12.5.2 Expensed Lease or Housing Stipend for a Non-University Owned Residence or Apartment

Policy Statement

The University of Illinois System units may expense the lease of, or provide a housing stipend for, apartments or residences used by employees when doing so supports the Mission & Vision of the University of Illinois System.

Reason for the Policy

Reimbursement for leases or providing a housing stipend may be appropriate for unit employees when it supports the Mission & Vision of the system.

Applicability of the Policy

When a unit incurs expenses to lease, or provides a housing stipend for, a residence or apartment used by employees in support of the Mission & Vision of the system.

Procedure

Short Term Residence Expense Reimbursement (One Year or Less)

Lease of a residence or apartment for employee use of one year or less is reimbursed to the employee through Chrome River. A fully-executed lease or a fully-executed license must be obtained before an employee may occupy an off-campus space or before occupation of a University owned on-campus space. Employees should enter leases directly with the landlord whenever possible. Prior to an employee entering into a lease for a non-system owned residence or apartment the employee must:

1. Create a business case document that includes:
   1. A copy of the lease.
   2. An explanation of how the lease supports the Mission & Vision of the system.
   3. Documentation addressing how the lease of space benefits the unit in relation to its cost when reasonable factors are considered (e.g., convenience, location, function, assistance to the employee in their work for the unit, support provided to the unit, etc.).
2. Submit the business case to their college dean or vice chancellor for written approval. Pending this approval request, the college dean or vice chancellor routes the approval for the additional written approval of the university provost, UIC vice chancellor for Health Affairs, or chancellor, based on the reporting line of the college dean/vice chancellor requesting unit.
3. Approved leases entered into between employees and landlords must be submitted to Chrome River for reimbursement after the expense has been realized. The reimbursement should use discretionary funds, if possible.

Long Term Residence Stipend (More than One Year)

Payments to lease a residence or apartment for employee use for a period of more than one year are paid to the employee as a taxable stipend. Employees should enter leases directly with the landlord when possible. The system reserves the right to request documentation, including a copy of the lease.

Prior to an employee receiving a housing stipend the employee must:

1. Create a business case document that includes:
   1. An explanation of how the lease supports the Mission & Vision of the system.
   2. Documentation addressing how the lease of space benefits the unit in relation to its cost when reasonable factors are considered.
2. Submit the business case to their college dean or vice chancellor for written approval. Pending this approval request, the college dean or vice chancellor routes the approval for the additional written approval of the university provost, UIC vice chancellor for Health Affairs, or chancellor, based on the reporting line of the college dean/vice chancellor requesting unit.
3. The approved stipend must be submitted to the applicable system or university Human Resource department. The stipend should be paid using discretionary funds, if possible.

Leases Entered into By the Board of Trustees of the University of Illinois (Regardless of Duration)

If is not possible for an employee to enter a residential lease directly with the landlord then the Board of Trustees of the University of Illinois (BOT) may in select instances enter into a lease for use by University employees. Prior to the BOT entering into a lease for a non-system-owned residence or apartment the employee must:

1. Create a business case document that includes:
   1. A copy of the lease.
   2. A clear statement that the purpose of the leased residential property is for official system business purposes only.
   3. An explanation of why it is not possible for the employee to enter a residential lease directly with the landlord.
   4. A clear explanation of how the lease supports the Mission & Vision of the University.
   5. A procedure for monitoring access, controlling how the space is used, and maintaining use records. Include specific criteria to determine who will use the space, and how frequently it will be used.
   NOTE: Individuals who will use the facility will be on travel status and file travel vouchers to document its use.
2. Submit the business case to their college dean or vice chancellor for written approval. Pending this approval request, the college dean or vice chancellor routes the approval for the additional written approval of the university provost, UIC vice chancellor for Health Affairs, or chancellor, based on the reporting line of the college dean/vice chancellor requesting unit.
3. Submit the written approvals from 2. to the BOT for its written approval to enter into the lease. Once the BOT approves the residential lease between itself and the landlord, contact Real Estate Services to proceed.

Related Policies and Procedures

12.5.1 Enter into Leases or Licenses for Real Property

First Published: March 2014 | Last Updated: October 2024 | Last Reviewed: April 2023