Less than a year ago, it appeared the awarding of a $9 million grant from the U.S. Department of Housing and Urban Development (HUD) was the key to bringing new kitchens, bathrooms and more to the residents of the 14-story Lakeside Tower near downtown Waukegan.
However, now the HUD grant has been frozen as part of the cost-cutting of President Donald Trump’s administration and the Department of Government Efficiency (DOGE).
Ernst Valery, a member of the property’s ownership group, is scrambling.
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“We may have to lessen the scope of our plans if we have $9 million less,” he said. “We’ll see what happens with court cases. We’re living in uncharted territory.”
After the city of Waukegan sued the former owners of the building for what then-Mayor Ann Taylor called “inhumane conditions,” the lawsuit resulted in a sale to the current ownership nearly two years ago.
Valery said at the time at the time of the purchase his group planned to spend $20 million giving each of the 150 apartments new kitchens, bathrooms and more, as well as curing years of deferred maintenance untouched by the former owners.
Lakeside Tower’s ownership group is continuing to seek funding through state programs to renovate the apartment building to give residents a place to live where things like hot water are not an uncertainty.
Along with the HUD grant. Valery said the group is working through the Illinois Housing Development Authority (IHDA) to obtain low-income tax credits to finance the $20 million improvement project. He hopes to have an answer in July.
When HUD selected Lakeside Tower for the $9 million grant, it was part of a $67 million package for 12 properties nationwide to support improvements for energy-efficient and energy-resilient housing for low-income people.
By March, with the Trump administration in power, approximately $1 billion in HUD projects was cut or frozen either by the president’s executive orders or the actions of DOGE, according to the Associated Press.
Though legal action is pending in other parts of the country on some of the freezes and injunctions put in place in some situations, Valery said he is waiting for final outcomes before pushing HUD.
Among those judicial orders staying the funding freeze are programs which would fund rooftop solar power in low-income neighborhoods, reduce greenhouse gas emissions and other harmful pollutants. None of the orders directly includes Lakeside Tower.
Adriana Williams, an eight-year resident with her children between 10 months and 11 years, said some improvements were made, but things are still a “mess.” Bathroom fixtures need fixing, and there are leaks in a number of places, she said. But, she added that when there was a problem in her apartment, management acted.
“They moved me and my children to another apartment when things weren’t working in the bathroom,” Williams said.
While Valery waits for approval from IHDA on the low-income tax credit funding and a definitive answer on the HUD grant, he said life-safety issues and other maintenance problems are getting attention.
“We’ve spent $3.5 million to improve the property,” Valery said. “We put on a new roof.
We’re taking care of the life-safety issues.”
Williams is not happy with the slow pace of the capital improvement plan, but she is also displeased with Trump for placing a freeze on money which would help her, her children and her neighbors.
“He won’t do anything for people like us,” Williams said. “It’s crazy. We’re all alike on the inside. We should love each other and support each other.”
The Associated Press contributed to this story.