[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 702 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 702
To protect consumers from price gouging of residential rental and sale
prices, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 1, 2023
Mr. Horsford introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
the Judiciary, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To protect consumers from price gouging of residential rental and sale
prices, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing Oversight and Mitigating
Exploitation Act of 2023'' or the ``HOME Act of 2023''.
SEC. 2. UNCONSCIONABLE PRICING OF RESIDENTIAL RENTAL AND SALE PRICES
DURING EMERGENCIES.
(a) Unconscionable Pricing.--
(1) In general.--It shall be unlawful for any person to
rent out a dwelling unit or sell any single-family housing, in
an area and during a period of a housing emergency covered by a
proclamation issued under paragraph (2), at a price that--
(A) is unconscionably excessive; and
(B) indicates the lessor or seller is exploiting
the circumstances related to a housing emergency to
increase prices unreasonably.
(2) Housing emergency proclamation.--
(A) In general.--The President may issue a housing
emergency proclamation for any area within the
jurisdiction of the United States, during which the
prohibition in paragraph (1) shall apply, that includes
the geographic area covered and the time period that
such proclamation shall be in effect.
(B) Duration.--The proclamation--
(i) may not apply for a period of more than
30 consecutive days, but may be renewed for
such consecutive periods, each not to exceed 30
days, as the President determines appropriate;
and
(ii) may include a period of time not to
exceed 1 week before a reasonably foreseeable
emergency.
(3) Factors considered.--
(A) In general.--In determining whether a person
has violated paragraph (1), there shall be taken into
account, among other factors, the aggravating factors
described in subparagraph (B) and the mitigating factor
described in subparagraph (C).
(B) Aggravating factors.--The aggravating factors
described in this subparagraph are the following:
(i) Whether the amount charged by such
person grossly exceeds the average price at
which the housing unit was offered for rental
or sale by such person during--
(I) the 30-day period before the
date on which the proclamation was
issued; or
(II) another appropriate benchmark
period, as determined by the
Administration.
(ii) Whether the amount charged by such
person grossly exceeds the price at which the
same or a similar housing unit was readily
obtainable for rental or purchase in the same
area from other sellers during the energy
emergency period.
(C) Mitigating factor.--The mitigating factor
described in this subparagraph is whether the quantity
of any housing dwelling units such person made
available for rental or sale in an area covered by the
proclamation during the 30-day period following the
date on which the proclamation was issued increased
over the quantity such person made available for rental
or sale during the 30-day period before the date on
which the proclamation was issued, taking into account
any usual seasonal demand variation.
(b) Affirmative Defense.--It shall be an affirmative defense in any
civil action or administrative action to enforce subsection (a), with
respect to the renting out or sale of housing by a person, that the
increase in the rental or sale price of such housing reasonably
reflects additional costs that were paid, incurred, or reasonably
anticipated by such person, or reasonably reflects additional risks
taken by such person, to rent or sell such housing unit under the
circumstances.
(c) Rule of Construction.--This section may not be construed to
cover a transaction on a futures market.
(d) Enforcement.--
(1) HUD.--The Secretary of Housing and Urban Development
shall enforce violations of subsection (a) of this section--
(A) in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as the
Federal Trade Commission has under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) with respect to
violations of a rule defining an unfair or deceptive
act or practice prescribed under section 18(a)(1)(B) of
such Act (15 U.S.C. 57a(a)(1)(B)); and
(B) as though all applicable terms and provisions
of the Federal Trade Commission Act were incorporated
into and made a part of this section, except that any
reference in such terms and provisions to the
Commission shall be treated as referring to the
Secretary.
(2) Enforcement at retail level by state attorneys
general.--
(A) In general.--If the chief law enforcement
officer of a State, or an official or agency designated
by a State, has reason to believe that any person has
violated or is violating subsection (a), the attorney
general, official, or agency of the State, in addition
to any authority it may have to bring an action in
State court under its laws, may bring a civil action in
any appropriate United States district court or in any
other court of competent jurisdiction to--
(i) enjoin further such violation by such
person;
(ii) enforce compliance with such
subsection;
(iii) obtain civil penalties; and
(iv) obtain damages, restitution, or other
compensation on behalf of residents of the
State.
