Landlords to benefit from Housing Opportunity Tax Incentive Act - Metropolitan Planning Council

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Landlords to benefit from Housing Opportunity Tax Incentive Act

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.

 

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