An Owner`s Guide to The Chicago Housing Choice Voucher Program

An Owner’s Guide to
The Chicago Housing Choice Voucher Program
An Award-Winning Initiative that Creates Affordable
Housing for Chicago’s Families and Provides Financial
Benefits to Property Owners and Managers
CHAC is an affiliate of Quadel Consulting Corporation in a unique partnership with the
Chicago Housing Authority to administer the Chicago Housing Choice Voucher Program
1
Introduction
A Good Choice for Property Owners
The Housing Choice Voucher Program is a federal rental assistance
program that helps low- and moderate-income families rent housing
on the private market, by paying a share of the family’s rent each
month directly to the property owner. Currently, more than 15,000
owners have discovered the benefits of participating in Chicago’s
voucher program. The voucher program offers property owners and
managers:
•Steady Cash Flow
•An Additional Pool of Applicants
•Free Property Listings
•Free Property Inspections
•Grants for Accessibility Modifications
•Workshops and Property Management Training
•Special Events
•Free Employment Services
Start Reaping the Benefits
More than 35,000 families are using vouchers in Chicago. Some have full-time jobs, some are parents
with children, some are seniors and some are persons with disabilities. Each month, hundreds of families
are added to the program and thousands more are moving.
So the next time you have a house, apartment or condominium
for rent, start by listing your property free of charge on CHAC’s
web site at chacinc.com. You should also advertise available
properties in the way that you usually advertise them. Just like
market rate tenants, voucher families will contact you directly to
view the unit. If a family with a voucher passes your application
and screening process, CHAC will call you to schedule an
inspection. The rest of the process will take care of itself.
A good choice:
an additional pool of applicants
Introduction 2
Rights and Responsibilities
Administration. In Chicago, the Housing Choice Voucher Program is administered by CHAC, Inc.,
a private company under contract with the Chicago Housing
Authority (CHA). As administrator, CHAC has three broad
responsibilities: (1) determine whether families are eligible for
the voucher program based on income; (2) inspect units to
ensure that they meet federal standards; and (3) pay the program’s portion of the rent each month. CHAC does NOT
assist owners with property management decisions.
Participating Property Owners. Owners who lease to tenants
with vouchers have the same rights and responsibilities as they
do with market rate tenants. Owners are responsible for
screening all tenants, collecting a security deposit, collecting
rent, enforcing the terms of their lease and evicting tenants who violate the lease.
Participating Families. Families must meet income guidelines in order to qualify for a housing subsidy under the voucher program. In addition to informing CHAC of any change in their income or
family composition, voucher program participants’ responsibilities include: complying with the terms of the lease, paying the
rent on time and keeping the unit in good condition.
A
good
choice:
the opportunity to create affordable housing
3
The Leasing Process
5
Five Steps to Steady Cash Flow
1 Tenant Selection. A family with a voucher contacts an owner to view a unit for rent. If the family likes
the unit and passes the owner’s screening and application process, the owner fills out a Request for
Tenancy Approval packet or RFTA and returns the forms to CHAC.
2 Housing Inspection. Within 3 to 5 days of receiving the RFTA, CHAC will call the owner to schedule
an initial inspection.
Rent Reasonableness Determination. When the unit passes inspection, CHAC will review the
requested rent to make sure that it is reasonable for the area. CHAC considers factors such as the unit’s
size, location, condition and amenities.
4 Execution of Leasing Documents. If the owner accepts the rent amount, the family
and the owner will sign a lease; and the owner and
CHAC will sign a Housing Assistance Payment or
HAP contract. The HAP contract spells out the
rights and responsibilities of CHAC and the owner
under the voucher program.
Payments to Owner Begin. Once leased, families
5 pay 30 to 40 percent of their monthly income toward
rent and utilities; CHAC pays the rest, called a
Housing Assistance Payment or HAP, directly to the
owner. Approximately 10 business days after the leasing documents have been signed, voucher program
payments will begin. Thereafter, HAP will be mailed
directly to the owner on the first of every month. Rent
from the tenant is due in accordance with the terms of
the lease.
A good choice:
Minimal paperwork
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The Leasing Process 4
The Initial Inspection
Units subsidized under the Housing Choice Voucher Program
must meet a minimum standard of health and safety rules called
Housing Quality Standards or HQS. To ensure compliance, all
units must be inspected initially before the tenant moves in and at
least once a year thereafter.
