Home Remodeler Agrees to $2.2M Settlement With City of Chicago

Home renovation contractor ResiPro has agreed to pay a $2.2 million settlement in response to a lawsuit filed by the city of Chicago.

The lawsuit accused ResiPro and its parent company, ResiCap, of repeatedly flouting the city’s building permit regulations, the Chicago Sun-Times reported.

The agreement, announced Friday, brings an end to complaints dating back to 2018. The Chicago Law and Building departments uncovered over 170 cases in which ResiPro operated without permits or conducted renovations exceeding the scope of the city’s Easy Permit system. They included instances of disregarding stop-work orders and employing unlicensed tradespeople.

The properties affected by ResiPro’s actions were widespread across Chicago, primarily concentrated in South and West side neighborhoods. Many of the properties were owned by private equity firm Lone Star Funds.

“Building permits serve a very important purpose. They ensure that construction work being performed in the City of Chicago meets building code standards that keep us safe,” Mayor Brandon Johnson said.

As part of the settlement, a $1.66 million restitution fund has been established for eligible homeowners impacted by ResiPro’s malpractice. Homeowners can claim between $1,000 to $10,000 based on the severity of substandard work uncovered during free private inspections.

ResiPro and ResiCap, while admitting no wrongdoing, affirmed that they no longer operate in Chicago. However, if they resume operations in the city within the next five years, they are obligated to inform the Law Department.

The lawsuit claimed that ResiPro prioritized rapid work completion to facilitate quick property turnover or bundling for investors. The city highlighted instances of shoddy construction and permit evasion, with former quality control inspector Timothy Haggerty providing crucial whistleblower assistance, the outlet reported.

Haggerty, who will receive $90,720 as part of the settlement, was pressured to approve subpar work in some cases, the lawsuit says. The city’s corporation counsel, Mary Richardson-Lowry, condemned ResiPro’s actions as “unlawful and reckless conduct” driven by profit motives.

—Quinn Donoghue