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91_SJ0021enr
91SJ0021 Enrolled LRB9106201DJcd
1 STATE OF ILLINOIS
2 NINETY-FIRST GENERAL ASSEMBLY
3 SENATE
4 Senate Joint Resolution No. 21
5 Offered by Senator Miguel del Valle
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 Enrolled -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.
17 Adopted by the Senate, April 26, 1999.
18 _______________________ _______________________
19 Secretary of the Senate President of the Senate
20 Concurred in by the House of Representatives, May 21,
21 1999.
22 _______________________ _______________________
23 Clerk of House of Speaker of House of
24 Representatives Representatives
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