Ms. Hightower testifies in support of the Vacant Property Ordinance: TEXT

Good morning, my name is Ms. Patricia Hightower.  I am a resident of Chicago, Illinois, and I live in a senior building on the southeast side of Chicago.  I am also a member of the Metropolitan Tenants Organization.

I am very concerned about the number of vacant properties that are in our neighborhoods.  These properties are not only eyesores but are emotionally disturbing to citizens who are already overwhelmed with the high cost of living, crime, utility and medical bills.

In addition to being an eyesore, these properties are a breeding ground for drugs, gangs, illegal activities and prostitution.  Hard working law-abiding citizens should not have to walk by vacant properties occupied by gangs.  These are the same gangs that use vacant properties to stash their drugs and run illegal activity.

Oftentimes, the vacant properties I see in my community are not maintained.  The grass is not cut, garbage is everywhere, mice and rats roam freely and drug paraphernalia is visible.  The Vacant Property Ordinance Bill is significant because it gives concerned citizens the ability to hold banks accountable when they can’t find the owner of properties that are not maintained properly.

As a concerned citizen, I value my community and feel strongly that vacant properties devalue the economics and social fabric of my community.

I strongly urge the committee to pass the Vacant Property Ordinance and demonstrate to the citizens of Chicago that they value all communities.

I would like to thank the committee’s for allowing me to express my concerns and views on vacant properties and their affect on my community.

I am encouraged that we are headed in the right direction to change this epidemic that plagues too many communities.

Again, thank you.

[Link here to previous related article.]

Action Alert: Protest Downtown at Chase Bank this Thursday

This weekend, the residents of 7263 S Coles face homelessness. JP Morgan Chase has failed in its responsibility for maintaining this 30-unit property since 2008. For two years, Chase has allowed the building to deteriorate to such a degree that the city of Chicago, due to safety concerns, stepped in and ordered residents to vacate the property this coming Saturday, July 17th. These families will be put out on the street and to date, Chase has refused to assist these families with relocation despite their neglect of the general building maintenance being the very cause of this building being condemned by Chicago building inspectors.

Join MTO, tenants, and concerned community members this Thursday, July 15th at 11:30am at Chase Tower, 10 S. Dearborn in Downtown Chicago.

Rental properties across the city are deteriorating because the banks responsible have done nothing. For residents, the choice is especially stark – live in substandard conditions or leave the homes they once cherished. This crisis has been developing for years and is getting out of control. Banks have done little or nothing to save our homes and have allowed our communities to weaken.

WE WANT:

  • Banks to be responsible for maintaining buildings in foreclosure
  • Relocation assistance for the families being displaced by banks that ignore their obligations
  • A foreclosure stabilization plan that would promote building maintenance and preservation, thus preventing displacement and abandoned buildings.

Renters Win Round 1

Round 2 is on Monday, May 24th.

Tenants and activists gathered in the second floor lobby of City Hall Tuesday April 27th before the Building Committee meeting to express their support of Mayor Daley’s amendment to hold banks accountable for tenants’ security deposit in the case of foreclosure. Among them was Peter Mclennon, representing Cook County Clerk David Orr (the Residential Landlord and Tenants Ordinance sponsor in 1986). He urged rejection of the Chicagoland Apartment Association’s amendment being put forth by Alderman Stone. According to Charlotte Starks, a tenant and hotline counselor, “Security deposits being kept by landlords is as prevalent as domestic abuse, in that it does not have a face, does not have a color, it doesn’t have an address. It’s done city-wide, in all of the wards.”

Following the press conference, participants went to room 201A to prepare to testify before the Buildings Committee. The presence was so large that the meeting was moved to the City Council Chambers to accommodate everyone.

