A Just Society: A Place to Prosper Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5072 To create an equitable and stable rental housing market, and for other purposes. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 13, 2019 Ms. OCASIO-CORTEZ (for herself, Ms. MENG, Ms. TLAIB, Mr. GARCI´A of Illi- nois, and Ms. LEE of California) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Transportation and Infrastructure, 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 com- mittee concerned A BILL To create an equitable and stable rental housing market, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘A Just Society: A 4 Place to Prosper Act of 2019’’. 5 SEC. 2. OBLIGATIONS OF LANDLORDS. 6 (a) OBLIGATIONS.—A covered landlord— 7 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 2 •HR 5072 IH (1) may not, when a residential lease expires, 1 increase monthly rent by an amount greater than 2 the percentage increase, if any, over the preceding 3 12 months in the Consumer Price Index for All 4 Urban Consumers or 3 percent of the average 5 monthly amount paid for the same unit for each 6 month that the unit was occupied during the pre- 7 vious 12-month period, whichever is greater; 8 (2) may not initiate eviction proceedings or 9 threaten a tenant with eviction, except in the case 10 that— 11 (A) the tenant has failed to pay rent for 2 12 or more consecutive months, caused substantial 13 destruction to the rental property, or violated 14 an explicit lease term; or 15 (B) the landlord seeks to occupy the unit, 16 or seeks the availability of the unit for occu- 17 pancy by an immediate relative; and 18 (3) shall maintain each rental unit in good re- 19 pair (as defined under applicable State and local 20 codes). 21 (b) ENFORCEMENT.— 22 (1) CIVIL ACTION AUTHORIZED.—A tenant may 23 file a civil action in the appropriate district court of 24 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 3 •HR 5072 IH the United States against a covered landlord who 1 violates subsection (a). 2 (2) LEASE PROVISION VOID.—Any lease provi- 3 sion that waives the right of a tenant to file a civil 4 action under this subsection is void. 5 (3) ENFORCEMENT BY STATE ATTORNEY GEN- 6 ERAL.—The attorney general of the State may file 7 a civil action in the appropriate district court of the 8 United States on behalf of a resident of the State 9 whose covered landlord violated subsection (a) to— 10 (A) enjoin further violations; 11 (B) obtain damages on behalf of such resi- 12 dent in an amount that does not exceed ten 13 times the sum of the monthly rent amounts 14 specified on the most recent lease agreement for 15 each such resident; and 16 (C) in the case of a covered landlord 17 against whom a court has ruled in 2 or more 18 civil actions under this subsection, obtain addi- 19 tional punitive damages in an amount not to ex- 20 ceed three times the amount of actual damages 21 suffered by resident. 22 (4) GOOD FAITH EFFORTS CONSIDERED.—In 23 any civil action under this subsection, the court shall 24 consider, for purposes of awarding damages, a cov- 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 4 •HR 5072 IH ered landlord’s good faith effort or attempt to com- 1 ply with the subsection (a). 2 (c) RULE OF CONSTRUCTION.—Nothing in this sec- 3 tion shall prevent a State or local government from impos- 4 ing lower limits on rent increases or additional obligations 5 on landlords. 6 (d) DEFINITIONS.—In this section: 7 (1) The term ‘‘covered landlord’’ means entity 8 that owns or holds a controlling interest in more 9 than 5 residential properties or more than 2 manu- 10 factured housing parks. 11 (2) The term ‘‘rent’’ includes any payment 12 made by a tenant to a landlord, with respect to 13 which the failure to pay may authorize the landlord 14 to initiate eviction proceedings, except that such 15 term does not include any utility which is paid by 16 the landlord on behalf of the tenant. 17 SEC. 3. FUNDING FOR ACCESS TO COUNSEL. 18 (a) GRANT PROGRAM.—The Secretary of Housing 19 and Urban Development is authorized to make grants to 20 State and local governments to establish a right to counsel 21 for tenants in eviction proceedings. 22 (b) APPLICATION.—The chief executive officer of a 23 State or unit of local government seeking a grant under 24 this section shall submit an application to the Secretary 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 5 •HR 5072 IH of Housing and Urban Development at such time, in such 1 manner, and containing such information as the Secretary 2 may reasonably require, including an assurance that the 3 funds will be used in accordance with subsection (c). 