Banks foreclose on rentals in Sterling: Dozens on street as major landlord loses properties
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| The apartment complex in the 600 block of East Third Street in Sterling has been foreclosed on and its residents forced to move out. The building is one of six rental properties in foreclosure formerly owned by Sauk Valley Landlord Association board member Lonnie Chattic. (Alex T. Paschal/apaschal@svnmail.com) |
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STERLING – Dozens of renters and families either are or soon will be homeless, as banks foreclose on eight apartment buildings once owned by a major Sterling landlord.
Four rental properties formerly owned by Lonnie Chattic, a member of the board of directors of the Sauk Valley Landlord Association, have been repossessed by mortgage lenders – two buildings already ordered vacated – according to Whiteside County court documents.
A fifth apartment building is scheduled for sale at a Whiteside County sheriff’s sale next month, and three more properties now are the target of foreclosure papers in Whiteside County courts.
The evictions toss dozens into a housing system already stressed by a slumping economy and an influx of out-of-county residents looking for access to one of Whiteside County Housing Authority’s 285 rental vouchers.
“Affordable housing is our number-one need,” said Sandra Julifs, president and CEO of the Tri-Counties Opportunities Council. “It’s more of a problem now than it ever has been.”
Illinois cut homeless prevention money for Tri-County (which serves nine counties in northwest Illinois) from $100,000 in 2008 to $20,000 this year, Julifs said. “And we haven’t seen any money yet.”
Whiteside County Housing Authority has closed its yearlong waiting list for rent vouchers, Executive Director Lynn Deter said. And residents have to wait an average of 6 months – short by Illinois standards – for keys to one of the county’s 265 public units, she said.
The only emergency housing is available through Tri-County, either at its transitional shelter or through the Homeless Prevention Rehousing Program, a federally funded rent subsidy that provides up to 18 months’ rent for qualified applicants.
Chattic did not respond to several telephone calls and e-mails seeking comment. Her attorney also did not respond to two telephone messages.
Among the first buildings vacated was the yellow apartment building in the 600 block of East Third Street, once seven low-income units.
At least one obviously lived-in unit had a nearly full 35-gallon trash bin catching water as it dripped through a hole in its rotted, water-stained ceiling. It looked as though tenants, or possibly squatters, left hastily: Cigarette butts filled an ashtray next to an abandoned stuffed Elmo toy, a pair of brown loafers sat next to the kitchen counter, covered with dirty dishes and some stereo equipment.
Exactly how many residents will be out on the streets is difficult to determine.
All told, city officials estimate Chattic owned about 20 properties in and around Sterling – most geared toward low-income renters – before the foreclosures started rolling in, said Scott Shumard, Sterling’s city manager.
That City Hall has only a ballpark estimate on tenants – and no idea how many people will be affected – provides a glimpse of one of the many stumbling blocks officials have in keeping tabs on Sterling’s landlords.
Sterling City Council has spent months hammering out the details of a rental inspection ordinance. Currently under legal review is an ordinance that is essentially complaint-driven and gives code inspectors no authority to enter properties, Shumard said.
“It’s not as comprehensive as we would like it to be,” Shumard said of the proposed ordinance.
Among other provisions, Shumard wants a registry of landlords, renting permits with fees, systematic inspection of any rental property, and a provision that owners have a local agent to field complaints and maintenance issues.
But about the only tool to make it into the proposal is a basic curbside checklist for the city building code inspector.
The Landlord Association lobbied hard against most of the city’s requests, saying the laundry list of regulations would be overly burdensome and force rents to increase.
Association President Rod Klecker said that he was aware of Chattic’s financial difficulties and that it will not affect her ability to govern as a board member.
Foreclosed properties
Banks recently filed foreclosure papers on eight Sterling rental properties once owned by Lonnie Chattic, a director of the Sauk Valley Landlord Association. Six buildings have been foreclosed on, and two more are pending in court.
The foreclosed properties are:
■ 608 – 620 E. Third St.
■ 1001 Sixth Ave.
■ 711 E. 12th St.
■ 502 W. Sixth St.
■ 705 W. Fifth St.
■ 1104 Douglas Drive
Source: Whiteside County Court documents
Housing help
Rental assistance for up to 18 months is available through the Tri-County Opportunities Council’s Homeless Prevention Rehousing Program for qualified applicants. The agency also operates a transitional shelter in Sterling.
People must be homeless or have been evicted from their apartment with a demonstrable need.
Tri-County serves the nine counties of Bureau, Carroll, LaSalle, Lee, Marshall, Ogle, Putnam, Stark and Whiteside.
It can be reached at www.tcochelps.com or 800-323-5434.
Whiteside County Housing Authority has no emergency housing but does provide rental vouchers and operates 265 public housing units. Wait lists for apartments range from 3 months to a year, depending on the number of bedrooms needed.
Reach it at www.wcopha.org or 815-625-0581.
