Private Housing Finance Law Section 610

On December 15, 2022, Governor Hochul signed Section 610 of the Private Housing Finance Law (PHFL). 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.

March 2025 Update: The amount of rental assistance HPD administers 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. Given the current situation created by the uncertainty at the federal level the New York City Department of Housing Preservation and Development (HPD) is not currently accepting requests for new PHFL Section 610 regulatory agreement authorizations.

Projects whose regulatory agreements have already been amended and executed: In order to take advantage of Section 610 for a new tenant, you must submit the subsidy paperwork with the new rent amount before the tenant is processed for move-in. Note that if you received approval for your Section 610 amendment during the leasing process, you may only take advantage of the 610 allowance for applicants that have not yet been submitted for subsidy processing. For applicants that have been approved for move in at a lower rent, you may request the higher 610 allowed rent at the next lease renewal and request that rent increase through the applicable subsidy process.

PHFL Section 610 in NYC: Consolidated Guidance for Owners

Contact

If you have questions, please email: HPDAssetMgmt@hpd.nyc.gov