(B) Notice.--The State shall serve written notice
to the Secretary of any civil action under subparagraph
(A) before initiating such civil action. The notice
shall include a copy of the complaint to be filed to
initiate such civil action, except that if it is not
feasible for the State to provide such prior notice,
the State shall provide such notice immediately upon
instituting such civil action.
(C) Authority to intervene.--Upon receipt of the
notice required by subparagraph (B), the Secretary may
intervene in such civil action and upon intervening--
(i) be heard on all matters arising in such
civil action; and
(ii) file petitions for appeal of a
decision in such civil action.
(D) Construction.--For purposes of bringing any
civil action under subparagraph (A), nothing in this
paragraph shall prevent the attorney general of a State
from exercising the powers conferred on the attorney
general by the laws of such State to conduct
investigations or to administer oaths or affirmations
or to compel the attendance of witnesses or the
production of documentary and other evidence.
(E) Limitation on state action while federal action
is pending.--If the Secretary has instituted a civil
action or an administrative action for violation of
subsection (a), a State attorney general, or official
or agency of a State, may not bring an action under
this paragraph during the pendency of that action
against any defendant named in the complaint of the
Secretary or another agency for any violation of this
Act alleged in the complaint.
(F) Rule of construction.--This paragraph may not
be construed to prohibit an authorized State official
from proceeding in State court to enforce a civil or
criminal statute of such State.
(e) Low-Income Housing Assistance.--
(1) Deposit of funds.--Amounts collected in any penalty
under subsection (d)(1) shall be deposited in the Housing Trust
Fund established under section 1338 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4568).
(2) Use of funds.--To the extent provided for in advance in
appropriations Acts, the amounts deposited in the Fund shall be
used to increase and preserve the supply of rental housing
affordable to extremely low- and very low-income families,
including homeless families, in accordance with such section
1338.
(f) Effect on Other Laws.--
(1) Other authority of federal housing administration.--
Nothing in this section may be construed to limit the authority
of the Secretary under any other provision of law.
(2) State law.--Nothing in this section preempts any State
law.
SEC. 3. HUD INVESTIGATION AND REPORT ON HOUSING PRICES.
(a) Investigation.--
(1) In general.--The Secretary shall conduct an
investigation to determine if the prices for rental housing
units or sale of single-family housing are being manipulated by
reducing housing capacity or by any other form of market
manipulation or artificially increased by price gouging
practices.
(2) Consideration.--In conducting the investigation under
paragraph (1), the Secretary may consider the impact of mergers
and acquisitions in the real estate industry, including mergers
and acquisitions involving developers, managers, owners, and
investors.
(b) Report.--
(1) In general.--Not later than 270 days after the date of
the enactment of this Act, the Secretary shall submit to the
Congress a report on the investigation conducted under
subsection (a).
(2) Contents.--The report shall include--
(A) a long-term strategy for the Department of
Housing and Urban Development and the Congress to
address manipulation of rental housing markets and
markets for sale of single-family housing, and in
preparing the strategy the Secretary shall utilize data
on race, gender, and socioeconomic status; and
(B) a description and analysis of how non-occupant
investors in single-family housing impact underserved
and minority communities.
(c) Exemption From Paperwork Reduction Act.--Chapter 35 of title
44, United States Code, shall not apply to the collection of
information under subsection (a).
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $1,000,000 for
fiscal year 2024.
SEC. 4. HOUSING COST MONITORING AND ENFORCEMENT WITHIN HUD.
(a) Establishment of the Housing Monitoring and Enforcement Unit.--
(1) In general.--The Secretary shall establish within the
Department of Housing and Urban Development the Housing
Monitoring and Enforcement Unit (in this section referred to as
the ``Unit'').
