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On Tuesday, April 7th 2009, the City of Lynwood, CA voted unanimously for LaRouche's Homeowners And Bank Protection Act (HBPA). The text of their resolution follows:

AGENDA STAFF REPORT

DATE April 7 2009

TO: Honorable Mayor and Members of the City Council
APPROVED BY: Roger L Haley City ManageL’
PREPARED BY: Lorry Hempe Assistant City Manager
Daniel Baker Administrative Analyst III

SUBJECT: Homeowners and Bank Protection Act

Recommendation:
Staff recommends that the City Council review the attached resolution entitled A RESOLUTION OF THE CITY OF LYNWOOD SUPPORTING THE HOMEOWNERS AND BANK PROTECTION ACT and provide staff direction on its adoption.

Background:
In 2007 the United States Congress declined the passing of the Homeowner and Bank protection Act. The cities of Huntington Park Bell Gardens and Compton have passed resolutions supporting the Homeowners & Bank Protection.

Discussion & Analysis:

In March 2009, there are a combined total of 651 foreclosures, defaults, and bank owned properties in the City of Lynwood according to Realtor Trac. The economy has created challenges within real estate and financial markets. As a result, vacant properties and family dislocations are impacting the quality of life of the Lynwood community.

The proponents of the 'Homeowners & Bank Protection Act’ wish to direct Congress to establish a Federal agency to place the Federal and state chartered banks under protection, freezing all existing home mortgages for a period of time to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates.

The proposed act will require all foreclosures to be frozen, allowing American families to retain their homes. Furthermore the Act requires monthly payments to be made to designated banks, thus recapitalizing the banking system. These affordable monthly payments will be factored into new mortgages, reflecting the deflating of the housing bubble and the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. State governors will assume the administrative responsibilities for implementing the program. The proponents of the act recommend that cities adopt the attached resolution in support of "the Homeowners & Bank Protection."

Fiscal Impact:

Impact Staff has not analyzed the direct effect if such policy is adopted at the Federal level.

Coordinated With:

Finance Department

Agency Counsel

A RESOLUTION OF THE CITY OF LYNWOOD SUPPORTING THE HOMEOWNERS AND BANK PROTECTION ACT

WHEREAS, the failure of the leadership of the United States Congress to pass the Homeowner and Bank Protection Act of 2007 proposed by Lyndon LaRouche in his July 25, 2007 webcast, has transformed a dire situation from one that could have remained manageable through the Autumn of 2007, into a breakdown crisis of not only the U.S. economy, but of the world economy; and

WHEREAS, the Congressional leadership instead chose a course of insulting treatment of state and local legislative and associated bodies within the states, who clamored for the Congress to enact the HBPA, as shown in the HBPA’s passage by five state legislatures, and more than 150 city councils across the United States in addition to hundreds of endorsements by trade union and other constituency leaders individually; and

WHEREAS, the repeated attempts approved by Congress to bail out financial institutions with cumulative trillions of taxpayers’ and Federal Reserve money, have utterly failed; and

WHEREAS, forcing the leadership of the U.S. Congress into more responsible behavior on the HBPA now, is perhaps the only chance to begin to move things in a direction which could lead to saving the United States of America itself from the deepest physical depression in its history.

THEREFORE, BE IT RESOLVED, THAT THE CITY OF LYNWOOD HEREBY ENDORSES THE HOMEOWNERS AND BANK PROTECTION ACT OF 2007, AS INITIATED BY ECONOMIST LYNDON H. LAROUCHE, JR. THIS ACT INCLUDES THE FOLLOWING PROVISIONS:

Section 1: Congress must establish a Federal agency to place the Federal and state chartered banks under protection, freezing all existing home mortgages for a period of however many months or years are required to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Further, this action would also write off all of the speculative debt obligations of mortgaged-backed securities, derivatives, and other forms of Ponzi schemes that have plunged the banking system into bankruptcy.

Section 2: During the transitional period, all foreclosures shall be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, shall be made to designated banks, which can use the funds as collateral for normal banking practices, thus recapitalizing the banking system. These affordable monthly payments will be factored into new mortgages, reflecting the deflating of the housing bubble and the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. This shakeout will take several years to achieve. In the interim period no homeowner shall be evicted from his or her property, and the Federal and state chartered banks shall be protected, so they can resume their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure etc.

Section 3: State governors shall assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks, with the Federal government providing the necessary credits and guarantees to assure the successful transition. And therefore be it Further Resolved that a copy of this resolution shall be forwarded to members of Congress from the state and also be delivered to the President of the United States for immediate implementation.

PASSED, APPROVED and ADOPTED this 7th day of April 2009.