Tag Archives: investigative reporting

Dwindling SROs: Hotel Chateau residents fear they’ll soon be homeless

31 Jan

Margaret and Tony don’t have much, but they get by. Sometimes, Tony jokes, their 12-year-old cat, Jason, eats better than them.

Margaret’s rough hands look like they’ve been scrubbed clean, almost to the point of being painful. She has the kind of manners that make you think she was brought up by a very attentive mother—please, thank you and pardon me.

She manages polite conversation, even though she’s terribly worried. Tony is too. They live at Hotel Chateau, a single-room-occupancy building in East Lakeview, and it’s recently been sold. If the Chateau goes the way of the handful of other SRO buildings nearby, the couple will soon be priced out.

Tony and Margaret’s names have been changed to protect their identity because they fear they’ll be kicked out of the building. Together, they survive on $1,066 a month, with each getting $533 in disability checks. Margaret has epilepsy. Tony has a hearing problem. They’ve been married for 12 years, throughout which they’ve moved from place to place in Chicago every couple of years as the rent became unaffordable.

They don’t love living at the Chateau, but it’s a roof over their head. When Tony talks about his neighbors, many of whom are drug addicts and alcoholics, he hesitates to bad-mouth them, knowing they need a place to live too.

“Let’s just say that some of our neighbors leave something to be desired,” he says.

What will happen to Margaret, Tony and their more undesirable neighbors? Local residents are trying to figure that out.

Their Day In Court

At a Tuesday court hearing, residents found out that the Chateau will be vacated and gutted. The hearing was on the building’s code violations, but residents had hoped to learn more about the sale.

In fact, 46th Ward Alderman James Cappleman had previously said more information about the owners would be revealed at the court hearing. But on Tuesday, Cappleman instead declined to state the buyer’s name, saying he had promised the new owner not to reveal the identity.

The Chicago Reporter asked Cappleman why he would make such a promise, given that Chateau residents, his constituents, are anxious about the building’s fate. He waved his hand and said, “There’s something called the First Amendment.”

Cappleman also said he wasn’t sure when the owner’s name would be disclosed. He emphasized the Chateau’s current condition was hazardous to its residents.

“My focus right now is on saving people’s lives,” said Cappleman. “My first priority is that the residents are safe.”

The Chateau has been in housing court ever since an inspection in the fall found numerous building violations, including problems with fire escapes, smoke alarms and trash piling up in hallways and garbage chutes.

A new corporation named 3838 North Broadway, the Chateau’s address, was established on Jan. 3, according to the Illinois Corporations Database, which is part of the Secretary of State’s Office. It’s not clear who owns that business, though the database listed attorney Gerard Walsh as its registered agent. Walsh did not answer his phone or return voicemails seeking comment. The attorney who represented the corporation in court, Mitchell Asher, declined to comment on the identity of the building’s new owner.

Real estate mogul Jamie Purcell of BJB Properties has already purchased four former SROs in the neighborhood–the Ambers, the Bel-Air, the Sheffield and the Abbott. All of those buildings have been vacated, rehabbed and are being reopened as high-end studio apartment buildings that are not affordable for Margaret and Tony, who pay $575 a month at the Chateau. Purcell did not return several voicemails the Reporter left at his Park Ridge office.

Searching For Home

Meanwhile, Margaret and Tony are looking for another place to live, but they are not too optimistic. Most nonprofits or programs that have low-income housing don’t allow couples to live together. Or they have a long waiting list.

“We are on a number of waiting lists,” says Margaret.

When they hear that neighborhood residents are afraid of the people who live at the Chateau, they sympathize. They’re often bothered by their neighbors too.

But among the 138 rooms at the Chateau, they say, are people like themselves—working-class people, poor people, ordinary people who do not have any other place to go.

Chester Kropidlowski is one of those in the neighborhood who’s bothered by Chateau patrons. Some of them, he says, panhandle in front of the building; others loiter there too or at a bus shelter nearby. Neighbors feel the building’s residents contribute to crime in the area.

But Kropidlowski also recognizes that there are people whom he described as “poor souls” living at the Chateau and causing no trouble. He contends that the big problem is how the building is managed.

