HR0672 102ND GENERAL ASSEMBLY

HR0672 LRB102 25502 LAW 34790 r

HOUSE RESOLUTION

WHEREAS, Gentrification affects predominantly Black and Latino communities across the State of Illinois; and

WHEREAS, Gentrification involves the physical redevelopment of communities through investments in new housing, infrastructure, and businesses that lead to higher property values, rents, and property taxes, often replacing longstanding households and community institutions; and

WHEREAS, Gentrification also often involves cultural displacement, in which the norms and values of longtime, predominantly Black and Latino and working class residents are replaced by those of a newly-dominant, often whiter, and more middle class group of residents; and

WHEREAS, Gentrification has been exacerbated by the COVID-19 pandemic, with major losses of income and an estimated 320,000 Illinoisans facing eviction filings in January 2021; and

WHEREAS, Gentrification is driven by structural racism in the U.S. housing system, including race-based zoning, redlining, deed restrictions, contract selling, predatory lending, and other practices, which has blocked Black home ownership and created stark and persistent inequalities in wealth and financial well-being between Black and white households in the State of Illinois; and

WHEREAS, Structural racism in the housing system reinforces wealth inequality between white and non-white households; the typical white family owns about $184,000 in family wealth versus just $38,000 for Latino families and $23,000 for Black families; and

WHEREAS, This divide translates to massive differences in quality of life; owning a home or business in a neighborhood in which property values are appreciating is one of the primary ways of accumulating wealth in the United States, leaving Black and Latino families more reliant on home equity, reverse mortgages, and other sources to finance retirement than white families; and

WHEREAS, The racial wealth gap restricts the progress of this country and is estimated to cost as much as $1.5 trillion in lost economic growth over the next decade; and

WHEREAS, The Illinois Legislative Black Caucus has called for legislation addressing housing, banking, and capital investment to eliminate barriers to economic opportunity in Black communities in its Economic Access, Equity and Opportunity Pillar; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we believe that investments in business, home ownership, and community development in Black and Latino communities are essential for creating shared prosperity in our communities; and be it further

RESOLVED, That we recognize the importance of property values that come from new development and investment as a source of wealth for native populations; and be it further

RESOLVED, That we commit to combating gentrification and displacement, to protect native populations as their communities change, and to support efforts to close the racial wealth gap in the State of Illinois; and be it further

RESOLVED, That we commit to studying the effects of gentrification and displacement in the State as well as studying solutions that will protect native populations and allow them to participate in the rebuilding of their communities, including but not limited to:

(1) Increasing investments in home repair for longtime Black and Latino residents, particularly for seniors in the community on fixed incomes, through the Illinois Housing Development Authority's Single Family Rehabilitation Program; and

(2) Increasing opportunities for home ownership for Black and Latino residents through Illinois Housing Development Authority mortgages and down payment assistance as well as financial institutions regulated under the Illinois Community Reinvestment Act; and

(3) Expanding use of the Long Time Occupancy Homestead Property Tax Exemption, the Senior Citizen Assessment Freeze Homestead Exemption, the Homestead Improvement Exemption, and the Senior Citizen Tax Deferment in predominantly Black and Latino neighborhoods; and

(4) Allowing communities to limit predatory rent increases for Black and Latino renters in gentrifying neighborhoods by repealing the Rent Control Preemption Act.