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Catalog of Federal Domestic Assistance

Program Descriptions

14.168:  Land Sales: Certain Subdivided Land

Popular Name:  Interstate Land Sales Registration Program

Objectives:  To provide consumer protection through fraud prohibitions and requirements for full disclosure of conditions surrounding the purchase of subdivided land covered by the Act.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

14.168 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.

14.168 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 Interstate Land Sales Registration Division, 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 sales or lease program.

Range of Approval/Disapproval Time:  Not applicable. The Federal government does not issue approval/disapproval of subdivision or offering. HUD must notify developers of deficiencies in disclosure materials within 30 days after receipt. Filings become effective at the end of 30 days or can be declared effective upon correction of deficiencies.

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 amendments and fees, when necessary, must be submitted within 30 days of the annual anniversary of the effective date of the initial filing.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Not applicable.

14.168 RELATED PROGRAMS:

None.

14.168 PROGRAM ACCOMPLISHMENTS:

During fiscal year 1999, HUD received 427 filings, which had to be examined for consistency with the registration requirements of the Law and HUD regulations. HUD also received 537 Annual Reports of Activity. HUD also processed 22 requests for exemptions to the registration requirements as well as 34 requests for Voluntary Suspension of existing registration.

14.168 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Dissemination of Technical Information; Investigation of Complaints.

Obligations:  FY 99 $336,000; FY 00 est $350,000; and FY 01 est $350,000. (NOTE: Amounts reported reflect allocation of new budget authority rather than obligation amounts.)

Budget Account Number:  86-5270-0-2-376.

Authorization:  Interstate Land Sales Full Disclosure Act, as amended, Public Law 90-448, Title XIV, 15 U.S.C. 1701; Public Law 96-153.

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

14.168 INFO CONTACTS:

Regional or Local Office:  None.

Headquarters Office:  Interstate Land Sales/RESPA Division, Office of Consumer and Regulatory Affairs, Office of Housing, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410. Phone: (202) 708-0502. Use the same number for FTS.

(See Appendix IV for more contact info.)

14.168 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  Not applicable.

Length and Time Phasing of Assistance:  Not applicable.

Uses and Use Restrictions:  Developers that sell, or 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 and must provide all purchasers with a copy of a Property Report which sets forth salient 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. The Act also provides for statutory and regulatory exemption from full disclosure where a subdivision meets strict eligibility requirements. Other consumer protection provisions include a seven day cooling-off period and required contractual provisions.

14.168 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 the Property Report receipts for a period of three years from the date of execution, or the term of the contract, whichever is longer.