Alderman Shiller started the hearing by proposing a subcommittee that would be able to address problems brought forth by landlords and tenants. Alderman Stone chose to hear all testimony from landlord and tenant groups. Approximately 30 people testified to the committee, including Joel Rivera, a tenant turned volunteer counselor for MTO’s Renter’s Rights Hotline, testified “By providing the LL with a 14 day notification prior to any lawsuits regarding the deposit, its basically contradicting a law that the landlord should already know. Upon signing a lease, the landlord is obligated to the RLTO to provide each tenant with a copy of the ordinance summary. So off the bat, the landlord should already be responsible for what his rights are towards the tenant.” John Bartlett, Executive Director of MTO, explained MTO’s desire to work with good landlords on their concerns with the law while simultaneously ensuring loopholes are not opened in the current law that would make it easier for bad landlords to take advantage of their tenant’s money.

Three hours later, after everyone had had their say, Alderman Latasha Thomas stated her support of forming a subcommittee to resolve the issues brought up by those that had testified. Alderman Hairston believed a happy medium could be found between landlords and tenants in a subcommittee. Deputy Commissioner Ellen Sahli explained Mayor Daley’s proposal, specifically that his proposal does not tip the delicate balance in the RLTO away from landlords – instead, it would only affect lien holders, such as banks and only in the case of a foreclosure. Deputy Commissioner Sahli stated her support of a subcommittee and her opposition to Alderman Stone’s amendment.

Chairman Stone explained that his intent with the amendment was to “correct the rigidity of the ordinance.” Alderman Shiller responded that she wanted to address this, but that the “14-day cure” changes economic incentives and changes consequences to landlords if they do not follow the security deposit law as written. Chairman Stone responded that he did not want to be a block on the Mayor’s ordinance. The Buildings Committee then voted unanimously to pass the Mayor’s ordinance onto the full council without any amendments attached. The two amendments will be considered in the new subcommittee headed by Alderman Shiller.

Alderman Shiller’s subcommittee is tentatively scheduled for Monday, May 24.  The committee will continue to look at the amendments proposed by Aldermen Stone and Shiller.  It is important for renters to continue to come attend hearings as we expect the Chicagoland Apartment Association to continue to press for a weakening of Chicago’s ordinance.  Tenants need to inform the alderman of problems they face with security deposits.  If you are interested in testifying at the next hearing please contact  Loreen Targos at 773-292-4980 x 231 or by email at loreen@tenants-rights.org.

Tenants Get Repairs and Fight Foreclosure

In August of 2008 tenants from a building in Englewood called MTO’s Tenants Rights Hotline complaining about egregious conditions including broken security locks, pest infestations, and lack of essential services, like heat.  MTO immediately sent organizers out to assess the situation.  The Ada-Throop buildings are subsidized by the US Department of Housing and Urban Development (HUD). In addition to confirming the deplorable conditions tenants reported, MTO organizers learned that the building was in foreclosure and that the building’s subsidy was at risk.

The Ada-Throop buildings, in many ways, represent the predicament that the foreclosure crisis has caused in many tenants’ lives.  The tenants in Ada-Throop lived in quickly deteriorating conditions because the owner was either unwilling or unable to attend to the upkeep of the building, let alone pay the mortgage.  Often unresolved repairs are the first sign of a landlord in foreclosure.  Because of unacceptable building conditions, there was fear HUD would eliminate the subsidy of the property, and thus everyone would have to move.

Foreclosures also put into question the person ‘in charge’ during the court process.  The courts, the banks, or the old owner often do not want to invest the needed resources in foreclosure buildings.

Fortunately, the tenants worked together with MTO to take back control over their living conditions.  The tenants association secured the assistance of the City of Chicago’s Troubled Building Initiative and a court appointed receiver took over management of the buildings.  Working with the court appointed management company, tenants continued to organize, heat was restored in the building and conditions were improved.

Thanks to the efforts of the Metropolitan Tenants Organization working in conjunction with the Shriver Center, the Community Investment Corporations (CIC) and HUD, these buildings and their affordable housing subsidizes were all preserved.  Today, there remain problems and obstacles to overcome in the building. But since the tenants have organized, conditions have improved and new owners will soon be ready to take over the buildings. These new owners are currently looking into securing loans to do rehabilitation work on these affordable subsidized buildings.

