; or (ii) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90-day notice under subparagraph (A), except that nothing under this subsection shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants. (2) Bona Fide Lease or Tenancy For purposes of this subsection, a lease or tenancy shall be considered bona fide only if— (A) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant; (B) the lease or tenancy was the result of an arms-length transaction; and (C) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit's rent is reduced or subsidized due to a Federal, State, or local subsidy. (3) Definition For purposes of this subsection, the term federally-related mortgage loan has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2602 ). (b) Effect of foreclosure on section 8 tenancies Section 8(o)(7) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o)(7) ) is amended— (1) by inserting before the semicolon in subparagraph (C) the following: and in the case of an owner who is an immediate successor in interest pursuant to foreclosure during the term of the lease vacating the property prior to sale shall not constitute other good cause, except that the owner may terminate the tenancy effective on the date of transfer of the unit to the owner if the owner— (i) will occupy the unit as a primary residence; and (ii) has provided the tenant a notice to vacate at least 90 days before the effective date of such notice.