ANOTHER URGENT UPDATE: THANKS TO TRUE NEWS USA, 19TH WARD ALDERMAN MATT O'SHEA REACTS - If true this will single handedly destroy the Mt. Greenwood and West Beverly neighborhoods - Not due to racial stereotypes but proven statistics about Section 8 Housing (Government Public Housing) - 3225 West 111th Street being completely remodeled & converted into Black Section 8 Housing Units

BREAKING NEWS: CHA / SUBSIDIZED HOUSING  HALTS PLACEMENT TO 3225 West 111th Street

THANKS TO TRUE NEWS USA for bringing this issue to light! 

In response to a series of questions raised by our community last week, the Chicago Housing Authority (CHA) has agreed to stop placing subsidized housing tenants in the building at 3225 W. 111th St.  While the property owner's original contract allowed for each of the building's sixteen apartments to be filled by the CHA, currently only five tenants are in place.  Not only will the CHA to stop future placements at this location, but is also taking actions to significantly reduce from $1200 to approximately $780 the amount of monthly rent paid to the landlord for the existing tenants.

In December 2012, McInerney & McBrearty, a joint venture whose president, Edward McBrearty is a Mt. Greenwood resident, sold the mixed-use building at 3225 W. 111th St. to Chestnut Investments, LLC. In March 2013, Chestnut's agent, Noah Gottlieb, met with me to discuss future plans for the property; at that time, Gottlieb pledged that all existing tenants were welcome to stay in the building moving forward, and a that range of modest improvements and upgrades were planned for the units.

Since then, it has become clear that Mr. Gottlieb's true intentions were always to remove existing tenants and enroll in a CHA subsidized housing program.  Upon bringing a CHA subsidized tenant into the building, Chestnut immediately doubles the rent, from $600 to $1200 per month, for that unit. Those actions not only conflict with the City of Chicago and the CHA's mission for affordable housing, but also use taxpayer dollars to fund substantial rent increases.

Amid growing frustration with the situation, I contacted to Mayor Emanuel and several members of the CHA Board of Directors.  Amongst many issues raised, I specifically noted the dishonesty of Mr. Gottlieb, conversion of units that were already providing affordable housing into the CHA system, and increased rental rates that are out of line with the fair market value. Also included was an analysis of the comparable properties used by Chestnut to justify a $1200 monthly rent.

Upon a review of the facts provided, the CHA took swift action against Chestnut Investments to address the situation. Currently, an internal review of this property is underway. Once all issues related to 3225 W. 111th St. have been addressed, I will push for an investigation into any other Chestnut properties in the CHA system.

Thanks to Mayor Emanuel, CHA CEO Charles Woodyard, and Chief of Staff Amy Gempeler for acting quickly to address this situation. For more information about this issue, please contact the 19th Ward Office at (773) 238-8766.

Sincerely,

Matt O'Shea

Alderman, 19th Ward

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In December 2012, Chestnut Investments, LLC purchased the building at 3225 W. 111th

St. In March, I met with Noah Gottlieb to discuss Chestnut's plans for this property
and was assured that the existing tenants would be welcome to stay in the building
moving forward.  Since then, it has become clear that Mr. Gottlieb was lying, and
that his intentions were always to force out the existing tenants and enroll the
building in a CHA housing program.

Currently, four of the sixteen units have been converted. In doing so, Mr. Gottlieb
has not only displaced former tenants, but has also doubled the rent. To me, these
actions are in conflict with both the City of Chicago and the CHA's mission for
affordable housing. Moreover, I have serious concerns regarding the use of taxpayer
dollars to subsidize significant rent increases.

This morning, I sent this letter

CLICK HERE TO READ ALD. MATT O'SHEA'S LETTER

to Mayor Emanuel and the Board of Directors of the CHA calling for an immediate
halt to any placements at this location pending a thorough review of these two issues.
The CHA has agreed to review their contract with Chestnut Investments, LLC and explore
all possible options in light of the issues raised here. In the coming days, I will
remain in regular contact with the CHA as we work towards a resolution.

Moreover, my office continues to collect information about comparable rental properties
to bolster our position regarding rental rates. If you have specific information
about rental units in Mt. Greenwood, please e-mail my office with the address,
number of bedrooms, square footage, and current rental rate. This information will
help present a more accurate picture of fair market rental values for the CHA.

Thank you for your patience; I will continue to work on your behalf and update you
as I learn more about this important community issue.

Sincerely,
Matt O'Shea
Alderman, 19th Ward

Word is that this many unit apartment building is currently being gutted and remodeled and will be Section 8 Housing for black residents who were once residing in CHA Project Buildings???????

The apartment building was recently sold to an investment group looking to maximize their monthly rent and tax incentives to earn the optimal amount of monthly revenue off their purchase.

This apartment building located at 3225 West 111th Street is located just a few doors west of Alderman Matt O'Shea & Fran Hurley's office.

I would strongly urge everybody to call Alderman Matt O'Shea & State Rep. Fran Hurley Monday morning and ask what is truly the plans for this apartment complex.

If this building does in fact does go Section 8, there will be an overnight influx of a hundred or more inner city welfare project dwellers residing in this complex.