What This Bill Does
This bill makes it illegal for landlords and home sellers to charge unconscionably high prices during housing emergencies declared by the President. It creates new government units to monitor housing markets for price manipulation and requires studies on how institutional investors affect housing availability and affordability.
##
Who It Affects
- Landlords who rent residential units
- People who sell single-family homes (1 to 4 unit residences)
- Renters and home buyers
- The Secretary of Housing and Urban Development
- State attorneys general
- The Federal Trade Commission
- The Bureau of Consumer Financial Protection
- Institutional investors buying single-family homes
##
Key Provisions
- It is illegal to charge an unconscionably excessive price for renting or selling a home during a presidential housing emergency proclamation, when the seller is exploiting emergency circumstances to increase prices unreasonably. (Sec. 2(a)(1))
- The President may issue a housing emergency proclamation for up to 30 consecutive days at a time, which can be renewed for additional 30-day periods. The proclamation can include up to one week before a reasonably foreseeable emergency. (Sec. 2(a)(2))
- Prices will be considered unlawfully high if they grossly exceed what the same person charged for the same housing in the 30 days before the proclamation, or what similar housing costs nearby during the emergency period. (Sec. 2(a)(3)(B))
- A seller has a legal defense if the price increase reasonably reflects additional costs paid or anticipated, or additional risks taken to rent or sell the housing unit. (Sec. 2(b))
- The Secretary of Housing and Urban Development enforces this law using the same powers as the Federal Trade Commission. State attorneys general can also sue in federal court to stop violations and collect penalties. (Sec. 2(d))
- Penalties collected go into the Housing Trust Fund to increase rental housing affordable to extremely low-income and very low-income families, including homeless families. (Sec. 2(e))
- The Secretary must establish a Housing Monitoring and Enforcement Unit to continuously collect and analyze rental housing market data and single-family housing sales data to identify market manipulation. (Sec. 4(a))
- The Secretary must monitor when a single buyer purchases more than 5 percent of single-family homes available for sale in a market area within 3 years, or when large institutional investors collectively purchase more than 25 percent within 1 year, and investigate if these purchases involve price gouging or market manipulation. (Sec. 5)
- The Secretary, Federal Trade Commission, and Bureau of Consumer Financial Protection must jointly identify unfair screening practices that prevent renters from accessing housing and submit annual reports to Congress on their findings. (Sec. 6)
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What Changes
If this becomes law, landlords and home sellers cannot charge extremely high prices during declared housing emergencies without legal consequences. The government will actively monitor housing markets for manipulation. The Secretary of Housing and Urban Development gains new enforcement powers to penalize price gouging similar to those of the Federal Trade Commission. State attorneys general gain authority to sue in federal court over housing price violations. Large institutional investors' purchases of single-family homes will be monitored and investigated if they exceed certain thresholds.
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Important Definitions
- **Unconscionably excessive price**: A price that is unreasonably high and shows the seller is exploiting a housing emergency to unfairly increase prices. (Sec. 2(a)(1))
- **Housing emergency**: An emergency in a specific geographic area declared by the President through a formal proclamation. (Sec. 2(a)(2))
- **Single-family housing**: A residence with 1 to 4 dwelling units, but not including a unit in a condominium or cooperative housing project. (Sec. 9(2))
- **Institutional investor**: Not specified in bill text
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Effective Date
Not specified in bill text
I
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 Com-
mittee 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 jurisdic-
tion 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 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 ‘‘Housing Oversight and
4
Mitigating Exploitation Act of 2023’’ or the ‘‘HOME Act
5
of 2023’’.
6
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•HR 702 IH
SEC. 2. UNCONSCIONABLE PRICING OF RESIDENTIAL
1
RENTAL AND SALE PRICES DURING EMER-
2
GENCIES.
