Housing Oversight and Mitigating Exploitation Act of 2025; HOME Act of 2025
Summary
The Housing Oversight and Mitigating Exploitation Act of 2025, or HOME Act of 2025, aims to protect consumers from price gouging in residential rental and sale prices during affordable housing crises. It empowers the Secretary of Housing and Urban Development (HUD) to declare an affordable housing crisis and enforce prohibitions against unconscionable pricing. The Act also establishes a Housing Monitoring and Enforcement Unit within HUD to oversee housing market data and investigate market manipulation.
Expected Effects
The Act could lead to increased oversight of the housing market and potentially stabilize rental and sale prices during times of crisis. It may also deter exploitative pricing practices by lessors and sellers. However, it could also introduce regulatory burdens and potential challenges in defining and enforcing 'unconscionable pricing'.
Potential Benefits
- Protects consumers from excessive rental and sale prices during housing crises.
- Establishes a mechanism for monitoring and investigating housing market manipulation.
- Provides funding for low-income housing assistance through penalties collected.
- Empowers state attorneys general to enforce the Act at the retail level.
- Requires a report to Congress on addressing manipulation of rental housing markets.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased regulatory burden on housing providers.
- Defining 'unconscionable pricing' could be subjective and lead to legal challenges.
- The 30-day limitation on crisis declarations may not be sufficient in all cases.
- The Act may not fully address the root causes of affordable housing crises.
- Possible limitations on housing supply if providers are unwilling to rent or sell during crisis periods due to price restrictions.
Constitutional Alignment
The HOME Act appears to align with the Constitution's general welfare clause, as it aims to ensure fair housing practices and protect consumers from exploitation during housing crises. The Act's enforcement mechanisms, which involve HUD and state attorneys general, are consistent with the principle of federalism. However, potential challenges could arise if the definition of 'unconscionable pricing' is deemed vague or if the Act unduly infringes on property rights, potentially raising concerns under the Fifth Amendment's Takings Clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).