Chicago assessed $619,000 of fines against more than 150 financial institutions in the first three months of the year for not following the city’s vacant building ordinance, according to figures released Wednesday.
In addition to the 2,500 violations issued, the city also said that the number of vacant properties registered with it since October, shortly before the retooled ordinance took effect, nearly doubled to 4,436. The data were in a letter from Mayor Rahm Emanuel to Alderman Pat Dowell (3rd), who led an effort last fall to revamp the city’s vacant property ordinance.
The mayor’s letter to the alderman came a day after the Federal Housing Finance Agency and the city were again in court, arguing over the legality of the city’s ordinance that took effect Nov. 19. The agency, which oversees Fannie Mae and Freddie Mac, sued the city in federal court in December, arguing that properties whose mortgages are backed by Fannie Mae and Freddie Mac are exempt because of the FHFA’s role as the entities’ sole regulator.
The city seeks to have the FHFA’s complaint dismissed while the FHFA seeks a summary judgment in its favor. In the interim, Fannie Mae and Freddie Mac have directed mortgage servicers to notify the city that they are paying all ordinance-associated fees under protest.
Despite the ordinance, some two-thirds of the estimated 18,000 vacant buildings in the city remain unregistered and some community groups are unimpressed with the city’s efforts.
On Saturday, more than 60 students from DePaul University and Steinmetz Academy will gather with area residents to improve the exterior of four vacant houses along a two-block stretch of North Narragansett Avenue in the city’s 36th Ward. None of the four, including two that have been vacant since 2010, appear to be registered and two of them are not secured, according to Vanessa Valentin, an organizer at the Northwest Side Housing Center.
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