Home builders group files Chapter 11

[FarCenter]

(Crain’s) — How bad is the local housing market?

So bad that even the Home Builders Assn. of Greater Chicago has filed for bankruptcy protection.

Unable to pay its bills, the Rolling Meadows trade group filed for Chapter 11 protection Friday, nearly four years into a severe industry slump that has put many its members out of business.

The Home Builders has about 500 members today, down from 1,500 at the peak, says William Factor, the group’s bankruptcy attorney.

“The housing market has taken a tumble and this is just another example of that,” he says.

The association has assets of $100,001 to $500,000 and liabilities of $1,000,001 to $10 million, according to a Chapter 11 petition filed in U.S. Bankruptcy Court in Chicago.

The group, which is supported by member dues and other programs, lost $283,737 last year and $241,010 in 2007, the document says. It lost $257,132 in the first nine months of this year.

Amcore Bank N.A. last month filed a $1.5-million foreclosure suit on the association’s former headquarters building at 1841 W. Army Trail Road in west suburban Addison. The group, which employs just one person now, has relocated its offices to Rolling Meadows.

<SNIP>http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=36217

[ixion]

1. sounds like it was poorly managed

it's an association... it should never have incurred that level of liability. No business should, in my opinion.

[exboyfil]

2. How much went into the pockets of the staff?

Nice big salaries with the debt holders left holding the bag. Only difference from Wall Street is the banks are on the hook instead of the U.S. taxpayers.