Section 8 Housing in Chicago: Frequently Asked Questions

The Chicago Housing Authority program for Section 8 housing can be a dividing point for many city landlords. While some landlords live by the program, others will avoid it entirely. Why is that? What are the benefits and potential downfalls of a landlord working with CHA? In this post, we will dive into what CHA does, the pros & cons of working with the program, and some frequently asked questions from many owners PRG Management works with. We will be talking to one of our rental property managers, Payton Dalessandro, about some of the ins and outs of the CHA program as well.

Q) What is CHA and what is Section 8 housing?

A) CHA stands for the Chicago Housing Authority, a municipal non-profit organization that provides and finds housing for more than 63,000 households. Created in 1937 to help maintain and operate housing built under the Roosevelt administration’s public works acts - they’ve continued to grow to this day. They create partnerships, deals, and opportunities for no/low-income Chicago residents giving them a safe roof over their heads.

Section 8 of the United States Housing Act of 1987 (referred to as simply, “Section 8”) authorizes the payment of rental housing assistance to private landlords on behalf of low-income households. Essentially Section 8 is what gives the CHA the ability and power to provide the assistance they do. CHA deals with properties, landlords, and violations while Section 8 focuses on the payment and tenant side.

Q) What are the benefits of having a CHA tenant?

A) One thing landlords love about having a CHA tenant is the guaranteed portion of the rent. Paid automatically via ACH - Section 8 will pay typically around 90% or more based on the Fair Market Rent for your metropolitan area. The Department of Housing and Urban Development (HUD) publishes an updated list of rates each year that helps set expectations across the board.

Q) What are the disadvantages of having a CHA tenant?

A) The biggest annoyance many landlords find with the CHA program is not from the tenants themselves but the system and long process. Depending on the situation it can be tedious and drawn out process with all the inspections and approvals that need to take place. This can take several weeks and if the tenants have a child under 6 in the family, this process will take even longer due to more extensive inspections.

Another pain landlords may experience when dealing CHA tenants is rent determination. This process can be a bit complicated so we recommend reading through CHA’s official document for how rent determination and its disputes are decided.

Q) I’ve heard many issues can arise from CHA tenants. Is this true?

A) While this trope about bad CHA tenants still lives today, we have found no data or trends to suggest landlords have more issues renting to CHA/Section 8 tenants than not. It is recommended that you screen CHA applicants the same way you would any other potential tenant.

Q) Can I deny a CHA applicant? What are my options?

A) A CHA applicant’s source of income is a protected class under the Illinois Fair Housing laws. So while you can’t deny a CHA applicant for their income you can deny them if they don’t meet your minimum requirements in other categories (rental history, credit score, etc.) you may deny them like any other applicant.

Q) My house didn’t pass CHA inspection. What do I do?

A) If CHA doesn’t pass your property for an inspection you have two choices: fix the repairs or not. If you still wish to rent out to a CHA/Section 8 tenant you must address the repairs up to the CHA standards. After which you would schedule a new inspection.

Or you could simply not address the repairs. You will no longer be able to continue down the CHA process but you can now rent the property to any non-CHA applicant.

Q) How do landlords get paid through CHA?

A) The CHA/Section 8 payment process is quite simple and one of the biggest advantages for landlords. Prior to your tenant’s first month of occupancy, you will submit a form to CHA with your banking information that allows you to receive automatic deposits on the first of every month.

Q) I’m unable to handle the CHA inspections and paperwork on my own. What can I do?
A) Let PRG Management take care of it! The biggest reason landlords and property owners hire property management companies is the sheer amount of time and effort that is put into managing even just one CHA property/unit. We can ensure owners are getting the best return on their investment with no stress involved. Call us at (312) 600-8896 today to get a FREE management proposal!

Now Managing: 4880 N Marine Drive │ Chicago Property Management

Recently PRG Management took over the management of this classic red brick, 120-unit lakefront building on N Marine Drive. Built in 1950, this building has stayed up to date with upgrades and amenities to keep this a well-sought-after building in the neighborhood. It features multiple unit layouts, in-unit washers & dryers, and assigned garage parking spots, so any family can find their home here. See more details on units and amenities.

Located in Chicago’s Margate Park neighborhood, residents are just steps away from a gorgeous lakeside stroll or experiencing all the excitement the North Side has to offer. Close to public transportation, boutique shopping, artisan dining, the famous Aragon Ballroom, and Chicago’s gorgeous lakefront parks are all within walking distance.

We are ecstatic about the opportunity to manage and provide the best possible Chicago property management services to 4880 N Marine Dr and its residents. PRG’s Chicago property managers are well-versed in the unique intricacies involved in both the day-to-day needs of clients and the long-term profitability of the building itself.

Are you frustrated with your current building's management? Had enough of your building not turning a profit? Tired of property managers who don’t respond for days? Well then, there’s no better time for change than the new year! Give us a call today and you’ll get your own FREE personalized Management Proposal.

Chicago's First Condo Association: 1011 N Lasalle Street

The first condo project in the history of Chicago

Chicago’s Lasalle Street is among some of the most history-packed stretches in the city that is home to the YMCA building, The Federal Reserve Bank of Chicago, The U.S. Bank building, The Field Building, and even City Hall. But quietly tucked away just north of the river over the Lasalle Street Bridge, is a historic Chicago building PRG Management has managed since 2015 at 1011 North Lasalle Street. This classic 8-unit building was Chicago’s very first homeowner’s association, with some great history behind it.

Historical photo of the Newberry Library at 60 W Walton St, located just across the street diagonally from 1011 N La Salle Street.

The 1011 Lasalle Condominium association was created on December 17th, 1964 according to their recording date found in some historical documents. Unfortunately, for those living in Chicago before this, ownership of common building elements and multiple tenants agreeing to incurred expenses was a stressful tiring experience. Back in the 60s the norms and landscape of the city were very different so for many reasons, owners did not see the need to have someone manage their building. Nowadays it’s commonplace for condo associations, homeowner’s associations (HOAs), and even smaller landlords to use the services of property management companies to take care of a wide variety of regular tasks.

Not only does 1011 N Lasalle have a rich history behind it but so does the beautiful River North/Magnificent Mile area surrounding it. It is located just across the street from the Newberry Library in a neighborhood that in the 60s, was considered a rough part of the city.

After the Chicago Fire of 1871, many parts of the city were rebuilt and rezoned. Following the fire, River North was quickly turned into an industrial district named Smokey Hollow with factories, forges, and rails turning the area around. Sadly, just as fast as it appeared, Smokey Hollow was gone following large closings of factories and employees moving to the suburbs. But today River North has grown into one of the most popular neighborhoods in Chicago with unmatched dining options and a bustling nightlife. And even with all this growth and modernities, 1011 N Lasalle is among the surrounding historical homes that give this part of Chicago its true character.

Since 2015, PRG Management has worked hard to help owners at 1011 N Lasalle preserve the classic historical appearance of both the interior and exterior elements. All while maintaining and upgrading the structures wherever possible. Maintenance/repairs, rent collection, financial management, regulation enforcement, and vendor coordination are just a glimpse of what PRG Management is able to manage for any sized building. This can be particularly challenging on older buildings at times when dealing with old systems, discontinued parts, and outdated information. But this is where PRG Management’s team shines in going the extra mile to ensure all owner’s issues are handled as quickly and as efficiently as possible.

PRG Property Management is a full-service property management company, home to a team of reliable and accomplished brokers, distinguished property managers, and incredible support staff. We offer a broad range of services to effectively manage commercial and residential real estate in Chicago and surrounding suburbs. If you are interested in requesting a free proposal of services for your building simply fill out the form below!