I
104TH CONGRESS
2D SESSION
H. R. 4141
To ensure that purchasers of single family residential properties owned by
the Department of Housing and Urban Development are notified of
the penalties authorized for intentionally misrepresenting the purchaser’s
intent to occupy the properties after purchase and that purchasers indi-
cating an intent to use such properties as their principal residences
use the properties in such manner.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 24, 1996
Mr. BARRETT of Wisconsin introduced the following bill; which was referred
to the Committee on Banking and Financial Services
A BILL
To ensure that purchasers of single family residential prop-
erties owned by the Department of Housing and Urban
Development are notified of the penalties authorized for
intentionally misrepresenting the purchaser’s intent to
occupy the properties after purchase and that purchasers
indicating an intent to use such properties as their prin-
cipal residences use the properties in such manner.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Department of Hous-
ing and Urban Development Owner-Occupancy Enforce-
ment Act’’.
SEC. 2. NOTICE OF PENALTY FOR FRAUD AND FALSE
STATEMENTS.
In disposing of any qualified property pursuant to
any sale (including any direct, bulk, or competitive sale,
or auction), the Secretary of Housing and Urban Develop-
ment shall—
(1) provide to the purchaser, upon notifying the
purchaser of acceptance of the offer to purchase,
written notice (separate from any sales contract)
that—
(A) sets forth the provisions of section
1010 of title 18, United States Code, and the
maximum fine and maximum term of imprison-
ment for violations of such section; and
(B) states that an intentionally false state-
ment made by a purchaser regarding the pur-
chaser’s intent to occupy a purchased qualified
property may be a violation of section 1010 of
title 18, United States Code; and
(2) before closing, obtain a written statement,
signed by the purchaser, that the purchaser has re-
ceived the notice required under paragraph (1).
SEC. 3. REQUIREMENTS RELATING TO OWNER-OCCUPANT
PURCHASERS.
(a) 1-YEAR RESIDENCY.—Except as provided in sub-
section (b), each owner-occupant purchaser of a qualified
property shall use the property as the principal residence
of the purchaser for the 1-year period beginning upon pur-
chase.
(b) EXCEPTIONS.—The Secretary may waive the re-
quirement under subsection (a) for an owner-occupant
purchaser of a qualified property who demonstrates to the
Secretary extenuating circumstances that prevent the pur-
chaser from reasonably maintaining principal residency at
the qualified property during the period referred to in such
subsection.
(c) ENFORCEMENT PROCEDURES.—The Secretary
shall, by regulation, establish procedures to monitor com-
pliance with the requirement under subsection (a) and to
provide for waivers under subsection (b). Such regulations
shall be issued not later than the expiration of the 6-
month period beginning on the date of the enactment of
this Act.
SEC. 4. PENALTY.
If the Secretary determines on the record after oppor-
tunity for a hearing that an owner-occupant purchaser of
a qualified property has violated the requirement under