FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
Interstate
Land Sales Full Disclosure Act, as amended, Public Law 90-448, Title
XIV, 15 U.S.C. 1701; Public Law 96- 153.
To
provide consumer protection by prohibiting fraudulent practices
and requiring full disclosure of conditions surrounding the purchase
of subdivided land covered by the Act.
TYPES
OF ASSISTANCE:
Dissemination of Technical Information.
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Investigation of Complaints.
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USES
AND USE RESTRICTIONS:
Developers
that sell, lease, or offer to sell or lease land divided into 100
or more nonexempt lots, using any means or instruments of transportation
or communication in interstate commerce or the mails must register
with the Department of Housing and Urban Development. The developers
must provide all purchasers with a copy of a Property Report which
sets forth important facts about the development and the developer.
Failure to provide a Property Report prior to the purchaser signing
a purchase agreement subjects the developer to statutory and regulatory
penalties. Anti-fraud provisions of the Act are applicable to subdivisions
of 25 lots or more. Failure to comply with the anti-fraud provisions
subjects developers to civil and criminal penalties. Other consumer
protection provisions include a seven-day cooling-off period and
required contractual provisions. The Act and regulations provide
exemption from full disclosure where a subdivision meets certain
requirements.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Certain land developers are required
to submit a filing in compliance with specific registration requirements.
Beneficiary
Eligibility: Any person who purchases a lot
in a covered subdivision is entitled to certain rights and remedies.
Credentials/Documentation:
None. This program is excluded from coverage under OMB Circular
No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: Not applicable. This program is
excluded from coverage under E.O. 12372.
Application
Procedure: Developers wishing to register
a subdivision should contact the Interstate Land Sales/RESPA Registration
Division, Department of Housing and Urban Development, 451 7th
Street, SW., Washington, DC 20410. Developers file an extensive
statement of record (including the Property Report) disclosing
all pertinent facts about the land, its ownership, control, amenities,
restrictions, nature of purchase or lease transaction, and other
required information. Specific requirements set forth in Federal
Register, Title 24, Chapter X, Part 1710 as amended by Public
Law 96-153. This program is excluded from coverage under OMB Circular
Nos. A-102 and A-110.
Award
Procedure: An effective date is issued after
all materials have been submitted and found to be in compliance
with the registration requirements.
Deadlines:
No deadlines. An effective date of registration must be issued
by HUD before the developer commences any non-exempt sales or
lease program.
Range
of Approval/Disapproval Time: Not applicable.
The Federal government does not issue approval/disapproval of
subdivision or offering. HUD must notify developers of deficiencies
in disclosure materials within 30 days after receipt. Filings
become effective at the end of 30 days or can be declared effective
upon correction of deficiencies.
Appeals:
Any developer receiving a deficiency notice, notice of proceeding,
suspension order, notice of exemption eligibility termination
or notice of civil money penalties may request a formal hearing.
Renewals:
An annual report of activity accompanied by any applicable amendments
and fees, must be submitted within 30 days of the annual anniversary
of the effective date of the initial filing.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Not applicable.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
An annual report of activity within 30 days of the annual anniversary
of the effective date of the filing. Financial statements are due
within 120 days after the close of the developer's fiscal year.
Audits:
Not applicable.
Records:
The developer must retain copies of Property Report receipts for
a period of three years from the date of execution or the term
of the contract, whichever is longer.
FINANCIAL
INFORMATION:
Account
Identification: 86-5270-0-2-376.
Obligations:
FY 01 $321,121; FY 02 est $350,000; and FY 03 est $350,000.
Range
and Average of Financial Assistance: Not applicable.
PROGRAM
ACCOMPLISHMENTS:
During fiscal year 2001, HUD received 417 filings which were examined
for consistency with the registration requirements of the statue
and regulations. Additionally, 542 Annual Reports of Activity were
received. HUD processed 42 requests for exemption to the registration
requirements and 81 requests for Voluntary Suspension of existing
registrations.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Regulations and Exemption Guidelines appear in 24 CFR Parts 1700,
1710, 1715, 1720, and 1730.
INFORMATION
CONTACTS:
Regional
or Local Office: None.
Headquarters
Office: Interstate Land Sales/RESPA Division,
Office of Consumer and Regulatory Affairs, Department of Housing
and Urban Development, 451 7th Street, SW., Room 9146, Washington,
DC 20410. Telephone: (202) 708-0502.
Web
Site Address: http://www.hud.gov/offices/hsg/sfh/ils/ilshome.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