The inspection process is based on the premise that federal funds
should not be used to subsidize substandard units and that all families regardless of their income have a basic right to live in housing
that is safe, decent and sanitary. The inspection also helps CHAC and other administrators of
voucher programs determine whether the rent requested by the owner for the unit is reasonable,
based on its location, condition and amenities.
Timing. The initial inspection takes place 7 to 10 days
after CHAC receives the RFTA. Inspections are scheduled for the morning or afternoon. Owners must be prepared to remain at the unit during the entire appointment window to provide the inspector access to the
building’s heating and other major operating systems. If
the owner leaves and the inspector cannot gain access,
the inspection will have to be scheduled all over again,
delaying the lease up process.
The actual inspection takes approximately 20 to 45 minutes, depending upon the building type
and condition. If the unit passes the initial inspection, the process moves to the rent determination phase. If the unit fails the inspection, the owner has 10 days to make the required repairs and
to call CHAC to schedule a reinspection. If the owner fails to complete the repairs and to call
CHAC for a reinspection within 10 days, then CHAC will direct the tenant to look for another
unit.
Preparing for Inspections
5
General Guidelines
Housing Quality Standards are basic—making sure that every family has hot and cold running water,
utilities and appliances that work, proper locks, and
handrails on flights of 4 or more stairs, for example. Here
are some general guidelines when preparing units for an
initial inspection.
Two Basic Rules. When preparing a unit for inspection,
make sure that: (1) everything in the unit works the way
it’s designed to work and (2) nothing poses a health or
safety hazard to the tenants. Meeting these two standards
throughout the unit will increase the chances of the unit
passing the inspection 95 percent. This means that windows, for example, should be intact—not broken
or cracked and should open and close properly and shut securely to keep out the elements.
If It’s Broken, Fix It. This is really the best strategy. If it’s broken—whatever it is, a window pane, a missing door knob, a light fixture, a leaky pipe—fix it and make sure it works properly.
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Owner Resource
Mechanical Items
Major Areas
of Unit
Plumbing
Bathroom
Kitchen
Interior of Unit
Other
Questions
to Ask
N
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Does it flush proper
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9. Bathtub/show
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10. Is bathroom
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11. Sink - Is there
and no leaks?
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12. Does hot water
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13. Does hot water
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14. Do radiato
odor or drainag
free of any sewer
15. Is bathroom
Yes or
o
Repairs Needed
Make Sure the Unit is Vacant. On the day of the initial inspection, the
unit must be vacant and all utilities must be on. This allows the inspector to verify that major appliances are working. It’s also a good idea to
bring tools and batteries so that you can make any minor repairs and
prevent smoke and carbon monoxide detectors from failing due to
dead batteries.
Use All Available Resources. Don’t wait for the inspector to point
out what’s wrong. CHAC’s web site has a comprehensive section on
inspections that covers the types of inspections, timetables, and specific HQS standards, including what to look for in each room.
CHAC also has a handy self-inspection checklist. A copy is in the
back of this brochure, and it is also available on our web site
(chacinc.com) and from CHAC’s Resource Center.
A good
choice:
helping to maintain our city’s housing stock
Preparing for Inspections 6
Pitfalls:
Common Reasons Units Fail an Inspection
Be Aware of Bedroom Sizes. To qualify as a bedroom under the voucher program, a room must meet
minimum size requirements. This is important
because families are issued vouchers for units with
the appropriate number of bedrooms for their household size. If a room designated as a bedroom does
not meet the following space requirements, the unit
may not be approved for that particular family.
A bedroom occupied by one person must have a
minimum of 70 square feet of useable floor space. If
a bedroom will be occupied by more than one person, there must be a minimum of 50 square feet of
floor space per person. (For example, a bedroom
occupied by 2 persons must have a minimum of 100
square feet of floor space.)
At least 75 percent of the room must have a ceilingto-floor height of at least 7 feet. If some portions of a
bedroom have a ceiling height of less than 5 feet,
those areas will not be considered when calculating
the total floor area.
Smoke Detectors. HQS guidelines require at least
one smoke detector to be located within 15 feet of
sleeping rooms and one on every living level.
Detectors mounted on the wall should be 4 to 12
inches from the ceiling; detectors mounted on the
ceiling should be at least 4 inches from the wall.
