Thanks to the Housing Opportunity Tax Incentive Act recently passed by the Illinois General Assembly, rental property owners in economically stable, low-poverty areas can obtain significant tax abatements if they participate in the Housing Choice Voucher program.
The recently passed Housing Opportunity Tax Incentive Act (Public
Act 93-0316) introduces an important ammendment to the Property Tax
Code that will provide substantial financial incentives to
landlords who participate in the Housing Choice Voucher program
and have properties located in opportunity
areas in the city of Chicago or economically stable townships throughout
the region. The purpose of the act is
to promote access to housing near job centers and to
encourage economic diversity and mixed-income communities in Illinois. The act, also
known as the Property Tax Savings Program, is administered by housing authorities
located in the six-county area. Outside the Chicago region, only Winnebago, St. Clair, and Madison counties
will be participating in this program.
With the new act, a qualifying landlord with
a two-flat building in Naperville (for
which the estimated market value is $250,000) can save more than $600 a year on
the tax bill. The owner of a 50-unit apartment building in Chicago's Lakeview neighborhood
(estimated market value= $8.75 million) who rents some of the units
to voucher holders would receive a $1,500 discount in property
taxes.
For more information on how to participate in
the Housing Choice Voucher program, contact CHAC, Inc., the agency that
administers the program in Chicago, at 312-986-9400. CHAC's Web site
includes useful information on the
program, a brochure on how to take advantage of the benefits created
by the new act, and a search engine to find out if a property is
located in a qualifying area.
Outside Chicago, the program will be available
through the housing authorities in the six-county area. They can provide information on
how to join and benefit from these tax abatements. For
contact information for northeastern ILlinois housing authorities, click here.
Protestants for the
Common Good is undertaking
an outreach/educational campaign which includes a slide presentation
summarizing the benefits for landlords. It includes detailed maps of
all the qualifying areas in the Chicago region. Click here to download the presentation.
For more information you can contact Ken Oliver, Director of
Housing and Welfare Policy at
Protestants for the Common Good, at 312-223-9544.
This legislation, which MPC supports, is part of the
broader state housing policy set in motion by Gov. Rod
Blagojevich, and fits the Metropolitan Mayors Caucus' Housing Action Agenda,
which
MPC helped shape. The Act addresses many of the concerns identified by
key stakeholders the MPC-commissioned Regional Rental Market Analysis and subsequent reports.