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Insurance - 7542 & 7656 S Colfax Ave, Chicago, IL 60649 - 7542 and 7656 S Colfax Ave, Chicago, IL 60649.docx

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Current Status (as of late August 2025) Building status: DAO has regained possession of 7656 S Colfax after removing squatters. The building is severely damaged (copper piping and wiring stripped, other vandalism) and is fully vacant in anticipation of a joint-venture rehab + sale strategy. Owners voted on 07/29/2025 to reject an as-is sale and repair the property , and on 08/26/2025 to approve the DAO /New Heights joint venture Action Plan for refinance, renovation, and disposition of 7656 S Co

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Current Status (as of late August 2025) Building status: DAO has regained possession of 7656 S Colfax after removing squatters. The building is severely damaged (copper piping and wiring stripped, other vandalism) and is fully vacant in anticipation of a joint-venture rehab + sale strategy. Owners voted on 07/29/2025 to reject an as-is sale and repair the property , and on 08/26/2025 to approve the DAO /New Heights joint venture Action Plan for refinance, renovation, and disposition of 7656 S Colfax . Unit-by-Unit Occupancy Timeline Unit 1 – CHA, Long Vacancy, Then Squatters 2022 – Water Damage & Loss of Habitability Major water-heater leak from Unit 2 caused extensive damage to Unit 1 (floors, walls, mold). CHA placed the unit into abatement ; Lofty provided full rental credit for this unit. Insurance claim approved, with large payouts used to fund repairs and replenish reserves. Unit effectively uninhabitable and vacant for an extended period while insurance and repair scope were sorted. 2023 – Repairs, Listing, and Inspection Issues (Mostly Vacant) Window/door repairs, mold treatment, flooring, plumbing and finishing work progressively completed. By spring/summer 2023, the unit reached “rent-ready” status and was listed at $1,400 , with strong leasing activity. A CHA voucher applicant was approved, but the unit failed CHA inspection (warped/lifting flooring, other items). Multiple vendor estimates and insurance interactions followed; the unit remained vacant while the PM tried to resolve flooring and compliance issues. 2024 – Persistent Repair/Inspection Problems → Squatter Occupancy Ongoing flooring/insurance/repair loops continued into 2024. By late 2024 (Oct–Nov), updates confirm squatters in Unit 1 : Locks were broken, squatters present, and eviction filed . An eviction hearing was scheduled for 12/23/2024 . Occupancy: illegal occupants (squatters) pending eviction. 2025 – Eviction Process & Building Secured Early 2025: repeated hearing resets & court dates; Unit 1 remained non-paying / squatter-occupied while HRG/Yhome handled evictions with attorney involvement. Management change to ECO Systems LLC approved (April 2025 governance vote) and ECO stepped in to finish evictions and secure the building . By the July 22, 2025 governance context, DAO had secured possession of 7656 S Colfax after removal of squatters and was confronting severe building damage. Current: vacant, heavily damaged, to be gutted and rehabbed under the JV plan. Unit 2 – Re-Leased at Higher Rent, Then Chronic Delinquency & Eviction Late 2022 – New Tenant, Higher Rent After a prior tenant vacated, Unit 2 went through a make-ready. New tenant moved in 12/15/2022 on a 12-month lease at $1,350/month , up from $1,090s range. Tenant paid a $500 move-in fee (no deposit, in line with Chicago law). 2023 – Delinquency & Enforcement Throughout 2023, tenant began to fall behind , citing maintenance issues. PM documented that repair tickets had been resolved and moved to enforce collections: 5-day notices served. Recommendation to proceed to eviction if balances weren’t cured. Tenant periodically made large catch-up payments but continued to yo-yo between delinquency and partial catch-ups . 2024 – Arrears Grow, TPP Claims, Eviction Pipeline Tenant’s arrears steadily increased; balances reached several thousand dollars. TPP (Tenant Protection Plan) claims were initiated to recoup lost rent. The court repeatedly reset hearings ; by late 2024: An eviction hearing was scheduled for 11/27/2024 , then 12/11/2024 . Through this period, Unit 2 was physically occupied but economically unstable , with rent often unpaid or partially paid. 2025 – Awaiting Set-Out & Then Vacant As of 02/25/2025 , PM was still awaiting a set-out date for Unit 2. Eviction process continued into spring 2025 under HRG/Yhome while they tried not to jeopardize ongoing cases with a mid-process management change. Once ECO Systems took over and the building was fully secured (squatters removed, writs executed), Unit 2 ended up vacant and part of the fully vacated, severely damaged building to be rehabbed. Unit 3 – Long-Term CHA Tenant → Chronic Delinquencies → Squatters & Eviction 2022 – Existing Tenant, Growing Balance, Payment Plans Unit 3 housed a CHA-assisted tenant . Tenant had a pattern of late payments and partial catch-ups ; balances fluctuated but were often brought back down via payment plans and CHA contributions. Governance and PM guidance generally aimed at payment plans first , eviction only if non-payment persisted. 2023 – Evictions Filed, Cases Dismissed/Re-Filed Multiple eviction filings and court dates : Several instances of partial payments triggering dismissals or continuances , requiring re-filing when the tenant fell behind again. CHA paid a portion of rent; tenant portion was often late, but enough was paid periodically to prevent immediate set-out. Net: Unit 3 remained physically occupied most of 2023, but with chronic delinquency and legal churn. 2024 – Vacancies, Death/Balance Write-Off, and Squatters By mid-2024, balances escalated; in at least one case the PM noted that the balance might have to be written off because they didn’t expect to collect from next of kin. Occupancy checks showed: Door kicked in, Vacant periods, Later confirmation of squatters in the unit . By 10/29/2024 and 11/13/2024 , the PM confirmed squatters present in Unit 3 and initiated/continued eviction and TPP claims. 2025 – Writ, Set-Out, and Vacant 05/30/2025: HRG confirmed that the Writ had been filed for Unit 3; set-out pending. ECO Systems LLC was slated to take over after evictions completed to avoid cancelling cases mid-stream. By the July 22, 2025 governance narrative, the DAO had secured possession of 7656 S Colfax after removal of squatters, which includes the former Unit 3 occupants. Current: Unit 3 is vacant and heavily damaged (stripped copper/wiring, etc.), part of the planned gut rehab .