For Sale Units
All owner-occupied affordable units under the ARO are administered and price-restricted by the Chicago Housing Trust (CHT). Owner-occupied units must be priced to be affordable to households earning no more than 100% of Area Median Income (AMI) (if Option 1 is chosen under Subsection (F)(3)) or no more than 80% AMI (if Option 2 is chosen). Developers, attorneys, and listing agents will work directly with the Chicago Housing Trust on the process of selling affordable units and restrictions on owner-occupied units.
Developers must submit an appraisal from an appraiser that is approved by the Chicago Housing Trust. If the appraised value is not at least $25,000 greater than the maximum affordable price calculated by CHT, CHT will require the developer to either set the affordable price $25,000 lower than the market price, or the developer must prepay the Private Mortgage Insurance (PMI) costs at closing.
Once the developer and DOH have signed the Affordable Housing Profile (AHP), using the AMI in effect on the date of DOH’s execution of the AHP, the maximum affordable sales price is valid for a period of one year after the certificate of occupancy for the unit is issued. If the covenant securing the units is not filed within a year of DOH’s execution of the AHP, CHT may recalculate the maximum affordable sales price. No sales price is valid unless DOH has signed the AHP.
For a detailed overview of all rules and requirements related to owner-occupied units, refer to Article 9 of the ARO Rules.
All owner-occupied affordable units under the ARO are price-restricted by the Chicago Housing Trust (CHT). Developers shall use good faith and affirmative efforts to attract potential buyers according to guidelines specified by DOH’s MTSP. To ensure that units are marketed widely and sold in a timely manner, DOH has set the following parameters for marketing owner-occupied units:
- The developer must schedule a marketing intake meeting with CHT staff at least 90 days before marketing any of the units in the development, whether market rate or affordable, and at least 180 days before the anticipated closing of any affordable unit
- Prior to the marketing intake meeting, the developer must submit a preliminary marketing plan for CHT units. CHT staff will review the marketing and affordability requirements and will review the process to certify income eligible buyers with the developer and the marketing/sales agents that will be implementing the marketing plan and selling the affordable units
- No marketing or advertising material related to the affordable units may be distributed or published until CHT has approved the developer’s marketing plan for the project
Please refer to Article 9 of the ARO Rules for more information.
Note: CHT recommends developers work with marketing agents specializing in affordable units to ensure the affordable units are marketed effectively and sold quickly.
Developers must designate a date in the marketing plan, which must be at least 30 days after a) the units have been posted to the Chicago Housing Trust’s website and b) the marketing activities approved in the marketing plan have been initiated to begin accepting completed applications from prospective home buyers. Applications will not be accepted unless they are complete and include all required documentation.
Once a potential homebuyer has been certified and made an offer to purchase a unit, forward the following information to chicagohousingtrust@cityofchicago.org:
- Signed Sales Contract/Purchase Agreement with all Upgrades and Options as soon as it is signed
- Signed Purchase Contract Rider and Homebuyer Agreement as soon as it is signed
- Lender’s Loan Application Form 1003 (at least 10 business days before scheduled closing)
- Lender’s Appraisal (at least 10 business days before the scheduled closing)