4 (c) USES OF FUNDS.—A State or unit of local gov- 5 ernment receiving a grant under this section shall use not 6 less than 85 percent of such funds to provide counsel for 7 tenants in eviction proceedings. 8 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 9 authorized to be appropriated $6,500,000,000 for each of 10 fiscal years 2021 through 2030 to carry out this section. 11 SEC. 4. PROHIBITING DISCRIMINATION ON THE BASIS OF 12 SOURCE OF INCOME. 13 (a) FAIR HOUSING ACT.—The Fair Housing Act (42 14 U.S.C. 3601 et seq.) is amended— 15 (1) in section 802 (42 U.S.C. 3602), by adding 16 at the end the following: 17 ‘‘(p) ‘Source of income’ includes— 18 ‘‘(1) a housing voucher under section 8 of the 19 United States Housing Act of 1937 (42 U.S.C. 20 1437f) and any form of Federal, State, or local 21 housing assistance provided to a family or provided 22 to a housing owner on behalf of a family, including 23 rental vouchers, rental assistance, and rental sub- 24 sidies from nongovernmental organizations; 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 6 •HR 5072 IH ‘‘(2) income received during a taxable year as 1 Social Security benefits, as defined in section 86(d) 2 of the Internal Revenue Code of 1986, or as supple- 3 mental security income benefits under title XVI of 4 the Social Security Act (42 U.S.C. 1381 et seq.); 5 ‘‘(3) income received by court order, including 6 spousal support and child support; 7 ‘‘(4) any payment from a trust, guardian, or 8 conservator; and 9 ‘‘(5) any other lawful source of income.’’; 10 (2) in section 804 (42 U.S.C. 3604), by insert- 11 ing ‘‘source of income,’’ after ‘‘familial status,’’ each 12 place that term appears; 13 (3) in section 805 (42 U.S.C. 3605)— 14 (A) in subsection (a), by inserting ‘‘source 15 of income,’’ after ‘‘familial status,’’; and 16 (B) in subsection (c), by inserting ‘‘source 17 of income,’’ after ‘‘handicap,’’; 18 (4) in section 806 (42 U.S.C. 3606), by insert- 19 ing ‘‘source of income,’’ after ‘‘familial status,’’; and 20 (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 21 by inserting ‘‘source of income,’’ after ‘‘handicap,’’. 22 (b) CIVIL RIGHTS ACT OF 1968.—Section 901 of the 23 Civil Rights Act of 1968 (42 U.S.C. 3631) is amended 24 by inserting ‘‘source of income (as defined in section 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 7 •HR 5072 IH 802)’’, before ‘‘or national origin’’ each place that term 1 appears. 2 SEC. 5. REMOVING TOXINS FROM HOMES. 3 There is authorized to be appropriated 4 $10,000,000,000 for each of fiscal years 2020 through 5 2029 for activities of the Office of Lead Hazard Control 6 and Healthy Homes of the Department of Housing and 7 Urban Development. Of any amounts appropriated in each 8 such fiscal year pursuant to this section— 9 (1) 75 percent shall be available only for car- 10 rying out the Lead Hazard Reduction Program au- 11 thorized by section 1011 of the Residential Lead- 12 Based Paint Hazard Reduction Act of 1992 (42 13 U.S.C. 4852); and 14 (2) 25 percent shall be available only for car- 15 rying out the Healthy Homes Initiative, pursuant to 16 sections 501 and 502 of the Housing and Urban De- 17 velopment Act of 1970 (42 U.S.C. 1701z–1, 1701z– 18 2), which shall include research, studies, testing, and 19 demonstration efforts, including education and out- 20 reach concerning lead-based paint poisoning and 21 other housing-related diseases and hazards. 22 SEC. 6. REGULATION OF MARKET-DOMINANT LANDLORDS. 23 (a) DISCLOSURE.—The Secretary of Housing and 24 Urban Development shall require each covered owner (as 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 8 •HR 5072 IH such term is defined in subsection (c)) to disclose to the 1 Secretary, on a calendar quarterly basis, the following in- 2 formation for the preceding calendar quarter regarding 3 rental dwelling units owned by the covered entity: 4 (1) The number and percentage of tenants that 5 have been forced to vacate its units by court order 6 or a threat that the entity would seek a court order. 7 (2) The median rent for all units. 8 (3) Any code violations and efforts to remedy 9 such violations. 10 (4) The median amount of fees and other mon- 11 ies paid by tenants to the covered owner other than 12 monthly rent, actual utility charges and homeowners 13 association fees, and security deposits. 14 (5) The most recent standard lease agreement 15 used by the covered owner. 