Tag Archives: building code violations

Chicago Housing Crisis: Tenants Battle Invisible Landlords Behind LLCs

📌 Story Highlights

Chicago housing crisis: Tenants left in unsafe apartments for months.
LLC landlords shield owners: Identities of true property investors hidden.
Tenant union forms: Residents across 31 buildings unite under the CKO Tenant Union.
Rising trend: LLC ownership of Chicago multifamily buildings grew from 3% in 2006 to 16% in 2022.
Push for reform: Advocates call for a citywide rental registry to hold landlords accountable.

The Hidden Ownership Problem

Carter eventually discovered that his management company, CKO Real Estate, had abruptly shut down in February — leaving tenants stranded. Only months later did a new company step in to finish repairs. But even then, Carter still had no idea who truly owned his building.

County records revealed two names: 7655 S COLES LLC and SALINA INVESTMENT PARTNERS LLC. To tenants, those names meant little. Behind them were no visible landlords, no phone numbers, no clear point of accountability.

This, experts say, is at the heart of the Chicago housing crisis. Limited liability companies, or LLCs, increasingly dominate the rental market, shielding owners’ identities while insulating them from legal and financial exposure.

“This opacity makes it hard for members of a community to know who owns that terrible building that’s causing all kinds of problems,” said Dan Immergluck, professor emeritus at Georgia State University.

‘The Wizard Behind the Curtain’

LLCs weren’t invented for real estate. They originated in the 1970s, designed for oil companies looking for liability protection without corporate tax burdens. But by the 1990s, landlords realized they could use the same structure to buy and manage apartment buildings.

“It wasn’t created at all with real estate in mind,” explained Susan Pace Hamill, a University of Alabama law professor who has studied LLCs for decades. “Somebody is managing the LLC, somebody is investing in the LLC, but when there’s a problem and you want to find out who that somebody is, you run into a brick wall. You can’t find what I call ‘the wizard behind the curtain.’”

In Illinois, disclosure requirements are minimal. Only the manager and agent of an LLC must be named publicly — and neither may be the actual owner.

The CKO Tenant Union

The collapse of CKO Real Estate exposed this problem in painful detail. Tenants in multiple buildings reported rodent infestations, repeated utility shut-offs, and leaks so severe that mushrooms began to grow indoors.

One tenant, Marla Blanton, described squatters breaking through a damaged gate to occupy the garage and basement. She said the property managers delayed fixing the locks for months.

“As tenants, we should know who the actual landlords are,” Blanton said. “If the property managers aren’t doing their job, we should be able to alert the owners directly.”

On paper, each building was owned by a separate LLC, usually named after the street address. But tenants digging into public records uncovered a common link: real estate investor Chikoo Patel. His name appeared on nearly every deed and mortgage.

That discovery sparked something bigger. With the help of community organizers, residents from 31 buildings came together to form the CKO Tenant Union.

“Going door to door, all you had to say was ‘CKO’ or ‘problems in your building,’ and people would stop and talk,” said housing organizer Sahar Punjwani. “They wanted to join.”

Legal Battles and Limited Progress

Since forming in June, the tenant union has grown to about 150 members. The group has met with city officials, including Mayor Brandon Johnson. Some investors — notably husband-and-wife team Shai Wolkowicki and Lauren Lampert — have agreed to limited concessions, such as forgiving certain back rent.

But the bigger demands, like 24-hour repair windows and annual inspections, were rejected. The rest of the ownership group remains largely anonymous.

Meanwhile, Carter’s activism came at a cost. In August, after he withheld rent during the bathroom collapse, he received an eviction notice. He believes the timing was no accident.

“These owners have proven who they are,” Carter said at a union news conference. “Their agenda is to get the rent and tell the tenants to shut the hell up.”

A City Struggling for Accountability

Despite repeated violations, none of the 31 CKO-linked buildings appear on Chicago’s Building Code Scofflaw List. Only seven are flagged under the city’s Troubled Buildings Initiative.

