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. 

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...

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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IHS Rental Housing Report
 
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...

 CHICAGO—Both foreclosure filings and foreclosure auctions declined substantially in the Chicago six county region between 2013 and 2014, new data from Woodstock Institute show. Foreclosure filings, which indicate the beginning of the foreclosure process, fell by 33.7 percent in the Chicago six county region between 2013 and 2014. Foreclosure auctions, which indicate the completion...

The Housing Market Conditions Report is released in conjunction with the annual update of the IHS Housing Market Indicators Data Portal. The objective of this report is to help users of the IHS Housing Market Indicators Data Portal understand how to interpret IHS market conditions indicators such as levels of...

Vision 2020 documents our strategic vision for the next five years, in which we dare ourselves to imagine more investments, impact, and transformation than what we have in the past 25 years.
 
Together, these documents share insights into how our ...

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 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...