SECTION 8 HOUSING S. La Grange Rd. La Grange, Illinois Phone (708) Fax (708) fornarolaw.com

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1 SECTION 8 HOUSING 1022 S. La Grange Rd. La Grange, Illinois Phone (708) Fax (708) fornarolaw.com philip@fornarolaw.com

2 WHAT IS SECTION 8 HOUSING? Government assistance program Provides housing in the private market Low income families, elderly, and persons with disabilities Section 8 is not limited to units located in subsidized housing projects

3 -The Housing Choice Voucher Program- Housing Choice Voucher Program Federal Governments major housing assistance program There are approximately 1.2 million households living in public housing units, managed by some 3,300 HAs. Participants are free to choose any housing that meets the requirements Housing choice vouchers are administered locally by public housing agencies (PHAs) PHAs receive funds from The Department of Housing and Urban Development (HUD) to administer the voucher program

4 -The Housing Choice Voucher Program- Families are responsible for finding housing Can include current location Families pay the difference between the actual rent charged by the landlord and the amount subsidized by the program Eligible families are able to purchase homes under the homeownership option 42 USC 1437f(o) (15)

5 Homeownership Option Section 301 of the American Homeownership and Economic Opportunity Act of 2000, amends the homeownership option under the Housing Choice Voucher Program. Provides homeownership assistance for a family in the form of a single grant to be used toward the down payment required in connection with the purchase of the home.

6 General Definition of Protected Classes Purpose of protected classes is to eliminate discrimination Protected Classes Under U.S. Federal Law Race, color, religion, national origin, sex, familial status, and handicap. Protected Classes Under Illinois Law Race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental handicap, and military discharge status. The new protected class is participants of the real estate choice voucher program (Section 8) (310 ILCS 65/) Illinois Affordable Housing Act.

7 Cook County Human Rights Ordinance August 8, 2013, Cook County implemented an exception to the source of income provisions in the Cook County Human Rights Ordinance The new rule prohibits discrimination based upon source of income It is a violation of the Cook County Human Rights Ordinance to discriminate in real estate transactions based upon an individual participating in a housing choice voucher program (Section 8) (310 ILCS 65/) Illinois Affordable Housing Act.

8 Application of the New Cook County Policies The policy applies to all types of housing including rental condominium units, duplexes, houses, apartments and any other kind of residential housing An exception to the policies is when an owner occupies a private home in which the owner is renting a room or rooms Essentially selecting a roommate

9 Potential Conflict The Cook County Ordinance indicates that it intends to apply to the extent allowed under Article VII, Section 6(c), of the State of Illinois Constitution of The potential problem is that there is a question of whether there is a conflict between municipal ordinances and the Cook County ordinance

10 Questions and Answers Q:Do landlord in DuPage have to follow these policies? A:No, the policy is exclusively for Cook County. However, the City of Chicago and five other Illinois municipalities, ten states, the District of Columbia and eight counties across the nation have laws protecting individuals from discrimination based on the use of a voucher

11 Questions and Answers Q: Does the Cook County Human Rights Ordinance apply to duplex owners who live in one side of their unit and rent the other side? A: Yes, under the current ordinance the other duplex unit is not exempt.

12 Questions and Answers Q: Does the Cook County Human Rights Ordinance apply to real estate brokerage activities, including leasing? A: Yes, the Cook County Human Rights Ordinance provides that it applies to real estate transactions which... means with respect to activity conducted or property located in Cook County, the brokering or appraising of residential real property in Cook County...

13 Questions and Answers Q:Do landlords need to lower rates for a housing choice voucher program participant? A: No, Landlords are not forced to lower their rates when leasing to a participant. However, it is prohibited for landlords to raise their rates to avoid renting to a participant.

14 Questions and Answers Q:In Cook County can a landlord deny a participant from renting a unit? A: Yes, landlords can deny a participant from renting a unit if the participant fails their screening or if the participant does not have the funds to make a required security deposit. However, landlords cannot deny participants because they are using the housing choice voucher program.

15 Reasons for Denial of a Tenant Irrespective of the Voucher Program Substandard Rental History Previous Evictions Inconsistent Job History Poor Credit History Inaccurate or Incomplete Application Criminal Records Adverse or Non Responsive Reference Objective v Subjective Reasons Employment & Income Unable to Fund Security Deposit Failed Background Check

16 Tenant Termination Violation of the terms and conditions of the lease Violation of applicable Federal, State, or local law, or for other good causes Drug-related criminal activity on or near such premises by the tenants

17 Other Considerations The testers are out A lot of non for profit and programs looking to prosecute Long term litigation if there is a violation Expensive process

18 References HUD's Public Housing Program/U.S. Department of Housing and Urban Development (HUD)." HUD's Public Housing Program/U.S. Department of Housing and Urban Development (HUD). HUD, n.d. Web. 04 Sept Office of Housing Choice Vouchers - HUD." Office of Housing Choice Vouchers - HUD. N.p., n.d. Web. 04 Sept USC 1437a - Rental Payments." LII. N.p., n.d. Web. 04 Sept "FY 2013 Income Limits Documentation System." -- Summary for $inputname$. N.p., n.d. Web. 04 Sept Protected Classes Nsbar.org." Protected Classes Nsbar.org. N.p., n.d. Web. 04 Sept Questions (and Answers) about New Cook County Section 8 Guidelines Illinois Association of REALTORS." Questions (and Answers) about New Cook County Section 8 Guidelines Illinois Association of REALTORS. Illinois Realtor, n.d. Web. 11 Sept

19 Practice Areas Residential Real Estate Commercial Real Estate Short Sales Multifamily Housing Zoning Landlord Tenant Contract Preparation Litigation Please Contact Us For Further Information 1022 S. La Grange Rd. La Grange, Illinois Phone (708) Fax (708) fornarolaw.com Practice Areas Wills and Trusts Estate Planning Asset Protection Corporate Foreclosure Defense Loan Modification Bankruptcy Deed in Lieu Come see us on linkedin