SEC Probes Owner of Chicago Apartments After Bond Default

  • Probe of $170 million of bond deals disclosed in bankruptcy
  • Better Housing Foundation issued bonds through Illinois agency
Photographer: Scott Olson/Getty Images
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The U.S. Securities and Exchange Commission is investigating a non-profit that defaulted on $170 million of municipal bonds issued to finance the acquisition of about 1,800 low-income apartments in Chicago and its suburbs.

The disclosure of the investigation came in a court filing earlier this month by attorneys for the Better Housing Foundation. Lindran Properties LLC, a subsidiary of the foundation, filed for Chapter 11 protection from creditors on Jan. 31.