The Housing Opportunity Tax Incentive Act

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The Housing Opportunity Tax Incentive Act

• Problem
• Concentration of Vouchers in High-Poverty Areas.
• Lack of Landlord Interest in Areas of Job Growth
  Opportunity Areas.
• On the Street rents variation greater than Sect
  8 Program flexibility.

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HB 2246 P.A. 93-0316
The Housing Opportunity Tax Incentive Act

• A Solution
• HB 2246 is now Public Act 93-0316

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PA 93-0316The Housing Opportunity Tax Incentive
Act

• The Housing Opportunity Tax Incentive Provides
• Market-based incentive for landlords
• Targeted to Opportunity Areas
• Safe-guards to prevent over-concentration of
  vouchers.

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How Do You Attract the Landlord?

• Tax Abatement
• One Months Rent
• Simple Application Process

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What is the Benefit to Landlordfor a qualified
unit?

• 2-Flat in Naperville
• Market Value 250,000
• Tax Rate 8.0
• Incentive (Tax Abatement) 633.27
• A 50 unit apartment in Lakeview
• Market Value 8.75 million
• Tax Rate 7.5
• Incentive (Tax Abatement) 1,496.25

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Does Program Have Other Limitations on the
Incentive?

• Limit number of units that qualify per building
  2 or 20
• Limited time benefit 10 years
• Allow a municipality to opt-out of the Program if
  HCV units become concentrated 2.5 of dwelling
  units
• Require landlords who receive the incentive to
  maintain good buildings Substantial compliance
  with building codes

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How Do You Target the Opportunity Area?

• By Township Tax base as indicator of wealth and
  job growth.
• By Census Tracts To prevent small
  concentrations of poverty in affluent areas.

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PA 93-0316 The Housing Opportunity Tax Incentive
Act

• Here is how the Tax Capacity test works
• STEP ONE - Total EAV of County divided by
  Population Per capita EAV of County.
• STEP TWO - Total EAV of Township divided by
  Population Per capita EAV of Township.
• STEP THREE - Compare per capita EAV of Township
  to per capita EAV of County to determine ratio.

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PA 93-0316 The Housing Opportunity Tax Incentive
Act

• First Test Qualified Township using Tax Capacity
  test Per capita EAV
• Outside Cook Qualified Twsp gt100 of County
  per capita EAV
• Cook Qualified Twsp gt115 of County per
  capita EAV

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PA 93-0316 The Housing Opportunity Tax Incentive
Act

• Second Test
• Identify Low-Poverty Census Tracts
• Under 10 Poverty

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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in Cook County
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HB2246The Housing Opportunity Tax Incentive Act
Chicago Low-Poverty Census Tract
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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in Du Page County
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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in Will County
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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in Lake County
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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in Kane County
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HB2246The Housing Opportunity Tax Incentive Act
Qualified Townships in McHenry County
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All maps created by Protestants for the Common
Good, May 2004, unless otherwise noted.
Population data is taken from the 2000 Census
SF1. Assessment data is from 2003. To qualify
for the Housing Opportunity Tax Incentive, a
township's per-capita Equalized Assessed Value
(EAV) must be more than 100 of the county's
per-capita EAV. For more information, contact
Ken Oliver at 312.223.9544
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PA 93-0316 The Housing Opportunity Tax Incentive
Act

• For more information
• Contact Ken Oliver
• Protestants for the Common Good
• 200 N. Michigan, Suite 502
• Chicago, IL 60601
• [phone]