Property owners suing Blue Island over 'outrageous' water bills

Two Blue Island residents have taken action, against the city over water bill charges they say were unfairly designed to increase revenue, from property owners.

Two legal cases were started. One, by a homeowner and the other by the owner of a unit. Both contesting the suburbs imposition of 10 percent compounding fees on water bills as illegal in Illinois under state regulations governing municipal charges, for water and sewer services that require "fair compensation." They argue that imposing a 10 percent compounding 'late fee' penalty or interest charge is excessive and goes against this standard.

Late payments, on water bills in Chicago result, in a 1.25% penalty fee – these charges do not accrue over time.

The town of Blue Island didn't shut off the water supply due, to bills. Rather let the taps run continuously for years in a way that was labeled as "illegal" and "exploitative". As a result bills accumulated and water liens were imposed on properties as, per complaints filed in the Cook County circuit court.

The authorities stated that Blue Island collected $238 thousand as "water penalty revenue" in 2018 and 2019 and witnessed a rise, to $2.$4 million by 2023.

Michael Buchanan leased a residence, on 121st Street. Noted that the initial overdue balance of $884 from his tenants, in January 2020 surged to $172K by November 2023 as a result of accruing penalty fees of 10 percent each month over the course of the years.

The city decided to waive the fees and then put a lien on Buchanans property for an amount exceeding $142 thousand.

Sure thing! Lets begin working on the task of us. Shorge Sato, from Buchanans office mentioned that the tenant who had resided there for a while was supposed to handle the water bill payments however when she started falling on payments and the city tried setting up a payment plan with her which she found challenging to maintain it led to a build up of unpaid bills and penalties over time.

Buchanan expressed his frustration saying, "It would have been better if the city had turned off the water away of letting the late fees pile up."

"He mentioned that if the water supply had been shut off the tenant would have reached out to me."

Robert Schoppen owns a condominium, at Nassau Terrace Condominiums. Rents it out to a tenant who he believed was supposed to have the water bill covered by the condo association for all units.This understanding changed when the total bill for January 2021 came to $48k and late fees escalated it to over $1..8 million by February 2024 as, per the bills submitted in Schoppens lawsuit.

In a document dated May 13 found in the lawsuit records provided by the associations manager it was mentioned that the association is indebted $1 980 863, to the city of Blue Island for water charges and 75 percent of this amount comprises accumulated fees that're overdue. Discussions are presently ongoing between management and the city, with the aim of lowering these charges.

Schoppen stated his plan to sell his property but the first potential buyer he had in mind backed out because of a problem, with the citys lien.

"He's really keen, on withdrawing from the deal " Schoppen comments with a hint of frustration. "Its becoming quite a challenge for me to close a sale, with this constantly on my mind."

Thomas asserts that the current billing system is operating as intended within the established framework of operations, in the area. He points out that two property owners who do not live in Blue Island have taken action because they have not paid their water bills despite collecting rent from tenants. As a result of this situation there are balances, on their accounts.

Mr.Wogan stated that the current mayoral administration that started in May 2021 has been dealing with water bills at businesses during the period.This led to a rise, in revenue, from water fines this year.

He stated that there have been no changes, to the penalty system but mentioned that the billing procedures have been updated to avoid the accumulation of bills as previously allowed.

"He said that we've started involving team members to monitor accounts once they reach $250 or higher and to improve our engagement, with tenants and landlords in properties " he revealed.

Stephen Hammer, from Forest View Mobile Home Park has taken action against Blue Island after the city threatened to cut off water to the park because of bills for water services that were supposed to be included in his rent payments according to the lease agreement covering sewer and garbage fees as well management did not pay on time resulting in late fees piling up leading to a significant increase, in the parks water bill which reached $858447 last year.

In his action Hammer argued that he was facing treatment and succeeded in obtaining a court order to stop the water supply from being cut off in November as both sides are now close, to reaching a settlement agreement.

"Hammer is a dad, to three children and hes feeling very worried and troubled about the situation " he confided.

His lawyer Lawrence Wood, from Legal Action of Chicago was taken aback by the cost of the water bill.