seeking to make arrangements for a face-to-face meeting.

(a) When a Borrower remains in default for at least sixty (60) days from the receipt of written notice of such default by Borrower and at least ten (10) days before initiating a foreclosure action, the Lender shall, in writing sent by certified mail, return receipt requested, with a copy posted prominently on the Residential Unit or other structure on the mortgaged property, with a copy provided to the SIHA, advise the Borrower:

1. If the lender intends to report the information to credit reporting agencies, that information regarding the loan and default and/or delinquency shall be reported to credit reporting agencies;

2. Of the existence and availability of homeownership counseling opportunities or programs offered by the Lender, if any;

3. Of any available assistance regarding the Mortgage or default thereon;

4. Of the Lender's right to seek Foreclosure; and

5. Of the Lessor's Right of First Refusal pursuant to Section 15.3.2.050 of the Pueblo de San Ildefonso Code.

Section 15.3.2.030. Notice to the Pueblo

The Lender shall serve notice, by certified mail with return receipt requested, on the Office of the Governor and the Pueblo de San Ildefonso Realty Office contemporaneously with the notice required in Section 15.3.2.020 (c ) above to be served on the Borrower.

Section 15.3.2.040. Cure of Default

(a) The Borrower or any Subordinate Lienholder may cure the default(s) at any time before the entry of a judgment of foreclosure by payment of any arrearages up to the date of payment along with any interest and any reasonable and normal late fees.

(b) Under no circumstances shall the amount required to be tendered include any amounts due pursuant to an acceleration clause.

(c) Any Subordinate Lienholder who has cured a default may thereafter include in its lien the amount of all payments made by such Subordinate Lienholder to cure such default(s), plus interest on such amounts at the rate stated in the promissory note secured by the subordinate lien.

Section 15.3.2.050. Right of First Refusal

(a) In the event of default by the Borrower on any Mortgage or other loan agreement for which a Lease is pledged as security, the Lessor shall have the Right of First Refusal to acquire the Borrower's interest in the premises, subject to all valid liens and encumbrances, upon:

1. Payment of all sums then in arrears and either payment of the balance of the loan or assumption of the Mortgage.

(b) The Right of First Refusal may be exercised at any time after the Lessor receives notice from the Lender of the Borrower's default in writing, by certified mail with return receipt requested, up to the date the Lender commences a Mortgage Foreclosure Proceeding. The Notice of the Lessor's intent to exercise its Right of First Refusal shall be provided in writing from the Lessor to Lender, with a copy to the Borrower and, all Subordinate Lienholders.

(c) Notwithstanding subsection (b) of this Section, even upon the Lessor's exercising of the Right of First Refusal, the Borrower may cure the default at any time up to the date the Lender commences a Mortgage Foreclosure Proceeding.

(d) The estate acquired by the Lessor through exercise of its Right of First Refusal shall not merge with any other estate or title held by the Lessor as long as the Lease is mortgaged or otherwise pledged as security for any loan.

(e) Under no circumstances shall the Lessor exercise its Right of First Refusal unless the Borrower has first been advised of Forbearance Relief that may be available, if any, and the Lender has found the Borrower to be ineligible.

Section 15.3.2.060. Mortgage Foreclosure Proceedings

Upon expiration of the cure period for a default under a Mortgage, as identified in the Mortgage documents or otherwise provided in this Act, if there is a failure to cure, and the Lender has complied with the provisions set forth in this Act, the Lender may commence a Mortgage Foreclosure Proceeding in the Trial Court in the following manner:

(a) Lender shall file a verified complaint:

1. Invoking the jurisdiction of the Trial Court through citation to proper authorities;

1. Naming as defendant(s) the Borrower and each record owner claiming through the Borrower subsequent to the recording of the Mortgage, including each Subordinate Lienholder;

2. Describing the property subject to the Mortgage;

3. Stating the facts concerning:

i. The execution of any Lease and/or the Mortgage;

ii. The recording of the Mortgage;

iii. The alleged default(s) of the Borrower(s); and

iv. Any other facts necessary to support a cause of action for Mortgage Foreclosure.

