City Sues to Foreclose on Senior Apartments

Chicago has filed a foreclosure lawsuit against a South Side senior housing complex that is more than $300,000 behind on property taxes.

Updated on Nov. 11, 2026 in Commercial

Bold flat-color editorial illustration of a plain brick residential facade and gate line under a grey sky, evoking civic housing debt. — The City of Chicago has filed a foreclosure lawsuit against the Auburn Commons senior apartments, which are more than $300,000 behind on property taxes. AI Illustration. Upload story photo >

Live Poll

Should Chicago stop selling city land to developers with troubled track records?

The City of Chicago has filed a foreclosure lawsuit against the Auburn Commons senior living apartments, which are delinquent on property taxes. The city issued a notice of default to the property owner in August after the tax debt was sold to third-party investors.

Why it matters

The lawsuit cites both unpaid taxes and poor building conditions as grounds for default on a city-backed loan. The case puts a spotlight on the condition of affordable senior housing in Chicago and on the financing arrangements behind it.

The city's records show more than $300,000 in unpaid property taxes on the complex, set against a $6 million interest-free loan issued in 2002. The outcome of the foreclosure suit and any payment plan remain unresolved.

The players

City of Chicago

The city government of Chicago, which holds the loan and filed the foreclosure action over unpaid taxes and building conditions.

Allison Davis

A retired attorney, now 87, who established the Auburn Commons property and has donated to the campaigns of former mayor Richard Daley.

The details

The city issued a notice of default in August after the tax debt was sold to third-party investors. The default also cites the building's poor conditions under the terms of the 2002 city loan, and in 2019 a judge ordered window air conditioners installed after indoor temperatures reached 92 degrees.

2002: City issued a $6 million interest-free loan for the senior apartments.
2019: A judge ordered air conditioning installed at the complex.
August 2025: The city issued a notice of default to the property owner.
November 10, 2026: The city filed the foreclosure lawsuit.

Legal Context

The foreclosure follows 2018 Chicago Sun-Times reporting that pension funds lost about $54 million, or 80 percent of a $68 million investment, in deals connected to the same developer. It extends a pattern of financial strain around the city's city-backed senior housing and development projects.

Residents of the complex and nearby senior housing could face questions about their housing if the foreclosure proceeds. Renters and seniors in similar city-financed buildings may want to check their own building's tax and inspection status.

The takeaway

City-backed affordable housing depends on owners keeping property taxes current and buildings safe, and default can threaten the residents who rely on it. Tenants facing repair or tax problems can raise concerns with city housing officials.