3
(a) UNCONSCIONABLE PRICING.—
4
(1) IN GENERAL.—It shall be unlawful for any
5
person to rent out a dwelling unit or sell any single-
6
family housing, in an area and during a period of a
7
housing emergency covered by a proclamation issued
8
under paragraph (2), at a price that—
9
(A) is unconscionably excessive; and
10
(B) indicates the lessor or seller is exploit-
11
ing the circumstances related to a housing
12
emergency to increase prices unreasonably.
13
(2) HOUSING EMERGENCY PROCLAMATION.—
14
(A) IN
GENERAL.—The President may
15
issue a housing emergency proclamation for any
16
area within the jurisdiction of the United
17
States, during which the prohibition in para-
18
graph (1) shall apply, that includes the geo-
19
graphic area covered and the time period that
20
such proclamation shall be in effect.
21
(B) DURATION.—The proclamation—
22
(i) may not apply for a period of more
23
than 30 consecutive days, but may be re-
24
newed for such consecutive periods, each
25
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•HR 702 IH
not to exceed 30 days, as the President de-
1
termines appropriate; and
2
(ii) may include a period of time not
3
to exceed 1 week before a reasonably fore-
4
seeable emergency.
5
(3) FACTORS CONSIDERED.—
6
(A) IN GENERAL.—In determining whether
7
a person has violated paragraph (1), there shall
8
be taken into account, among other factors, the
9
aggravating factors described in subparagraph
10
(B) and the mitigating factor described in sub-
11
paragraph (C).
12
(B) AGGRAVATING FACTORS.—The aggra-
13
vating factors described in this subparagraph
14
are the following:
15
(i) Whether the amount charged by
16
such person grossly exceeds the average
17
price at which the housing unit was offered
18
for rental or sale by such person during—
19
(I) the 30-day period before the
20
date on which the proclamation was
21
issued; or
22
(II) another appropriate bench-
23
mark period, as determined by the
24
Administration.
25
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•HR 702 IH
(ii) Whether the amount charged by
1
such person grossly exceeds the price at
2
which the same or a similar housing unit
3
was readily obtainable for rental or pur-
4
chase in the same area from other sellers
5
during the energy emergency period.
6
(C) MITIGATING FACTOR.—The mitigating
7
factor described in this subparagraph is wheth-
8
er the quantity of any housing dwelling units
9
such person made available for rental or sale in
10
an area covered by the proclamation during the
11
30-day period following the date on which the
12
proclamation was issued increased over the
13
quantity such person made available for rental
14
or sale during the 30-day period before the date
15
on which the proclamation was issued, taking
16
into account any usual seasonal demand vari-
17
ation.
18
(b) AFFIRMATIVE DEFENSE.—It shall be an affirma-
19
tive defense in any civil action or administrative action to
20
enforce subsection (a), with respect to the renting out or
21
sale of housing by a person, that the increase in the rental
22
or sale price of such housing reasonably reflects additional
23
costs that were paid, incurred, or reasonably anticipated
24
by such person, or reasonably reflects additional risks
25
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•HR 702 IH
taken by such person, to rent or sell such housing unit
1
under the circumstances.
2
(c) RULE OF CONSTRUCTION.—This section may not
3
be construed to cover a transaction on a futures market.
4
(d) ENFORCEMENT.—
5
(1) HUD.—The Secretary of Housing and
6
Urban Development shall enforce violations of sub-
7
section (a) of this section—
8
(A) in the same manner, by the same
9
means, and with the same jurisdiction, powers,
10
and duties as the Federal Trade Commission
11
has under the Federal Trade Commission Act
12
(15 U.S.C. 41 et seq.) with respect to violations
13
of a rule defining an unfair or deceptive act or
14
practice prescribed under section 18(a)(1)(B) of
15
such Act (15 U.S.C. 57a(a)(1)(B)); and
16
(B) as though all applicable terms and pro-
17
visions of the Federal Trade Commission Act
18
were incorporated into and made a part of this
19
section, except that any reference in such terms
20
and provisions to the Commission shall be
21
treated as referring to the Secretary.
