This property tax program is available statewide in Illinois, and is implemented by individual County Assessor’s Offices. The incentive is structured to support affordable rents in higher cost markets and to promote investment in lower cost markets. The program applies to any property  with 7 or more residential units.

Cook County (where Chicago is located) has been a leader in implementing the program. Known as the Affordable Housing Special Assessment Program, or AHSAP, the Cook County implementation has served as a model for other counties. Since launching in 2021, more than 1,000 properties in Cook County are now enrolled in the program.

Eligible properties include new construction or qualifying rehabilitation such as replacement of major building systems, health and safety upgrades, energy efficiency work, accessibility and/or other physical conditions improvements. To receive the reduction in assessed value, owners must agree to keep a portion of units affordable to households at or below 60% of Area Median Income (AMI). Both NOAH and government assisted affordable properties are eligible to enter the program.

The incentive establishes three tiers of affordability and property tax relief:

1. If property owners agree to hold 35% or more of their units at affordable levels, they are eligible to receive a 35% decrease in assessed value for three terms of 10 years;

2. If property owners agree to hold at least 15% of their units at affordable levels, they can receive a 25% reduction in their assessed value for three terms of 10 years;

3. If property is located in designated “low-affordability” areas, downtown, or specific areas established by local statue can receive 20% affordability for one term of 30 years.

To participate in the program, property owners must contact their County Assessor to ensure the program is being offered. Illinois counties participate in the program automatically unless they proactively opt-out.