Since the housing crisis began, many for-sale single-family homes (SFHs) in the region have become rental units or are now vacant. This has diverse implications for how the region’s communities recover from the housing crisis and manage a housing stock that has traditionally been owner-occupied. Recent data from the American Community Survey (ACS), which provides a rolling...
Tenant Issues
Renters are often absent from the debate about how to help those affected by foreclosures. However, just like in the single family market, foreclosures on multifamily buildings are rising at record rates and concentrating in low- to moderate-income communities.
While a federal law passed in 2009 gave protections to renters in foreclosure, such as the survival of the lease beyond foreclosure and at least 90 days of notice before month-to-month tenants have to move, many tenants are not aware of these rights. Some tenants are not notified that their buildings are in foreclosure, and even if they are, it can be unclear to whom tenants should pay rent. Some tenants receive inaccurate information from the new owners stating that tenants have less time to move than they actually have. During and after the foreclosure process, new owners can be reluctant to maintain the property and tenants may not know who to contact for repairs. Tenants may accept offers of money in exchange for moving, without fully realizing what rights they are waiving or what are their other options. While there are federal programs in place to return single-family or small owner-occupied multifamily properties to productive use, there are few resources available for large or investor-owned multifamily properties, risking the loss of a great number of affordable housing units.
There must be stronger provisions in place to require lenders and servicers who take over ownership of multifamily rental properties to maintain these properties, collect rent, pay utilities, and notify tenants of a contact person who handles those services. Programs need to be developed to maintain and redevelop multifamily housing after foreclosure and preserve the affordable housing stock.
This page details the efforts of Regional HOPI partners to directly assist tenants in foreclosure, document the effects of the foreclosure crisis on multifamily properties in the Chicago region, and advocate for stronger policy solutions.
As the foreclosure crisis enters its seventh year, a growing number of single-family homes in the Chicago metropolitan area – some already foreclosed, some in the process of foreclosure – are being rented. Some are being rented by people who have lost their homes, while others are being rented by lenders or investors who have taken title to foreclosed properties.
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In the wake of the housing crisis, the need for a sufficient supply of quality, affordable, and stable rental housing has become increasingly important. The newest release of The State of Rental Housing in Cook County examines shifting patterns of renter and...
Owners of multifamily properties in the Northwest Cook County recently found a pleasant surprise in their mailboxes: Rather than a dreaded code enforcement notice, tax bill, or any other citation or invoice, they received an unprecedented invitation to discuss the long-term sustainability of their properties with municipal leaders on Nov. 17.
Those who accepted the...
By the DePaul Institute for Housing Studies
Four in ten Cook County residents are renters, yet to date much of the discussion about the housing crisis has focused on its effects on current and potential homeowners. This report examines how changes in the housing market over the last decade have affected renters and, in particular, access to affordable rental...
By the Lawyers' Committee for Better Housing
Report
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By the Government Accountability Office
What GAO Found
From 1994 through 2011, the multifamily loan activities of Fannie Mae and Freddie Mac (the enterprises) generally increased. In this period, Fannie Mae held a lower percentage of multifamily loans in its portfolio than Freddie Mac. While the enterprises’ multifamily business operations generally...
The foreclosure crisis left many communities with a dilemma: vacant homes are accumulating quickly at the same time as fewer and fewer people can qualify for mortgages to buy those homes. What can be done with the growing inventory of vacant, abandoned homes? One solution gathering attention is renting out single-family homes, but some communities are wary due to a history with irresponsible...
The Chicago region saw the highest year-over-year growth in completed foreclosure auctions since the beginning of the foreclosure crisis, new 2012 data from Woodstock Institute show. Foreclosure auctions, which signal the completion of the foreclosure process, grew by 73.8...
The foreclosure crisis has received close attention; however, there is insufficient examination of how this crisis has negatively affected tenants who rent units from landlords facing foreclosure. Particularly in urban areas with large rental populations, the impact of foreclosure on...