4. Including an allegation that all relevant requirements and conditions prescribed by federal and tribal law, and by the promissory note, security instrument, and the Lease, if any, have been complied with by the Lender;

5. Appending as exhibits true and correct copies of each promissory note, Lease, if any, Mortgage, and if applicable, assignment thereof relating to such mortgaged property; and

6. Otherwise satisfying the pleading requirements of the Trial Court.

(a) Lender shall obtain and serve upon each defendant a summons, along with a copy of the complaint, in the manner prescribed by law according to the Civil Procedures Code.

(c) Lender shall additionally serve a copy of the summons and complaint upon the Pueblo de San Ildefonso Realty Office and the Office of the Governor by means capable of verification.

(d) Except as otherwise provided by Federal Agency loan guarantee requirements, in no event shall Lender file a claim for a deficiency judgment.

Section 15.3.2.070. Continuances

No continuances shall be granted in cases to which the Lender or a Federal Agency are a party, except for good cause shown and:

(a) By agreement of all parties with the consent of the Trial Court; or

(b) At the sole discretion of the Trial Court.

Section 15.3.2.080. Power of the Trial Court

(a) The Trial Court shall enter judgment in favor of a Lender if all of the following requirements are met:

1. A Notice of Default has been properly provided to all persons or entities as required by this Act;

2. The Lessor's Right of First Refusal has not been exercised;

3. The default has not been cured within the allowable period as provided in the Mortgage documents or in this Act; and

4. The Trial Court finds that the Lender has proven its claim by a preponderance of the evidence.

(a) A judgment for the Lender in a Mortgage Foreclosure Proceeding shall:

1. Foreclose the Borrower's interest in the mortgaged property, and each other defendant named in the complaint upon whom proper and timely service was made, including each Subordinate Lienholder; and

2. Assign the Leasehold Interest in the mortgaged property to the Lender or any purchaser of the Leasehold Interest at a foreclosure sale, subject to the following:

i. The Borrower's right of redemption, if applicable;

ii. Limitations as to who may become an assignee of a Leasehold Interest as stated in the Lease or as determined according to the regulations of the Authority adopted pursuant to 15.1.8.070(b)(22); and

iii. The right, under HUD Section 248 guarantees, to convey the Leasehold Interest to the HUD Secretary without providing the Pueblo the Right of First Refusal.

3. Order the proceeds of such foreclosure sale to be applied in the following order:

i. First, toward the satisfaction of any lien resulting from the assessment of any Leasehold Tax;

ii. Next, toward any lien having a priority date prior to that of the Mortgage documents;

iii. Next, as provided in the Mortgage documents; and

iv. Finally, toward any liens having a priority date subsequent to the Mortgage documents.

(a) The Trial Court shall have the authority to enter against the Borrower a judgment for any or all of the following:

1. Past due payments, unpaid utilities, and any charges due the Pueblo or Lessor under any Lease or occupancy agreement;

2. Any and all amounts secured by the Mortgage that are due the Lender; and

3. Damages caused by the Borrower to the property other than ordinary wear and tear.

(a) The Trial Court shall have the authority to award the prevailing party its costs and reasonable attorneys' fees in bringing suit.

(e) The Trial Court shall not have the authority to enter a deficiency judgment except as may be required pursuant to a federal loan guarantee program.

Section 15.3.2.090. Redemption

(a) There shall be a Right of Redemption available to a defendant-Borrower in a Mortgage Foreclosure Proceeding. The Redemption period shall extend

for sixty (60) days from the date that a judgment of foreclosure is entered against a Borrower.

(b) During the Redemption period, a defendant-Borrower of a mortgaged property, or their heirs, personal representatives, or assigns, may exercise the Right of Redemption by paying to the purchaser, or the purchaser's heirs, personal representatives, or assigns the following:

1. The amount paid by the purchaser;

2. Interest from the date of purchase at the rate of ten percent (10%) per year;

3. All taxes, interest, and penalties thereon; and

4. All payments made to satisfy, in whole or in part, any prior lien or mortgage not foreclosed, paid by the purchaser, with interest on such taxes, interest, penalties and payments made on liens or mortgages at the rate of ten percent (10%) per year from the date of payment.

