The federal investigation of Alderman Carrie Austin (34th) is eyeing her purchase of a home in her ward from a local developer.
FBI agents raided Austin’s ward office Wednesday, and part of a grand jury subpoena, obtained by the Chicago Tribune, sought records relating to a home in the 12200 block of South Laflin Street in West Pullman.
Austin bought a 2,900-square-foot home on the block from JTA Development for $236,000 in October, records show, using a $231,000 mortgage from Wintrust. Building permit documents for the home estimated it would cost $300,000.
So far Austin has not been charged with a crime. She did not return calls seeking comment from the Tribune.
JTA’s president, John Powen, told the newspaper he was aware of the investigation but didn’t think the home sale was a focus of the probe. JTA developed Renaissance Estates in Austin’s ward, building dozens of new-construction townhomes on previously vacant land.
The subpoena also sought records on projects in the 34th Ward, including Renaissance Estates, along with documents relating to companies, including Koal Enterprises, Mako Properties, Maxwell Services and Oakk Construction, according to the Tribune.
City Council approved a total of $5.5 million in tax-increment financing for cleanup and infrastructure work in Renaissance Estates.
Wednesday’s raid came weeks after fellow Alderman Ed Burke (14th) was indicted on charges he extorted developers for property tax appeals work for his private law firm. [Chicago Tribune] — John O’Brien