Carbon Monoxide Detectors. There must be at
least one battery-operated CO detector present and
functioning within 15 feet of every room used for
sleeping and every source of carbon monoxide,
including furnaces and boilers.
Outlets. Every electrical outlet must have
a cover plate that is
intact—not broken or
cracked.
Deadbolt Locks.
Entrance doors to the unit are required to have single-cylinder deadbolt locks. Single-cylinder locks are
opened by a key from the outside and by a turn
piece, knob or handle, which does not require a key
or special knowledge to operate, on the inside.
Double-cylinder locks are prohibited.
Hot Water Heaters. Hot water heaters must have an
extension pipe leading from the pressure relief valve
to at least 6 inches above the floor.
Deteriorated Paint. If the building was built before
1978, cracking, peeling, flaking or chalking paint
must be repaired.
7
Owner Resources
CHAC’s Web site: chacinc.com
CHAC’s web site is the most comprehensive and accurate
source of information on the Chicago Housing Choice
Voucher Program. Visit the site to:
•Learn more about how the program works
•List properties for rent
•Register for workshops and seminars
•Download program materials and CHAC forms and
applications
•Learn inspection guidelines and timetables
•Access a staff directory
Workshops and Special Events:
chacinc.com or Owner Information Line, ext. 3602
CHAC sponsors free workshops to assist owners in being
successful in the voucher program and in business. Topics
include:
•Monthly program orientation for new property owners
•Annual financial services fair
•Passing the HQS inspection
•Tenant screening and evictions
•Marketing strategies for rental properties
•Certification in safe work practices for lead-based paint
•Internet training for novices
CHAC’s Resource Center:
60 East Van Buren, open Monday through Friday from
8:30 a.m. to 4:30 p.m. No appointment is necessary.
In addition to posting property listings, the Resource
Center has more than 3,000 pieces of information on
every topic imaginable to assist owners not only in property management, but also in reaching their financial, personal and professional goals.
Property Tax Savings for Owners who Qualify:
chacinc.com
The Illinois legislature enacted the Housing Choice
Voucher Tax Savings Program in 2003 to increase housing
choice for low-income families, by providing an additional
incentive to owners of properties in low-poverty communities to rent to families.
To qualify for the program in Chicago, a property must
meet the following guidelines:
• The property must be located in a census tract with a
poverty rate below 10 percent
• At least one unit must be leased to a family participating
in the Chicago Housing Choice Voucher Program as of
January 1 of the year for which the owner is applying for
the tax savings
• The eligible unit(s) must be in compliance with federal
housing quality inspection standards as of January 1 of
the year for which the owner is applying
•The building must be in substantial compliance with
local building codes
Actual savings will vary depending on the size of the property and the number of qualified units. Landlords receive
up to a 19% reduction in the Equalized Assessed Valuation
(EAV) of the property depending on the number of qualified units.
A goodgaining
choice:
CHAC as a strategic partner
Owner Resources 8
Employment Services:
Employment Specialist, ext. 3186 or ext. 3193
CHAC’s Special Programs Department partners with Chicago area businesses to help voucher program participants find good jobs and employers
find good employees. The department offers companies free services such
as job listings, qualified candidate referrals and job recruitment sessions for
companies that have several positions available.
Property Modification Grants: Access Living at 312.640.2100
Fair housing law requires owners to allow tenants with disabilities to make reasonable physical modifications at their own cost. A reasonable modification is a physical change in the dwelling unit or building
that is feasible and necessary for the tenant to use and enjoy the dwelling unit and its facilities.
Some examples of reasonable modifications include:
•Flashing door bells and/or fire alarms for a person with a hearing disability
•Bathroom and kitchen modifications
•Ramps
•Exterior and interior motorized lifts for a person who is mobility impaired
•Protective wall plastic to prevent wheelchair damage
Through a partnership with the CHA and Access Living, CHAC offers participants with disabilities
funding to underwrite the cost of modifications to make their unit more accessible. All of the work is
performed by licensed, bonded contractors, and there is
no cost to the owner. Grants of up to $5,000 are available.
Requests for funding must be submitted by the voucher
program participant directly to Access Living, the administrator of the fund.
The Modification Fund is a wonderful benefit to participating owners who lease to voucher holders with disabilities. Accessibility modifications enhance both the value
and the marketability of the property. In addition, tenants
with disabilities tend to move less frequently, creating a
stable tenancy for owners.
