From generous tax incentives, to reliable long-term tenants and prompt rental payments, to an extra month's rent paid for every eligible unit, there are a lot of great reasons to provide housing through the HCV Program if you are an Mobility Area landlord. Learn more below and, for more information, contact us at 312-386-1009. We are ready to assist you.
What is an Opportunity Area?
Mobility Areas within the City of Chicago are community areas that have less than 20% poverty and lower than average reports of violent crime. Some areas with improving poverty and crime rates that offer job opportunities are included as well. To determine if your property is in a Mobility Area, you can view a map here or check the property address using a tool located on this CHA page.
Please remember, a renter with a voucher does not need to participate in mobility counseling to use the Exception Payment Standards that allow for higher maximum rent payments in Mobility Areas. This higher payment standard is based solely on the location of your rental in a Mobility Area and rent reasonableness is determined based on rents for comparable rentals nearby. Please see the 2019 Exception Payment Standards here and remember that renting within a Mobility Area is incentivized by an additional payment equal to one month's rent.
What is the HCV Program?
The US Department of Housing and Urban Development (HUD) provides rent subsidies to eligible low-income individuals and families in the form of Housing Choice Vouchers.
Public Housing Authorities are responsible for determining applicant and tenant eligibility by pre-screening applicants on their income and credit histories.
How do I benefit from taking part in the HCV Program?
Assurance of prompt payment of rent subsidy each month
Free advertising of unit vacancies and property inspections
Protection from tenant financial hardships
Decreased vacancy rates and reduced tenant turnover and related expenses
Ready pool of pre-screened applicants
Same protections as renting to market rate tenants
What is the Tax Savings Program?
The Housing Opportunity Area Tax Abatement Program is an Illinois state property tax savings program for housing providers who rent to Housing Choice Voucher tenants in “opportunity” census tracts in the six-county Chicago region. The program is limited to areas with low poverty and access to jobs.
The program is designed to reduce property taxes on qualified units, up to 19%. The actual amount will depend on the assessed value of the property and the local tax rate. Up to 20% of the units in the building may qualify if rented to HCV participants. For buildings under 10 units, the limit is 2 units.
The Lump-Sum Payment Equal to One Month's Rent
When you rent to an HCV holder in an Opportunity Area, you receive an additional one-time incentive payment within 30 days of lease-up equal to one-month's rent. This payment is automatic - no need to apply. There are no limits with regard to how many units you can lease while receiving this benefit.