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

This section defines terms used in the Act, including (1) agricultural land, as land used for farming, ranching, timber production, or food processing, or land that is currently idle but was used within the previous five years for farming, ranching, or timber production; (2) covered foreign entity, as certain corporations, persons, organizations, or officials incorporated in or affiliated with the People's Republic of China (including Hong Kong and Macau), acting on behalf of its government, affiliated with the Chinese Communist Party, or owned or controlled by such entities; (3) noncompete agreement, as an employer-employee agreement restricting the employee from specified post-termination work by time period, geographic area, or type of work; (4) Secretary, as the Secretary of Agriculture; (5) State, as any of the 50 states; (6) territory, as the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa; and (7) United States agricultural land, as agricultural land located in a State or territory.

This section prohibits covered foreign entities from acquiring or leasing any interest in United States agricultural land. It requires such entities currently owning or leasing such land to divest within one year of enactment and to sign a letter of intent to divest within 180 days of enactment. It imposes civil penalties of $100 per acre per day for violations; criminal penalties including fines under 18 U.S.C., imprisonment for up to five years, or both; and forfeiture of the land to the United States for public auction by the Attorney General. It nullifies any noncompete agreements between such entities and their employees. It directs the Secretary of Agriculture, in coordination with the Attorney General, to issue implementing guidance and regulations within 180 days of enactment and to establish a departmental office within the same period for monitoring compliance and imposing fines. The Secretary may conduct necessary investigative actions.

This section establishes a temporary prohibition, during a covered period beginning on the date of enactment and initially lasting 2 years (extendable by the President in 2-year increments), on covered foreign entities purchasing residential real estate in the United States (i.e., single-family homes, condominium or cooperative units, townhouses, units in duplexes, triplexes, or fourplexes, or land zoned for such housing). It requires covered foreign entities to divest any such ownership within 1 year of enactment; imposes fines of $1,000 per day per violating unit, enforced by the Secretary of Commerce; authorizes the Attorney General to enforce the prohibition, including through asset seizures and injunctive relief; directs the Secretary, in coordination with the Attorney General, to issue implementing regulations and establish a Department of Commerce office for monitoring compliance and imposing fines; and requires the Secretary to submit a report to Congress within 540 days of enactment assessing the prohibition's impact on the residential real estate market and housing affordability.