Congressman Mike Lawler has introduced new legislation aimed at cracking down on squatting by penalizing municipalities that allow individuals to unlawfully occupy private property.
The proposed Protecting Homeowners from Squatters Act, introduced Friday, would prohibit federal Community Development Block Grant (CDBG) funding and federal mortgage support in jurisdictions that permit squatting or extend tenant-like protections to people illegally occupying homes.
Under the legislation, squatting is defined as unlawfully entering a property and residing there for more than 14 consecutive days without the owner’s permission, without paying rent, and without a rental agreement. The bill directs the U.S. Department of Housing and Urban Development (HUD) to withhold CDBG funding from municipalities that fail to enforce protections for property owners.
In addition, the legislation would bar access to federally backed mortgage programs—including FHA, VA, USDA, and Federal Housing Finance Agency-supported loans—for properties located in jurisdictions that allow squatting. HUD, the FHFA, VA, and USDA would be required to jointly issue regulations implementing the policy within 90 days of enactment.
“Across the country, we are seeing jurisdictions blur the line between lawful tenants and individuals who have entered properties illegally, leaving homeowners and small landlords stuck in costly, drawn-out legal battles just to reclaim what is rightfully theirs,” Lawler said. “Homeowners and small landlords deserve clear, enforceable protections and the ability to recover their property without unnecessary delays or burdensome litigation. This legislation ensures that federal taxpayer dollars are not incentivizing or subsidizing squatting.”
