[Congressional Record Volume 172, Number 42 (Thursday, March 5, 2026)]
[Senate]
[Pages S904-S905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4368. Ms. ROSEN submitted an amendment intended to be proposed by
her to the bill H.R. 6644, a bill to increase the supply of housing in
America, and for other purposes; which was ordered to lie on the table;
as follows:
At the appropriate place, insert the following:
SEC. ___. HOUSING OVERSIGHT AND MITIGATING EXPLOITATION.
(a) Definitions.--In this section:
(1) Affordable housing crisis period.--The term
``affordable housing crisis period'' means the period during
which the prohibition under subsection (b)(1)(A) 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.
(b) Unconscionable Pricing of Residential Rental and Sale
Prices During Affordable Housing Crises.--
(1) Unconscionable pricing.--
(A) 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--
(i) is unconscionably excessive; and
(ii) indicates the lessor or seller is exploiting the
circumstances related to an affordable housing crisis to
increase prices unreasonably.
(B) Considerations for affordable housing crisis
determination.--For purposes of determining whether the
United States is experiencing an affordable housing crisis,
the Secretary shall consider--
(i) the interest rates applicable to mortgage loans;
(ii) the effective Federal funds rate;
(iii) the refinance rates applicable to mortgage loans,
including for fixed-fixed loans, fixed-variable loans, and
variable-fixed loans;
(iv) the median rental home price in the United States;
(v) the median home sale price in the United States;
(vi) the median household income in the United States; and
(vii) 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).
(C) Duration.--The prohibition described in subparagraph
(A)--
(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 Secretary determines
appropriate; and
(ii) may apply for a period of time not to exceed 1 week
before a reasonably foreseeable affordable housing crisis
period.
(D) Factors considered.--
(i) In general.--In determining whether a person has
violated subparagraph (A), there shall be taken into account,
among other factors, the aggravating factors described in
clause (ii) and the mitigating factor described in clause
(iii).
(ii) Aggravating factors.--The aggravating factors
described in this clause 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--
(aa) the 30-day period before the date on which the
determination that the area is experiencing an affordable
housing crisis was made under subparagraph (A); or
(bb) 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.
(iii) Mitigating factor.--The mitigating factor described
in this clause 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.
(E) Advance notice.--The Secretary shall provide advance
notice prior to the publication of the determination under
subparagraph (A) for persons to comply with the prohibition
described in subparagraph (A).
(2) Affirmative defense.--It shall be an affirmative
defense in any civil action or administrative action to
enforce paragraph (1), 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.
(3) Rule of construction.--This subsection may not be
construed to cover a transaction on a futures market.
(4) Enforcement.--
(A) HUD.--The Secretary shall enforce violations of
paragraph (1) of this subsection--
(i) 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
(ii) 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 subsection, except
that any reference in such terms and provisions to the
Commission shall be treated as referring to the Secretary.
(B) Enforcement at retail level by state attorneys
general.--
(i) 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 paragraph (1), 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.
(ii) Notice.--The State shall serve written notice to the
Secretary of any civil action under clause (i) 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.
(iii) Authority to intervene.--Upon receipt of the notice
required by clause (ii), 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.
(iv) Construction.--For purposes of bringing any civil
action under clause (i), nothing in this subparagraph 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.
(v) Limitation on state action while federal action is
pending.--If the Secretary has instituted a civil action or
an administrative action for violation of paragraph (1), a
chief law enforcement officer, official, or agency of a State
may not bring an action under this subparagraph during the
pendency of that action against any defendant named
[[Page S905]]
in the complaint of the Secretary or another agency for any
violation of this section alleged in the complaint.
(vi) Rule of construction.--This subparagraph 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.
(5) Low-income housing assistance.--
(A) Deposit of funds.--Amounts collected in any penalty
under paragraph (4)(A) 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).
(B) 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).
(6) Effect on other laws.--
(A) Other authority of federal housing administration.--
Nothing in this subsection may be construed to limit the
authority of the Secretary under any other provision of law.
(B) State law.--Nothing in this subsection preempts any
State law.
(c) HUD Investigation and Report on Housing Prices.--
(1) Investigation.--
(A) 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.
(B) Consideration.--In conducting the investigation under
subparagraph (A), 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.
(2) Report.--
(A) 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
paragraph (1).
(B) Contents.--The report shall include--
(i) 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
(ii) a description and analysis of how non-occupant
investors in single-family housing impact underserved
communities.
(3) Exemption from paperwork reduction act.--Chapter 35 of
title 44, United States Code, shall not apply to the
collection of information under paragraph (1).
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $1,000,000 for fiscal year 2027.
(d) Housing Cost Monitoring and Enforcement Within HUD.--
(1) In general.--The Secretary shall establish within the
Department of Housing and Urban Development the Housing
Monitoring and Enforcement Unit (in this subsection 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.
(e) 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.
(f) 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).
(g) 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.), as amended by this Act, is amended by
adding at the end the following new section:
``SEC. 1330A. 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.''.
(h) 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.
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