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Authorization to approve Admissions and Continued Occupancy Policy and Residential Lease Agreement, effective November 17, 2026.
presenter
Presenter: Leonard Langston, Jr., Interim Chief Property Officer
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Recommendation
The Chief Executive Officer recommends that the Board of Commissioners of the Chicago Housing Authority approve the amended Admissions and Continued Occupancy Policy (ACOP) and Residential Lease Agreement, with an effective date of November 17, 2026.
The requested action complies in all material respects with applicable Chicago Housing Authority Board policies and applicable federal (HUD) regulations.
Background
Pursuant to HUD regulations, CHA is required to implement an ACOP to govern its Public Housing Program. The ACOP provides the required information on the rules that CHA will follow in the administration of the Public Housing Program.
The amendments are intended to align CHA policy with current HOTMA regulations, remove outdated requirements, clarify screening and verification policy applications, and improve consistency across re-examination, interim, and lease-related processes.
CHA held a 30-day public comment period from September 17, 2026, through October 16, 2026. Announcements for the public comment process appeared on CHA’s website, in the Chicago Reader, and in the Chicago Sun-Times. CHA also distributed resident notices across CHA properties. Below is a brief overview of the changes.
Key revisions include:
Utility allowance. Added language to align utility allowance adjustments with the Modified Re‑Examination Schedule, applying updated allowances at resident’s annual, biennial, or triennial review. Residents under biennial or triennial schedules may temporarily pay more than 30% of their adjusted income on rent and utilities. However, residents may opt-in to an annual re-examination schedule or request an interim re-examination to receive the current year’s utility allowance.
The revision provides residents with flexibility to choose between keeping a biennial or triennial re‑examination schedule or opting into an annual re-examination schedule or interim re-examination to receive the utility allowance updates, allowing them to avoid temporary rent burdens above 30% of adjusted income. While utility costs and allowances generally trend upward, not all individual utility allowance categories increase each year, and in some cases have decreased year-over-year. The re-examination would include the full, standard evaluation of eligibility including income, assets, and other factors. Each household will need to assess whether it would be beneficial to opt-in to an annual or interim re-examination, if the utility allowance change will not be exceeded by any rent increase caused by an increase in their household income.
The proposed language in the ACOP is aligned with activities in the MTW Annual Plan.
Criminal background checks. Added language to make clear that all applicants and residents have access rights to their criminal background check reports per the Cook County Just Housing Amendment.
Smoking-related unit damage. Updates to Smoke‑Free Policy sections to clarify enforcement procedures, potential tenancy actions for violations, and resident responsibility for smoke‑related unit damages beyond normal wear and tear.
HOTMA & HUD Form 9886-A. Updated and added language to fully align re‑examination procedures with the Housing Opportunity Through Modernization Act (HOTMA) regulations, including revised verification hierarchy, requirements for interim re-examinations when verification information changes, and treatment of family assets that exceed HOTMA limits. Also added language related to the use of HUD Form 9886‑A (Authorization for the Release of Information/Privacy Act Notice) to specify that signatures do not expire unless revoked. Requirements were added for household members to sign the document upon turning age 18.
Changes related to HOTMA policies and updates to HUD Form 9886‑A bring CHA fully into compliance with current federal regulations and PIH guidance. These revisions reduce administrative burden by using HUD forms without expiration dates and clarifying verification requirements for household members.
Re-examinations for tax credit properties. Revised language to clarify that mixed‑income sites may use biennial re-examinations only when permitted by their tax credit requirements.
Over-income households. Revisions included to clarify that over-income households need to be moved to an annual re‑examination schedule upon their first over-income designation.
Household composition changes. Added language to clarify that interim adjustments must occur whenever household composition changes, including the addition or removal of household members, regardless of income change.
Remaining family members. Revised the remaining family member policy to shorten the timeframe in which remaining family members may assume a lease from three years to two years in instances when the head of household leaves the unit. This change has likewise been included in the lease.
The change to the remaining family member minimum tenancy, from three years to two years, will allow CHA to manage occupancy more efficiently, reduce uncertainty in situations where a head of household moves out or passes away, and support household stability.
Disposal of Confidential Medical Information. Language was added to note that CHA is to dispose of any confidential information received related to a person’s specific diagnosis, medical treatment, and/or the nature of a disability. This language primarily pertains to requests for reasonable accommodation.
Gautreaux. Removal of Gautreaux-related language, as the consent decree is no longer in effect except for six sites with outstanding redevelopment requirements.
Definitions. Additions and revisions to Definitions, including updated definitions for excluded income, foster child, and health and medical expenses. The revisions ensure accurate application of federal guidelines and HOTMA rulemaking and reduce ambiguity in income calculations in terms of what is considered excluded income.
Respectfully Submitted:
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Keith Pettigrew
Chief Executive Officer