The Asset Management team identifies deficiencies in City-funded multi-family developments that may impair the property's long-term viability. These deficiencies may include financial underperformance, poor physical conditions, disadvantages to the targeted population, and poor record-keeping. 

Asset Management, in coordination with the Department of Finance Comptroller's office, is responsible for several of the loan monitoring and servicing functions for City-funded multifamily developments including but not limited to:

• Processing debt service payments​
• Informing owners of delinquencies and defaults​
• Collection of Surplus Cash payments and matured loans​
• Processing Insurance Settlements

Asset Management is responsible for the underwriting and approval of any transaction that affects an existing development that has City investment including, tax credit allocations, gap financing, or other issuances of debt. These requests may include:​

• Refinancing ​
• Subordination​
• Sale/Transfer of Physical Assets​
• Replace Sponsor/ General Partner​
• Replace Property Manager​
• Loan Assignment/Assumption​
• Loan Modification ​​
• Regulatory Modifications​
• Consents​
• Regulatory release 

The types of disposition the Asset Management team is involved in includes:

•  Receivership:
  • court appoints a neutral third party, known as a receiver​
  • manage and oversee a property that is facing financial or operational challenges. ​
  • typically happens when a property owner defaults on their financial obligations, and a creditor or lender steps in to recover the remaining funds.​
• Bankruptcy:
  •  legal process where an individual or entity that owns property (the debtor) is unable to meet their debt obligations and seeks relief through the court system. ​
  •  assets, including real estate, become part of a bankruptcy estate managed by a bankruptcy trustee.​
• Foreclosure:
  • occurs when a borrower fails to make payments on a mortgage, leading the lender to seize and sell the property to recover the outstanding loan balance. Foreclosure is a last-resort measure and can significantly impact a borrower's credit score and financial health.

• Relocation​
  • URA​
  • SROPO​
  • SROLF​
  • TBI Delegate Agency Contract​
• PSH Tract- review tenant selection plans; resident facing policies ​
  • PSH Primer​
  • 5% Set Aside Development- ​
  • HOME ARP service $$ planning​
• MO Community Safety Initiative Team​
  • VAWA Policy Update/Review​
  • SAFE Pilot​
• Micro Homes​
• COC Involvement​
• SRN Policy Recommendation​
• Stabilization Housing​
• Non-Congregate Shelter

The City of Chicago, in partnership with other government and community-based organizations, supports preservation efforts of SRO properties through investment and various financing mechanisms that creates and preserves low barrier affordable housing for low- and moderate- income households.  

In December 2014, the City of Chicago passed the Single-Room Occupancy Preservation Ordinance (City of Chicago Municipal Code Title 5, Chapter 5-15) which requires notification to those who currently live in an SRO property which is being listed for sale and provides information to affordable housing development organizations to provide an opportunity to consider a preservation investment. Please refer to SRO Preservation Initiative Information and Notice of Intent to Sell Requirements of Compliancefor more information.  ​

Single Room Occupancy (SRO) buildings provide affordable housing opportunities essential to the quality of life for many Chicago residents. 

The Preservation Compact serves as a link for existing owners and interested buyers to understand financing options that may be available to any preservation application. Staff are available to provide information to SRO owners about available programs and resources to preserve buildings and affordable units. Referrals will be made to funders / lenders, including U. S. Department of Housing and Urban Development, Illinois Housing Development Authority, Chicago Housing Authority, and the Community Investment Corporation / Energy Savers. 

Questions regarding SRO preservation and the SRO Preservation Ordinance can be directed to SROPreservation@cityofchicago.org 

The SRO Preservation Loan Fund Program is:

• Administered by Community Investment Corporation (CIC)​
• Up to $15,000 of grant assistance per SRO unit on eligible projects​
• Grant funds not to exceed 50% of total development costs​
• Acquisitions costs within one year of closing can be included in the total development cost​
• Units subject to affordability restrictions for 15 years​
• Additional eligibility and program requirements may apply