Chicago's top affordable housing developer Brinshore Development is selling off nearly two and a half thousand units of subsidized housing across Chicago after years of strained relationships with the city's housing authority.
The developer had been warning the Chicago Housing Authority (CHA) for months that its properties were struggling due to issues with working with the agency. These problems stemmed from a complicated regulatory structure, inadequate resources, and the bureaucratic nature of the CHA itself.
Brinshore has warned the CHA about several key issues including true-up payments which are critical for financing their properties but have not been made in full on time. The developer claims that these late payments put it into constant default, causing significant deferred maintenance to be left unaddressed.
The firm had attempted to work with the CHA to refinance its properties but was unsuccessful. It has since stated that the decision to market 20 of its properties for sale is not due to dissatisfaction with the CHA or City of Chicago but rather a number of factors including regulatory hurdles and a lack of resources.
According to the CHA, about one-third of units at each Brinshore property are subsidized by the agency. In recent years, the CHA has faced challenges such as vacancies and maintenance issues, largely due to inadequate funding and management from the developers themselves.
The sale is the latest in a string of problems for Chicago’s housing authority which has struggled to find permanent leadership amid a contentious selection process involving Mayor Brandon Johnson's preferred candidate Walter Burnett.
The developer had been warning the Chicago Housing Authority (CHA) for months that its properties were struggling due to issues with working with the agency. These problems stemmed from a complicated regulatory structure, inadequate resources, and the bureaucratic nature of the CHA itself.
Brinshore has warned the CHA about several key issues including true-up payments which are critical for financing their properties but have not been made in full on time. The developer claims that these late payments put it into constant default, causing significant deferred maintenance to be left unaddressed.
The firm had attempted to work with the CHA to refinance its properties but was unsuccessful. It has since stated that the decision to market 20 of its properties for sale is not due to dissatisfaction with the CHA or City of Chicago but rather a number of factors including regulatory hurdles and a lack of resources.
According to the CHA, about one-third of units at each Brinshore property are subsidized by the agency. In recent years, the CHA has faced challenges such as vacancies and maintenance issues, largely due to inadequate funding and management from the developers themselves.
The sale is the latest in a string of problems for Chicago’s housing authority which has struggled to find permanent leadership amid a contentious selection process involving Mayor Brandon Johnson's preferred candidate Walter Burnett.
this is super worrying, brinshore dev's been warning cha about these issues for months and nobody seems to have done anything about it 
like what was the point of having all those subsidies if devs are just gonna walk away? 
and now the cha is left with a whole bunch of empty units that need maintenance but don't have the resources to do it 
meanwhile brinshore's just cashing out on the government's dime 
gotta wonder what kinda 'regulatory hurdles' are really going on here 
. The fact that this happens just as the CHA is trying to find permanent leadership doesn't exactly fill me with confidence in their ability to stabilize the housing market 
.
they're supposed to be helping people, not just watching as properties fall into disrepair. and now brinshore's got to deal with all these vacant units and deferred maintenance... it's a recipe for disaster.
. And now, 2.5k units are going to be sold? That's a lot of people who'll be affected by this sale 
. I guess we just have to hope that whoever buys these properties will take care of the tenants properly 
.
The city needs to figure out a way to make it work with developers instead of fighting them. 
, like what's gonna happen to all those families living in Brinshore properties? They're already struggling due to the delayed true-up payments from CHA and now they gotta worry about losing their homes too 
. Anyways, hope these families can find a way outta this mess without losin' their homes 
20k units just sold because the city was holding onto them too tight 
and meanwhile, the cha is still dealing with its own problems... i feel like there needs to be some kind of middle ground here. maybe the city can work out a better deal with brinshore so everyone wins? 
.
how's gonna affect all those ppl who got subsidized housing? 
. but seriously, gotta wonder how long it'll take for the city to figure out what's goin on & make some real changes 
. What's next? Are we gonna lose all our favorite content creators too? 
. It's just that they've been dealing with some major regulatory issues and lack of resources 
. And to be honest, it's kinda ridiculous that they can't even get their subsidized housing units financed properly 
?
According to a study by the Urban Institute, 63% of affordable housing units nationwide are occupied by renters who spend over 50% of their income on rent - that's like living paycheck to paycheck! 
.