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“I never even moved in. I just decided to sell it.”
- Damaris Matis, a real estate agent who bought one of University Village’s 187 taxpayer-subsidized affordable housing units in July 2007 and sold it for a $29,500 profit one month later.
The Sun-Times today looks at the results of the city’s affordable housing program and finds that at University Village alone, 67 percent of affordable homes were sold to single people, and 50 subsidized homes were flipped to buyers who did not have to meet income guidelines, at an average profit of $63,710.
In return for receiving $75 million in TIF funds, University Village’s developers had to set aside 21 percent of their units for affordable family housing — half had to be bought by people who made no more than 100 percent of the Chicago area’s median income (currently $52,800 for a single person and $75,400 for a family of four), and half were available for buyers who made as much as 120 percent of the area’s median income. Many buyers applied for public subsidies of $10,000 to $25,000.
Despite subsidizing more than 4,300 new homes throughout the city since 1989, city officials tell the Sun-Times that they don’t keep track of how many of those homes are still affordable.
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{ 16 comments }
I’m shocked, shocked to find cronyism and political connections may have helped some buyers at this city assisted project.
Why just the other day Mayor Daley suggested that Chicago is a model for reform.
To quote him “DALEY: What? Yes, we’ve done everything here. We’re leading the way with our inspector general, office of compliance, all the things we’ve done. We’re more transparent than any other government. Look at it. We’re doing a tremendous job here. We lead by example.”
Here’s da link at WBEZ.
My faith in humanity has been lessened……
My faith in the integrity of Chicago government remains unaffected by this.
I mean, they couldn’t have slipped in a little clause that prohibited buyers of affordable housing units from selling them within x amount of time?
Rediculous and poorly planned as usual. Nope, no corrurption or shinanigans by developers and DPD
.
1. giving grants? – The whole affordable housing program and addordable housing bonus should be scrapped. There are many great buildings and homes throughout Chicago neighborhoods that could be rebuilt for far less than giving it as TIF money to projects like this. The money should put into parks and infrastructure, not down payments.
2. How hard is it to put restrictions or covenants in the deed or title requirements for the property that would hold up sale until the fund is paid back. The city should then go after it as capital gains or income with taxes not paid.
What bs that they can’t get the money back. They certainly find a way to charge you for parking tickets on vehicles you do not own.
3. TIF – Poor use of TIF. However, this line is innacurate: “TIF districts shift property taxes away from Chicago schools, parks, forest preserves and basic city services. But city officials say they also spur development that ultimately brings in more property taxes. Once the districts expire, the additional tax revenue will go toward schools and other basic government services.”
Go take a look at any detailed TIF report. You will see the internal transfers to the Chicago Park District and Chicago Public Schools quite frquently from TIF funds. They are getting some of it.
tup,
Reminder: this is Chicago. Are you under the impression that this program had something to do with affordable housing? Think again.
In another place this would trigger, at the very least, a serious investigation into whether there are grounds to revoke a broker’s license. But this is Chicago and Illinois, and nothing will happen.
Eyes have suddenly been opened..
I have to admit, I knew Chicago was corrupt but this is pretty damn slimy if what you’re implying is true–ie this is just a way for private investors to pocket taxpayer dollars.
Wow.
Slimy corruption in Chicago has been perfected into an art..
Wow.
tup,
You have to encounter Chicago corruption “up close and personal” to understand just how deep and pervasive it is, and how maniacally creative and irredeemable its practitioners are.
Corruption is Chicago’s one true native art form, and its most popular recreational pursuit.
I’m often tempted to paraphrase Robert Service when I think of Chicago corruption:
There are strange things done in the midnight sun
By the men who moil for gold;
Chicago’s trails have their secret tales
That would make your blood run cold …
This particular scam isn’t all that artful. It was nakedly obvious from the start. But if the whiny housing activists are in on it, I’ll give them extra points.
This Damaris Matis is a real slimeball. I hope she loses her job selling Real Estate and is sent to jail along with the rest of the thugs that involve themselves in Chicago corruption., It has to end. Damaris Matis knew that she was stealing from tax payers and needs jail time. What a despicable person!
Serious charges, Dave. Presumably you have some evidence for them? Relying solely on media reports is a dangerous thing. Your statements are wildly irresponsible if that’s all you have to go on.
By the way, I consider anyone who makes this kind of charge anonymously to be, in your words, a slimeball and a despicable thug.
Joe, Still insulting people who visit your website and give opinions? Smart man.
Stephen,
No, only insulting cowardly anonymnice who we’d all be better off not hearing from.
This wasn’t an opinion. It was a stupid hate-filled rant.
Do you really want to frequent the kind of place where that’s welcome?
Whereas the actions of Damaris Matis (and the other cronies) may not technically be illegal, they are; in fact, UNETHICAL. I suppose taking a housing subsidy from the truly in-need was not part of the Ethics training for Realtors. What a shyster!!!
Programs like this are just begging for people to exploit them for profit. The more the government gets involved in “affordable housing” initiatives, the less affordable housing there is.
Much like Chicago’s well-intentioned but horribly misguided minority contractor programs, the only real beneficiaries are the connected insiders. When you make it easy for something to be exploited for profit, that is exactly what will happen.
Either way, once you lose your integrity, you have NOTHING.
So, is this unethical scam artist Damaris Matis still in Real Estate or is she digging out of dumpsters for a peach pit like she should be doing.Or did the corruption in Chicago save her job? People who scam the poor are the lowest of the low. Karma baby!
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