SR0170 102ND GENERAL ASSEMBLY

SR0170 LRB102 17696 ECR 23661 r

SENATE RESOLUTION

WHEREAS, Homeownership plays a vital role in helping to build strong, stable communities; in addition to bolstering a community's treasury through taxes, research shows the many social benefits homeownership provides, including improved health, less crime, and increased civic participation; homeownership has been proven to help stabilize neighborhoods and create stronger communities; and

WHEREAS, Homeownership has been the most effective way that Americans have created generational wealth over the past 100 years; the median net worth for homeowners in 2019 was $255,000, compared to $6,300 for renters; and

WHEREAS, Nationally, homeownership is at 79.4 percent for households with family income greater than or equal to the median family income and 52.3 percent for households making less than the median family income; only 39 percent of low-income households own their own homes; the homeownership rate is 74.5 percent for white families, 49.1 percent for Hispanic families, and 44.1 percent for Black families; and

WHEREAS, Discriminatory housing and lending practices have challenged minority communities for decades; for example, redlining contributed to 98 percent of the mortgages insured by the federal government between 1934 and 1968 being awarded to white citizens; furthermore, in 1998, usurious subprime mortgages accounted for 51 percent of home loans in predominantly Black neighborhoods, compared with only 9 percent in predominantly white areas; and

WHEREAS, Homeownership is an extraordinary tool to financially empower minorities and narrow the racial wealth gap; and

WHEREAS, It has been historically challenging, if not impossible, for borrowers to obtain mortgages of under $75,000, known as micro mortgages; as a result, a disproportionate number of homes in our most affordable communities are sold for cash to investors who offer them for rent; and

WHEREAS, Lenders today have the ability to originate micro mortgages so that low-income families can buy homes that cost under $75,000; as interest rates are at record lows, the mortgage payments will typically cost less than rent; this presents an extraordinary and urgent opportunity for first time homebuyers; and

WHEREAS, Lower value homes are disproportionately vacant, and blocks with vacant properties face crime rates twice as high as blocks without them; therefore, selling these vacant homes to homeowners utilizing micro mortgages can help stabilize communities; therefore, be it

RESOLVED, BY THE SENATE OF THE ONE HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the State of Illinois to promote homeownership of homes under $75,000 as a way to build stronger communities and help build generational wealth in communities that have historically been left behind; and be it further

RESOLVED, That we urge the Illinois Housing Development Authority to use 2020 Census data to report to the General Assembly what percentage of low income households own the homes they live in by December 31, 2021; and be it further

RESOLVED, That we urge the Illinois Housing Development Authority to create goals for increasing the homeownership rate each year for low income households; and be it further

RESOLVED, That we urge the Illinois Housing Development Authority to make a strategic plan every year to market and promote homeownership to ensure they are achieving their goals; and be it further

RESOLVED, That we urge the Illinois Housing Development Authority to establish a directory of lenders that originate micro mortgages.