Investigations
Chicago Has Spent $4M Fighting an Accessible Housing Lawsuit – a Case That Could Block a $7M Federal Grant
(Michael Izquierdo / WTTW News)
The city of Chicago has spent more than $4 million paying outside attorneys to fight a lawsuit that slams the city for failing to make its affordable housing program accessible.
In addition to the legal costs, the case could also jeopardize the city’s chance at millions of dollars in grant money from the U.S. Department of Housing and Urban Development.
That grant cash could be a no-go because the U.S. Department of Justice has sided with the plaintiffs, who argue Chicago’s never bothered to make sure its affordable housing portfolio accommodates people with disabilities.
Earlier this month, the city sent in its proposal for HUD’s Pathways to Removing Obstacles to Housing grant program, which awards municipalities up to $7 million to help create and preserve affordable housing. Among the program’s eligibility requirements is that applicants can’t be subject to what’s known as a statement of interest from the DOJ in a pending lawsuit.
But Chicago has been hit with just such a statement in a case dating back to 2018. The lawsuit, brought by the disability advocacy organization Access Living, contends that the city’s affordable housing portfolio doesn’t have the required number of accessible units featuring things like grab bars in bathrooms and doorways wide enough to accommodate a wheelchair.
It also accuses Chicago of failing to adequately market accessible units to people with disabilities and ensure they’re the ones who get to live in those homes. The complaint argues Chicago – which receives some $100 million each year toward its affordable housing efforts – is breaking the Americans with Disabilities Act, the Rehabilitation Act and the Fair Housing Act.
“People with disabilities should be fully integrated into community settings and not be left to live in places like nursing homes and assisted living and homeless shelters,” said Michael Allen, a partner with the firm Relman Colfax who’s representing Access Living. “They shouldn’t be required to live in housing where the conditions are dangerous for them getting in and out of their units every day, climbing stairs or whatever the case may be.”
Allen says Access Living came up with a settlement proposal shortly after the suit was filed, but that the city hasn’t engaged with them. Since 2018, records obtained by WTTW News show Chicago has paid $4.1 million to the law firms Fox Rothschild and Jackson Lewis to defend the city from the disability advocates.
Last year, attorneys for the city filed a motion for summary judgment, asking a federal court to rule in Chicago’s favor without a trial. They contend the city’s affordable housing offerings don’t constitute an official program or activity under applicable law, and that Chicago can’t be held liable for failures of privately owned and managed buildings.
But Judge Edmond Chang didn’t go for that argument, ruling against the city and calling for the parties to settle.
“(Chicago) may not avoid liability by framing its role in the affordable housing scheme as merely providing funding and tax credits to developers in a way that blanketly absolves the City from its own duty of complying with the federal accessibility laws,” Chang wrote. “Indeed, the City has a regulatory obligation to ensure that the private developers comply with the federal accessibility laws.”
Chang’s skepticism was echoed by the local U.S. Attorney’s office, which last year filed a statement of interest bolstering Access Living’s arguments.
“Chicago has the authority, obligation, and ability to ensure the private developers it contracts with provide housing that is both affordable and accessible,” federal attorneys wrote in their filing.
That statement doesn’t just help Access Living’s case – it throws a wrench into the city’s hopes to pull in millions in additional HUD funding.
In a statement, a spokesperson for the city’s Housing Department said the final application filed with HUD “included updates on the City’s need for more affordable housing funding, more accessible affordable housing, and an acknowledgement that the DOJ had filed a statement of interest involving a nearly five-year-old Access Living lawsuit involving certain City of Chicago affordable housing practices.”
The spokesperson said grants like this one are “are a critical way for the City to expand affordable housing production, further fair housing goals, and make affordable units more equitably accessible for all prospective tenants. City eligibility for the funding will be determined by HUD.”
HUD does not comment on active grant competitions due to ethical restrictions.
Judge Chang has ordered the city and Access Living to update the court next month on the status of the case. Attorney Allen noted that New Orleans took itself out of the running for HUD grants over a fair housing lawsuit, and said he hopes the city will engage fully in settlement talks.
“Our hope is … that we’ll get to a remedy that will fix what the city should have been doing all along, which will require substantial investment in producing thousands of units that do in fact comply with these accessibility requirements,” Allen said, “and finally that there would be policies once those units are built to make sure that they are prioritized for and held for people who need the accessibility features.”
Contact Nick Blumberg: [email protected] | (773) 509-5434 | @ndblumberg
