State of Illinois
91st General Assembly
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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_SJ0021eng

 
91SJ0021 Engrossed                             LRB9106201DJcd

 1                          STATE OF ILLINOIS
 2                    NINETY-FIRST GENERAL ASSEMBLY
 3                               SENATE
 4                   Senate Joint Resolution No. 21
 5               (as amended by Senate Amendment No. 1)

 6        WHEREAS, The Federal  Housing  Administration  (FHA)  was
 7    created   to  help  people  realize  the  American  dream  of
 8    homeownership and serves a need for those who would otherwise
 9    be excluded from the conventional home loan market; and

10        WHEREAS, The Chicago Area Fair Housing  Alliance  (CAFHA)
11    has conducted studies which indicate that when FHA lending is
12    concentrated, it has adverse effects; and

13        WHEREAS,  FHA  foreclosures  have  a unique impact on the
14    community due to a regulation by the United States Department
15    of Housing and Urban Development (HUD) that requires that the
16    properties be delivered to HUD vacant in  order  to  make  an
17    insurance claim; and

18        WHEREAS,  HUD's  inability  to move foreclosed properties
19    back into the owner-occupied market contributes to blight and
20    neighborhood  decay,  and  vacant  buildings  fall  prey   to
21    scavengers  and  are  many  times  not adequately secured and
22    often become breeding grounds for crime; and

23        WHEREAS, FHA  procedures  for  establishing  the  selling
24    prices  and discounts for acquired properties often result in
25    prices on foreclosed properties that are too  high  to  allow
26    for   purchase  and  rehabilitation  by  homeowners  or  that
27    discourage rapid sales in slow market areas; and

28        WHEREAS, There are communities  with  a  disproportionate
29    number   of  vacant  HUD  buildings  that  are  not  properly
30    maintained by HUD, sometimes over a period of years; and

31        WHEREAS,  FHA  does   not   require   pre-purchase   home
32    inspections,   therefore   allowing  unsuspecting  buyers  to
 
91SJ0021 Engrossed             -2-             LRB9106201DJcd
 1    purchase defective homes; therefore, be it

 2        RESOLVED, BY  THE  SENATE  OF  THE  NINETY-FIRST  GENERAL
 3    ASSEMBLY   OF   THE   STATE   OF   ILLINOIS,   THE  HOUSE  OF
 4    REPRESENTATIVES CONCURRING HEREIN, that we  urge  the  United
 5    States Department of Housing and Urban Development to use its
 6    fair  housing  enforcement  authority  to create a balance of
 7    conventional and FHA lending in all communities, monitor home
 8    purchases and lending practices to ensure  that  FHA  lending
 9    does not have an adverse impact on any community, improve the
10    targeting  and  operations  of  FHA  programs,  and  consider
11    offering an optional, pre-purchase home inspection program as
12    part of the FHA lending process; and be it further

13        RESOLVED,  That  suitable  copies  of  this resolution be
14    forwarded to the Secretary of Housing and Urban  Development,
15    the  Director of the Federal Housing Administration, and each
16    member of the Illinois Congressional delegation.

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