By:  De la Garza                                        H.R. No. 25
       73R2438 E
                                  R E S O L U T I O N
    1-1        WHEREAS, The U.S. Department of Housing and Urban Development
    1-2  (HUD) oversees the Federal Housing Administration (FHA) which
    1-3  provides loans to individuals for the purpose of acquiring a home,
    1-4  while requiring only a minimal down payment by the home buyer; and
    1-5        WHEREAS, Using a departmental formula based on the value of
    1-6  homes in a county, HUD will soon decide whether to raise the FHA
    1-7  loan limit for Hidalgo County, Texas; and
    1-8        WHEREAS, The current loan limit of $67,500 for Hidalgo County
    1-9  has not been changed in more than 25 years, and no adjustments have
   1-10  been made for inflation or rising housing costs; and
   1-11        WHEREAS, One of the fastest-growing areas in the nation, the
   1-12  county is already experiencing a shortage of moderately priced
   1-13  homes and rental properties, and the need for additional housing
   1-14  can be expected to increase with the adoption of the North American
   1-15  Free Trade Agreement; and
   1-16        WHEREAS, The county has a vast number of dual wage-earning
   1-17  families who need and can pay for better housing, especially with
   1-18  the FHA benefit of a lower down payment; and
   1-19        WHEREAS, The loan limit for Hidalgo County fails to reflect
   1-20  the cost of most homes in the area because the low value of houses
   1-21  in substandard "colonias" and other impoverished neighborhoods
   1-22  gives a false picture of the county's housing market; and
   1-23        WHEREAS, Other Texas counties experience similar, if less
   1-24  extreme, disparities in housing values, yet benefit from
    2-1  substantially higher loan limits; and
    2-2        WHEREAS, The current loan limit for Hidalgo County is too low
    2-3  for reasonable participation by the average family, and an
    2-4  increased loan limit would allow more families to afford homes and
    2-5  create additional construction jobs for a community that has the
    2-6  highest unemployment rate in Texas; now, therefore, be it
    2-7        RESOLVED, That the House of Representatives of the 73rd Texas
    2-8  Legislature hereby request the U.S. Department of Housing and Urban
    2-9  Development to substantially raise the FHA loan limit for Hidalgo
   2-10  County to enable more families to participate in the program; and,
   2-11  be it further
   2-12        RESOLVED, That copies of this resolution be forwarded to the
   2-13  U.S. secretary of housing and urban development and to each member
   2-14  of the Texas delegation to the Congress of the United States of
   2-15  America as an official request by the Texas House of
   2-16  Representatives.