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.