HAP/Section 8 process- Cook County IL

[Kristi Wolfe]

We own a rental townhome in Streamwood IL - a suburb of Chicago.  Streamwood is decent. - not posh, but not seedy.  Somehow, the housing standards chart says that in Streamwood, the rent for a 2-BR should be capped at $1965/mo, which is the highest rate in the entire county - and that county includes the very posh Gold Coast in Chicago!  We currently are renting at $1775/mo, and our (difficult) tenant is moving out at the end of her lease on July 31.

The place is 1100 sf, completely renovated in 2016, attached garage, stainless steel appliances, granite countertops in kitchen and bathroom-- a nice place...but someone on federal housing assistance can live there for free if they're unemployed (during a nationwide labor shortage, mind you), or for far less than the actual rent if they're employed with a low-paying job.

Every time we're looking for tenants, we get inundated with people looking for Section 8 housing.  We always have said no in the past because (a) it bothers us that people who are on government assistance get to live in a palace while those working hard every penny they live off of must live in far less luxurious homes.  And (b), we hardly ever have a problem finding someone who is not on Section 8 who wants to rent the place, so there's less hassle with it.  But, given that our current tenant is so difficult, is almost always late with paying rent (in cash!) and that we can get $190 more/mo if we rent to a Section 8 tenant, we're considering it despite feeling resentful of the unfairness.

One major concern that we have is - how long does it take to get approved for Section 8 in Cook County IL?  We have to first find the tenant, screen then, call references, do the background check, credit check, then apply for the rental to be approved...then they have to come out and inspect, then more paperwork.... how long does that take?  In my experience, government agencies typically aren't the quickest/most efficient.  I'm afraid that we advertise on July 1, find a tenant by July 7, apply...then wait wait wait...then on July 27, find out that we're not approved for some reason...then have 3 days to find another tenant because our current tenant's lease expires Jul 31.

What have you experienced in Cook County with the HAP/Section 8 program?

Thanks!

[Russell W.]

Second vote for Straight Up Chicago podcast, specifically episode 53 regarding this topic.

I accept Section 8 tenants at my properties and can confirm that the process does take awhile. That said, I think it's worth it. The paperwork can be a bit of a pain, because if you fill in the form and have a "minor" error, CHA will reject it and you have to start the process again. Just takes diligence. Regarding the inspection process, this is what takes the longest. In my experience it usually takes 1-2 weeks to get an inspection after the paperwork has been processed, then, when the inspection does occur, the inspector will almost certainly find something that needs to be addressed, and it takes another week for the re-inspection. The $1,965 rental rate you're seeing is likely the county maximum for the number of beds/baths. You will have to specify how much you're asking for rent and have that amount approved. It's possible they approve for less than the published amount, so don't bank on that.

If you do go this route, my suggestion is to continue marketing the townhome for rent to non-subsidized tenants even after you have identified a Section 8 renter and have started the process of getting them/the townhome approved. Make it clear to the Section 8 renter that this is what you're doing.