Tenant advocates say this failure is no surprise. The city’s system relies heavily on residents to report violations through 311, something many tenants fear doing because of eviction risks. Even when cases reach building court, judges are often reluctant to levy harsh penalties.

“The tenants are the ones forced to enforce the system,” said John Bartlett, director of the Metropolitan Tenants Organization. “And they’re in the least position to do so.”

Calls for a Rental Registry

To address the growing Chicago housing crisis, Ald. Desmon Yancy has proposed a rental registry ordinance. The plan would require landlords — including LLCs — to disclose all individuals with at least 20% ownership. Similar systems already operate in cities across the U.S., linking names, rents, and contact details for accountability.

“The idea behind the rental registry is simple,” Yancy said. “Know who’s renting what, what the rents are, and who to contact if there’s a problem. That allows us to hold bad actors accountable.”

But for now, the measure is stalled in committee.

As for Carter, he continues to face eviction proceedings while still dealing with leaks in his apartment. His case has become a symbol of a broader fight — one where hidden LLC landlords profit from housing while tenants live with collapsing ceilings and unanswered calls.

“Should housing be an investment,” Bartlett asked, “or should housing be housing?”

That question, for many tenants across Chicago, defines the crisis they live every day.

The story of Russell Carter and the tenants of the CKO portfolio underscores how the Chicago housing crisis is tied to a deeper issue of hidden ownership. With LLC landlords shielding their identities, tenants often have no way to hold property owners accountable for unsafe conditions. While tenant unions and community organizers have pushed for reform, the lack of transparency continues to frustrate both residents and city officials. Until stronger measures such as a rental registry are enacted, many renters may remain trapped in buildings where repairs are delayed, violations pile up, and the true decision-makers stay out of reach.

Appreciating your time:

We appreciate you taking the time to read our most recent article! We appreciate your opinions and would be delighted to hear them. We value your opinions as we work hard to make improvements and deliver material that you find interesting.

Post a Comment:

In the space provided for comments below, please share your ideas, opinions, and suggestions. We can better understand your interests thanks to your input, which also guarantees that the material we offer will appeal to you. Get in Direct Contact with Us: Please use our “Contact Us” form if you would like to speak with us or if you have any special questions. We are open to questions, collaborations, and, of course, criticism. To fill out our contact form, click this link.

Stay Connected:

Don’t miss out on future updates and articles.

San Jose’s Housing Hope Turns Toxic: Mold, Odors, and Broken Promises

From Beacon of Hope to Breeding Ground of Complaints

Originally envisioned as a progressive solution to chronic homelessness, Branham Lane promised more than just shelter — it offered private bathrooms, kitchenettes, air conditioning, and the dignity of one’s own space. It was the first of its kind in the city: a bold experiment in rapid modular construction, supported by more than $100 million in public and private funds.

But within a few weeks of moving in, residents began noticing things weren’t quite right.

April, who now stands at the center of the legal firestorm, said she felt ill almost immediately. “It was like breathing in needles,” she told reporters. She noted a strong, earthy odor inside her unit — something she suspected might be mold. Purchasing a test kit from a hardware store, April found what appeared to be dark spores collecting inside a petri dish. Photographs reviewed by the press show black and green blotches consistent with mold colonies.

She’s not alone. Another tenant complained of mildew smells emanating from their bathroom. A third said they experienced dizziness and unexplained shaking — symptoms they had never faced prior to moving in.

Official Tests, Conflicting Results

LifeMoves, the nonprofit organization managing the Branham Lane site, responded by commissioning an environmental firm to assess April’s unit. The firm reported no harmful or elevated mold levels and concluded no further action was required. In a gesture of caution, the nonprofit provided April with a HEPA filter and offered to move her to another unit.

But April claimed the new apartment smelled like rotten eggs — and again felt ill. She returned to her original unit, choosing instead to leave her door open for ventilation and manually remove insulation from a floor vent to breathe more comfortably.

LifeMoves maintains that ongoing testing continues to show no serious contaminants and that residents with concerns can request relocation either within the building or through Santa Clara County’s broader housing network. However, multiple residents say these options are not always practical or effective — particularly when similar issues appear to persist throughout the property.

