H.R. 4706: Protecting Our Farms and Homes from China Act

This bill, titled the Protecting Our Farms and Homes from China Act, aims to limit foreign ownership of U.S. agricultural land and residential real estate by entities connected to China.

Key Provisions of the Bill

• Definitions: The bill provides several definitions, including:
  • Agricultural land: Land used for farming, ranching, timber production, or food processing.
  • Covered foreign entity: This includes corporations incorporated in China, individuals or organizations affiliated with the Chinese government, and others connected with the Chinese Communist Party.
  • Residential real estate: Includes various types of housing, such as single-family homes, condominiums, townhouses, and other residential properties.
• Prohibition on Acquisition:
  • They must divest any existing ownership or lease interests within one year of the law's enactment.
• Penalties for Non-compliance:
  • Fines of $100 per acre per day for ownership or leasing violations.
  • Criminal penalties may include fines or imprisonment for violations.
  • The Attorney General can seek forfeiture of any agricultural land owned in violation of the law.
• Noncompete Agreements: Any noncompete agreements involving covered foreign entities that own or lease agricultural land will be deemed ineffective.
• Implementation:
  • The Secretary of Agriculture will oversee the implementation, including fines and compliance monitoring.
  • Guidelines and regulations must be issued within 180 days of enactment.

Temporary Prohibition on Residential Real Estate

• Prohibition:
  • Covered foreign entities are not allowed to purchase any residential real estate during a two-year period following the enactment of the law.
• Divestment Requirement:
  • Covered foreign entities that own residential real estate must divest their holdings within one year of the law's enactment.
• Penalties:
  • Fines of $1,000 per day for each residential property owned in violation of the law.
• Presidential Extensions:
  • The President has the authority to extend the prohibition period in two-year increments.
• Impact Report:
  • The Secretary must submit a report detailing the effect of the residential real estate prohibition on the housing market and affordability within 540 days of enactment.

Relevant Companies