If you wish to rent to an HCV family, and enjoy a number of benefits including lower vacancy rates, tenant stability, free property inspections and eligibility for a reduction in property taxes you should inform CHA of the availability of your property. Ultimately, it is the HCV family’s decision whether or not to rent your property. Of course, as the landlord, you would screen the HCV family just as you would any other prospective tenant. The following steps summarize the process to become an HCV landlord:
- Attend Owner Briefing (Recommended) English
- Market your property once HCV participant is selected
- Complete and submit a Request for Tenancy Approval (RTA)
- Pass Housing Quality Standards (HQS) Inspection
- Complete suitability screening
- Execute lease and Housing Assistance Payment (HAP) contract
- Comply HUD and CHA’s rules and regulations (enforce lease)
Every Regional provides a resource center that includes a wide range of information, internet access, property listings. Each resource center is open Monday through Friday from 8:00 a.m. – 5:00 p.m. No appointment is necessary.
For more information see the Property Owner Guidebook.
Payment standards represent the maximum amount of subsidy that CHA can provide a family. CHA does not automatically approve this rent level for a given unit. CHA's monthly rent subsidy depends on a number of factors, including payment standards, the rents of other comparable unsubsidized rental units in the area, and the income of the family. Please see CHA's 2017 Payment Standards. As part of CHA's commitment to provide voucher holders access to more Chicago neighborhoods, CHA implemented an Exception Payment Standard policy.
Please see CHA's Rent Determination Process and procedures on approving rent increases.
Determining reasonable rent
When determining the rent offer made to an owner, HUD regulations require the amount is supported by the market. CHA establishes the rental value of the unit by examining comparable units in the area, ensuring the appropriate amount is provided to the property owner. Please see CHA's methodology in determining reasonable rent.
landlord incentive payments
In order to provide an incentive for property owners to rent units to CHA voucher holders in “Opportunity Areas,” the Chicago Housing Authority is implementing a program that provides owners an additional lump sum payment equal to the monthly contract rent for every new unit leased to a voucher holder in these designated areas. Opportunity Areas are census tracts with a poverty rate of less than 20% and low concentration of subsidized housing. Please see our Frequently Asked Questions for more information and our Promotional Flyer.
CHA seeks to expand housing choice outside areas of poverty or minority concentration. CHA defines these areas as an Opportunity Area, which is a census tract with less than 20% of its individuals with income below the poverty level and a less than 5% concentration of subsidized housing. Some census tracts with low poverty, moderate subsidized housing, and improving community economic characteristics are also designated as Opportunity Areas.
CHA Opportunity Area Map
HCV TAX SAVINGS PROGRAM
Under state law, Illinois property owners who rent to participants in the Housing Choice Voucher (HCV) Program may receive property tax abatement (“tax savings”) in an amount up to 19% of a property’s Equalized Assessed Value (EAV). The actual amount will depend upon tax rates, the state equalizer, EAV and the number of qualified units rented to HCV Program participants. In order to qualify for this tax savings program, property owners must meet the following eligibility guidelines:
- The property must be located in a census tract with a poverty rate below 12 percent.
- At least one unit must be leased to a tenant participating in CHA’s HCV Program as of January 1st of the year for which the Property Owner is applying for the tax savings.
- No more than 2 units or 20% of the total units contained within the property, whichever is greater, may be considered qualified units.
- The eligible unit(s) must be in compliance with Housing Quality Standards as of January 1st of the year for which the Property Owner is applying for the tax savings.
- The building must be in compliance with local building codes.
All property owner(s) must submit a separate application for each property on an annual basis. Each application should have a separate Property Index Number (PIN). No applications will be accepted after December 15, 2017 for the 2017 taxable year.
Complete the attached application before December 15, 2017 (print or type) and mail the original (keep a copy for your records), notarized, application to:
Chicago Housing Authority
HCV Tax Savings Program
60 E. Van Buren Street, 11th Floor
Chicago, IL. 60605-1207
Instructions to determine if your property is located in an eligible census tract:
- Go to the web address http://www.ffiec.gov/geocode/default.aspx
- Select the most current calendar year
- Enter the property address
- Select “Search”
- Select “Census Demographic Data”
- Select “Income Data”
- Review the “% Below Poverty Level” (must be less than 12%)
Common reasons for application denial:
- The application was submitted after December 15th.
- The property isn’t located in the city of Chicago.
- The property isn’t located in a census tract with a poverty level below 12%.
- The applicant didn’t notarize the application.
- The applicant didn’t mail the original application (do not fax application).
- The application is incomplete.
HCV Tax Savings Application