(a) If the Lender is assigned the Borrower's Leasehold Interest, the Lender may subsequently sell or assign such Leasehold Interest without the approval of the Secretary, but only with the written approval of the Lessor.

(d) If HUD acquires the Leasehold Interest, it may transfer the same subject to the terms and conditions of the Lease and pursuant to applicable law.

Section 15.3.2.100. Intervention

The Authority may petition the Trial Court to intervene in any Lease or Leasehold Mortgage Foreclosure Proceeding under this Act. Neither the filing of a motion to intervene by the Authority, nor the grant of such motion by the Trial Court, shall operate as a waiver of the sovereign immunity of the Pueblo or of the Authority, except as expressly authorized by the Pueblo.

Section 15.3.2.110. Subleases

(a) In the event that a Federal Agency or the Lender is assigned the leasehold Mortgage as a result of an action brought pursuant to this Act, and a subsequent purchaser cannot be found as provided in this Act, the Federal Agency or Lender may sublease the leased premises to a Member of the Pueblo or a Pueblo entity.

(b) If a Pueblo member or entity cannot be found to sublease the leased premises within thirty (30) days of making diligent efforts, the Federal Agency or Lender may sublease the lease to a non-member, provided that the SIHA gives its prior written consent.

Part 15.3.3 — Mortgage and Lease Modernization Act of 2024 – Eviction

Section 15.3.3.010. No Self-Help Eviction

No person or entity may compel an occupant to vacate any premises by force or in a way that causes a breach of the peace. All persons or entities seeking to regain possession of any real property shall do so in the manner provided in this Part.

Section 15.3.3.020. Notice to Quit

I (We) have a legal right to possession of the property now occupied by you at [insert the address or other reasonable description of the property], and hereby give you notice that you are to quit possession or occupancy on or before [insert the date for the occupant to quit] for the following reason(s): [list the reasons].

(a) Any person or entity claiming a right to possession that desires to obtain possession of real property from another shall give notice to the occupant to quit the property.

(b) The notice to quit shall be addressed to the adult occupant(s) of the real property and shall state the date by which the occupant is required to quit possession of the property. The notice to quit shall be in substantially the following form:

______________________________ ______________________________

Dated Signature

______________________________ ______________________________

Location of Signing Printed Name

[Mailing Address of signatory]

(c) The notice must be delivered within the following periods of time:

1. At least seven (7) calendar days prior to the date to quit specified in the notice for any failure to pay rent or other payments required by an agreement with the occupant.

2. At least three (3) calendar days prior to the date to quit specified in the notice for Nuisance, serious injury to property, or injury to persons.

3. If there is an emergency or condition making the dwelling unsafe or uninhabitable, or in situations involving an imminent or serious threat to public health or safety, the notice may be made in a period of time which is reasonable under the circumstances.

4. In all other cases, at least fourteen (14) calendar days.

Section 15.3.3.030. Unlawful Detainer

A person may be liable for unlawful detainer if such person has received notice to quit and continues in occupancy of real property in any of the following situations:

(a) After the expiration of the term of a Lease;

(b) If such person has entered onto or remains on the real property of another without the permission of the owner and without having any colorable claim under a lease or title to such property;

(c) After the Lessor has terminated a person's tenancy pursuant to court procedures providing a hearing;

(d) After a Leasehold Interest has been foreclosed in a Mortgage Foreclosure Proceeding and the Borrower, Lessee, Sublessee, or other occupant of the property has received notice of such foreclosure and has remained in possession of the property for at least thirty (30) days contrary to the terms of the notice;

(e) When a person has received notice that they are in default under a Lease and are required to cure such default or otherwise surrender possession of the occupied property, and has not done either within the period provided in such notice;

(f) When a person continues to fail to keep or perform any condition or covenant of any lease or other use agreement under which the property is held after they have been given notice to comply with such condition or covenant or else to surrender the property;

(g) When a person fails to comply with applicable laws, tribal housing policies, or regulations; or

(h) When such person continues to commit or to permit Waste upon or maintains a Nuisance upon the occupied property after having been given notice to either cease such Waste or abate such Nuisance or to surrender the property.

