Chicago Housing Authority was owed more than $10 million in late rent, watchdog finds
CHICAGO - Nearly 1,400 residents of Chicago Housing Authority properties were, on average, nearly two years behind on their rent with little enforcement to collect the money, according to a report from an agency watchdog.
In total, the housing authority was owed more than $10.4 million in late rent as of March 1, 2024, according to the report from the agency’s Office of Inspector General.
Despite the hundreds of tenants who were at least four months behind on their rent, the CHA legal office had only 124 pending eviction cases for nonpayment as of Feb. 16, 2024, the watchdog found.
Lack of tracking, enforcement
What we know:
The inspector general found that the CHA doesn’t have a centralized database accessible to its private property management company or legal department that tracks the status of lease enforcement actions or tenants’ eviction cases.
"The lack of coordination negatively impacts CHA’s tracking and enforcement of rent payments and can interfere with the accuracy of tenant ledgers," the report states.
The inspector general recommended the CHA regularly and proactively review delinquent accounts. The watchdog also recommended that the CHA should use its available tools to better track cases in which the tenant is late on rent.
The CHA’s legal department told the inspector general that its litigation division does track eviction cases in a log. The legal department said it anticipated many more cases being added to its log.
The other side:
In a statement, a CHA spokesperson said the agency views eviction as a "last resort."
Before pursuing an eviction case, the CHA works with tenants who are behind on rent to set up a payment plan, refer them to financial counseling and nonprofit legal representation, or find other forms of support.
"We understand that many of our residents face financial hardships and we are committed to identifying solutions and keeping them housed. We encourage residents to communicate with us early as situations arise," the agency said. "All across the country, landlords and tenants navigate the complicated issues of past-due rent and evictions – CHA is no different."
The Chicago Housing Authority is the third-largest public housing authority in the country and the largest single owner of rental housing in the city.
The agency provides homes to more than 65,000 households, including more than 134,000 residents, as of the third quarter of 2024.
About 83% of CHA households are categorized as having "extremely low income," or making $33,100 a year or less for a family of four, according to agency documents.
The CHA spokesperson also pointed out that during the COVID-19 pandemic, many public housing authorities saw lower rent collections, although the CHA fared better than other agencies.
"The CHA provides an invaluable resource to the City of Chicago and we do not take this responsibility lightly," the CHA said in its statement. "We will continue being transparent with the public, residents and stakeholders and take further accountability for our role in supporting those in need in Chicago."
What's next:
The CHA’s Property and Asset Management said it would emphasize with property managers the requirement to "regularly and proactively" review accounts of tenants who are late on rent.
The CHA was also implementing additional tracking software meant to help make the tracking process "more seamless" and accurate, although the watchdog report did not specify what kind of software.
An agency spokesperson said the CHA recognizes that there are some instances when it's necessary to pursue eviction cases. The CHA has recently hired more attorneys to handle evictions, he said.