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91_SJ0021eng 91SJ0021 Engrossed LRB9106201DJcd 1 STATE OF ILLINOIS 2 NINETY-FIRST GENERAL ASSEMBLY 3 SENATE 4 Senate Joint Resolution No. 21 5 (as amended by Senate Amendment No. 1) 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 Engrossed -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.