Chicago Housing Authority has Poor Rent Collection Habits

The Chicago Housing Authority is grappling with millions in unpaid rent, as outdated technology and inconsistent enforcement practices inhibit its ability to collect rent.

The agency was owed $10.4 million from nearly 1,400 tenants by March of last year. Many tenants are unaware of overdue balances due to delayed notifications from CHA’s rent tracking system, the Chicago Tribune reported, citing a recent report from the CHA’s Office of the Inspector General.

The report points to CHA’s lack of a centralized database as a major problem. Without a single, unified system to track tenant accounts and evictions, coordination between the legal team and property managers has been inadequate. The inspector general recommended that CHA implement a more efficient system to ensure better tracking and consistency in lease enforcement efforts.

CHA officials have acknowledged the problems and outlined steps to address them. The agency is in the process of improving its technology infrastructure and has hired more attorneys to manage eviction cases.

As of February 2024, there were 124 eviction cases pending due to nonpayment. That number more than doubled to 253 by this month, underscoring the growing challenge CHA faces in enforcing rent payments.

Leadership shakeups have also affected CHA’s ability to resolve its problems. Former CEO Tracey Scott resigned amid criticism in October, and the agency has been without a permanent chief executive. Angela Hurlock, chair of CHA’s board of commissioners, is serving as interim CEO.

The housing authority is facing other challenges beyond the backlog of rent. It was ordered to pay over $24 million last month after a lawsuit revealed it failed to warn tenants about hazardous lead paint in a Rogers Park apartment, which poisoned two children.

The jury found CHA liable but cleared the property managers, Habitat Company and East Lake Management Group. Despite these difficulties, CHA has maintained relatively high rent collection rates. The agency collected 94.5 percent of the $59.8 million in rent billed last year.

— Andrew Terrell