Interstate Land Sales

HOUSING

INTERSTATE LAND SALES

For fiscal year 2000, the Budget reflects $550 thousand of budget authority for this program as a permanent indefinite appropriation. This is the same level projected for 1999. This budget authority represents estimated fees derived from developers for the registration of subdivisions. HUD's administrative costs associated with this program are paid by the fees collected from land developers.

In fiscal years 1999 and 2000, the estimated program activity levels are projected to be 1,700 filings per year.

2. CHANGES FROM 1998 ESTIMATES INCLUDED IN 1999 BUDGET

The estimate of filing actions in the 1998 Budget was 1,700. The actual 1998 activity is 936 which is less than the estimate of 1,700 for the 1998 Budget estimate. As a result, actual budget authority and outlays of $321 thousand each were lower than the estimated $550 thousand.

3. CHANGES FROM 1999 BUDGET ESTIMATES

There are no changes in the 1999 Budget estimates.

The number of filings in fiscal year 2000 is expected to continue at the 1999 estimated level of 1,700, resulting in $550 thousand in fees.

The Interstate Land Sales Full Disclosure Act (Title XIV of the Housing and Urban Development Act of 1968, as amended) authorizes a nationwide program of registration of subdivisions marketed in interstate commerce. The program is intended to protect consumers by making relevant information available to them when they are considering purchasing land. The Act generally applies, by law and administrative regulation, to subdivisions of undeveloped land sold or offered for sale or lease through interstate commerce. Statutory and regulatory penalties are imposed on developers who fail to file and keep a registration statement current with the Office of Interstate Land Sales Registration, or who fail to furnish each purchaser with a copy of an effective Property Report before the purchaser signs a purchase or lease contract.

The Act provides for submission of a Statement of Record describing a proposed subdivision in detail, accompanied by maps, contract documents and certifications designed to fully disclose relevant information about the subdivision. Each prospective purchaser must be furnished with a Property Report which sets forth the disclosure in easy to understand terms. The program concentrates on securing full disclosure of pertinent facts through the registration process and bringing enforcement action in the event of abuses.