“The same person has owned it for many, many years,” says Kropidlowski, president of the board of the local neighborhood group, East Lake View Neighbors. “Apparently, the person lives in a gated community in Florida, impossible to contact, and he has only responded to concerns in the past when he had no other choice.”

Kropidlowski is referring to Jack Gore, who has owned other troubled Chicago SROs. In 2008, Gore relinquished ownership of the Diplomat Hotel, also in Lakeview, when the building began to rack up fines from code violations. The business number for Gore at Cedar Hotel has been disconnected. Gore’s lawyer, Leon Wexler, confirmed Gore no longer owns the Chateau, but he wouldn’t comment further.

A Safe Haven, A Safe Community

It’s clear the Chateau isn’t the neighborhood’s favorite, but Kropidlowski hopes it can be turned into something he and others would be “proud to have in the community.”

In essence, Kropidlowski, Margaret and Tony all want the same thing–a safe Hotel Chateau and a safe neighborhood. It’s just that getting it will likely mean Margaret and Tony can no longer live there.

“They’ll straighten it up, and then they’re going to charge a lot more money,” says Margaret.

Sreya Sarkar has noticed the decline of available SRO housing in the neighborhood in her job as education and advocacy director at Lakeview Pantry, a food pantry that sits across the street from the Chateau. She estimates that Lakeview has lost at least 400 affordable units over the last two years.

Working at the pantry, she gets to meet plenty of Chateau residents like Margaret and Tony.

“They’re good citizens,” says Sarkar. “They don’t cause trouble. They don’t have substance abuse issues. They want to live peacefully there. They just don’t have another place to go to because other SROs have closed down.”

A local group that advocates for affordable housing, Lakeview Action Coalition, is hoping it can convince the hotel’s new owner to keep at least part of the building affordable. Bharathi Gunasekaran, a housing organizer with the coalition, says many of the Chateau’s tenants come from other places nearby that have closed.

“A lot of people have moved from one SRO to another as they’ve been closing,” says Gunasekaran.

Gunasekaran was upset to hear that the building would be vacated.

“Once the residents move out, they have no chance of moving back in,” she said.

After the court hearing, residents of the Chateau surrounded Cappleman, questioning him about the building’s future and their own. When Cappleman replied that he was working with the Chicago Department of Family and Supportive Services to help residents find housing, all Margaret could do was sigh.

“We’re going to end up on the street,” she said.

First posted at Chicago Muckrakers on Jan. 31, 2013

Advertisements

Unlucky 13

1 May

An increasing number of people are turning to bankruptcy for a fresh start, but many are leaving themselves susceptible to more debt by opting for a Chapter 13 protection, which has a high failure rate.

Freeman Hess sits at the dining room table in his brick bungalow in Roseland on Chicago’s South Side. At 78, his gray hair is thin and fuzzy, like the coating of a peach, but his arms are muscular. He hasn’t lost the physical strength he acquired from operating a forklift for Cook County for 43 years. But in all his years of work, starting off picking cotton in Brownsville, Tenn., and coming to Chicago for better opportunities, he never imagined retirement being so stressful.

“I manage,” says Hess, his jaw tense. “But sometimes I just don’t have the money to pay my bills. They are taking it all.”

“They” is a collection of people—his lawyers, his creditors and the bankruptcy trustee. Hess filed for bankruptcy two years ago, and ever since, he’s been paying $1,090 a month, the majority of his income, to try and get rid of his debt, with two more years to go.

With the economic downturn, many Cook County residents are facing a similar situation: less money coming in, and more bills than they can handle. And more people, like Hess, are turning to bankruptcy for relief.

But many, particularly those in black communities, have been filing Chapter 13 bankruptcy, which carries a high risk of failure, leaving themselves vulnerable to end up with yet another mountain of debt, instead of a fresh start.

According to new data supplied to The Chicago Reporter by the Chicago-based Woodstock Institute, nearly a third of all bankruptcies in Cook County were filed under Chapter 13. Among filers living in communities where African Americans made up more than 80 percent of the population, the rate was much higher, with nearly a half of bankruptcies filed under Chapter 13.

Read more at The Chicago Reporter…