HOME Act of 2024 Housing Oversight and Mitigating Exploitation Act of 2024
Impact
The bill specifies that no individual can rent or sell a property at a price deemed unconscionably excessive during an affordable housing crisis. It also exceeds existing laws by mandating investigations into any price manipulation practices in the housing market. By enforcing this prohibition, SB3561 seeks to provide consumers with greater protections against predatory pricing tactics, thus helping to stabilize the housing market during crises. The law allows for civil actions against offenders, utilizing enforcement mechanisms similar to those found in federal trade regulations.
Summary
SB3561, known as the Housing Oversight and Mitigating Exploitation Act of 2024 (the HOME Act), aims to protect consumers from price gouging in the residential rental and sale markets during periods identified as housing crises. The bill empowers the Secretary of Housing and Urban Development (HUD) to determine the occurrence of an 'affordable housing crisis' and, upon such determination, prohibits the rental or sale of single-family homes at excessively high prices that exploit the situation. This provision is designed to curb unfair pricing practices that could adversely affect vulnerable populations during economic downturns or other crises.
Contention
A notable point of contention within the bill is the balance between state and federal authority. While SB3561 does empower HUD to take significant actions to regulate housing prices during crises, it explicitly states that nothing in the Act preempts state laws, suggesting that states retain authority to enact additional mechanisms or protections as they see fit. Additionally, the bill has provisions in place for potential investigations into market manipulation, particularly focusing on the role of institutional investors in the housing market, which some stakeholders argue could lead to unintended consequences in the real estate sector. The bill resonates with the ongoing discussions surrounding housing affordability and the impact of external economic pressures on local markets.