Chicago Housing Authority (CHA) Board of Commissioners approves $1.4 billion FY2026 budget

Budget continues to invest in improved services and stability for residents while preparing for potential changes in HUD funding.

CHICAGO (Nov. 25, 2025) – The Chicago Housing Authority (CHA) Board of Commissioners approved the agency’s 2026 annual budget of $1.4 billion and authorized new housing assistance payment contracts at its November 2025 board meeting.

Operating Chairman Matthew Brewer said: “CHA’s FY26 budget is fiscally sound and will allow us to continue improving service for residents and funding critical programs and services while preparing for potential changes in federal funding from the U.S. Department of Housing and Urban Development (HUD).

“CHA’s FY26 budget reflects careful planning and commitment to stability. While we’re preparing for possible changes in HUD funding, our priority remains ensuring residents continue to receive quality service and support. We’re focused on strengthening operations today and building a foundation that keeps CHA strong for the future.”

Key budget adjustments for FY26 include:

• Potential reductions of 12.5 percent in operating subsidy and 29 percent in capital funding from HUD.
• Accessing $49.2 million in reserve funds to adjust for HUD’s new cash management policies,
• Accounting for increased voucher costs due to higher market rents.
• Elimination of Emergency Housing Vouchers (EHV’s) and adjustments to Housing Choice Voucher administrative fees due to anticipated reductions in HUD funding.
• Planning for increased service delivery costs in future years.

Despite these changes, CHA remains committed to improving resident service and minimizing impact, as the FY26 budget includes: 

• An increase in full-time employees, primarily through Property and Asset Management (PAM) Department restructuring.
• Higher property management fees to maintain service quality.
• Greater investment in unit turns, mixed-income properties and property maintenance.
• A five-year capital plan including $141 million allocated for FY2026.

The complete FY26 budget is viewable online at: https://www.thecha.org/transparency-action-cha-data-impact-hub/budget-financial-reports.

More new housing ahead: CHA Board approves new Project-Based Vouchers (PBV’s) in Lincoln Park and Uptown

CHA Commissioners also approved new Project-Based Vouchers (PBV’s) for Belden Apartments in Lincoln Park and Sarah’s on Sheridan in Uptown. Both buildings offer supportive care and will now be 100 percent supported by PBV’s. 

• Belden Apartments is a new construction, 30-unit, 5-story elevator building owned by the Over the Rainbow Association. All 30 units are one-bedroom and fully accessible.
• Sarah’s on Sheridan was built in 2020. It includes 38 permanent supportive housing studio units in a six-story elevator building. CHA previously funded 27 Project-Based Vouchers and will now support the remaining 11 units. 

The Board CHA’s Board also extended eight PBV contracts for the Suites of Autumn Green at Wright Campus in Dunning to expand access to quality housing for seniors across Chicago.