Summary Prepared by Robert Clack

Tenants and Foreclosure – FAQ

Tenants impacted by foreclosure: Frequently Asked Questions

What is a foreclosure?
When an owner falls behind in mortgage payments, foreclosure is the court process by which a bank forces the sale of a building used as security in order to pay off the owner’s debt. In an effort to protect tenants who live in a building that is in foreclosure, the city passed the Keep Chicago Renting Ordinance (KCRO). Under the KCRO, you may be eligible for a lease renewal or $10,600 in relocation assistance. To learn more click HERE.

Who owns the building while it is in court?
Just because a building is in foreclosure does NOT mean that the building has been foreclosed on or will be foreclosed on. Until the court approves a sale and there is a confirmation of sale, your landlord still owns the building. In most cases, the bank acquires the property and becomes the owner.

What are some common signs that my building might be in foreclosure?
Maintenance suddenly stops
– Utility shutoff notices
– Banks sending notices to the landlord
– Realtors hanging around the building, or taking pictures of the building
– The landlord disappears and/or stops collecting rent.

How long does the foreclosure process take?
The court process takes an average of nine months. If the owner is not able to satisfy the bank’s requirements, the court puts the property up for sale where it is usually bought by the bank.

Where can I find out if my building is in foreclosure?
1. Get the PIN # of the property by going to www.cookcountyassessor.com and entering the building address.

2. Enter the PIN # at www.cookrecorder.com or call the Recorder of Deeds at 312-603-5050 and give them your PIN #. If the building is in foreclosure, they can provide you with the foreclosure notice (the “lis pendens”) and the associated foreclosure court case number.

3. For more information about the case go to www.cookcountyclerkofcourt.org or call the Chancery Court, at 312-603-5133. You can also go to http://www.cookcountyclerkofcourt.org – go to online case info – full docket search – and search the chancery division for the landlord’s name under defendant or using the case #.

Under the Keep Chicago Renting Ordinance (KCRO), if your building is in foreclosure, you may be eligible for a lease renewal or $10,600 in relocation assistance. To learn more about the KCRO, click HERE.

Do I still have to pay rent?
Yes. As long as you are living in the unit you must pay rent. Checks or money orders are best so that you have proof of payment. You can still be evicted for nonpayment of rent even though your landlord is in foreclosure.

What if I don’t know to whom to pay rent or the landlord stops collecting it?
Click here to find our who the owner is or contact a lawyer to assist you in determining the new owner of the property. Be sure to ask any new people claiming to be the owner for proof before giving them rent money. The law only requires that tenants make a good faith effort to pay the rent if the landlord disappears. Some examples of good faith efforts to pay rent may include:
– Holding the rent in a money order
– Using the rent on utilities your landlord was paying
– Using the rent to make repairs to the property
– Sending a letter via certified mail, requesting information from the new owner on where to send the rent. (Keep             a copy of the letter for yourself)

Do I have the right to break my lease because my landlord is in foreclosure?
No…however, if you are covered under the Chicago Residential Landlord Tenant Ordinance and did not receive proper notice, please see below under Are landlords required to tell their tenants that their building is in foreclosure?

The bank has taken over the building. What do I do?
The bank is your new landlord. You must pay them rent once they have notified you as to whom and where to pay, and they are responsible for repairs, any utilities paid by the old landlord, etc. If you are uncertain of who to pay, hold your rent in escrow. Also, check to see if you’re covered by the Keep Chicago Renting Ordinance. You may be eligible for relocation assistance if the bank chooses not to renew your lease.

The sheriff posted a notice saying that my landlord or unknown occupants must vacate the building. Does this apply to me?
No. If your name is not on the notice, you do not have to move. Immediately contact the sheriff’s office at (312) 603-3365 to inform them that there are tenants in the building and contact an attorney to get legal help. If the sheriff shows up, you will need to show them identification, as well as your lease, a piece of mail, or other evidence proving that you are a tenant in the building and not the landlord.

