I’ve been a real estate investor for 25+ years.  In that time, I’ve utilized the Housing Choice Voucher program a half dozen times with tenants across two counties.  I love the program.  It’s great for tenants, and it promotes tenant accountability.  

For instance, the Housing Authority conducts an annual inspection of the premises. I don’t have to attend but I require the tenant to ensure access. The inspection is very simple – this isn’t a home inspection.  They’re checking for life/safety concerns; things I’d want to ensure regardless.   

Contrary to popular belief, I still maintain every right to interview and select my tenants as their landlord.  We use my lease.  I have minimal communication with the Housing Authority, just a single sheet of paper annually while providing a copy of my lease.  The state housing authority direct deposits a portion of the rent into my bank account.  It’s a great program.

Mr. Wilson was a homeless disabled Coast Guard veteran living in a U-Haul trailer in Wrigleyville, Illinois. I had a hard time locating him suitable housing that would accommodate his motorized wheelchairs and other equipment that he uses daily.  

Housing providers required many credit checks, background checks, and eviction checks, creating numerous fees charged to Mr. Wilson and the U.S. government.    

Enter stage left: a private landlord willing to provide housing for Mr. Wilson.  Ten years later, Mr. Wilson is thriving.  His health has greatly improved, and he has resumed participating in revived hobbies and interests. 

For the last decade, I’ve housed twelve veteran voucher holders; three of which are still living in those same condos.  The other nine have purchased either single family homes or investment properties.

After being on the waiting list for Section 8 housing for four long years, my wait was finally over. Struggling to stand on my own two feet, the relief washed over me as my situation was approaching dire need. The next obstacle was finding a suitable place for my two children to live, and a landlord willing to accept us. 

A landlord willing to rent a home to a family eligible for Section 8 housing was difficult to locate. I lost track of how many houses we toured. Finally, I found someone willing to give us a chance. We looked at the house for rent: it was beautiful, clean, well maintained, and just perfect for me and my kids. I was so grateful to the owners and to the housing authority. My kids would be raised safely in a place we could all call home.  

We've been living in this house for several years and it's still safe and well maintained. I couldn't ask for a better landlord.

As a REALTOR®, we search high and low for the American dream because there is a home for every family. Being a Housing Choice Voucher holder unlocks homeownership possibilities for those that feel most vulnerable on the outskirts of homeownership prospects.

One of the HCV families that I was able to assist through homeownership never imagined owning a home could be their reality. I remember the buyer’s excitement when I landed them a 3-bedroom, 2-bathroom newly renovated Chicago bungalow. They smiled looking at one another, imagining endless possibilities in the new family home. It was truly life changing for their future.  

I remember my client crying excitedly and hugging me during every milestone of the transaction. We cried together as the transaction proceeded toward the final signature and the eventual close. Dreams can come true, and the Housing Choice Voucher Program proved that for this family.

On January 1, 2023, Source of Income (SOI) will be added to the Illinois Human Rights Act and will become a protected class under that Act. This will ban discrimination in housing based on source of income, including those who utilize non-wage income to assist in monthly rental payments (e.g. housing choice vouchers (HCV’s), sometimes referred to as Section 8 vouchers). Those tenants must apply and qualify for the property just as a market rate tenant is required to apply.

In April, 2022, the Illinois legislature passed HB2775 which will amend the Illinois Human Rights Act to include Source of Income as a protected class. The law will go into effect on January 1, 2023. According to the National Low Income Housing Coalition, over half of Illinois households rely on non-wage income to assist with living expenses. While there are some regions in the state that already include Source of Income (SOI) as a protected class such as Cook County, for the vast majority of the State, this will become a new requirement for landlords. 

As disclosed by Illinois REALTORS®, legislation regarding Source of Income had been opposed by the organization for more than 30 years. The reason behind the opposition was that the change would essentially require landlords to be a part of a program, in lieu of having a choice. 

In the spring of 2022 when the legislation came to the floor again in Springfield, it included numerous amendments that went well beyond Source of Income as a protected class and had major implications for landlords.

