[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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