Nearly two weeks after a private meeting between city officials, the property owner and residents about the unlivable conditions of the building at 6952-58 S. Paxton Ave. in South Shore, the city has filed a lawsuit against the owners of the courtyard building formerly managed by CKO Real Estate.
The City of Chicago filed the complaint with the Illinois Municipal Department of the Circuit Court of Cook County on April 22, alleging that the owners of the apartment complex on Paxton Avenue failed to comply with multiple municipal codes for the city. The defendants are listed as GRV Jackson Park LLC, the owner; Merchants Bank of Indiana, the mortgage company; and unknown owners and non-record claimants.
The city also filed an emergency petition to appoint a receiver, alleging “that dangerous and hazardous conditions exist” at 6952-58 S. Paxton Ave. The petition also states that “these dangerous and hazardous conditions pose an imminent threat of irreparable harm and injury to the health, safety and welfare of the public and occupants” of the property.
If granted by the Circuit Court of Cook County, the emergency petition would transfer possession of the property to a court-appointed receiver to create a feasibility study “regarding the care, management, and repair of the subject property.” The receiver would have to “correct conditions that fail to conform to minimum standards of health and safety;” and make needed repairs, among other duties.
In reaction to the city’s filings, Southside Together organizer Sahar Punjwani said that she feels the city needs to do more to alert tenants of these actions. Punjwani attended the private meeting on April 10 and is coordinating organizing efforts for the tenants of the former CKO-managed properties.
“It’s not being communicated how all of this will impact the tenants,” Punjwani said. “I think if the city wants to prioritize the safety of the tenants, which they’ve been saying they want to, it’s important for them to [include] the tenants in all of their plans, which means communicating with the tenants about any plans they have to condemn the building, communicating with the tenants about how receivership can impact them.”
According to the petition filed by the city, if vacating the property is deemed appropriate, the receiver would be authorized to provide relocation assistance to all tenants and occupants. The property comprises three stories and 31 apartment units, according to the lawsuit.
Punjwani also stated that the city has been giving property owners too much “leeway.” She says the owners of 6952-58 S. Paxton Ave. have problems at the other buildings they own, too.
In February, property management company CKO Real Estate told tenants that they shuttered its operations due to “internal corporate restructuring.” Since then, tenants in formerly CKO-managed buildings across the 5th and 7th wards say they have gone without heat and hot water. They want the city to hold CKO and the property owners accountable.
In addition to the emergency receivership petition and the filed complaint, the city has also summoned the principal of CKO Real Estate, Chikoo Patel, along with Merchants Bank of Indiana and other “unknown owners and non-record claimants” of the property at 6952-58 S. Paxton Ave., to court on April 29.
Patel did not respond to a request for comment on the summons. Patel previously told The TRiiBE he had not been associated with the South Shore buildings for “some months” and could not comment on the conditions of the properties. Earlier this month, a new property management company, Halsted Taylor, took over managing the building.
On April 10, residents of the former CKO-managed buildings and Southside Together say they attended a private meeting with Chicago Department of Buildings Commissioner Marlene Hopkins; a lawyer with the city’s legal department, Steven McKenzie; Ald. Desmon Yancy (5th Ward), one of the owners of the former CKO building at 6952-58 S. Paxton Ave., Lauren Lampert Wolkowicki; a Halsted Taylor representative, Kaylyn Fox; and the tenant liaison for the building owners Jerome Faulkner, according to a press release from Southside Together.
The TRiiBE reached out to Ald. Yancy, who confirmed he attended the private meeting. However, he said he didn’t recall hearing the city mention condemning the building at the meeting. He said he learned about this after meeting with Southside Together on April 22.
“My heart breaks for these tenants. I think it’s shameful when landlords are irresponsible and allow building maintenance to be neglected,” Yancy said in a text message. “Renters need more protection from bad landlords. I support the South Shore CBA, which has in it an Office of Tenant Advocacy, to provide a stopgap to prevent things like this from happening.”
The TRiiBE also reached out to Halsted Taylor, and is still awaiting responses.
At an April 22 press conference, tenants who attended the April 10 private meeting said they received a verbal agreement from Wolkowicki, the building owner, that they could break their leases without financial penalty and would not be responsible for back rent. Those tenants say they are waiting on a written confirmation on the agreement. Wolkowicki did not respond to a request for comment.
Carolyn Figueroa, a resident at the Paxton Avenue complex, said she has been dealing with water damage, radiator leakage, rodents and unsafe conditions in her apartment and throughout the building.
“I’ve been living in this building for the past two years in these conditions, and the city never put pressure on the landlord to fix the conditions so that I could [have a] livable home,” she said during the press conference.
Figueroa said that Faulkner told them that they would not be able to help out everyone living in the building. Faulkner did not respond to a request for comment.
According to filings with the city’s Building Permit and Inspection Records, 6952-58 S. Paxton Ave. recently failed an inspection on February 24. The violations include water damage due to leaking radiators and faulty windows.
During the press conference, Shirley Lonergan said she’s lived at the Paxton Avenue complex for eight months and soon discovered mold that she believes the landlord painted over. She said is scared to withhold rent because she doesn’t want an eviction on her record.
“CKO said they were gonna send somebody out here, never seen them. Next thing we know, they’re telling us that it’s the new owner,” Lonergan said.
Some of those residing in the formerly CKO-managed buildings have formed a tenant group to hold the management company responsible. Although they’ve previously laid out these demands, they are still waiting for the building owners to comply — and for the city to provide enforcement:
- Tenants need to receive new leases from the current management company with information on where to pay rent. These leases must be collectively bargained with the tenants.
- The owners must provide financial compensation of $1.25 million total to tenants for relocation to new units – the general amount inclusive of total rent that tenants paid, repairs/upkeep that tenants contributed out of pocket, and other expenses that accrued over the course of your ownership.
- The owners must provide reimbursement for the rent tenants paid in months when the building was unlivable.
- Tenants must have a face to face meeting with the new management company to discuss their concerns and how they want the buildings to be managed.
- The owners have to complete repairs in individual units and entire buildings, and if the repairs require people to move out, owners must provide a new, rehabbed building or pay for a hotel that tenants can move into as you complete the repairs. Tenants will not pay rent while the repairs are occurring if they have to leave their unit. The rent will not be increased in the temporary or newly repaired units.
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