The Habitat Company is cutting ties with the Chicago Housing Authority after nearly 40 years of doing business together.
The Chicago-based property management firm, responsible for overseeing 3,400 public housing units, informed the CHA in a letter dated Sept. 6 that it was winding down its partnership with the agency and would not be extending its soon-to-expire contracts, the Chicago Tribune reported.
“In recent years, we have observed significant changes within CHA that, unfortunately, have caused the good working relationship, and the collegial and respectful interaction that we once enjoyed as CHA’s private property manager, largely to disappear,” Habitat president Matthew Fiascone wrote.
Among Habitat’s grievances is CHA’s demand that the firm secure its own liability insurance for the properties it manages, something Fiascone called “customary” for CHA to cover.
Further complicating matters was CHA’s mishandling of its request to extend the contract. Fiascone noted in his letter that the request was sent to an administrative assistant, who was on leave, rather than to Habitat’s senior leadership, causing the agency to miss the Aug. 31 deadline.
Habitat initially offered to continue managing the properties until Nov. 1, allowing time for a transition. However, CHA CEO Tracey Scott countered that the timeline violated the contract requirement for 120 days’ notice. The two entities have worked together since 1987.
Scott acknowledged the clerical mistake but proposed extending the transition period to Jan. 6, allowing the agency time to secure new property managers for the 16 buildings Habitat oversees, many of which house vulnerable populations such as seniors and individuals with disabilities.
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CHA has assured residents that they are working to secure a new property manager and have begun communicating with tenants about the upcoming changes. The agency does not expect an “adverse impact” on residents during the transition, a CHA spokesperson said.
“For many years, our partnership with the CHA was mutually beneficial and an advantage to the residents,” a Habitat spokesperson told the outlet. “However, given the current challenges at the CHA, we no longer believe this partnership is in the best interest of Habitat or the residents.”
— Andrew Terrell