HR0943LRB102 28864 ECR 40753 r

1
HOUSE RESOLUTION

 
2    WHEREAS, For millions of Americans, owning a home in a
3mobile home park has been an affordable way to keep a roof over
4their heads, and 0 families living in these parks have an
5income of $32,000 a year on average; and
 
6    WHEREAS, As a generation of mom-and-pop owners of mobile
7home parks are retiring and looking to sell, investors and
8companies are eager to buy these parks; and
 
9    WHEREAS, When private investors buy mobile home parks,
10they often raise the rent anywhere from 20% to even 70%; many
11mobile home park residents cannot afford these sharp rent
12increases; and
 
13    WHEREAS, People in mobile home parks are very vulnerable
14to losing their homes this way; older homes cannot physically
15survive being moved to another park, and even when that is
16possible, it can cost upwards of $5,000; and
 
17    WHEREAS, Investors and private companies often raise fees
18and rent for the land under the homes and evict people who
19cannot pay; and
 
20    WHEREAS, When a company raises the rents and fees in a

 

 

HR0943- 2 -LRB102 28864 ECR 40753 r

1park, the cash flow is increased and makes the park more
2valuable on paper; the company can then borrow more money
3against the property; and
 
4    WHEREAS, These investors and companies are getting help
5from billions of dollars worth of low-interest-rate loans
6backed by the federal government, and the volume of that
7financing has risen sharply in recent years; and
 
8    WHEREAS, These loans often have low interest rates because
9they are guaranteed by Fannie Mae and Freddie Mac, the
10government entities at the core of the United States mortgage
11market; and
 
12    WHEREAS, President Joe Biden stated in his Executive Order
13On Advancing Racial Equity and Support for Underserved
14Communities Through the Federal Government "The Federal
15Government should, consistent with applicable law, allocate
16resources to address the historic failure to invest
17sufficiently, justly, and equally in underserved communities,
18as well as individuals from those communities"; and
 
19    WHEREAS, The Biden Administration can, without an act of
20Congress, direct Fannie Mae and Freddie Mac to make it easier
21for residents to buy their own mobile home communities when
22they are for sale; and
 

 

 

HR0943- 3 -LRB102 28864 ECR 40753 r

1    WHEREAS, More and more residents of mobile home parks are
2trying to buy their own parks as co-ops, so they can determine
3the rents and fees for themselves; however, these residents
4have to pay much higher interest rates and therefore pay a lot
5more money over time when they buy their own mobile home park;
6and
 
7    WHEREAS, Fannie Mae and Freddie Mac could be directed to
8back low interest rate loans to residents to help them buy
9their own parks and form co-ops; therefore, be it
 
10    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
11HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
12we urge President Joe Biden to direct Fannie Mae and Freddie
13Mac to offer low interest loans and funding to mobile park
14residents wishing to purchase their own park when it is for
15sale.