WHEREAS, The League of United Latin American Citizens (LULAC) is a national civil rights organization concerned with the welfare and human rights of all peoples, particularly those of Latino heritage; and

WHEREAS, LULAC exercises leadership locally through membership councils, Districts, State and National levels concerning affordable housing, new home construction and related warranties, mortgage lending, the quality of life of families and community stability; and

WHEREAS, LULAC in its concerns for the need of affordable housing has witnessed a disturbing trend in substandard new home construction, lack of effective new home warranty protection and home durability; compounded by soaring foreclosures due to predatory lending, alleged violations of deceptive trade practice, and a declining ability for enjoyment of homeownership among minorities that has adversely impacted families in need; and

WHEREAS, LULAC community leaders have in the course of advocacy and council with families witnessed mismanagement, chronic problems related to documented non-compliance with local and HUD minimum property standards, material substitutions and lack of proper warranty repairs that have adversely affected the habitability of dwellings, particularly with the San Antonio Mirasol communities, which were funded under the HUD HOPE VI program, and built by KB Home, administered by the San Antonio Housing Authority (SAHA); and

WHEREAS, Deficiencies identified with Mirasol are: failure to comply with the site preparation specifications, lack of scarification to the site surface, failure to grub out the foundation site or fill with compacted limestone, copper waterlines were not sleeved, foundation concrete was not properly cured, improper workmanship was identified, failure to properly secure drywall to the wall frames, missing insulation, improper installation and sealing of HVAC systems and its duct work, improper flashing and installation of windows and doors; and

WHEREAS, LULAC in its historical review of facts has learned that KB Home and it affiliates have a history of building substandard housing due to non-compliance with building minimum construction standards, failure to comply with warranty responsibility and was in fact sued by the Federal Trade Commission for such activity; and

WHEREAS, KB Home and its affiliates entered into a 1979 Federal Consent Decree and have repeatedly been the subject of homeowner complaints and investigations, was repeatedly fined for its blatant disregard of the FTC Consent Order, and recently was fined by HUD for mortgage irregularities; and

THEREFORE, BE IT RESOLVED, That LULAC and its  National Board call for an investigation by appropriate Federal Agencies having oversight or jurisdiction over the matters of; new home construction standards compliance, affordable housing, new home warranties, compliance with federal consumer protection laws, predatory lending, waste in government, and the welfare and human rights of all peoples particularly those of Latino heritage; and

BE IT FURTHER RESOLVED, That in light of deregulation of HUD and its lack of oversight for the past decade and recent renewed efforts by congress to revive HOPE VI (HB3524 and SB829 LULAC joins with other consumer advocacy groups in the call for subcommittee hearings on these issues; and

BE IT FURTHER RESOLVED, That LULAC calls on Congressman Charles A. Gonzales, a member of the Subcommittee on Commerce, Trade, and Consumer Protection that deal with FTC enforcement matters, request that a hearing be held; and

BE IT FURTHER RESOLVED, That LULAC calls for hearings conducted by the House Committee on Financial Services, and Subcommittee on Housing and Community Opportunity chaired by California Representative Maxine Waters. 

LULAC President Rosa Rosales

LULAC Board Members