Chicago Housing Portfolio Owned by Non-Profit Files Bankruptcy

A subsidiary of a troubled non-profit that’s already defaulted on about $170 million of bonds used to acquire low-income housing in Chicago and its suburbs has filed for bankruptcy.

Lindran Properties LLC, the subsidiary of the Better Housing Foundation, filed for Chapter 11 protection Jan. 31, according to a U.S. Bankruptcy Court filing in the Northern District of Illinois. Lindran borrowed about $14 million through the Illinois Finance Authority in 2016 to acquire a portfolio of 262 apartments, known as Shoreline.

Pangea Real Estate, which owns more than 13,000 apartment and townhomes in Chicago, Indianapolis and Baltimore is the ...