[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4141 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4141

To ensure that purchasers of single family residential properties owned 
by the Department of Housing and Urban Development are notified of the 
penalties authorized for intentionally misrepresenting the purchaser's 
  intent to occupy the properties after purchase and that purchasers 
    indicating an intent to use such properties as their principal 
             residences use the properties in such manner.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 1996

   Mr. Barrett of Wisconsin introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To ensure that purchasers of single family residential properties owned 
by the Department of Housing and Urban Development are notified of the 
penalties authorized for intentionally misrepresenting the purchaser's 
  intent to occupy the properties after purchase and that purchasers 
    indicating an intent to use such properties as their principal 
             residences use the properties in such manner.

    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 ``Department of Housing and Urban 
Development Owner-Occupancy Enforcement Act''.

SEC. 2. NOTICE OF PENALTY FOR FRAUD AND FALSE STATEMENTS.

    In disposing of any qualified property pursuant to any sale 
(including any direct, bulk, or competitive sale, or auction), the 
Secretary of Housing and Urban Development shall--
            (1) provide to the purchaser, upon notifying the purchaser 
        of acceptance of the offer to purchase, written notice 
        (separate from any sales contract) that--
                    (A) sets forth the provisions of section 1010 of 
                title 18, United States Code, and the maximum fine and 
                maximum term of imprisonment for violations of such 
                section; and
                    (B) states that an intentionally false statement 
                made by a purchaser regarding the purchaser's intent to 
                occupy a purchased qualified property may be a 
                violation of section 1010 of title 18, United States 
                Code; and
            (2) before closing, obtain a written statement, signed by 
        the purchaser, that the purchaser has received the notice 
        required under paragraph (1).

SEC. 3. REQUIREMENTS RELATING TO OWNER-OCCUPANT PURCHASERS.

    (a) 1-Year Residency.--Except as provided in subsection (b), each 
owner-occupant purchaser of a qualified property shall use the property 
as the principal residence of the purchaser for the 1-year period 
beginning upon purchase.
    (b) Exceptions.--The Secretary may waive the requirement under 
subsection (a) for an owner-occupant purchaser of a qualified property 
who demonstrates to the Secretary extenuating circumstances that 
prevent the purchaser from reasonably maintaining principal residency 
at the qualified property during the period referred to in such 
subsection.
    (c) Enforcement Procedures.--The Secretary shall, by regulation, 
establish procedures to monitor compliance with the requirement under 
subsection (a) and to provide for waivers under subsection (b). Such 
regulations shall be issued not later than the expiration of the 6-
month period beginning on the date of the enactment of this Act.

SEC. 4. PENALTY.

    If the Secretary determines on the record after opportunity for a 
hearing that an owner-occupant purchaser of a qualified property has 
violated the requirement under section 3(a), the Secretary shall 
permanently bar such purchaser--
            (1) from doing business with the Department of Housing and 
        Urban Development;
            (2) from participating in any program of the Department of 
        Housing and Urban Development; and
            (3) from receiving any assistance from the Department of 
        Housing and Urban Development.
Any penalty imposed under this section shall be in addition to any 
other penalties authorized under law that may be imposed.

SEC. 5. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Owner-occupant purchaser.--The term ``owner-occupant 
        purchaser'' means a purchaser of a qualified property who, in 
        purchasing the property (including any bidding procedure), 
        indicates to the Secretary an intent to use the property as his 
        or her principal residence.
            (2) Qualified property.--The term ``qualified property'' 
        means any 1- to 4-family property acquired by the Secretary 
        pursuant to--
                    (A) foreclosure of a mortgage insured under title 
                II the National Housing Act;
                    (B) foreclosure of a rehabilitation loan under 
                section 312 of the Housing Act of 1964 (as in effect 
                before October 1, 1991);
                    (C) foreclosure of a purchase money or assigned 
                mortgage that is held by the Secretary;
                    (D) assignment by the Secretary of Defense, 
                pursuant to acquisition of the property under section 
                1013 of the Demonstration Cities and Metropolitan 
                Development Act of 1966; or
                    (E) foreclosure of a home improvement loan insured 
                under title I of the National Housing Act.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, except when specifically 
        provided otherwise.
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