Transcript Section 8 Housing

SECTION
8
HOUSING
1022 S. La Grange Rd.
La Grange, Illinois 60525
Phone (708) 639-4320
Fax (708) 390-0665
fornarolaw.com
[email protected]
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
-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
-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)
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.
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.
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.
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
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 1970.
• The potential problem is that there is a question
of whether there is a conflict between municipal
ordinances and the Cook County ordinance
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
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.
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 ...”
”
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.
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.
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
http://www.cookcountyclerkofcourt.org/
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
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
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. 2013.
• Office of Housing Choice Vouchers - HUD." Office of Housing Choice
Vouchers - HUD. N.p., n.d. Web. 04 Sept. 2013.
• 42 USC § 1437a - Rental Payments." LII. N.p., n.d. Web. 04 Sept. 2013.
• "FY 2013 Income Limits Documentation System." -- Summary for
$inputname$. N.p., n.d. Web. 04 Sept. 2013.
• Protected Classes | Nsbar.org." Protected Classes | Nsbar.org. N.p., n.d.
Web. 04 Sept. 2013.
• “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. 2013.
Landlord &Tenant Law
Practice Areas
•Forcible Entry and
Detainer (Evictions)
•Multifamily Housing
Issues
•Lease Preparation
•Lease Disputes
•Contract and Document
Preparation
•Five Day Notice
Preparation
•Human Rights Litigation
•Residential Real Estate
•Wills and Trusts
•Short Sales
•Foreclosures
•Short Sales
•Loan Modifications
•Bankruptcy
•Deed in Lieu
•Commercial Real Estate
•Corporate
•Zoning
•Criminal
•Litigation
Please Contact Us
For Further
Information
1022 S. La Grange Rd.
La Grange, Illinois 60525
Phone (708) 639-4320
Fax (708) 390-0665
fornarolaw.com
[email protected]
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the recipient of this material