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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Tag: Chicago

Low-Income Housing

  • For Americans who rely on public housing, HUD proposals strike fear, By Erika Beras, August 10, 2018, Marketplace: “Clara Malave, 50, works in the hot and loud laundry room at one of the bayfront hotels in Erie, Pennsylvania, loading linens into massive industrial washers and dryers. At $8.80 an hour, it’s grueling work. But it is work, and she’s grateful for it. Like most of the other workers here, she’s a part-timer whose hours change constantly. She only knows a week out what her schedule will be. She keeps a carefully balanced checkbook and a list of her impending expenses…”
  • As NYC public housing tenants suffer, a glimmer of hope emerges, By Henry Goldman, August 2, 2018, Bloomberg: “Lolita Miller had it all: mold, vermin, crime, stalled elevators, uncollected trash and winter days without heat or hot water. After almost half a century living in New York’s public housing, she’d come to expect the neglect and squalor in Far Rockaway’s Bayside homes. So did most of the 400,000 residents in projects owned by the money-starved New York City Housing Authority. Yet a federal program changing how rents get paid has allowed developers at Bayside to tap into $560 million in private and government funds…”
  • A nonprofit got special loans and tax breaks for low-income housing. Dealmakers collected millions in fees. And buildings deteriorated., By Joe Mahr, August 16, 2018, Chicago Tribune: “A newly formed charity came to Chicago pitching state officials on its “model” way to provide low-income housing. The Ohio-based Better Housing Foundation said it would provide safe apartments. It would help tenants get jobs and health care. And it wouldn’t evict ‘solely on the basis that the tenant is unable to pay their rent.’ Starting in early 2016, with little scrutiny, a pair of state agencies helped the nonprofit borrow tens of millions of dollars at lower interest rates and obtain hundreds of thousands of dollars in property tax breaks that allowed it to rapidly buy dozens of buildings across the South Side. But a Tribune investigation has found that many residents have been left to live in deteriorating buildings…”

Debt Collection and the Poor

  • Chicago hiked the cost of vehicle city sticker violations to boost revenue. But it’s driven more low-income, black motorists into debt., By Melissa Sanchez and Elliott Ramos, July 26, 2018, ProPublica Illinois: “During negotiations for Chicago’s 2012 budget, newly elected Mayor Rahm Emanuel and then-City Clerk Susana Mendoza agreed to hike the price of what was already one of the priciest tickets vehicle owners can get in the city. Citations for not having a required vehicle sticker rose from $120 to $200. The increase, approved unanimously by the City Council, was pitched by Mendoza as an alternative to raising the price of stickers as well as generating much-needed revenue from ‘scofflaws…'”
  • IRS outsources debt collection to private firms, and the poor feel the sting, watchdog charges, By Jeff Stein, July 23, 2018, Washington Post: “Private tax collectors acting on the Internal Revenue Service’s behalf have collected tax payments from more than 5,000 poor people in the past year, payments that an in-house IRS watchdog says should have been avoided. Nina E. Olson, head of the Office of the Taxpayer Advocate, says a private debt collections program is not doing enough to spare people struggling to pay for food and shelter from additional drains on their income. She has also urged the IRS to stop referring to the private companies cases of individuals whose incomes put them below 250 percent of the poverty line…”

Minimum Wage – Chicago, IL

Chicago raised its minimum wage two years ago, but some still earn less. Here’s why., By Nereida Moreno and Greg Trotter, December 1, 2017, Chicago Tribune: “Maria Leon, a single mother of three and longtime Gage Park resident, says she worked for years in two Chicago restaurants for less than the city’s minimum wage. Last year, she sued the restaurants, which have the same owner, alleging they were violating city, state and federal wage laws. The two sides reached a settlement, but Leon believes it’s important to speak up on the matter…”