[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2070 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 2070

To ensure that homeowners receive adequate notice of and opportunity to 
  comment on activities likely to adversely affect the value of their 
  homes; and to create procedures for homeowners to receive financial 
compensation for development which produces pollution and other impacts 
             adversely affecting the value of their homes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 12, 1996

 Mr. Wyden (for himself and Mr. Warner) introduced the following bill; 
  which was read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To ensure that homeowners receive adequate notice of and opportunity to 
  comment on activities likely to adversely affect the value of their 
  homes; and to create procedures for homeowners to receive financial 
compensation for development which produces pollution and other impacts 
             adversely affecting the value of their homes.

    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 ``Homeowners Empowerment and 
Protection Act of 1996''.

SEC. 2. FINDINGS.

    The Congress finds and declares that--
            (1) there are 65,000,000 homeowners in the United States, 
        representing approximately two-thirds of all households, who 
        have a strong and justified interest in preserving and 
        enhancing the value of their property;
            (2) the value of a homeowner's home is based in large part 
        on the location of the property relative to other features of 
        the built and natural environment, and the increase or decrease 
        in the value of a home over time is inextricably linked to 
        changes in the quality of the neighborhood and environment in 
        which the home is located, including--
                    (A) the quality of the water for drinking, fishing, 
                and swimming;
                    (B) the clarity and healthfulness of the air;
                    (C) the risk of flooding;
                    (D) the scenic beauty of the community;
                    (E) the presence or absence of offensive odors and 
                excessive noise;
                    (F) the health and abundance of wildlife resources; 
                and
                    (G) other factors;
            (3) the value of homes in the United States is frequently 
        reduced, and sometimes destroyed, by certain types of land 
        development, industrial activity, and other actions that occur 
        on neighboring properties or at other locations, including 
        sites upwind, upstream, or upslope from private homes;
            (4) protecting private homeowners from the adverse affects 
        of irresponsible actions of certain entities and individuals 
        which cause injury to homeowners' property values is important 
        not only to homeowners but also to their communities and 
        society as a whole; and
            (5) current public information and participation procedures 
        are often insufficient to provide individual homeowners with 
        notice of activities and the opportunity to effectively 
        participate in decisionmaking procedures that have the 
        potential to significantly affect the value of their homes.

SEC. 3. HOMEOWNER RIGHT OF ACCESS TO INFORMATION ABOUT ACTIVITIES THAT 
              COULD REDUCE THE VALUE OF THEIR HOMES.

    (a) Notice.--
            (1) General requirement.--Within 90 days after the 
        enactment of this Act, the Director of the Office of Management 
        and Budget shall establish uniform Federal procedures 
        applicable to all agencies under this section. In accordance 
        with such procedures, each agency shall require any person 
        required to file any application to conduct property impacting 
        activity with the agency to provide the notice described in 
        this section. The Director shall designate a lead agency in the 
        case of any application under this section that involves more 
        than one agency.
            (2) Application to conduct property impacting activity.--
        For purposes of this section, the term an ``application to 
        conduct property impacting activity'' means an application for 
        a permit, license, or other approval form, or contract, lease, 
        or other arrangement, with an agency, that would authorize the 
        applicant, pursuant to Federal law, to conduct an activity that 
        generates pollutants or produces other adverse impacts with the 
        potential to reduce the value of any private home.
            (3) Homeowners required to receive notice.--The notice 
        under this section shall be provided by delivery, by certified 
        mail, of individual written notice to each homeowner whose 
        property lies within \1/4\ mile of the perimeter of the site at 
        which the activity that is the subject of the application will 
        be carried out. The applicant shall also publish notice under 
        this subsection at least 3 times in the newspapers of general 
        circulation in the affected community. The agency may also 
provide notice under this subsection by mail to the owner of any home 
identified by the agency as reasonably likely to suffer a reduction in 
value as a result of the proposed activity.
            (4) Notice contents.--The notice referred to in paragraph 
        (2) shall describe the nature of the application to conduct 
        property impacting activity, the potential impacts of the 
        proposed activity on the value of private homes, potential 
        impacts on homeowners and other members of the public, the name 
        and telephone number of the applicant and an agency 
        representative assigned to provide further information about 
        the application, and any opportunities available for homeowner 
        or other affected members of the public to comment on the 
        proposed activity.
    (b) Public Response; Identification of Alternatives to Reduce 
Property Impacts.--In addition to and not in lieu of any other 
procedures established by law, each agency shall establish a toll-free 
telephone number which homeowners may call to register concerns about 
the potential effects on property values of an application for a 
proposed activity or to request additional information concerning 
applications to conduct property impacting activities filed with the 
agency and opportunities to submit public comment. If requested by an 
applicant or any homeowner whose property is reasonably likely to 
suffer a reduction in value as a result of the activity to be 
authorized by such application, the agency shall thoroughly investigate 
the potential impact of the proposed activity on the value of private 
homes, and seek to identify alternatives to the proposed action which 
reduce the adverse effects on the value of private homes.

SEC. 4. HOMEOWNER RIGHT OF ACTION.

