Cook County Housing Authority Confronts $7 Million Shortfall

Cook County’s housing authority is scrambling to plug a multimillion-dollar gap and thousands of low-income families could feel the squeeze.

The Housing Authority of Cook County is facing a potential $3.9 million to $7 million budget shortfall, the Chicago Tribune reported. The agency is halting new voucher issuances, lowering subsidy values and rolling back rent standards to 2024 levels in an effort to cover the gap.

The cost-cutting measures, implemented May 1, are intended to preserve assistance for the more than 12,000 active Housing Choice Voucher holders the agency serves. But rising rents and a spike in voucher usage have strained the authority’s fixed pool of federal funds from the U.S. Department of Housing and Urban Development. The agency’s annual budget is roughly $22 million.

Officials said the shortfall stems from HUD’s formulaic funding structure and the surge in tenants requesting larger units and higher-value subsidies.

The agency is also blocking rent increases above capped payment standards, requiring two people per bedroom for subsidy calculations. That shift could force families in larger units to either cover the difference in rent or move.

The shortfall comes as the Trump administration has proposed a 43 percent cut to HUD’s budget, with additional structural changes that would shift more financial responsibility to local housing agencies.

A bipartisan stopgap budget passed earlier this year increased overall HUD funding, including for the voucher program, but not enough to close anticipated gaps. Senate Democrats have warned of a $700 million nationwide shortfall in rental assistance that could eliminate over 32,000 vouchers.

The shortfall has ripple effects for landlords, developers and tenants.

Fewer vouchers mean reduced demand for affordable units, along with greater uncertainty for landlords unsure if subsidies will keep pace with inflation and rising property costs. Cook County currently has more than 8,300 families on its voucher waitlist, which hasn’t reopened since 2020.

The agency has faced scrutiny in the past for financial mismanagement and operational lapses, and was labeled “troubled” by HUD in 2023. Officials say the current strategy mirrors a similar response to a funding crisis in 2017, which took five years to recover from.

Affordable housing developers warn that further federal cuts could undermine projects across Cook County.

— Judah Duke