Q: Why can’t CHA tell me what the Contract Rent will be before we submit the Request for Tenancy Approval (RTA) packet? Isn’t that the Payment Standard?
A: There are many tenant-specific and unit-specific factors that contribute to how CHA determines Contract Rent, such as:
- The family’s income, including deductions for minors or elderly household members
- The size of the household (part of what determines their voucher Payment Standard)
- Whether a member of the household is a person with a disability
- The unit’s location
- The unit’s accessibility features
- The utilities and appliances included in the unit’s monthly rent
Q: Why does CHA screen property owners and inspect units before calculating a rent offer? I’ve seen other Housing Authorities do this the other way around.
A: There are many reasons why CHA conducts an initial inspection before making a rent offer, but the most important reasons are that the inspector must verify 1) the number of bedrooms in the unit and 2) what utilities and appliances are tenant-provided. These two factors can make a significant difference in the rent offer calculations, so we want to be sure they are correct up front!
Q: A voucher holder has told me they can afford my unit. Should I believe them?
A: When voucher holders are issued “moving papers” (which includes the RTA packet), they are also provided with a suggested budget based on their voucher size and the income CHA has on file. So while yes, HCV families will have a good idea of what they can afford, remember that CHA’s suggested budget must also cover the cost of tenant-paid utilities! As part of any tenant affordability screening, we strongly recommend that property owners have an open conversation with the HCV family about what utilities are included in the rent, as that can make a significant difference in their ability to afford the unit.
Q: I have a 3x rent in income requirement for all prospective tenants. How can I fairly screen voucher holders for affordability?
A: The first thing to remember is that a Housing Choice Voucher is considered a source of income, so the value of the voucher must be included in any affordability calculations done by property owners working with CHA (since source of income is a protected class in Chicago).
The good news is, since HCV families pay between 30% - 40% of their adjusted monthly income toward rent and utilities, they automatically meet any 3x rent in income screening requirement if they choose a unit that falls within their budget (see question above).
If you are an existing property owner, the best tool to quickly calculate affordability is the Owner Portal Affordability Calculator, which you can find under the MOVES menu. You simply enter the tenant’s annual income and voucher size, as well as the unit size, unit type, and which utilities are tenant-paid.
Q: Can you share some examples of how tenant affordability is calculated?
A: You can find examples in a few places … we strongly recommend that all property owners watch the on-demand webinar How CHA Determines Contract Rent for Units on the HCV Program. This session reviews the tenant affordability calculations step by step and includes multiple examples of unit affordability (and unaffordability).
Q: I priced my unit based on my own market research. But CHA’s market study came back with different comps. What happened?
A: CHA partners with AffordableHousing.com and runs a market study for each unit independently, including as many unit-specific details as possible to generate the closest comparable units. The best comparable units are the same:
- Property type (i.e., single-family, duplex, high rise, etc.)
- Unit size (by number of bedrooms)
- Utility responsibilities
Comparable units must also be no further than one (1) mile from the property (but the closer, the better) and leased without subsidy within the past year (but the more recent, the better). Sometimes, during a busy leasing season, comparable units in the database can fluctuate week by week (or even day by day).
Property owners can dispute the market study generated by CHA by submitting their own comparables to AffordableHousing.com, however, CHA cannot guarantee how significantly the new comps will impact the market study, if they are not as similar as the existing comps.
Q: Why do some rent determinations take longer than others?
A: CHA strives to extend a rent offer to a property owner within five (5) business days of the passed inspection. However, in cases where the HCV family qualifies for an Exception Payment Standard (because they have chosen a unit in a mobility area or are renting an accessible unit that assists them in managing a disability), additional supervisor review is required before an offer can be made, which may add a few days to the timeline.
Additionally, rent offers are extended via email, sent from individual CHA staff to the property owner (or designated manager)’s email address on file. To avoid delays in receiving important correspondence, we recommend:
- Listing an email address on the RTA that is checked daily
- Clearly typing or hand printing out the email address
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Adding @thecha.org and @chacontractor.org to your approved sender list
Q: Where can I go for personalized assistance about rent determinations?
A: If you are currently in the moves process, please continue to communicate with the CHA staff person assigned to your file, in the same email thread, with the tenant’s voucher number in the subject line. This ensures that staff efforts are not duplicated, and communication strings are clearly trackable.
General questions about rent determination can be emailed to CHA’s Owner Services Department at ownerinfo@thecha.org.