(2) Duties of the unit.--
(A) Primary responsibility.--The primary
responsibility of the Unit shall be to assist the
Secretary in protecting the public interest by
continuously and comprehensively collecting,
monitoring, and analyzing rental housing market data,
data for markets for sale of single-family housing, and
data on investor-owned, non-owner occupied housing
units, in order to--
(i) support transparent and competitive
market practices;
(ii) identify any market manipulation,
including by collecting and analyzing data on
race, gender, and socioeconomic status, any
reporting of false information, any use of
market power to disadvantage consumers, or any
other unfair method of competition; and
(iii) facilitate enforcement of penalties
against persons in violation of relevant
statutory prohibitions.
(B) Specific duties.--In order to carry out the
responsibility under subparagraph (A), the Unit shall
assist the Secretary in carrying out the following
duties:
(i) Receiving, compiling, and analyzing
relevant buying and selling activity in order
to identify and investigate anomalous market
trends and suspicious behavior.
(ii) Determining whether excessive
concentration or exclusive control of housing-
related infrastructure may allow or result in
anti-competitive behaviors.
(iii) Obtaining a data-sharing agreement
with State and local jurisdictions, housing
agencies, and relevant public and private data
sources to receive and archive information on
housing purchases by institutional investors
within a given area.
SEC. 5. INVESTIGATIONS OF EXCESSIVE HOUSING PURCHASES.
The Secretary shall monitor purchases of single-family housing in
each housing market area in the United States, as determined by the
Secretary, to determine whether any single purchaser of such housing,
including any purchaser that is an institutional investor, is
purchasing an excessive amount of such housing made available for sale
in any such market area. If the Secretary determines that any single
purchaser has purchased more than 5 percent of the single-family
housing made available for sale in any market area over a 3-year
period, or if, in aggregate, large institutional investors have
purchased more than 25 percent of the single-family housing made
available for sale in any market area over a 1-year period, the
Secretary shall conduct an investigation to determine the purposes of
and circumstances involved in such purchases, including price gouging,
market manipulation, and unfair investment practices that drive
homeowners out of the market.
SEC. 6. IDENTIFICATION OF UNFAIR SCREENING PRACTICES.
The Secretary, the Federal Trade Commission, and the Bureau of
Consumer Financial Protection shall jointly--
(1) carry out a program to collect information to identify
practices that unfairly prevent applicants and tenants of
rental housing from accessing or staying in housing, including
the establishment and use of tenant/applicant background
checks, the use of algorithms in tenant screenings, the
provision of adverse action notices by landlords and property
management companies, and the use of information regarding
tenant income sources; and
(2) submit a report to the Congress annually describing the
information collected under the program carried out pursuant to
paragraph (1).
SEC. 7. LIMITATION ON FANNIE MAE AND FREDDIE MAC INVESTMENTS.
Subpart A of part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following new section:
``SEC. 1329. LIMITATION ON ENTERPRISE INVESTMENTS.
``The Director shall, by regulations issued after notice and
opportunity for interested parties to comment at a public hearing,
establish standards and criteria for the purchase by the enterprises of
mortgages on multifamily rental housing as the Director considers
necessary to ensure basic renter protections and prevent egregious rent
increases for tenants in such housing.''.
SEC. 8. REVIEW OF ANTI-COMPETITIVE BEHAVIORS.
The Attorney General of the United States and the Federal Trade
Commission shall jointly conduct a review to identify any anti-
competitive behaviors in the single-family home and residential rental
markets, including anti-competitive information sharing, and not later
than the expiration of the 12-month period beginning on the date of the
enactment of this Act shall submit a report to the Congress setting
forth the findings of such review.
SEC. 9. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Secretary.--Except where specified otherwise, the term
``Secretary'' means the Secretary of Housing and Urban
Development.
(2) Single-family housing.--The term ``single-family
housing'' means a residence consisting of 1 to 4 dwelling
units, but does not include a dwelling unit in a condominium or
cooperative housing project.
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