ASSEMBLY CONCURRENT RESOLUTION No. 23

 

STATE OF NEW JERSEY

 

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblymen GARCIA, PASCRELL and Assemblywoman Friscia

 

 

A Concurrent Resolution memorializing Congress and the President of the United States to make a legislative priority of increasing the supply of affordable housing in the residential inventory of the Resolution Trust Corporation.

 

Whereas, The Resolution Trust Corporation (RTC) has promulgated rules and regulations pursuant to the "Financial Institutions Reform, Recovery, and Enforcement Act of 1989" (FIRREA) dealing with the disposition of affordable residential property under the auspices of the RTC; and

Whereas, The goal of the RTC's affordable housing program is to provide home ownership and rental housing opportunities for low and moderate income households; and

Whereas, Under FIRREA, a single-family residence may become part of the affordable housing inventory if it is appraised at not more than $67,500, an amount which is not adjusted for regional cost-of-living or housing market variations; and

Whereas, The RTC is granted some discretion in discounting the disposition price of property in its inventory if it does not sell within a given amount of time; and

Whereas, Prospective first-time home buyers in all but the very highest income categories in this State are thwarted by rapidly escalating initial costs of home acquisition and there is, in particular, a compelling need to encourage and, where possible, create home ownership opportunities for low and moderate income households in this State; and

Whereas, The RTC, through its affordable housing disposition program, possesses a major opportunity to increase home ownership opportunities for low and moderate income households in this State; and

Whereas, The RTC is hindered in its efforts by the imposition of a national standard governing the definition of what constitutes affordable housing which is totally inappropriate given the significant regional variations which exist across this country and is particularly unfair to New Jersey whose housing costs are among the highest in the nation; and

Whereas, The RTC is limited in the extent to which it can discount the appraised value of the units in its housing inventory by the receivers of the failed financial institutions which still legally own those properties; now, therefore,

 

    Be It Resolved by the General Assembly of the State of New Jersey (the Senate Concurring):

 

    1. The Congress and the President of the United States are hereby respectfully memorialized to amend FIRREA to allow the RTC to adjust affordable housing guidelines based on regional variation in housing markets, reexamine the issue of discounting to allow the RTC greater discretion in defining housing as affordable, and reconsider any other provisions of FIRREA to facilitate the disposition of units under RTC jurisdiction for occupancy by low and moderate income households.

 

    2. This House hereby requests the support of the Governor in enjoining Congress and the President to make the achievement of these legislative goals a top priority.

 

    3. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary of the Senate, and signed by the Speaker of the General Assembly and attested by the Clerk of the General Assembly, shall be transmitted to the President of the United States, the presiding officers of the United States Senate and House of Representatives, and to every member of Congress elected from the State of New Jersey.

 

 

 

Memorializes Congress to expand affordable housing inventory overseen by Resolution Trust Corporation.