[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3561 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 3561

To protect consumers from price gouging of residential rental and sale 
                    prices, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 9, 2024

   Ms. Rosen introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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 2024'' or the ``HOME Act of 2024''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Affordable housing crisis period.--The term 
        ``affordable housing crisis period'' means the period during 
        which the prohibition under section 3(a)(1) applies in the 
        United States.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (3) 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.
            (4) United states.--The term ``United States'' includes 
        each of the 50 States, the District of Columbia, and any 
        territory or possession of the United States.

SEC. 3. UNCONSCIONABLE PRICING OF RESIDENTIAL RENTAL AND SALE PRICES 
              DURING AFFORDABLE HOUSING CRISES.

    (a) Unconscionable Pricing.--
            (1) Prohibition.--If the Secretary publishes in the Federal 
        Register a determination that the United States is experiencing 
        an affordable housing crisis, it shall be unlawful, during the 
        affordable housing crisis period, for any person to rent a 
        dwelling unit or sell any single-family housing in the United 
        States at a price that--
                    (A) is unconscionably excessive; and
                    (B) indicates the lessor or seller is exploiting 
                the circumstances related to an affordable housing 
                crisis to increase prices unreasonably.
            (2) Considerations for affordable housing crisis 
        determination.--For purposes of determining whether the United 
        States is experiencing an affordable housing crisis, the 
        Secretary shall consider--
                    (A) the interest rates applicable to mortgage 
                loans;
                    (B) the effective Federal funds rate;
                    (C) the refinance rates applicable to mortgage 
                loans, including for fixed-fixed loans, fixed-variable 
                loans, and variable-fixed loans;
                    (D) the median rental home price in the United 
                States;
                    (E) the median home sale price in the United 
                States;
                    (F) the median household income in the United 
                States; and
                    (G) the declaration of a major disaster or 
                emergency under the section 401 or 501, respectively, 
                of the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5170, 5191).
            (3) Duration.--The prohibition described in paragraph (1)--
                    (A) 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 
                Secretary determines appropriate; and
                    (B) may apply for a period of time not to exceed 1 
                week before a reasonably foreseeable affordable housing 
                crisis period.
            (4) 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 determination that 
                                the area is experiencing an affordable 
                                housing crisis was made under paragraph 
                                (1); or
                                    (II) another appropriate benchmark 
                                period, as determined by the Secretary.
                            (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 affordable 
                        housing crisis 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 
                affordable housing crisis period during the 30-day 
                period following the date on which the affordable 
                housing crisis period was determined increased over the 
                quantity such person made available for rental or sale 
                during the 30-day period before the date on which the 
                affordable housing crisis period was determined, taking 
                into account any usual seasonal demand variation.
            (5) Advance notice.--The Secretary shall provide advance 
        notice prior to the publication of the determination under 
        paragraph (1) for persons to comply with the prohibition 
        described in paragraph (1).
    (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 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 (15 U.S.C. 41 et 
                seq.) 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 chief law 
                enforcement officer, 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 chief law enforcement 
                officer of a State from exercising the powers conferred 
                on the chief law enforcement officer 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 chief law enforcement officer, 
                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 section 1338 of 
        the Federal Housing Enterprises Financial Safety and Soundness 
        Act of 1992 (12 U.S.C. 4568).
    (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. 4. 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 
        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 
                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. 5. 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. 6. 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. 7. 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 or 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. 8. 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. 9. REVIEW OF ANTI-COMPETITIVE BEHAVIORS.

    The Attorney General and the Federal Trade Commission shall jointly 
conduct a review to identify any anti-competitive behaviors in the 
single-family housing and residential rental markets, including anti-
competitive information sharing, and not later than 1 year after the 
date of enactment of this Act shall submit a report to the Congress 
setting forth the findings of such review.
                                 <all>