Chicago Utility Billing Relief (UBR) Program

Quick Facts

• Dual benefit: UBR slashes ongoing water, sewer, and garbage charges by up to 50% while forgiving 100% of past-due debt once participants make 12 consecutive on-time payments.
• Equity focus: The program targets neighborhoods hardest hit by disinvestment, offering financial breathing room to homeowners and renters alike and preventing water shutoffs.
• Partnerships: Administered by the Department of Finance in partnership with the Department of Water Management, with outreach led by community groups such as the Center for Changing Lives, Spanish Coalition for Housing, and Neighborhood Housing Services.
• Automatic protections: Enrolled households receive shutoff moratoria, penalty fee waivers, and access to financial coaching.
• Impact: Participants have cleared millions in legacy debt, securing clear title and reducing barriers to refinancing, home repairs, and property transfers.

Program Overview

Chicago’s water infrastructure investments and historical billing practices left many households with large arrears. UBR, launched in 2020 and renewed through 2025, creates a pathway to wipe out those debts while keeping current charges affordable. Participants commit to autopay or budget billing, ensuring consistent payments. In return, the City reduces their monthly bills based on income and wipes out past-due balances after a year of compliance.

The program is open to owner-occupants and renters (with landlord approval). Properties with up to four dwelling units qualify. Commercial accounts and investment properties are excluded. UBR complements other City initiatives like the Homeowner Assistance Fund, Emergency Rental Assistance, and weatherization grants.

Eligibility Requirements

To qualify, applicants must:

• Live in Chicago and have an active utility account for water, sewer, and garbage services.
• Have household income at or below 200% of the Federal Poverty Guidelines (e.g., $30,120 for one person, $40,880 for two, $51,640 for three, $62,400 for four). Alternatively, participation in programs like SNAP, Medicaid, LIHEAP, SSI, or Veterans Pension can substitute for income documentation.
• Be the property owner-occupant or a tenant whose landlord agrees to participate. Tenants must demonstrate responsibility for utility charges through lease clauses or payment receipts.
• Commit to autopay or budget billing, ensuring payments are made monthly.

Applicants must provide proof of identity, residency, income or benefit participation, and the most recent utility bill. If multiple adults reside at the property, all must sign the agreement to ensure buy-in.

Benefit Structure

• Current bill reduction: UBR calculates an affordable monthly payment based on income and average usage. Most households see a 25–50% reduction in water/sewer/garbage charges.
• Debt forgiveness: After 12 consecutive on-time payments, the City cancels 100% of the pre-enrollment balance, including penalties and interest. If you miss a payment, you can cure the default within 60 days to stay on track.
• Shutoff and lien protection: Enrolled accounts are shielded from shutoffs, liens, and collection actions as long as payments are current.
• Late fee waivers: The City waives late penalties during the program period.
• Financial counseling: Partner organizations offer budgeting, credit repair, and home repair referrals to support long-term financial stability.

Application Steps

1. Pre-screen online: Visit the UBR portal to confirm eligibility and start the application. Alternatively, call 311 or contact a partner agency for assistance.
2. Submit documentation: Upload or mail proof of identity (ID or driver’s license), proof of residency (deed, lease, or recent bill), income documents (pay stubs, benefit letters, tax returns), and the latest utility bill. Tenants must include a landlord consent form.
3. Sign the program agreement: Agree to autopay or budget billing, maintain property occupancy, and report income changes. The agreement outlines the monthly payment amount and the debt forgiveness timeline.
4. Set up payment method: Enroll in the City’s autopay system or budget billing plan. Payments are typically due on the same day each month; set reminders or bank alerts.
5. Receive confirmation: Approval letters detail the reduced payment amount, remaining debt, and the date when debt forgiveness will occur upon successful completion.

Staying in Good Standing

• Make payments on time: Autopay minimizes missed payments, but verify that funds are available. If a payment fails, contact the City within 60 days to cure the default and avoid removal.
• Monitor bills: Ensure the reduced amount appears each month. If not, call the Utility Billing & Customer Service number to correct errors.
• Report changes: If income drops, request a recalculation to lower monthly payments. If income rises significantly, you may remain in the program but should notify the City to avoid compliance issues.
• Recertify annually: Provide updated income or benefit documentation each year to continue receiving discounted rates and protections.

Maximizing Impact

• Stack assistance: Combine UBR with LIHWAP, Community and Economic Development Association (CEDA) utility grants, or philanthropic funds to address any remaining balances.
• Invest savings: Use the reduced bill amount to create an emergency fund, pay down property taxes, or invest in water-saving fixtures to lower usage further.
• Address leaks: The City offers water conservation audits and plumbing repairs through partner nonprofits. Fixing leaks ensures your reduced payment stays accurate.
• Consider property tax relief: Many UBR participants qualify for Cook County property tax exemptions (Senior Freeze, Longtime Occupant, Persons with Disabilities). Savings can support ongoing utility payments.

Example Scenarios

• South Side homeowner: Owed $3,800 in arrears. UBR reduces monthly bill from $130 to $65. After 12 autopayments, entire debt forgiven. Homeowner uses savings to repair roof through the City’s Small Accessible Repairs for Seniors (SARFS) program.
• West Side renter: Landlord agrees to participate. Rent includes utilities, but landlord passes the UBR savings through as a $40 rent reduction. Renter avoids eviction after job loss thanks to manageable bills.
• Multi-generational household: Income fluctuates due to gig work. UBR recalculates payment when income drops, preventing default. Household engages with financial coaching to stabilize gig income and budget for irregular earnings.

Troubleshooting

• Application stalled: If you haven’t heard back within 30 days, contact the Utility Billing Relief hotline or your partner agency. Provide submission confirmation and request expedited review if facing shutoff.
• Missed payment: If autopay fails, pay the past due amount within 60 days and contact the City to reinstate the plan. One missed payment does not automatically disqualify you if corrected quickly.
• Property sale: If you sell the property, outstanding debt may reappear. Complete the 12-month requirement before closing if possible, or negotiate payoff in the sale contract.
• Landlord disputes: Tenants experiencing retaliation can contact the Chicago Department of Housing or Legal Aid Chicago for assistance enforcing the pass-through requirement.

Contact Information

• Utility Billing Relief Hotline: 312-744-4426
• Website: https://www.chicago.gov/city/en/depts/water/provdrs/cust_serv/svcs/utility-bill-relief-program.html
• Partner agencies: Center for Changing Lives, Spanish Coalition for Housing, Neighborhood Housing Services, Southeast Environmental Task Force
• Mailing address: City of Chicago Utility Billing & Customer Service, P.O. Box 6330, Chicago, IL 60680-6330

Chicago’s Utility Billing Relief Program gives residents a structured path to eliminate debt and stabilize essential services. By staying engaged, making timely payments, and leveraging community support, households can transform water and waste bills from chronic stressors into predictable expenses.