    (a) Right of Action.--Whenever any person has carried out any 
activity that--
            (1) is authorized (or required to be authorized) by a 
        permit, license, or other approval issued by an agency or 
        pursuant to Federal law to such person, or by a contract, 
        lease, or other arrangement between such person and an agency, 
        and
            (2) generates pollutants or produces other adverse impacts 
        that cause or significantly contribute to a total reduction in 
        the value of one or more private homes of $10,000 or more,
any owner of a private home, the value of which is reduced by such 
activity, may commence an action against such person under this 
section.
    (b) Notice of Intent to Sue and Voluntary Claim Resolution 
Procedures.--At least 30 days prior to filing an action under this 
section, a homeowner shall deliver a notice of intent to sue to the 
defendant and to the head of the agency to which the application to 
conduct property impacting activity is submitted or required to be 
submitted or which has authority to enter into the contract, lease, or 
other arrangement. If either the homeowner or the defendant requests 
that the agency resolve the claim, the agency head shall convene a 
meeting of the parties and use the best efforts of the agency to arrive 
at a just resolution of the claim in order to avoid unnecessary 
litigation costs. Such efforts shall not affect the right of the 
homeowner to bring an action under this section at any time after the 
expiration of the 30-day period referred to in this subsection.
    (c) Burden of Proof.--In any action under this section, the 
homeowner shall have the burden of demonstrating that the activity 
conducted by the defendant caused or contributed to a reduction in the 
value of the homeowner's home.
    (d) Class Actions.--Similarly affected homeowners are authorized to 
file suit under this section in accordance with rule 23 of the Federal 
Rules of Civil Procedure in Federal district court in the district 
where such homes are located.
    (e) Remedy.--Any homeowner authorized to bring suit under this 
section shall be entitled to recover an amount equal to the reduction 
in the value of the homeowner's home caused or significantly 
contributed to by the activity referred to in subsection (a), except 
that such compensation may not exceed the greater of--
            (1) the median value (as determined by the court based on 
        tax assessments) of all private homes in the immediate vicinity 
        of the homeowner's home; or
            (2) $500,000.
    (f) Attorneys Fees.--Any homeowner who receives compensation under 
this section shall be awarded reasonable attorney's fees, including the 
cost of expert witnesses and other reasonable costs.
    (g) Injunction.--In addition to providing compensation under this 
section, whenever any activity that is the subject of an action under 
this section constitutes a violation of any Federal statute, 
regulation, permit, license, contract, lease, or other arrangement or 
form of approval, the court may enjoin such activity.
    (h) Jurisdiction.--The United States district court shall have 
original jurisdiction, concurrent with State courts, of any action 
brought under this section.
    (i) Frivolous or Otherwise Improper Lawsuits.--If the court 
dismisses any action under this section after finding that the 
plaintiff's case was frivolous, dilatory, abusive, or brought to harass 
the defendant or for any other improper purpose, in addition to any 
other sanction available to the court under the Federal Rules of Civil 
Procedure, the court may, upon motion by the defendant, order the 
plaintiff to pay the defendant's reasonable attorney's fees and other 
expenses reasonably incurred by the defendant in participating in the 
litigation.
    (j) Statute of Limitations.--No action may be brought under this 
section with respect to any private home after the date 5 years after 
the date on which the total reduction in the value of such home is 
$10,000.
    (k) Savings Provisions.--
            (1) Prohibition of limitation on other claims.--No 
        provision of this Act shall be construed to limit the rights of 
        any person to pursue any claim or cause of action under the 
        Constitution or any other law (including a claim or cause of 
        action concerning real or personal property).
            (2) Prohibition of use as condition precedent.--
        Commencement of a suit under this Act, or receipt of 
        compensation under this Act, shall not be a condition precedent 
        for any claim or cause of action under any other authority of 
        law.

SEC. 5. POTENTIAL TO REDUCE THE VALUE.

    An activity that generates pollutants or produces other adverse 
impacts shall be considered to have the potential to reduce the value 
of any private home whenever such activity may result in physical 
damage or any other unlawful or objectively unreasonable interference 
with the use and enjoyment of a private home.

SEC. 6. DEFINITIONS.

    As used in this Act:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551(1) of title 5, United States Code.
            (2) Private home.--The term ``private home'' means any 
        owner occupied dwelling, including any multi-family dwelling 
        and any condominium.
            (3) Reduction in value.--The term ``reduction in value'' 
        means, with respect to private home affected by an activity 
        referred to in section 4, the difference (estimated based on 
        values at the time an action is brought under this section) 
        between the fair market value of the home, and the fair market 
        value of the home in the absence of such activity.
            (4) Person.--The term ``person'' means any individual, 
        corporation, partnership, or other organization or entity other 
        than a Federal, State, or local government agency.

SEC. 7. EFFECTIVE DATE.

    This Act shall apply to each permit, license, or other form of 
approval issued by an agency after the date 180 days after the 
enactment of this Act and to each contract, lease, or other arrangement 
entered into by an agency after the date 180 days after the enactment 
of this Act.
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