HUD's FY99 Budget
Congressional Justifications
Office of Housing

Interstate Land Sales

PROGRAM HIGHLIGHTS

SUMMARY OF BUDGET ESTIMATES

1. SUMMARY OF BUDGET REQUEST

For 1999, the Budget reflects $550 thousand of budget authority for this program as a permanent indefinite appropriation. This is the same level projected for 1998. 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.

It is currently expected that the 1998 and 1999 levels of activity will continue at 1,700 filings per year.

2. CHANGES FROM 1997 ESTIMATES INCLUDED IN 1998 BUDGET

The estimate of filing actions in the 1997 Budget was 1,700. The actual 1997 activity is 977 which is less than the estimate of 1,700 for the 1997 Budget estimate. As a result, actual budget authority and outlays of $327 thousand each were lower than the $550 thousand estimated.

3. CHANGES FROM 1998 BUDGET ESTIMATES

There are no changes in the 1998 Budget estimates.

EXPLANATION OF INCREASES AND DECREASES

The number of filings in 1999 is expected to continue at the 1998 estimated level of 1,700, resulting in $550 thousand of 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.