Freddie Mac is under scrutiny for its management practices at the Ellis Lakeview building, located at 4624 South Ellis Avenue in Kenwood.
The 105-unit rental complex was seized from its previous owners implicated in a federal real estate fraud investigation last year.
In early October, tenants filed a lawsuit against Freddie Mac and its property management firm, Ansonia Management, accusing them of unlawful eviction practices in retaliation against residents voicing complaints.
Before Freddie Mac took control, the Ellis Lakeview tenants had been battling numerous issues stemming from the previous management.
The tenants had pressed Freddie Mac to assume control, citing severe mismanagement as the main issue.
However, they now contend conditions have not significantly improved since the foreclosure process was completed.
The lawsuit includes claims from fourteen tenants about severe infestation problems, describing the presence of roaches and mice throughout the building, particularly in hallways.
The tenants assert that there are extensive building-wide infestations that have gone unaddressed under Freddie’s management.
Additionally, they report persistent problems with elevator malfunctions and heating systems that fail to provide adequate warmth during cold nights.
In light of these ongoing issues, the tenants began withholding parts of their rent, following the provisions set forth in Chicago’s Residential Landlord Tenant Ordinance, which outlines necessary standards for rental properties.
As a result, at least 15 tenants now find themselves facing eviction proceedings, despite having an injunction to contest these moves, arguing their actions to withhold rent were justified.
Many of these tenants rely on federal subsidies, provided through programs managed by the Department of Housing and Urban Development, to assist with their rent payments.
In their lawsuit, they allege violations of HUD tenant organizing protections, claiming that they received termination notices after exercising their right to reduce their rent under the established ordinance.
Legal representation for the tenants is being provided by attorney Peter Luck of the nonprofit organization Beyond Legal Aid.
Though tenants have experienced some successes, including new hot water systems, roof repairs, and the introduction of on-site security staff, their demands extend beyond immediate fixes.
They are currently advocating for a formal agreement with Freddie Mac, proposing that any new owner of the property should be obligated to enter a contract that allows residents to participate in determining standards for rehabilitation, security, and management practices.
This demand is underscored by concerns that the newly implemented security measures could easily be removed in the future.
Currently, Freddie Mac is in the process of seeking a new owner for Ellis Lakeview, although the sale potential remains uncertain after the agency successfully bid $12.4 million at foreclosure auction following a lengthy litigation process over loan defaults tied to previous owners.
Tenant leader Laprena Brown expressed the sentiments of her fellow residents, stating, “We worked too long, too hard, and we’ve been through too much to just go through it all again.”
As the case progresses, the outcome could significantly impact both the current residents and the future management of the Ellis Lakeview building.
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