As everyone knows, the hunt for apartments in Chicago is all about location. So when a location becomes more desirable, rents rise. Aging neighborhoods become the locus of uber-hip galleries, offbeat restaurants, grungy bars, and other artsy establishments that can't afford the pricier rents in more well-trafficked areas. These neighborhoods soon attract young professionals who find suburban life distasteful. Gentrification ensues, property values escalate, and the area "pops." The West Loop and Roscoe Village (and, more recently, Logan Square, Pilsen, and Woodlawn) are classic examples of this urban renewal phenomenon.
As developers descend on emerging territories, new construction and adaptive reuse projects proliferate, and property values escalate. In many instances, the value of the land soon exceeds the value of the improvements. Longtime owners find themselves unable to pay their property taxes, and longtime tenants become unable to keep pace with market rents. As a result, economically disadvantaged residents find themselves pressured to move (although many mainstays are happy to sell and retire).
Although gentrification brings new jobs and facilitates prosperity, a preponderance of local legislators find the displacement distasteful. Alas, affordable housing laws and other government programs have been either enacted or expanded. In the case of the Affordable Requirements Ordinance, the new rules require developers and rehabbers to set aside a given number of units to residents of limited means. In the case of tax credit programs, developers accept incentives to set aside a certain number of apartments for low-income residents. In the case of rent subsidies, the Chicago Housing Authority, working with the federal Department of Housing and Urban Development, oversees the Section 8 housing programs, in which tenants use vouchers to defray their monthly rent at apartment buildings of their own choosing or live in a building exclusively dedicated to tenants who otherwise qualify for the subsidy. Many tenants also benefit from monthly rent contributions made available by private benefactors, such as the Catholic Charities.
Although Chicago has expanded the availability of ARO units, demand continues to outpace supply, and the city claims to face a deficit of over 120,000 ARO apartments for rent. The city's Five-Year Housing Plan proposes to invest $1.4 billion in affordable housing, focusing on both preservation and new construction. Community land trusts are also gaining traction, offering a model for long-term affordability. Meanwhile, grassroots organizations are pushing for stronger tenant protections and more inclusive development policies. In addition, a growing number of aldermen have been banging the drum for rent control, which, in theory, sounds great, although there's no shortage of evidence to show that government regulation of private markets produces substantial unwanted consequences, as residents of New York City can surely attest.
In this article, we review the various rental assistance programs available in Chicago and offer our own guidance on how to navigate the system.
Affordable Requirements Ordinance (ARO) Apartments In Chicago
The Affordable Requirements Ordinance is intended to increase the supply of affordable housing and to create mixed-income communities. In its infancy, the ARO apartments in Chicago allowed developers to buy their way out of the program by making contributions to the local affordable housing fund, but recent amendments have restricted that option. Developers found it harder to rent apartments in buildings with affordable housing residents and were willing to pay to avoid conscription, but the City Council grew weary of that cop out. The ARO aims to help people earning up to 60% of the Area Median Income.
ARO units are the fresh faces in Chicago's housing scene. These apartments are thoughtfully integrated into market-rate developments and open doors to affordable living in some of the city's most sought-after neighborhoods. Land an ARO apartment and you could find yourself in a modern, well-appointed building with rent significantly below the going rate. Notably, housing units made available through the ARO (or through low-income tax credit developments, discussed below) are indistinguishable from market rate units in the same building. From appliances to finishes, ARO renters enjoy the same luxuries as their market-rate neighbors.
Low-Income Housing Tax Credit (LIHTC) Properties
LIHTC properties are the offspring of capitalism and social responsibility. Developers receive tax breaks to keep rents affordable. This means updated, well-maintained apartments at below-market prices. LIHTC developments are popping up all over Chicago, from bustling downtown areas to emerging neighborhoods.
Chicago Housing Authority (CHA) Properties And Vouchers
The CHA has been around the block a few times, and it's learned a thing or two along the way. Gone are the days of concentrated housing projects. Today's CHA is all about creating communities all over the city. From family-friendly developments to cozy spots for seniors, CHA properties are getting a major upgrade. And it's not just about putting a roof over your head – many CHA communities offer programs to help residents build skills and achieve their goals.
Other Subsidized Housing Programs in Chicago
Then there's the Chicago Low-Income Housing Trust Fund, a financial wizard that waves its wand to make regular apartments affordable for folks watching their wallets. And for those who need more than just four walls and a roof, supportive housing programs step up to the plate. These programs offer a cozy home paired with a helping hand, which is perfect for residents who need extra support in their daily lives. As for the dream of homeownership, programs like those made available through the Chicago Community Land Trust are turning that dream into reality for many Chicagoans. They're helping renters become owners while also keeping the homes affordable for future buyers, basically passing the keys to affordable housing from one generation to the next.
Income Eligibility for ARO Apartments
Chicago's affordable housing landscape operates on a sliding scale, using the Area Median Income (AMI) as its foundation. In 2023, the area median income for a family of four in Chicago was $110,000. Affordable housing programs in Chicago typically use five AMI brackets: 30%, 50%, 60%, 80%, and 120%. Broadly speaking, the classifications are as follows:
- Very low-income Apartments: Typically for households at 50% AMI or below (or $55,000 for a family of four)
- Low-income Apartments: Often targets households at 60-80% AMI (or $88,000 for a family of four)
- Moderate-income Apartments: May go up to 120% AMI (or $132,000 for a family of four)
Residents at 30% AMI are the city's most economically vulnerable residents and often include seniors on fixed incomes or individuals working minimum-wage jobs. Residents in the 50% and 60% AMI bracket often fall into the sweet spot for many affordable housing programs, including public housing and Low-Income Housing Tax Credit properties. Residents at the 80% AMI level generally qualify for so-called "workforce housing" - teachers, firefighters, and other middle-income professionals. At the top end, residents at 120% AMI are moderate-income families who benefit from not being priced out of more upscale neighborhoods.
