Chicago City Wire

The City of Chicago has filed a lawsuit against Monique Rhivers, a former city employee, for allegedly defrauding the Emergency Rental Assistance Program (ERAP). The legal action was initiated by Corporation Counsel Mary B. Richardson-Lowry. Rhivers is accused of submitting multiple fraudulent ERAP applications and obtaining at least $79,000 meant to assist individuals facing housing insecurity during the pandemic. The city is seeking triple damages, penalties, and legal fees.

ERAP was created by the Chicago Department of Housing (DOH) to support tenants struggling with rent due to pandemic-related financial difficulties. The program provided up to 12 months of back pay rental and utility assistance, as well as three months of future payments. Funds were distributed directly to landlords after application approval. Federal grants authorized in December 2020 and March 2021 funded the program.

A joint investigation by DOH and the Department of Law (DOL) discovered that Rhivers submitted false lease agreements and income attestation forms. When subpoenaed for information, she invoked her Fifth Amendment rights and initially offered to repay the funds but later refused cooperation.

“Today marks the second lawsuit the City has brought in a matter of months for the abuse of a rental assistance program designed to help struggling Chicago renters,” stated Corporation Counsel Richardson-Lowry. “Fraudulently obtaining City funds for personal gain comes at a steep price."

DOH Commissioner Lissette Castañeda emphasized their responsibility to ensure funds are used effectively: "Our commitment to addressing fraud...through litigation serves as a deterrent."

The case is being handled by Deputy Corporation Counsel Stephen Kane and Assistant Corporation Counsel Chelsey Metcalf from the Department of Law’s Affirmative Litigation Division.