16 (6) The identity of the covered owner and its 17 largest three shareholders, if the entity is owned by 18 shareholders. 19 (b) PUBLIC AVAILABILITY.—The Secretary shall 20 make the information submitted to the Secretary pursuant 21 to subsection (a) publicly available online. The Secretary 22 shall update such information on a calendar quarterly 23 basis and shall disaggregate such information by the 24 smallest geographic area possible. 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 9 •HR 5072 IH (c) DEFINITION OF COVERED OWNER.—The term 1 ‘‘covered owner’’ means any person or entity that in aggre- 2 gate owns or holds a controlling interest in any entity that, 3 in aggregate, owns— 4 (1) more than 100 rental units that are located 5 within in a single Metropolitan Statistical Area; 6 (2) more than 1,000 rental units nationwide; or 7 (3) rental units in three or more States. 8 SEC. 7. CONDITIONS FOR THE SALE OR GUARANTEE OF 9 LOANS, REAL PROPERTY, AND RELATED SE- 10 CURITIES. 11 (a) PROHIBITIONS.— 12 (1) FEDERAL MORTGAGES, GUARANTEES, AND 13 INSURANCE.—A covered rental housing owner may 14 not— 15 (A) purchase any mortgage, mortgage- 16 backed security, or other loan that is made, 17 sold, insured, guaranteed, or otherwise sup- 18 ported or assisted by any Federal agency or en- 19 terprise (which term for purposes of this sec- 20 tion, shall have the meaning given such term in 21 section 1303 of the Housing and Community 22 Development Act of 1992 (12 U.S.C. 4502)); 23 (B) be provided any insurance or guar- 24 antee by any Federal agency or enterprise for 25 VerDate Sep 11 2014 05:30 Nov 22, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 10 •HR 5072 IH any mortgage for which the covered rental 1 housing owner, or any entity in which such 2 owner holds a controlling interest, is the mort- 3 gagee; 4 (C) be provided any insurance or guar- 5 antee by any Federal agency or enterprise for 6 any loan for which the covered rental housing 7 owner, or any entity in which such owner holds 8 a controlling interest, is the lender; or 9 (D) purchase any FHA asset (as such 10 term is defined in section 204(m) of the Na- 11 tional Housing Act, as added by subsection (d) 12 of this section) from the Department of Hous- 13 ing and Urban Development or an enterprise 14 that was acquired by such Department or enter- 15 prise pursuant to a foreclosure action on a 16 mortgage insured under title II of the National 17 Housing Act (12 U.S.C. 1707 et seq.). 18 (2) MORTGAGE-BACKED SECURITIES.—Notwith- 19 standing any other provision of law, no Federal 20 agency or enterprise may purchase, or issue any se- 21 curity backed by, any mortgage for which the mort- 22 gagee is a covered rental housing owner. 23 VerDate Sep 11 2014 20:13 Nov 26, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 11 •HR 5072 IH (b) COVERED RENTAL HOUSING OWNER.—For pur- 1 poses of this section, the term ‘‘covered rental housing 2 owner’’ means— 3 (1) any owner of rental housing who has been 4 determined by the Secretary of Housing and Urban 5 Development, on the record after an opportunity for 6 an agency hearing, to— 7 (A) have 3 or more documented or adju- 8 dicated instances of— 9 (i) harassing tenants; 10 (ii) violating any applicable codes re- 11 garding health and safety of rental dwell- 12 ings; 13 (iii) evicting tenants without sufficient 14 cause; or 15 (iv) offering at-risk mortgagees tem- 16 porary interest-only modifications that do 17 not support long-term affordability to bor- 18 rowers; or 19 (B) have foreclosed on more than 40 per- 20 cent of occupied properties that are owned by 21 the covered rental housing owner and subject to 22 mortgages purchased from a government agen- 23 cy or enterprise; or 24 VerDate Sep 11 2014 20:54 Nov 25, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5072.IH H5072 kjohnson on DSK79L0C42 with BILLS 12 •HR 5072 IH (2) any entity that owns or holds a controlling 1 interest in entities that, in aggregate, own— 2 (A) more than 100 rental units that are lo- 3 cated within in a single Metropolitan Statistical 4 Area; 5 (B) more than 1,000 rental units nation- 6 wide; or 7 (C) rental units in three or more States. 8 (c) TARGETING DISPOSITION OF FHA-OWNED AS- 9 SETS.—Section 204 of the National Housing Act (12 10 U.S.C. 1710) is amended by adding at the end the fol- 11 lowing new subsection: 12 ‘‘(m) DISPOSITION REQUIREMENTS FOR FHA SIN- 13 GLE-FAMILY ASSETS.— 14 ‘‘(1) REQUIREMENT.—Except to the extent n [Text truncated for display. 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