But there's another factor at play. Rent in an ARO apartment is typically capped at 30% of monthly income. It's a simple, time-honored formula designed to keep housing costs manageable irrespective of the AMI bracket into which the renter falls. Although income is not the only factor. Household size also plays a role in eligibility, and a household extends to more than just immediate family. It also encompasses a partner, kids, elderly parents, or even cousins. The bigger the household, the higher the income limit.
- Apartment Size Eligibility: This is where things get cozy (or spacious, depending on your situation).
- Flying solo or dynamic duo (1-2 people): Studios or one-bedrooms.
- Family starter pack (3-4 people): Two-bedroom apartments.
- Full house (5-6 people): Three-bedroom apartments
- Brady Bunches (7 or more): Four-bedrooms or larger.
Note that these figures aren't set in stone. They're adjusted annually based on changes to the overall AMI, and they don't guarantee an apartment at these exact rent levels. Availability can vary widely depending on the neighborhood and type of housing program. The system is flexible.
Other Eligibility Factors for ARO
While income and household size are the headliners, other factors play supporting roles:
- Citizenship/Immigration Status: Most programs require U.S. citizenship, legal permanent residence, or another qualified immigration status, although some city-funded programs may be more flexible.
- Background Checks: These typically look at:
- Rental history
- Credit score (often seeking a score of 580 or higher)
- Criminal background (policies vary, with many programs becoming more inclusive)
- Current Housing Situation: Some programs prioritize those who are currently homeless or at risk of homelessness.
- Local Preferences: Certain programs give preference to people who already live or work in specific neighborhoods.
Each program has its unique set of requirements. The Chicago Department of Housing website is a great place to start your search, offering a wealth of information on various programs and their eligibility criteria.
Remember, navigating affordable housing can feel like learning a new language, but you don't have to do it alone. Housing counselors certified by the Department of Housing and Urban Development (HUD) are available to help you understand your options and find programs that fit your situation. By understanding these eligibility factors, you're taking the first step towards finding your affordable apartment in Chicago.
Applying for Affordable Housing in Chicago
In Chicago, each type of affordable housing has its own application route, and we're here to guide you through the maze.
ARO Apartments
Unlike other affordable housing options, with ARO, you'll apply directly through the property manager of the building in which you're interested. It's a bit like applying for a regular apartment, but with the extra step of income eligibility. Keep an eye out for new ARO apartments by checking the City of Chicago's website or signing up for email alerts. When an apartment becomes available, act fast – these apartments get snapped up quickly.
Chicago Housing Authority (CHA)
With these apartments, patience is key. The CHA operates on a waitlist system, and getting on that list is just the first step. You can apply online through the CHA website or in person at a CHA office. Be prepared to provide information about your household size, income, and housing preferences. Once you're on the list, keep your information up to date – the CHA will contact you when a suitable unit becomes available, but don't be surprised if you find yourself waiting for several years.
Low Income Housing Tax Credit Apartments
While privately owned, these apartments follow a similar process to CHA housing. Each property manages its own waitlist and application process. Your best bet is to identify LIHTC properties in your desired neighborhoods and reach out to them directly. Some may have open waitlists, while others might only accept applications during specific periods.
Annual Income Recertification
In affordable housing, lease include unique clauses that set them apart from standard rental contracts. Because the rent is typically capped at a percentage of income, annual adjustments can occur based on changes in income or the Area Median Income (AMI). The lease will likely include clauses requiring any changes in income or household composition to be reported to the landlord. Typically, this occurs in the form of an annual income recertification. Each year, you'll need to update your household income and composition to ensure that you still qualify for your affordable apartment and to compute your rent for the coming year. During recertification, you'll need to submit recent pay stubs, tax returns, and other documents verifying your income. Honesty is key – failing to report income changes could jeopardize your housing. If your income increases significantly, don't panic. Many programs have policies that allow you to remain in your apartment, albeit with a potential rent increase, although in some circumstances you may find that your increased prosperity forces you into a market rate dwelling unit. Also, in certain instances, increases in operating costs, separate and apart from changes in annual income, may allow the landlord to raise the rent.
Despite these additional considerations, your rights as a tenant remain strong. You're still entitled to privacy, protection from discrimination, and due process in case of eviction proceedings. If you ever feel your rights are being violated, resources made available by the Metropolitan Tenants Organization or the Legal Aid Foundation of Chicago offer guidance and support.
Bear in mind that many affordable housing leases include restrictions on subletting to maintain the integrity of the program. They also provide detailed information about maintenance responsibilities, procedures for requesting repairs, and policies regarding landlord access to the apartment.
Finding ARO and Affordable Apartments in Chicago
To simplify your search, Chicago offers several online resources and portals. The Chicago Department of Housing website is a great starting point, offering a wealth of information on various affordable housing programs. For a more hands-on approach, try the Illinois Housing Search website. This user-friendly portal allows you to search for affordable apartments across the city based on your specific needs and eligibility.
Don't overlook the power of in-person assistance. Housing counselors certified by the Department of Housing and Urban Development (HUD) can be valuable allies in your housing search. They help you understand your options, check your eligibility for different programs, and even assist with applications.