Section 15.3.3.040. Unlawful Detainer Proceedings

Any person claiming a right to possess real property held by another, including without limitation a Lender or a Federal Agency, as appropriate, may commence an Unlawful Detainer Action in the Trial Court in the following manner:

(a) By filing a verified petition for eviction:

1. Invoking the jurisdiction of the Trial Court through citation to appropriate authorities;

2. Naming as defendant(s) the occupant(s) of the property and, if the property is subject to a Mortgage, the Borrower and each record owner claiming through the Borrower subsequent to the recording of the Mortgage, including each Subordinate Lienholder;

3. Describing the property in issue;

4. Stating the facts concerning the alleged unlawful detainer by the defendant and, if the property is subject to a Leasehold Interest and/or Mortgage that was foreclosed:

i. The execution of any Lease and/or Mortgage;

ii. The recording of the Mortgage;

iii. The alleged default(s) of the Borrower(s); and

iv. Any other facts necessary to support a cause of action;

5. Appending as exhibits true and correct copies, if any, of each occupancy agreement, promissory note, lease, loan agreement, security instrument, and/or Mortgage, as well as any assignment thereof relating to such mortgaged property if applicable;

6. Alleging that all relevant requirements and conditions prescribed by federal and Pueblo law, and the occupancy agreement, promissory note, lease, loan agreement, security instrument, and/or Mortgage, and the assignment, if any, have been complied with by the petitioner; and

7. Otherwise satisfying the pleading requirements of the Trial Court.

(a) By obtaining and serving upon each defendant a summons, along with a copy of the complaint, in the manner prescribed by law according to the Civil Procedures Code.

(c) By additionally serving a copy of the summons and complaint upon the Authority and the Office of the Governor by means capable of verification.

Section 15.3.3.050. Power of the Trial Court

(a) The Trial Court shall enter judgment in favor of the petitioner and enter an order of repossession if:

1. Notice of the suit has been given as provided in this Act and elsewhere in law; and

2. The Trial Court finds that the defendant has committed an act of unlawful detainer by a preponderance of the evidence; or

3. The defendant fails to appear pursuant to the summons.

(a) In addition to an order of repossession, the Trial Court may grant a prevailing petitioner in an Unlawful Detainer Action an award of any or all of the following:

1. Back rent, unpaid utilities, and any charges due the Pueblo, the Authority, or Sublessor under any Sublease or other written agreement, except for a Leasehold Mortgage;

2. If the property is subject to a Leasehold Mortgage, any and all amounts secured by a Leasehold Mortgage that are due the Lender or the appropriate Federal Agency;

3. Damages to the property caused by the defendant beyond ordinary wear and tear; and

4. Costs and reasonable attorneys' fees.

Section 15.3.3.060. Continuances

No continuances shall be granted in cases involving a Lender or Federal Agency, except for good cause shown and:

(a) By agreement of all parties with the consent of the Trial Court; or

(b) In the sole discretion of the Trial Court.

Section 15.3.3.070. Enforcement

Upon issuance of an order of repossession by the Trial Court, tribal or federal law enforcement officers or other designated officer(s) of the Pueblo shall enforce the order by evicting the defendant(s) from the property that is unlawfully occupied within fifteen (15) days of the issuance of the order.

Section 15.3.3.080. Storage of Property

(a) Following eviction of the defendant(s) and/or other occupants, the former occupants' personal property shall be stored by Lessor for at least thirty (30) days at a suitable location off of the premises.

(b) Former occupants may reclaim their personal property by paying the reasonable costs of its removal and storage.

(c) If personal property is not reclaimed within thirty (30) days, Lessor may sell the property in order to coup the costs of removal and storage. Lessor shall provide former occupants with pertinent information concerning the sale, including the time, date, and location. Proceeds from a sale of stored personal property in excess of the cost of removal and storage shall be remitted to the former occupants.

(d) Nothing in this Section shall prevent or be construed as preventing former occupants from reclaiming their personal property in a manner satisfactory to Lessor.

(e) Personal property that is not reclaimed by the former occupants or cannot be sold in accordance with this Section may be disposed of in whatever manner Lessor deems appropriate.