Illinois General Assembly - Full Text of SR0170
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Full Text of SR0170  102nd General Assembly




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2    WHEREAS, Homeownership plays a vital role in helping to
3build strong, stable communities; in addition to bolstering a
4community's treasury through taxes, research shows the many
5social benefits homeownership provides, including improved
6health, less crime, and increased civic participation;
7homeownership has been proven to help stabilize neighborhoods
8and create stronger communities; and
9    WHEREAS, Homeownership has been the most effective way
10that Americans have created generational wealth over the past
11100 years; the median net worth for homeowners in 2019 was
12$255,000, compared to $6,300 for renters; and
13    WHEREAS, Nationally, homeownership is at 79.4 percent for
14households with family income greater than or equal to the
15median family income and 52.3 percent for households making
16less than the median family income; only 39 percent of
17low-income households own their own homes; the homeownership
18rate is 74.5 percent for white families, 49.1 percent for
19Hispanic families, and 44.1 percent for Black families; and
20    WHEREAS, Discriminatory housing and lending practices have
21challenged minority communities for decades; for example,
22redlining contributed to 98 percent of the mortgages insured



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1by the federal government between 1934 and 1968 being awarded
2to white citizens; furthermore, in 1998, usurious subprime
3mortgages accounted for 51 percent of home loans in
4predominantly Black neighborhoods, compared with only 9
5percent in predominantly white areas; and
6    WHEREAS, Homeownership is an extraordinary tool to
7financially empower minorities and narrow the racial wealth
8gap; and
9    WHEREAS, It has been historically challenging, if not
10impossible, for borrowers to obtain mortgages of under
11$75,000, known as micro mortgages; as a result, a
12disproportionate number of homes in our most affordable
13communities are sold for cash to investors who offer them for
14rent; and
15    WHEREAS, Lenders today have the ability to originate micro
16mortgages so that low-income families can buy homes that cost
17under $75,000; as interest rates are at record lows, the
18mortgage payments will typically cost less than rent; this
19presents an extraordinary and urgent opportunity for first
20time homebuyers; and
21    WHEREAS, Lower value homes are disproportionately vacant,
22and blocks with vacant properties face crime rates twice as



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1high as blocks without them; therefore, selling these vacant
2homes to homeowners utilizing micro mortgages can help
3stabilize communities; therefore, be it
5ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the State of
6Illinois to promote homeownership of homes under $75,000 as a
7way to build stronger communities and help build generational
8wealth in communities that have historically been left behind;
9and be it further
10    RESOLVED, That we urge the Illinois Housing Development
11Authority to use 2020 Census data to report to the General
12Assembly what percentage of low income households own the
13homes they live in by December 31, 2021; and be it further
14    RESOLVED, That we urge the Illinois Housing Development
15Authority to create goals for increasing the homeownership
16rate each year for low income households; and be it further
17    RESOLVED, That we urge the Illinois Housing Development
18Authority to make a strategic plan every year to market and
19promote homeownership to ensure they are achieving their
20goals; and be it further
21    RESOLVED, That we urge the Illinois Housing Development



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1Authority to establish a directory of lenders that originate
2micro mortgages.