Through the lobbying efforts of Illinois REALTORS®, these harmful additions were removed from the bill, which passed in a fashion that replicates SOI in Cook County.

Non-wage income includes:

• Alimony/Child care payments
• Veteran’s benefits including housing vouchers (HUD-VASH)
• Housing Choice Vouchers (HCV) 
• Social Security funds
• Rental vouchers for victims of domestic abuse 

• Stability – Voucher holders tend to remain in place for several years, decreasing the time and resources to landlords to market a vacant unit and screen potential tenants.
• Reliable rental payments – Voucher holders are required to pay the landlord on average 30% of their monthly income while the remainder comes directly for the Public Housing Authority (PHA).   Should the voucher tenant lose their job, they can request an adjustment which could pay 100% of the rent. Should a market rate tenant lose their job, a landlord may not have that safety net in place to collect rent.
• The Housing Authority’s rent portion is paid directly to the landlord on the first of the month.
• Low vacancy rates and quick unit turnover are commonplace.
• Property tax incentives are available to those landlords who qualify.

Landlords are forced to accept voucher holders as tenants – Landlords are not forced to accept voucher clients over market rate tenants. A landlord must treat all applicants the same, providing screening criteria for HCV tenants similar to the screening criteria used for market rate tenants. The screening process, as always, must be in compliance with the Fair Housing Act and any local ordinance, such as the Just Housing Amendment (JHA).

Lastly, landlords are not forced to accept an offer for a rental property for an HCV tenant that is lower than the requested rent. If the PHA cannot reach the requested rental rate for a given unit, the landlord is not required to accept the offer.

SOI tenants, including housing voucher tenants, are problematic – Any tenant who is not properly screened can become a problem for a landlord. Landlords are encouraged to engage with their tenants and manage their properties like any professionally run business. This would entail proper and consistent screening in compliance with the Fair Housing Act, checking on the unit occasionally, keeping up with proper maintenance, and due diligence, just as a landlord would for market rate tenants.

Should problems arise, there are avenues that a PHA can take to assist the tenant back into compliance and to make the landlord whole. Additionally, voucher holders understand that a consequence of breaking conditions of a lease can include losing their voucher, which many families cannot afford to lose.

Paperwork and bureaucracy slow down the process – There is additional paperwork involved in leasing to voucher tenants and inspections are required.  PHAs have worked hard to streamline the process. The entire process takes 30 days on average. For example, third party inspectors are able to perform inspections within three business days of the information being entered in the system (previous timeframe was 14-21 days). It should be noted that if a market rate tenant shows interest in a unit that is undergoing the HCV process and sits empty during that time, a landlord can screen that market rate individual for tenancy. Should the market rate client qualify for the unit with a bonafide offer and have the ability to occupy the unit more quickly than the voucher holder, a landlord can accept that tenant. As in all cases, the landlord should fully document the transaction in order to minimize fair housing issues.

HCV tenants can pay a higher portion of their contribution of the rent as calculated by the PHA – The tenants will pay roughly 30% of their adjusted monthly income while the PHA covers the remainder of the agreed upon rent. However, if a landlord is requesting a higher rent amount than what the PHA can pay, a voucher holder can pick up the difference and pay up to 40% of their adjusted monthly income. Please note, this is different than a side payment which is against program regulations. 

 Housing Choice Vouchers can be used to purchase a home – This is not a myth! Eligible HCV holders can utilize vouchers to assist in covering a portion of monthly mortgage payments. This assistance is available to eligible first-time homebuyers. Please contact your local PHA for further details regarding the Homeownership Program. 

Not only do our Mainstreet members include investors among their clients, many REALTORS® own investment properties and act as a landlord to those renting their properties. Mainstreet believes in empowering our members and providing the education, tools, and resources they need to stay ahead of the curve and demonstrate knowledge and professionalism with their clients. When our members share their knowledge, consumers benefit. In this case, member to landlord education will not only allow investor clients to stay in compliance with Fair Housing, this process will also pave the way for underserved communities to have greater choice regarding where they live. This type of advocacy creates a win-win situation for all because REALTOR® involvement makes a difference.