22
(2) ENFORCEMENT
AT
RETAIL
LEVEL
BY
23
STATE ATTORNEYS GENERAL.—
24
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•HR 702 IH
(A) IN
GENERAL.—If the chief law en-
1
forcement officer of a State, or an official or
2
agency designated by a State, has reason to be-
3
lieve that any person has violated or is violating
4
subsection (a), the attorney general, official, or
5
agency of the State, in addition to any author-
6
ity it may have to bring an action in State
7
court under its laws, may bring a civil action in
8
any appropriate United States district court or
9
in any other court of competent jurisdiction
10
to—
11
(i) enjoin further such violation by
12
such person;
13
(ii) enforce compliance with such sub-
14
section;
15
(iii) obtain civil penalties; and
16
(iv) obtain damages, restitution, or
17
other compensation on behalf of residents
18
of the State.
19
(B) NOTICE.—The State shall serve writ-
20
ten notice to the Secretary of any civil action
21
under subparagraph (A) before initiating such
22
civil action. The notice shall include a copy of
23
the complaint to be filed to initiate such civil
24
action, except that if it is not feasible for the
25
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•HR 702 IH
State to provide such prior notice, the State
1
shall provide such notice immediately upon in-
2
stituting such civil action.
3
(C) AUTHORITY
TO
INTERVENE.—Upon
4
receipt of the notice required by subparagraph
5
(B), the Secretary may intervene in such civil
6
action and upon intervening—
7
(i) be heard on all matters arising in
8
such civil action; and
9
(ii) file petitions for appeal of a deci-
10
sion in such civil action.
11
(D) CONSTRUCTION.—For purposes of
12
bringing any civil action under subparagraph
13
(A), nothing in this paragraph shall prevent the
14
attorney general of a State from exercising the
15
powers conferred on the attorney general by the
16
laws of such State to conduct investigations or
17
to administer oaths or affirmations or to compel
18
the attendance of witnesses or the production of
19
documentary and other evidence.
20
(E) LIMITATION ON STATE ACTION WHILE
21
FEDERAL
ACTION
IS
PENDING.—If the Sec-
22
retary has instituted a civil action or an admin-
23
istrative action for violation of subsection (a), a
24
State attorney general, or official or agency of
25
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•HR 702 IH
a State, may not bring an action under this
1
paragraph during the pendency of that action
2
against any defendant named in the complaint
3
of the Secretary or another agency for any vio-
4
lation of this Act alleged in the complaint.
5
(F) RULE OF CONSTRUCTION.—This para-
6
graph may not be construed to prohibit an au-
7
thorized State official from proceeding in State
8
court to enforce a civil or criminal statute of
9
such State.
10
(e) LOW-INCOME HOUSING ASSISTANCE.—
11
(1) DEPOSIT OF FUNDS.—Amounts collected in
12
any penalty under subsection (d)(1) shall be depos-
13
ited in the Housing Trust Fund established under
14
section 1338 of the Federal Housing Enterprises Fi-
15
nancial Safety and Soundness Act of 1992 (12
16
U.S.C. 4568).
17
(2) USE OF FUNDS.—To the extent provided
18
for in advance in appropriations Acts, the amounts
19
deposited in the Fund shall be used to increase and
20
preserve the supply of rental housing affordable to
21
extremely low- and very low-income families, includ-
22
ing homeless families, in accordance with such sec-
23
tion 1338.
24
(f) EFFECT ON OTHER LAWS.—
25
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•HR 702 IH
(1) OTHER AUTHORITY OF FEDERAL HOUSING
1
ADMINISTRATION.—Nothing in this section may be
2
construed to limit the authority of the Secretary
3
under any other provision of law.
4
(2) STATE LAW.—Nothing in this section pre-
5
empts any State law.
6
SEC. 3. HUD INVESTIGATION AND REPORT ON HOUSING
7
PRICES.
8
(a) INVESTIGATION.—
9
(1) IN GENERAL.—The Secretary shall conduct
10
an investigation to determine if the prices for rental
11
housing units or sale of single-family housing are
12
being manipulated by reducing housing capacity or
13
by any other form of market manipulation or artifi-
14
cially increased by price gouging practices.
