The Protecting Homeowners from Squatters Act
- Bill Number
- H.R. 9472
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-07-09T22:36:31Z
AI-Generated Summary
## Purpose The legislation, titled the "Protecting Homeowners from Squatters Act," aims to deter local governments from permitting squatting on private property by withholding certain federal housing funds and mortgage supports from jurisdictions that allow or grant special rights to squatters. It seeks to protect property owners and the value of federally backed real estate collateral.
## Key Provisions
- Congressional findings: The bill states that squatting—unlawfully entering and occupying property without owner permission or rent—should not create tenant rights, that local law enforcement should remove squatters promptly, and that federal benefits should not support such practices.
- CDBG funding prohibition: Amends the Housing and Community Development Act of 1974 to require the Department of Housing and Urban Development (HUD) Secretary to withhold Community Development Block Grant funds from any local government that permits squatting (defined as occupying property for 10 or more consecutive days without permission or rent). The Secretary must issue regulations allowing corrective actions and public certification for restored eligibility, and publish an annual list of prohibited jurisdictions with justifications.
- Federal mortgage support prohibition: Bars federal support—including FHA insurance, VA guarantees, USDA loans, and purchases by Fannie Mae or Freddie Mac—for loans on 1- to 4-family residential properties in prohibited jurisdictions. Covered agencies (HUD, Federal Housing Finance Agency, VA, and USDA) must issue joint regulations within 90 days. Squatting is defined here as occupying for 14 or more consecutive days without permission or rent.
## Significant Changes to Existing Law This bill introduces new restrictions not present in prior statutes. It adds subsection (n) to Section 104 of the 1974 Housing and Community Development Act, creating a funding withholding mechanism tied to local squatting policies. It also establishes a novel cross-agency bar on federal mortgage programs based on the same local conditions, expanding federal leverage over municipal property enforcement practices.
## Potential Impacts
- On government agencies: HUD must develop and enforce regulations, maintain public lists, and certify compliance. The VA, USDA, and FHFA must coordinate on mortgage rules, potentially increasing administrative workload.
- On citizens and localities: Municipalities risk losing CDBG grants for community development projects and may face pressure to strengthen anti-squatting laws. Homeowners and lenders in affected areas could see reduced access to federally backed financing.
- On international relations: No direct impacts identified.
## Main Stakeholders Affected
- Local units of government (cities and counties receiving CDBG funds).
- Federal agencies (HUD, FHFA, VA, USDA).
- Property owners and real estate interests.
- Borrowers and lenders using FHA, VA, or USDA mortgage programs.
- Residents in jurisdictions facing funding restrictions.
## Notable Legal, Constitutional, or Political Implications The measure conditions federal funding on local enforcement of property laws, which could raise questions about federal authority over traditionally local matters such as trespass and eviction procedures. It may encourage uniform state or local anti-squatting measures to maintain eligibility for grants and loans.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2026-06-25: Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-06-25: Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- The Protecting Homeowners from Squatters Act — issued 2026-06-25 — PDF (7 pages)