Obama and his Rezko ties

April 23, 2007 TIM NOVAK Staff Reporter suntimes.com

For more than five weeks during the brutal winter of 1997, tenants shivered without heat in a government-subsidized apartment building on Chicago's South Side.

It was just four years after the landlords -- Antoin "Tony'' Rezko and his partner Daniel Mahru -- had rehabbed the 31-unit building in Englewood with a loan from Chicago taxpayers.

It was just four years after the landlords -- Antoin "Tony'' Rezko and his partner Daniel Mahru -- had rehabbed the 31-unit building in Englewood with a loan from Chicago taxpayers.

Rezko and Mahru couldn't find money to get the heat back on but their company, Rezmar Corp., did come up with $1,000 to give to the political campaign fund of Barack Obama, the newly elected state senator whose district included the unheated building.

Obama has been friends with Rezko for 17 years. Rezko has been a political patron to Obama and many others, helping to raise millions of dollars for them through his own contributions and by hosting fund-raisers in his home.

Obama, who has worked as a lawyer and a legislator to improve living conditions for the poor, took campaign donations from Rezko even as Rezko's low-income housing empire was collapsing, leaving many African-American families in buildings riddled with problems -- including squalid living conditions, vacant apartments, lack of heat, squatters and drug dealers.

The building in Englewood was one of 30 Rezmar rehabbed in a series of troubled deals largely financed by taxpayers. Every project ran into financial difficulty. More than half went into foreclosure, a Chicago Sun-Times investigation has found.

"Their buildings were falling apart,'' said a former city official. "They just didn't pay attention to the condition of these buildings.''

Eleven of Rezko's buildings were in Obama's state Senate district.

Obama appeared in Cook County court on behalf of Woodlawn Preservation & Investment Corp., defending it against a suit by the city, which alleged that the company failed to provide heat for low-income tenants on the South Side during the winter.
Allison Davis, a co-founder of the firm who since has left, is a major Chicago developer. Miner, Davis and other partners and clients have been a regular source of campaign money for Obama, giving him $100,000 over the years. Miner said he organized fundraisers for Obama's first state Senate run, his 2000 congressional campaign and his 2004 U.S. Senate race.

Davis, who could not be reached for comment, has been a partner with other Chicago developers who also are clients of the firm and are Obama backers. One Davis partner was Antoin "Tony" Rezko, a major Obama patron who is now on trial in a federal public corruption case.

In 1998 Obama used state Senate stationery to urge that state and city officials provide tax subsidies to help a partnership consisting of Davis and Rezko develop low-income housing, the Chicago Sun-Times reported last year....More...