HR0943 102ND GENERAL ASSEMBLY

HR0943 LRB102 28864 ECR 40753 r

HOUSE RESOLUTION

WHEREAS, For millions of Americans, owning a home in a mobile home park has been an affordable way to keep a roof over their heads, and 0 families living in these parks have an income of $32,000 a year on average; and

WHEREAS, As a generation of mom-and-pop owners of mobile home parks are retiring and looking to sell, investors and companies are eager to buy these parks; and

WHEREAS, When private investors buy mobile home parks, they often raise the rent anywhere from 20% to even 70%; many mobile home park residents cannot afford these sharp rent increases; and

WHEREAS, People in mobile home parks are very vulnerable to losing their homes this way; older homes cannot physically survive being moved to another park, and even when that is possible, it can cost upwards of $5,000; and

WHEREAS, Investors and private companies often raise fees and rent for the land under the homes and evict people who cannot pay; and

WHEREAS, When a company raises the rents and fees in a park, the cash flow is increased and makes the park more valuable on paper; the company can then borrow more money against the property; and

WHEREAS, These investors and companies are getting help from billions of dollars worth of low-interest-rate loans backed by the federal government, and the volume of that financing has risen sharply in recent years; and

WHEREAS, These loans often have low interest rates because they are guaranteed by Fannie Mae and Freddie Mac, the government entities at the core of the United States mortgage market; and

WHEREAS, President Joe Biden stated in his Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government "The Federal Government should, consistent with applicable law, allocate resources to address the historic failure to invest sufficiently, justly, and equally in underserved communities, as well as individuals from those communities"; and

WHEREAS, The Biden Administration can, without an act of Congress, direct Fannie Mae and Freddie Mac to make it easier for residents to buy their own mobile home communities when they are for sale; and

WHEREAS, More and more residents of mobile home parks are trying to buy their own parks as co-ops, so they can determine the rents and fees for themselves; however, these residents have to pay much higher interest rates and therefore pay a lot more money over time when they buy their own mobile home park; and

WHEREAS, Fannie Mae and Freddie Mac could be directed to back low interest rate loans to residents to help them buy their own parks and form co-ops; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge President Joe Biden to direct Fannie Mae and Freddie Mac to offer low interest loans and funding to mobile park residents wishing to purchase their own park when it is for sale.