9
Fair Housing
Tenant Screening
CHAC does NOT screen families for their suitability
as tenants—that is the owner’s responsibility. As a
property owner or manager, you
are responsible for establishing a
written rental policy, educating all
tenants about your property and
your policy and carefully screening
all tenants. A rental policy is simply
the decisions you have made prior
to looking for tenants that relate to
the quality of tenant you desire, the
type of rental arrangements you
want to make and how you will
find tenants.
Screening means that you evaluate each applicant
based on your particular set of criteria. Screening is
designed for two purposes: to ensure that the tenant
can and will pay the rent on time and to prevent renting to a tenant who may vandalize or destroy property.
Screening techniques vary from landlord to landlord.
Some just look people in the eye, talk to them and
make their decision. But it’s best for you, both legally
and financially, to develop a formal screening policy.
Formal screening can include: informing all prospective tenants about your property and policies, checking credit history and references, conducting criminal
background checks, reviewing previous rental history
and using a thorough application form.
Whatever you decide to do, you must treat all applicants and tenants the same. For example, if you conduct home visits as part of your
screening process, then you must
conduct home visits for every applicant.
Protected Classes. If a prospective
tenant meets your criteria, you
should accept him or her—
whether or not he or she has a
voucher. Use your criteria as a guide
and do not accept anyone who
does not meet your criteria. After
all, the best way to avoid problem
tenants is not to lease to them in the first place.
At the same time, you must adhere to the law. For
example, you cannot deny housing to a family who
otherwise meets your criteria because they have children or to a person with disabilities because you
believe that it would be “better” for them to live in
another unit or building. Fair housing laws give everyone the legal right to choose where he or she wants to
live—regardless of his or her race, religion, national
origin, ancestry, color, family status, sex or disability. In
addition, in Chicago it is illegal to deny housing to a
family solely because they participate in the voucher
program. Owners of property located in Chicago
must consider all legal sources of income when determining an individual’s suitability as a tenant.
Fair Housing 10
Reasonable Accommodations and Modifications. Fair housing laws also give people with disabilities the right
to request reasonable accommodations and/or reasonable modifications at any stage of the housing rental
process—when the person is applying for rental housing, during their tenancy or if threatened with eviction.
For the purpose of fair housing, a person with a disability is defined as an individual who has a physical, mental
or developmental impairment that substantially limits one or more major life activities, has a record of, or is
regarded as having such an impairment.
A reasonable accommodation is a change in the owner’s rules, policies or
practices or a change in the way the owner provides services that allows a disabled person to have the opportunity to live and enjoy his or her unit and the
building’s common areas such as community rooms and laundry facilities.
Some examples of reasonable accommodations include:
• Giving an applicant additional time to submit his or her application and
any required documentation
• Allowing a person to pay the rent by mail if his or her disability makes it difficult to pay the rent in person
• Waiving a “no-pets” policy so that a person with a sight impairment can have a service animal
• Permitting a single tenant who can afford the rent to move from a one- to a two-bedroom apartment to have
adequate space for a live-in caregiver
Property owners do not have to approve a request for an accommodation or modification that would: impose
undue financial burden; fundamentally alter the owner’s basic operation or the nature of housing services provided by the owner; or violate the terms of the lease agreement. Owners also have the right to ask an applicant or
tenant for documentation of his or her disability. If a tenant or applicant provides documentation from a physician or health care provider, an owner must consider the request
for an accommodation or modification even if the tenant or
applicant doesn’t “look” disabled.
Finally, if an applicant or tenant submits a request for a reasonable accommodation or modification, take action on it. Ignoring
a request from an applicant or tenant for a reasonable accommodation can result in housing discrimination charges. Consider the
options and work with the tenant to find a mutually beneficial
solution. Often owners find that the accommodation or modification may be easily adopted or implemented. For more information on reasonable accommodations, contact CHAC’s Americans with Disabilities Act (ADA) Coordinator at
ext. 3259. For more information on reasonable modifications, contact Access Living at 312.640.2100.