Unsafe Fixtures, Structural Concerns

The physical infrastructure of Branham Lane has also come under scrutiny. In one alarming case, a resident said her shower bench collapsed the first time she sat on it, resulting in a head and shoulder injury that still causes her pain.

According to LifeMoves, medical assistance was provided, and since then, stand-alone shower chairs have been distributed to mobility-impaired residents. However, the lawsuit documents several other concerning photos — cracked walls supporting benches, protruding screws, and unstable fixtures. The nonprofit has now initiated a full audit of the complex’s shower benches with its building partners.

Meanwhile, several residents have refused to drink the tap water, citing a pungent sulfur or sewage-like odor. LifeMoves attributes this to standing water in the heaters, noting that they’ve flushed affected systems and verified with the water provider that the supply is safe for consumption. Still, residents say the smell persists — and so does their reluctance.

Responsibility Disputed Among Partners

The city, builder (DevCon), and modular contractor (Volumetric Building Companies) all appear to be pointing in different directions when it comes to responsibility. DevCon says it has not been made aware of any habitability issues. Volumetric claims its units were delivered in good condition, complete with proper ventilation and waterproofing, and suggests that post-delivery renovations may have introduced issues.

It’s not the first time the Branham Lane development has been associated with moisture-related problems. In October 2023, the modular units sat unfinished in the open during rainstorms. By March 2024, the complex was covered in tarps, with mold remediation signage in plain view. City inspectors later flagged missing firewalls and faulty waterproofing — issues that go beyond cosmetic flaws and enter the realm of life safety.

DevCon says those problems were fixed before move-in.

Breathing Issues and Closed Windows

Residents also claim that their apartments lack proper airflow, compounding health concerns. None of the windows open, and several ventilation systems either don’t work or appear to be missing entirely.

A May 20 inspection by a city housing official found ventilation deficiencies in two out of three apartments reviewed. One had a nonfunctioning system that was fixed by a resident. April’s unit reportedly lacked any system at all. Despite recommendations for an independent contractor to evaluate further, April says no one has followed up.

DevCon says it did not design or install the HVAC systems, noting the responsibility lies with engineers contracted by the modular manufacturer. According to them, the units met all state standards and passed independent reviews.

Still, residents continue to struggle. One, a construction worker named David, said the difference in air quality inside versus outside is unmistakable. He now wakes up coughing every morning — something he hasn’t dealt with in years. His air conditioning unit, which provided some relief, has since stopped working.

Accountability Gap Widens

Despite the multitude of complaints, San Jose’s Planning, Building and Code Enforcement Department issued the required certificate of occupancy in early February — allowing residents to move in. When asked how the project passed final inspections, city staff declined to elaborate, referring reporters to the housing department, which acknowledged the certification but avoided comment on reported defects.

Mayor Matt Mahan’s office also declined to comment, directing inquiries to city staff. Mahan has faced criticism in the past for pushing policies that threaten jail time for individuals refusing housing — a stance now drawing fresh scrutiny in light of Branham Lane’s deteriorating conditions.

April, despite everything, says she’s grateful to have a roof over her head. But she worries about the trade-off.

“He’s forcing people to choose between jail or living in unsafe and uninhabitable buildings that are not regulated by code enforcement,” she said.

Branham Lane was meant to be a symbol of progress — a fast, efficient response to the housing crisis gripping San Jose and much of California. But the troubling accounts emerging from residents paint a starkly different picture, one where innovation has seemingly outpaced quality control, transparency, and accountability.

As the city continues to invest in modular housing as a solution to homelessness, the experience of those living at 1 Branham Lane raises urgent questions: Who is responsible when public-private partnerships fall short? What safeguards are in place to ensure that vulnerable residents aren’t exposed to new risks in the name of quick fixes?

Until these questions are addressed with clarity and action — not just paperwork and passing the buck — the promises of modular housing will remain under a shadow of doubt, leaving the people it’s meant to help caught in the middle.