PROGRAM HIGHLIGHTS

SUMMARY OF BUDGET ESTIMATES

1. SUMMARY OF BUDGET REQUEST

   For fiscal year 2001, the Budget reflects $350 thousand of budget authority for this program as a permanent indefinite appropriation. This is the same level projected for 2000. This budget authority represents estimated fees derived from developers for the registration of subdivisions. HUD's administrative costs associated with this program are partially paid by the fees collected from land developers.

   In fiscal year 2001, the estimated program activity level is projected to be 1,020 filings.

2. CHANGES FROM 1999 ESTIMATES INCLUDED IN 2000 BUDGET

   The estimate of filing actions was 1,700. The actual 1999 activity was 964. As a result, actual budget authority and outlays of $336 thousand were less than fiscal year 1999 estimate of $550 thousand.

3. CHANGES FROM 2000 BUDGET ESTIMATES

   The fiscal year 2000 Budget estimates of $350 thousand in budget authority and outlays are revised downward to reflect actual activity in recent years.

EXPLANATION OF INCREASES AND DECREASES

The number of filings in fiscal year 2001 is expected to continue at the fiscal year 2000 estimated level of 1,020, resulting in $350 thousand in fees.

PROGRAM DESCRIPTION

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.