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The Housing Opportunity Tax Incentive Act Problem: Concentration of Vouchers in High-Poverty Areas. Lack of Landlord Interest in Areas of Job Growth –

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Presentation on theme: "The Housing Opportunity Tax Incentive Act Problem: Concentration of Vouchers in High-Poverty Areas. Lack of Landlord Interest in Areas of Job Growth –"— Presentation transcript:

1 The Housing Opportunity Tax Incentive Act Problem: Concentration of Vouchers in High-Poverty Areas. Lack of Landlord Interest in Areas of Job Growth – “Opportunity Areas.” “On the Street” rents variation greater than Sect 8 Program flexibility.

2 HB 2246 = P.A A Solution: HB 2246 is now Public Act The Housing Opportunity Tax Incentive Act

3 PA The Housing Opportunity Tax Incentive Act The Housing Opportunity Tax Incentive Provides: Market-based incentive for landlords Targeted to “Opportunity Areas” Safe-guards to prevent over-concentration of vouchers.

4 How Do You Attract the Landlord? 1.Tax Abatement 2.One Month’s Rent 3.Simple Application Process

5 What is the Benefit to Landlord for a qualified unit? 2-Flat in Naperville: Market Value $250,000 Tax Rate 8.0% Incentive (Tax Abatement) $ A 50 unit apartment in Lakeview: Market Value $8.75 million Tax Rate 7.5% Incentive (Tax Abatement) $1,496.25

6 Does Program Have Other Limitations on the Incentive? 1.Limit number of units that qualify per building – 2 or 20% 2.Limited time benefit – 10 years 3.Allow a municipality to opt-out of the Program if HCV units become concentrated – 2.5% of dwelling units 4.Require landlords who receive the incentive to maintain good buildings – Substantial compliance with building codes

7 How Do You Target the Opportunity Area? 1.By Township – Tax base as indicator of wealth and job growth. 2.By Census Tracts – To prevent small concentrations of poverty in affluent areas.

8 PA The Housing Opportunity Tax Incentive Act Here is how the Tax Capacity test works: STEP ONE - Total EAV of County divided by Population = “Per capita EAV of County.” STEP TWO - Total EAV of Township divided by Population = “Per capita EAV of Township.” STEP THREE - Compare “per capita EAV” of Township to “per capita EAV” of County to determine ratio.

9 PA The Housing Opportunity Tax Incentive Act First Test: Qualified Township using Tax Capacity test: “Per capita EAV” Outside Cook – Qualified Twsp = >100% of County per capita EAV Cook – Qualified Twsp = >115% of County per capita EAV

10 PA The Housing Opportunity Tax Incentive Act Second Test: Identify Low-Poverty Census Tracts: Under 10% Poverty

11 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Areas – Twnsp & Census Tract

12 HB2246 The Housing Opportunity Tax Incentive Act – Chicago Low- Poverty Census Tract

13 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Townships in Du Page County

14 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Townships in Will County

15 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Townships in Lake County

16 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Townships in Kane County

17 HB2246 The Housing Opportunity Tax Incentive Act – Qualified Townships in McHenry County

18 PA The Housing Opportunity Tax Incentive Act For more information: Contact: Ken Oliver Protestants for the Common Good 200 N. Michigan, Suite 502 Chicago, IL (312)


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