Property Tax Incentive for Affordable Rental Housing

The Property Tax Incentive for Affordable Rental Housing is a statewide property tax incentive in Illinois, implemented at the county level through individual County Assessor's offices. In Cook County, the incentive is called the Affordable Housing Special Assessment Program (AHSAP).

Properties must have seven or more residential units and involve new construction or qualifying rehabilitation. Participating owners must maintain a portion of units affordable to households at or below 60% AMI. The program is structured to be beneficial across different market types. In high-cost markets where developers are already likely to invest to improve their buildings, the program helps to bring affordability and in lower-cost markets, where rents are typically already at the affordability threshold set by the program, owners are encouraged to invest to improve the quality of their buildings.

The program establishes three tiers of tax relief: (1) a 35% reduction in assessed value for three 10-year terms for properties with at least 35% affordable units; (2) a 25% reduction for three 10-year terms for properties with at least 15% affordable units; and (3) a 20% reduction for one 30-year term for properties in designated low-affordability or transit areas. Cook County has been a leading implementer, with more than 1,000 properties enrolled since 2021. Illinois counties participate by default unless they proactively opt out.