HOME Act of 2023

To protect consumers from price gouging of residential rental and sale prices, and for other purposes. 1. Short title This Act may be cited as the Housing Oversight and Mitigating Exploitation Act of 2023 HOME Act of 2023 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. 15 U.S.C. 57a(a)(1)(B) (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. 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 (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. 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. 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. 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). 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. 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. . 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. 9. Definitions For purposes of this Act, the following definitions shall apply: (1) Secretary Except where specified otherwise, the term Secretary (2) Single-family housing The term single-family housing

Summary: Housing Oversight and Mitigating Exploitation Act of 2023 or the HOME Act of 2023 This bill requires oversight and investigations into potentially unfair pricing practices in the residential rental and single-family housing markets. The bill makes it unlawful to rent or sell a dwelling unit or single-family home at an unconscionably excessive and exploitative price during a housing emergency declared by the President. The Department of Housing and Urban Development (HUD) and state attorneys general may enforce these provisions. In addition, HUD must carry out investigations and other activities to address market manipulation and the role of institutional investors in the pricing of rental units and single-family homes. In particular, HUD must investigate market manipulation and price gouging practices that affect rent or sale prices; establish an office to collect, monitor, and analyze data on housing markets to support competitive market practices, identify market manipulation, and facilitate enforcement of housing protections; and monitor housing markets to determine whether any single purchaser is purchasing an excessive amount of housing. Further, the bill directs various federal agencies to (1) collect data and identify practices that unfairly prevent rental housing applicants and tenants from accessing or staying in housing, and (2) identify anti-competitive behaviors in the single-family home and residential rental markets. The bill also requires the Federal Housing Finance Agency to establish standards and criteria for Fannie Mae and Freddie Mac regarding purchases of mortgages on multifamily rental housing. The standards and criteria must ensure certain renter protections and prevent egregious rent increases for the tenants in such housing.