On December 15, 2022, Governor Hochul signed Section 610 of the Private Housing Finance Law. The new law allows owners of affordable housing projects with tenant- or project-based rental assistance to collect the full rental subsidy amount, even if it is above the legal rent, without affecting the amount the tenant has to pay. Owners will need to execute an amendment to the regulatory agreement that specifically authorizes them to do so with the lead agency.
Please note: the amount of rental assistance we administer is limited by Federal appropriations, which must fund all Public Housing Agencies nationally, so there are limits to the extent to which program costs can expand. If HPD’s subsidy costs increase dramatically, as could result with a broader application of this amendment, there may not be enough room within the appropriated amount to cover these new costs.
Therefore, HPD will be prioritizing projects within HPD’s Asset Management portfolio and preservation pipeline, as well as supportive and senior housing projects in our development pipeline, where the additional rental subsidy will help address urgent needs.
Owners of 1) occupied rent-stabilized buildings in the HPD preservation pipeline, or 2) projects with an HPD Regulatory Agreement where HPD is the lead asset management agency, that are experiencing cash flow issues and/or urgent repair needs can submit a request to amend an existing HPD regulatory agreement.
Please use this form to submit your request:
Owners of properties in HDC's Asset Management portfolio can initiate any PHFL 610 request with HDC. Information on HDC’s PHFL 610 application process may be found at: https://www.nychdc.com/phflsec610-guidance
If approved, after the regulatory agreement is amended, the owner can request to modify the rental subsidy rent at the tenants' next lease renewal.
For projects that are financed with New York State Division of Housing and Community Renewal 9% LIHTC or Housing Finance Agency tax-exempt bonds, please initiate any PHFL 610 request with New York State Homes and Community Renewal. Information on HCR’s PHFL 610 application process may be found at: https://hcr.ny.gov/private-finance-housing-law-phfl-610
If you have questions, please email: HPDAssetMgmt@hpd.nyc.gov