Land Sales-Certain Subdivided Land (14.168)

 

Program

14.168 Land Sales-Certain Subdivided Land

 

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.

 

Program Number

14.168

 

Last Known Status

Active

 

Objectives

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; Investigation of Complaints.

 

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

Preapplication Coordination

Not applicable. This program is excluded from coverage under E.O. 12372.

Application Procedure

Developers wishing to register a subdivision should contact the Office of RESPA and Interstate Land Sales, 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

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.

 

Program Accomplishments

During fiscal year 2002, HUD received 635 filings which were examined for consistency with the registration requirements of the statue and regulations. Additionally, 642 Annual Reports of Activity were received. HUD processed 25 requests for exemption to the registration requirements and 74 requests for Voluntary Suspension of existing registrations.

 

Financial Information

Account Identification

86-5270-0-2-376.

Obligations

FY 02 $311,000; FY 03 est $350,000; and FY 04 est $350,000.

Range and Average of Financial Assistance

Not applicable.

 

Regulations, Guidelines and Literature

Regulations and Exemption Guidelines appear in 24 CFR Parts 1700, 1710, 1715, 1720, and 1730.

 

Related Programs

None.

 

Information Contacts

Regional or Local Office

None.

Headquarters Office

Office of RESPA and Interstate Land Sales, 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.