15
(2) CONSIDERATION.—In conducting the inves-
16
tigation under paragraph (1), the Secretary may
17
consider the impact of mergers and acquisitions in
18
the real estate industry, including mergers and ac-
19
quisitions involving developers, managers, owners,
20
and investors.
21
(b) REPORT.—
22
(1) IN
GENERAL.—Not later than 270 days
23
after the date of the enactment of this Act, the Sec-
24
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•HR 702 IH
retary shall submit to the Congress a report on the
1
investigation conducted under subsection (a).
2
(2) CONTENTS.—The report shall include—
3
(A) a long-term strategy for the Depart-
4
ment of Housing and Urban Development and
5
the Congress to address manipulation of rental
6
housing markets and markets for sale of single-
7
family housing, and in preparing the strategy
8
the Secretary shall utilize data on race, gender,
9
and socioeconomic status; and
10
(B) a description and analysis of how non-
11
occupant investors in single-family housing im-
12
pact underserved and minority communities.
13
(c) EXEMPTION
FROM
PAPERWORK
REDUCTION
14
ACT.—Chapter 35 of title 44, United States Code, shall
15
not apply to the collection of information under subsection
16
(a).
17
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
18
authorized to be appropriated to the Secretary to carry
19
out this section $1,000,000 for fiscal year 2024.
20
SEC. 4. HOUSING COST MONITORING AND ENFORCEMENT
21
WITHIN HUD.
22
(a) ESTABLISHMENT OF THE HOUSING MONITORING
23
AND ENFORCEMENT UNIT.—
24
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•HR 702 IH
(1) IN GENERAL.—The Secretary shall establish
1
within the Department of Housing and Urban De-
2
velopment the Housing Monitoring and Enforcement
3
Unit (in this section referred to as the ‘‘Unit’’).
4
(2) DUTIES OF THE UNIT.—
5
(A) PRIMARY RESPONSIBILITY.—The pri-
6
mary responsibility of the Unit shall be to assist
7
the Secretary in protecting the public interest
8
by continuously and comprehensively collecting,
9
monitoring, and analyzing rental housing mar-
10
ket data, data for markets for sale of single-
11
family housing, and data on investor-owned,
12
non-owner occupied housing units, in order to—
13
(i) support transparent and competi-
14
tive market practices;
15
(ii) identify any market manipulation,
16
including by collecting and analyzing data
17
on race, gender, and socioeconomic status,
18
any reporting of false information, any use
19
of market power to disadvantage con-
20
sumers, or any other unfair method of
21
competition; and
22
(iii) facilitate enforcement of penalties
23
against persons in violation of relevant
24
statutory prohibitions.
25
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•HR 702 IH
(B) SPECIFIC DUTIES.—In order to carry
1
out the responsibility under subparagraph (A),
2
the Unit shall assist the Secretary in carrying
3
out the following duties:
4
(i) Receiving, compiling, and ana-
5
lyzing relevant buying and selling activity
6
in order to identify and investigate anoma-
7
lous market trends and suspicious behav-
8
ior.
9
(ii) Determining whether excessive
10
concentration or exclusive control of hous-
11
ing-related infrastructure may allow or re-
12
sult in anti-competitive behaviors.
13
(iii) Obtaining a data-sharing agree-
14
ment with State and local jurisdictions,
15
housing agencies, and relevant public and
16
private data sources to receive and archive
17
information on housing purchases by insti-
18
tutional investors within a given area.
19
SEC. 5. INVESTIGATIONS OF EXCESSIVE HOUSING PUR-
20
CHASES.
21
The Secretary shall monitor purchases of single-fam-
22
ily housing in each housing market area in the United
23
States, as determined by the Secretary, to determine
24
whether any single purchaser of such housing, including
25
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•HR 702 IH
any purchaser that is an institutional investor, is pur-
1
chasing an excessive
[Text truncated for display. Full text available on Congress.gov.]