Will I have to move? How much time will I have once a new owner takes over?
If the building is foreclosed upon and sold, the new owner must give you 90 days or until the end of your lease, whichever longer. However, if the new owner would like to use the unit as a personal residence, they do not have to honor the lease, but they must give you at lest 90 days notice prior to eviction proceedings. Once the lease expires, the owner must give you a 30 day notice in writing before proceeding in eviction court. (This is assuming that you are lease complaint and up to date on rent.)

NOTE: The sheriff’s office can and will evict tenants during the winter, with the exception if it is 15 degrees or snowing.

Can the bank or new owner put me out without a court date?
No. If anyone tries to evict you before taking you to court, then it is an illegal eviction, also known as a lockout. Call the police, file a police report (get officers name and badge #) and contact the Tenants Rights Hotline at 773-292-4988. If you receive a summons to court make sure to contact an attorney.

Will this eviction show on my record?
If you were evicted solely because of the foreclosure your attorney can petition the judge to seal the record. If you are evicted for nonpayment of rent, it will be on your record.

The bank offered me a “Cash for Keys” deal. What should I do?
Sometimes banks offer tenants a cash for keys deal in order to vacate the building more quickly. Evaluate the entire situation first and make sure you have enough time to find a safe and decent apartment. Make sure you get any deal in writing and talk to a lawyer before you sign. If the bank does not offer a settlement feel free to ask for one. However, be aware that many tenants are eligible for $10,600 under the KCRO, which is more than most banks will initially offer. Call us or contact an attorney before agreeing to any “Cash for Keys” deal.

How do I get my security deposit back?
If your tenancy is NOT governed by the Chicago Residential Landlord Tenant Ordinance (CRLTO): The bank is not responsible for your deposit. If you do not receive your security deposit back within 45 days of moving you can take your landlord to court. If you know your landlord is in foreclosure court or is about to lose the building ask for written permission to live out your security deposit. If you live out your deposit without permission you can be evicted for non-payment of rent. If your tenancy is CRLTO please see below.

Additional Information for tenants who are covered under the Chicago Residential Landlord Tenant Ordinance (CRLTO): If you live in Chicago, the Ordinance governs your tenancy unless you reside in:

  • An owner occupied building containing less than seven apartments;
  • A hotel, motel, inn, rooming house, or boarding house (unless you have resided there for more than 31 days and pay rent on a monthly basis); or
  • A hospital, convent, monastery, school dormitory, temporary overnight or transitional shelter, cooperative, or
  • A building owned by your employer (assuming your right to live there is conditioned upon you being employed in or around the building).

What happens to my security deposit?
In the event that the building is lost to foreclosure, the lender is responsible if the landlord fails to return the security deposit.

Are landlords required to tell their tenants that their building is in foreclosure?
If your tenancy is governed by the CRLTO: The landlord is required to tell current tenants about foreclosure filings within seven days of being served with a foreclosure complaint. The landlord must also inform any potential tenants before they move in. Tenants who were not properly informed about the foreclosure can sue for $200 in damages and/or terminate their leases.

Additional References:
Building Inspectors: Call 311 for an inspection if you have repairs that need to be made or are lacking utilities.
If you need assistance moving or with a security deposit call 311 and inform them that your landlord is in foreclosure.

Request an inspection online

Lawyers Committee for Better Housing: (312)-347-7600

Legal Assistance Foundation (Subsidized Tenants): (312)-341-1070

Sheriffs Eviction Unit: (312)-603-3365

Chancery Court: (312)-603-5133

Metropolitan Tenants Organization Tenants’ Rights Hotline: (773)-292-4988 Open: Mon-Fri, 1-5pm

Chicago Legal Clinic: (773)-731-1762

Citizens Utility Board: 1-800-669-5556