The law says tenants cannot be evicted just because the home they're renting goes into foreclosure.
The Just Cause for Eviction law went into effect in December, and supporters say it's already helped dozens of people stay in their homes.
But local realtors argue it's unnecessary and that it threatens private property rights.
The law only protects people who have always paid their rent on time and lived up to all other obligations, and it still requires tenants to move out if the new owner wants to live in the home.
However, Merced county realtors say it's unnecessary because tenants are already protected under Federal law.
If the council votes to repeal the ordinance on Monday, it would still have to go through a second reading before it's officially overturned.
Stay tuned to Action News and ABC30.com for later updates to this story.