SJ0030 97TH GENERAL ASSEMBLY

SJ0030 LRB097 11192 AJO 53233 r

SENATE JOINT RESOLUTION

WHEREAS, The astronomical number of vacant homes and "for sale" signs in Illinois communities reveal the dramatic impact the current economic crisis has had on homeowners throughout this State; and

WHEREAS, In the third quarter of 2010, Illinois posted the nation's fourth largest foreclosure activity total, with 47,802 properties receiving foreclosure filings, according to Realty Trac; and

WHEREAS, The foreclosure and housing crisis is a setback in years of gains Illinoisans had achieved in the frontiers of homeownership and wealth creation; for the first time, there seems to be a regressive pattern where homeowners are moving towards becoming homeless; these alarming statistics are the impetus for public intervention that will examine and provide direction on the residential mortgage foreclosure crisis and housing availability in this State; and

WHEREAS, Communities throughout this State are in need of additional resources to creatively respond to the detrimental issues caused by the enormous tide of foreclosures and the housing crisis; and

WHEREAS, The Comprehensive Housing Planning Act created the State Housing Task Force, which is charged with creating a comprehensive and unified policy for the allocation of resources for affordable housing and supportive services for historically underserved populations throughout the State, in order to accomplish the following:

(1) address the need to make available quality housing at a variety of price points in communities throughout the State;

(2) overcome the shortage of affordable housing, which threatens the viability of many communities;

(3) meet the need for safe, sanitary, and accessible affordable housing and supportive services for people with disabilities;

(4) promote a full range of quality housing choices near jobs, transit, and other amenities;

(5) meet the needs of constituencies that have been historically undeserved and segregated due to barriers and trends in the existing housing market or insufficient resources;

(6) facilitate the preservation of ownership of existing homes and rental housing in communities;

(7) create new housing opportunities and, where appropriate, promote mixed-income communities; and

(8) encourage development of State incentives for communities to create a mix of housing to meet the needs of current and future residents; and

WHEREAS, The State of Illinois' Annual 2011 Comprehensive Housing Plan published by the State Housing Task Force prioritizes foreclosure prevention and mitigation; and

WHEREAS, The duties of the State Housing Task Force clearly encompass the ability to study and make recommendations on the impact of foreclosures on Illinois residents and communities; and

WHEREAS, Recognizing the solutions to the foreclosure crisis are as complex as the issue, there is a pressing need for the State Housing Task Force to pursue strategies advancing foreclosure prevention, mitigation, and actions to redevelop impacted communities; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN, that the Task Force shall meet to organize and select a Foreclosure Prevention and Mitigation Working Group (the "Foreclosure Working Group"), of which the chairperson shall be the Executive Director of the Illinois Housing Development Authority or a designee and the co-chairperson will be a non-governmental Foreclosure Working Group member elected by the Foreclosure Working Group; and be it further

RESOLVED, That the Foreclosure Working Group shall be appointed by the Task Force and be comprised of a range of constituencies and stakeholders that can contribute to the study of the foreclosure crisis and formulate recommendations to address the impact of foreclosure on communities, and may include Task Force members and additional experts to provide a thorough and comprehensive foreclosure prevention, mitigation and impact strategy; the members shall be, with vacancies to be filled in the same manner as original selections, as follows:

(1) one member of the Senate appointed by the President of the Senate and one member of the Senate appointed by the Minority Leader of the Senate;

(2) one member of the House of Representatives appointed by the Speaker of the House of Representatives, and one member of the House of Representatives appointed by the Minority Leader of the House of Representatives;

(3) representatives of the housing industry, not-for-profit community, and private financial institutions:

(A) two representatives of certified HUD housing organizations that provides services to homeowners at risk of losing their home to foreclosure;

(B) one representative from academia with a background or expertise in housing trends and financial regulations;

(C) one representative of a non-profit legal organization that has experience with the foreclosure process;

(D) one person with a background in affordable housing issues;

(E) two persons with a background in housing policy and research;

(F) one homeowner who has been impacted by the foreclosure crisis in Illinois; and

(G) one representative of a local financial or lending institution;

(4) representatives of governmental agencies familiar with the foreclosure and housing crisis:

(A) one representative of the Division of Banking within the Department of Financial and Professional Regulation;

(B) one representative of the Illinois Housing Development Authority's Neighborhood Stabilization Program;

(C) one representative of the Office of the Attorney General that works directly with housing subprime lending patterns and the foreclosure mitigation process; and

(D) one representative of the Department of Human Services' Homeless Prevention Program; and be it further

RESOLVED, That the Foreclosure Working Group will serve for a period of not less than 2 years from the date of the first Working Group meeting; and may continue to serve for an extended period at the recommendation of the Working Group members based the need to address foreclosure prevention, mitigation, and impact issues; and be it further

RESOLVED, That the Working Group shall meet at least 4 times a year at the call of the chairperson; members of the Foreclosure Working Group shall serve without compensation, but may be reimbursed for reasonable expenses incurred as a result of their duties as members of the Task Force from funds appropriated by the General Assembly for that purpose; and be it further

RESOLVED, That the Illinois Housing Development Authority shall provide staffing, administrative, and financial support to the Foreclosure Working Group; and be it further

RESOLVED, That the duties of the Foreclosure Working Group shall include all of the following:

(1) monitor the emerging housing problems in Illinois and make recommendations concerning these issues; and

(2) oversee actions to prevent foreclosures and mitigate their impact on local communities; and

(3) oversee and provide insight about the rebuilding process caused by the housing crisis and provide a comprehensive and holistic approach to the rebuilding process; and

(4) divide the work of the Foreclosure Working into 3 primary focus areas as follows:

(A) Foreclosure Impact: This area shall be responsible for monitoring the foreclosure activity in Illinois and determining approaches to mitigate the impact on local communities;

(B) Housing Education and Outreach: This area shall be responsible for recommending outreach, counseling, and education programs focused on foreclosure prevention and other affordable housing programs needed to stabilize communities in Illinois;

(C) Regulatory Reform: This area shall be responsible for reviewing existing Illinois laws and regulations and making appropriate revisions and recommendations for legislative actions; and be it further

RESOLVED, That the State Housing Task Force shall submit an addendum to reports required by the Comprehensive Housing Planning Act, which shall include Foreclosure Working Group recommendations for effective policy advisements regarding housing policies and funding mechanisms to address the foreclosure and housing crisis, and shall provide an update on general housing trends affecting the residents in this State.