Logan Square Renters Sue Landlord Over Tenant Right Of 1st Refusal Act Violation

LOGAN SQUARE — Four Logan Square residents have filed the first lawsuit linked to the city’s tenants right pilot program, accusing their a landlord, his realtor and a brokerage company of running afoul of a Northwest Side anti-gentrification law.

The four residents of a three-flat at 2471 N. Albany Ave., are suing their landlord, James Feeney of Traverse City, Michigan, and his realtor, Stuart Schwartz from Compass Realty. The lawsuit, which was filed July 1 in Cook County Circuit Court, alleges the residents were not properly notified that Feeney was listing the property for sale and he did not give them the opportunity to buy their building under the city’s tenant right of first refusal program, which took effect in March 2025.

The Tenant Opportunity to Purchase Act — part of a Northwest Side anti-gentrification law that passed in 2024 to preserve three- and four-flats — gives longtime renters the opportunity to buy their building when it’s listed for sale or to otherwise line up a buyer who has their interests in mind. Some Logan Square tenants have tried to make building purchases through the program, but none have been successful.

The Albany building tenants, who are not named in the lawsuit, declined to speak to Block Club, citing privacy concerns and fear of retaliation. They shared a statement through their lawyer, Leah Levinger, saying they want to get justice through litigation and to have a proper chance at using the tenant rights program.

“The [program] seeks to maintain similar home ownership for working-class families. In our particular case, laws were violated,” the tenants said in the statement. “It is incumbent upon all of us to use to the law, especially when its intent is to protect common, everyday people. Litigation is a means through which the lens of justice can explore and interpret legislation for the benefit of the common good.”

Calling themselves the 2471 Tenants’ Association, the four residents allege their landlord and his realtor failed to follow the tenant opportunity to purchase law by not providing a notice of intent to sell the property 30 days before listing it. Their complaint also alleges that the landlord tried to persuade them to waive their right during the time period and unlawfully showed the apartments during the 30-day window despite Department of Housing officials instructing them to stop.

The law states that landlords selling buildings in the pilot program zone — which includes Logan Square, Humboldt Park, most of Avondale, Hermosa and parts of West Town — must give tenants written notice of their intent to sell and access to financial documents if they choose to explore their buying options.

In the case of the three-flat, a 30-day notice is required under the law, which gives tenants time to form an association, gauge interest and potentially find a third-party buyer. If they then waive their right of first refusal, the owner and realtor can begin showings and list the property publicly.

The building records indicate the three-flat was listed April 25 and showings started April 27, though tenants said the realtor held at least seven unlawful showings March 15-April 7, according to the complaint and texts between Schwartz and tenants shared with Block Club. According to the text messages, Schwartz said the showings were from sharing the property via “word of mouth” as it was before the listing was live.

At the end of March, the tenants received Feeney’s notice to sell the building, but that was after showings had already begun, per the lawsuit.

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After the 30-day notice window expired, tenants asked for a meeting with Feeney to talk through the program and the sale process. He said he has no problems with the program timeline and has been in communication with the Department of Housing, adding, “You are welcome to submit an offer now or wait until we provide details of a third-party offer,” per the lawsuit.

Schwartz and representatives with Compass Realty did not return requests for comment, and Feeney declined to comment.

The building is being sold for $900,000 and its market value is $603,060, per the Cook County Assessor’s Office. Public records show Feeney has owned the building since 2004.

One of the tenants who has lived in the building for seven years with her daughter received a 120-day non-renewal notice to vacate the building, with Feeney letting tenants know that lease renewals were not an option, according to the lawsuit and text screenshots from the tenants.

The tenant’s notice violates the tenant law and a Chicago municipal code that states, “No owner shall disturb any tenancy, other than for a just cause eviction, during the time periods” in selling a property to a third-party buyer, per the code.

The tenant has been on time with rent and abided by her lease terms, so it doesn’t count as a just cause for eviction notice and therefore violates the law, Levinger said.

“An active part of this lawsuit is making sure this provision of [the program] is in force, and landlords and realtors moving forward understand this is law. The act establishes protective windows for tenants — they are brief, but they are real — in which you can’t disturb the tenancy of one of your residents and you can’t non-renew them for no reason,” Levinger said.

At the end of May, Feeney entered into a contract with a potential buyer, and the building is listed as contingent. It’s unclear how the lawsuit would affect the potential sale, but tenants are asking Feeney to nullify the contract and restart the clock so they can have a fair shot at trying to buy the building, per the lawsuit.

They are also also asking for an injunction and a trial to get the financial and property documents from Feeney as part of the law and to nullify the second-floor tenant’s non-renewal notice until the program timeline starts over.

“The ordinance gives tenants a fair chance to see if they can put a deal together to get their property into co-ownership or mission-driven, responsible hands, a purchase at market rate that does not prejudice the owner’s interests,” Leviner said. “The tenants are just looking to have their shot with a legally-compliant process.”

If enforcement and fines do not resolve violations, tenants have the right to file a civil lawsuit to get relief, both in terms of accountability and fines, according to the program.

Housing department spokesperson Ugo Okere said the department had no comment on the case because it involves a legal matter between private parties.

“The department will continue to enforce and uphold the Tenant Opportunity to Purchase Act as is required by City code,” Okere said in a statement.

Despite the legal action, tenants hope to work with Feeney to find a solution and don’t want the lawsuit to sour their relationship, Levinger said. If anything, they put more blame on Schwartz and Compass for not following the program’s rules, she said.

Levinger said the group has been meeting with potential lenders and co-purchasers, as well as nonprofit housing groups. The tenants have also attempted to estimate the operating cost margins based on publicly available information about the building since they never received the mandatory property documents, she said.

“We are very much in good faith trying to find a solution for a purchase that preserves affordability moving forward,” Levinger said.

Two Northwest Side alderpeople pulled their wards out of the program’s pilot zone last summer over concerns it “punishes” long-term homeowners trying to sell their properties. Realtors who work in the area have said the program has caused them to lose clients and sales because of added paperwork and attorney fees that have gotten in the way of earning approvals from lending and title companies.