Lawsuits filed centered around tenants rights
SPRINGFIELD, Mo. — Dozens were on hand at the Greene County Courthouse, announcing two lawsuits against current and previous owners of two housing properties.
'They filed two cases, a class action lawsuit that will try to maintain their affordable housing and a different lawsuit that seeks justice for those tenants who were illegally evicted from their properties,' Gina Chiala, the senior attorney and executive director at the Heartland Center for Jobs and Freedom said.
The first suit, Chiala says, is centered around what was once called 'Cedarwood Terrace' and 'Rosewood Estates' which was previously owned by Zimmerman Properties and Wilhoit Properties.
At those properties, they were affordable-housing focused for about two decades.
'These properties are governed by the LIHTC program, the low income housing tax credit program, and when you receive millions of dollars in tax credits from taxpayers, the owners are required to provide affordable housing and they're required to provide that housing for a certain period of time,' Chiala said. 'They're required to maintain affordable housing for 30 years. The prior owners, Zimmerman Properties and Wilhoit Properties opted out after 20 years. There is a loophole in the law that allows them to do that if they take certain steps that will keep that property affordable or at least try to keep it affordable. They did not follow those steps, and that's why this lawsuit has been brought. Zimmerman Properties and Wilhoit Properties sought to opt out of the LIHTC program in January of 2022. There's then a year waiting period after that. The tenants had no idea what was going on, and then in 2023 they were given permission to opt out. In 2023, they sold the property again without the tenants knowing.'
Chiala says the second suit is more focused on the new owners of the properties, GPS Property Management.
'The tenants didn't find out until spring of 2024 that that property had been sold and was slated for luxury apartments and that they were going to have to leave, and that was hugely unjust,' Chiala said.
Ozarks First drove to both properties to speak with an office manager or property owner but no one was present for comment.
Ozarks First also called Zimmerman/Wilhoit and went to their headquarters but was told our voicemail was being sent to someone who would get back to us but at the time this story was written, we have no received a response.
Another defendant in the suit is Bryan Properties, calling the company property managers for the newly purchased complexes.
Jami Johnson, one of the plaintiffs in the suit, says she is struggling to find affordable housing.
'I have absolutely no idea because I've looked and there's just nothing out there that's affordable and accessible,' Johnson said. 'I mean, it's hard enough finding something affordable, but you add in accessibility and people with need accessible housing generally move into a place and stay there.'
She says that's just a snapshot of a larger housing crisis in the Queen City.
'Springfield has a shortage of affordable, accessible housing and where am I going to live and what am I going to do,' Johnson adds. 'When we first found out that the property sold and that we were going to have to move, I started looking and there's no affordable, accessible housing available.'
Johnson says there's no ill will towards the previous and current property owners, she just wants to be home, a rate she can afford.
'I have no ill will toward them. I just ask them to do the right thing and let us stay. We've done nothing wrong and we're just asking to stay at a place that's affordable and accessible and our communities there and the people that I've lived near for over 17 years,' Johnson said.
Attempts for comment from the previous and current owners have not been returned.
Chiala says tenants have told her new units are hovering around the $1,200 monthly rent, whereas many tenants are used to rent payments around $500 a month.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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