Vacant city-owned property violates Chicago’s building ordinances

There are nearly 39,000 foreclosures in the city of Chicago, with 3,515 in November alone.  According to RealtyTrac, that makes Chicago first on the list of major cities with the most foreclosures.

To address this continuing crisis, the city and Cook County have passed ordinances to curb the neglect and malfeasance of bank and real estate owned (REO) properties.  According to Chicago’s vacant property guidelines owners must , “Maintain foundation, basements, crawlspaces, exterior walls, exterior windows and doors, roof, gutters, downspouts, scuppers, flashing, chimneys, flues outside stairs, steps, decks, verandas and balconies” (pursuant to section 13-12-135(b) of the municipal code).  If not, the owner of the property faces a fine of $500-1,000 for each offense, and every day after the violation continues as a separate and distinct offense.  Keep in mind the same fines apply toward interior, landscape, and security infractions.

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Ostensibly, the city is acting as an advocate on behalf of the numerous communities who have been afflicted by high levels of foreclosure and vacancy.  As commendable and proactive as these actions may be, the city has one problem; it is violating its own guidelines.

According to a June 30, 2009 ordinance, the city attempted to sell 9961 S. Charles St., in the Beverly/ Morgan Park area, to Essley Associates, LLC. for rehabilitation under the auspices of the city’s Preserving Communities Together (PCT) program.  The PCT program –run by Chicago’s Housing Department– encourages developers to procure a city-owned vacant property for $5,000 and pay all administrative costs at closing.  In turn, the developer must resell the rehabbed property to a qualified owner/ occupant within 12 months of the acquisition.

Essley, however, never took ownership of the house and it is still listed as a PCT property.  The cracked foundation, askew gutters, rippled porch, and damaged siding violate the city’s criterion for upkeep.  Which begs the question, does the city pay a penalty for these infractions?

MarketPro Property Management Consulting, Inc., of Homewood, IL, maintains the said property.  MarketPro also manages some of the city’s other PCT properties.  In total, they claim the city has entrusted them with 90 parcels, and highlight a roster of clients who are a redoubtable mix of the property management and real estate service firms.

Unfortunately, MarketPro’s negligence and the city’s lack of oversight on the 9900 block of S. Charles St. is a scar on this decent neighborhood.

A vacancy/foreclosure will undoubtedly affect a community’s housing stock, but if an owner and manager maintain the premises in the mold of the surrounding properties, it can mitigate some of the negative effects that come with an unoccupied home.

Such blatant disregard for a property by the city is unacceptable.  A dilapidated property jeopardizes the prospects for other sellers who must try to sell their home in the shadow of an eyesore.  In addition, the mandatory steel security panels on vacancies make the surrounding area more vulnerable to theft, violence, and marauding since the criminal element thrives off fear.

Regrettably, contractors such as MarketPro are doing a disservice to a city that is proactively pressuring banks and mortgage lenders to maintain their properties.  Be it ignorance or hypocrisy, the city of Chicago must act swiftly to rectify its duplicitous mismanagement of realty.  Without action, the Federal Housing Finance Agency’s suit against the city and its strict vacancy rules may end in severe embarrassment.