A good
increasingchoice:
housing options for people with disabilities
P. O. Box 1406
Chicago, Illinois 60690-1406
Housing Quality Standards Self-Inspection Checklist
This handy checklist will assist you in preparing units to pass inspection. Feel free to make copies and distribute to your
maintenance staff. Additional copies are available on CHAC's web site at chacinc.com
Major Areas of Unit
Mechanical Items
Electricity
HVAC
Plumbing
Bathroom
Kitchen
Other
Wall Condition
Ceiling Condition
Floor Condition
Cabinetry/Interior
Doors
Interior of Unit
Security
Health and Safety
Questions to Ask
1. Do all fixtures and outlets work (at least 2 outlets per /room or one outlet
and one light fixture per room)?
2. Is there lighting in the common hallways and porches?
3. Are all outlets, light switches and fuse boxes properly covered with no
cracks or breaks in the cover plates/doors?
4. Are light/electrical fixtures securely fastened without any hanging or
exposed wires (anywhere the tenant has access)?
5. Have you arranged for all utilities to be on the day of the inspection?
6. Is there adequate heat in all living spaces?
7. Is toilet securely fastened with no leaks or gaps? Does it flush properly?
8. Sink - Is there hot and cold running water, proper drainage and no leaks?
9. Bathtub/shower - Is there hot and cold running water, proper drainage and
no leaks?
10. Is bathroom vented with either an exterior window or exhaust fan?
11. Sink - Is there hot and cold running water, proper drainage and no leaks?
12. Stove - Is there a hand-operated gas shut-off valve?
13. Does hot water tank work?
14. Does hot water tank have an extension pipe?
15. Do radiators function with no leaks?
16. Is bathroom free of any sewer odor or drainage problem?
17. Are walls free of air and moisture leaks? Large holes and cracks?
18. Are ceilings free of air and moisture leaks? Large holes and cracks?
19. Are floors free of weak spots or missing floorboards?
20. Are floors free of tripping hazards from loose flooring or covering?
21. Are cabinets securely fastened to the wall?
22. Is there space for food preparation and storage?
23. Are all doors securely hung?
24. Is there free and clear access to all exits?
25. Are there deadbolt locks on entry doors to the unit? Do they open with a
key from the outside and a knob/latch from the inside?
26. Are entrance and exit doors solid?
27. Do first floor windows and those opening to a stairway, fire escape or
landing have locks?
28. Is there at least one battery-operated CO detector present and functioning
within 15 feet of every room used for sleeping and every source of carbon
monoxide, including furnaces and boilers?
29. Is there a working smoke detector on each level of the unit?
30. Are smoke detectors installed on walls at least 4" and not more than 12"
from ceiling? Are smoke detectors installed on ceilings at least 4" from the
wall? Are smoke detectors installed within 15 ft. of each sleeping area?
31. Is unit free of any evidence of insect or rodent infestation?
32. Is unit free of any evidence of mold or mildew?
Yes or No
Housing Quality Standards Self-Inspection Checklist
(continued from front)
Major Areas of Unit
Interior of Unit
Appliances
Windows
Stairways:
Interior and Exterior
General
Common Areas
Exterior of Unit
Other
Questions to Ask
Yes or No
32. Do all burners on the stovetop ignite, does the oven work and are all knobs
present?
33. Does refrigerator/freezer cool properly?
34. Is refrigerator/freezer large enough for the family occupying the unit?
35. Is there at least one exterior window in each bedroom
and in the living room?
36. Do windows open, close and lock properly?
37. Is unit free of any cracked, broken or leaky windows?
38. Is roof free of leaks?
39. Are gutters firmly attached?
40. Are exterior surfaces in a condition to prevent moisture leakage and rodent
infestation?
41. Is chimney secure? Is flue tightly sealed with no gaps?
42. Is foundation sound?
43. Are openings around doors and windows weather-tight?
44. Are sidewalks free of tripping hazards?
46. Are all handrails properly secured?
47. Is a handrail present when there are 4 or more consecutive steps?
48. Are stairs free of any loose, broken or missing steps?
49. Are stairways free of any tripping hazards?
50. Are there proper exit signs?
51. Are there secure railings on porches, balconies and landings 30" high
or higher?
52. Is unit free of debris inside and outside of unit?
53. INTERIOR AND EXTERIOR of units rented to families with children under
the age of six: is unit free of any chipping, peeling, flaking, chalking or
cracking painted surfaces, including windows, window wells, door frames,
walls, ceilings, porches, garages, fences or play equipment?
54. Are there covered receptacles for disposal of waste?
55. Is the unit clean and ready to move in?
Notes:
4/07