Sec. 3. Unconscionable pricing of residential rental and sale prices during affordable housing crises
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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— is unconscionably excessive; and indicates the lessor or seller is exploiting the circumstances related to an affordable housing crisis to increase prices unreasonably.
For purposes of determining whether the United States is experiencing an affordable housing crisis, the Secretary shall consider— the interest rates applicable to mortgage loans; the effective Federal funds rate; the refinance rates applicable to mortgage loans, including for fixed-fixed loans, fixed-variable loans, and variable-fixed loans; the median rental home price in the United States; the median home sale price in the United States; the median household income in the United States; and 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). The prohibition described in paragraph (1)— 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 may apply for a period of time not to exceed 1 week before a reasonably foreseeable affordable housing crisis period. 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). The aggravating factors described in this subparagraph are the following: 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— 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 another appropriate benchmark period, as determined by the Secretary. 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. 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. 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). 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. This section may not be construed to cover a transaction on a futures market. The Secretary shall enforce violations of subsection
(a)of this section— 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 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. 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— enjoin further such violation by such person; enforce compliance with such subsection; obtain civil penalties; and obtain damages, restitution, or other compensation on behalf of residents of the State. 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. Upon receipt of the notice required by subparagraph (B), the Secretary may intervene in such civil action and upon intervening— be heard on all matters arising in such civil action; and file petitions for appeal of a decision in such civil action. 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. 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. 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. 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 ). 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 ). Nothing in this section may be construed to limit the authority of the Secretary under any other provision of law. Nothing in this section preempts any State law.
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Sec. 3
Unconscionable pricing of residential rental and sale prices during affordable housing crises
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