HUD Equity Restoration Act of 1989

HUD Equity Restoration Act of 1989 - Amends the Housing and Community Development Act of 1974 to authorize the Secretary of Housing and Urban Development to impose sanctions, including imposition of civil penalties and revocation of a transfer, for improper conveyance or use of properties under an urban homestead program after January 1, 1981.

 
HR 3078 IH
101st CONGRESS
1st Session
 H. R. 3078
To amend the Housing and Community Development Act of 1974 to authorize the
Secretary of Housing and Urban Development to impose sanctions for improper
conveyance or use of properties under an urban homestead program.
IN THE HOUSE OF REPRESENTATIVES
August 2, 1989
Mr. HOCHBRUECKNER (for himself, Mr. DOWNEY, Mr. MRAZEK, and Mr. SCHUMER)
introduced the following bill; which was referred to the Committee on Banking,
Finance and Urban Affairs
A BILL
To amend the Housing and Community Development Act of 1974 to authorize the
Secretary of Housing and Urban Development to impose sanctions for improper
conveyance or use of properties under an urban homestead program.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `HUD Equity Restoration Act of 1989'.
SEC. 2. FINDINGS AND PURPOSE.
  (a) FINDINGS- The Congress finds that--
  (1) the urban homesteading program of the Department of Housing and Urban
  Development, which was designed to enable low-income working people in the
  United States to pursue the dream of homeownership, has in some instances
  been abused; and
  (2) some urban homestead properties that were intended for ownership by
  low-income working people have been unlawfully transferred to ineligible
  individuals.
  (b) PURPOSE- The purpose of this Act is to enable the Secretary of Housing
  and Urban Development to correct and remedy violations under the urban
  homesteading program--
  (1) by authorizing the Secretary to reclaim a house (or its market value)
  if the Secretary finds that the house was transferred by the Department
  of Housing and Urban Development under the urban homesteading program and
  has been acquired by an ineligible individual, so that the house (or an
  amount equal to the profits unlawfully gained with respect to the house)
  may be returned to a program for low-income housing assistance; and
  (2) by directing the Secretary to give priority, in considering the future
  ownership of a house referred to in paragraph (1), to any existing tenants
  of the house who meet the eligibility requirements for participation in
  the urban homesteading program.
SEC. 3. IMPROPER CONVEYANCES UNDER URBAN HOMESTEAD PROGRAMS.
  Section 810 of the Housing and Community Development Act of 1974 (12
  U.S.C. 1706e) is amended by adding at the end the following new subsection:
  `(m) If the Secretary determines that any property transferred for use under
  an urban homestead program under this section has been conveyed or used
  under the program in a manner contrary to the provisions of this section,
  the Secretary may take action as the Secretary considers appropriate,
  and shall consider and give priority to imposing any of the following
  remedial measures:
  `(1) The Secretary may impose a civil penalty on the unit of general local
  government or the State or the qualified community organization or public
  agency designated by a unit of general local government, or the transferee
  of such entity, as appropriate, in an amount not less than any profit
  realized with respect to the conveyance or use of the property contrary
  to the provisions of this section.
  `(2) The Secretary may revoke the conveyance of the property pursuant to
  subsection (b)(4) and revoke the transfer of the property to the unit of
  general local government or State or the qualified community organization
  or public agency designated by a unit of general local government, except
  that the Secretary may not revoke the conveyance of any property under this
  paragraph if the Secretary determines that the conveyance was made to an
  individual or family who has substantially complied with the requirements of
  this section for participation in an urban homestead program and who has no
  knowledge of the conveyance or use of the property contrary to the provisions
  of this section. If any tenants of any property for which a conveyance is
  revoked under this paragraph would be displaced by such revocation and the
  Secretary determines that the tenants are not responsible for or involved
  in the actions for which the revocation has been imposed, the Secretary
  shall, if practicable, take actions that would allow the tenants to remain
  on the property and maintain the property under an urban homestead program.'.
  (b) CONFORMING AMENDMENT- Section 810(b)(4) of the Housing and Community
  Development Act of 1974 (42 U.S.C. 1706e(b)(4)) is amended by inserting
  before the semicolon at the end the following: `or by the Secretary under
  subsection (m)(2)'.
SEC. 4. APPLICABILITY.
  The amendments made by this Act shall apply to any property transferred
  for use in an urban homestead program under section 810 of the Housing and
  Community Development Act of 1974 (42 U.S.C. 1706e) after January 1, 1981.