Private Housing Finance Law Section 610

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

May 2025 Update: The amount of rental assistance HPD administers is subject to Federal appropriations, placing limits on the extent to which program costs can expand. Given the current uncertainty at the federal level the New York City Department of Housing Preservation and Development (HPD) is limiting new requests for new PHFL Section 610 regulatory agreement authorizations. HPD will not process 610 authorizations for units subsidized by the following subsidy sources:

• HPD Tenant-Based Vouchers,
• HPD Emergency Housing Vouchers,
• HPD Project Based Vouchers,
• HPD Enhanced Vouchers; and
• DSS administered rental subsidies (CityFHEPS, FHEPS, and HASA).

Subject to a project’s demonstrated financial need and approval from the relevant agencies, HPD may approve new 610 regulatory agreement authorizations for units subsidized by the following subsidy sources:

• NYCHA Tenant and Project Based Vouchers, and Emergency Housing Vouchers
• HPD NYC 15/15
• HPD Mod Rehab
• HPD CoC Mod SRO
• HPD CoC Shelter Plus Care
• HCR Section 8 Housing Choice Vouchers
• HCR Section 8 Project Based Vouchers
• HCR ESSHI
• DHS Affordable Housing Services Program
• HUD-Administered Section 8 contracts

Current policy may change on short notice due to funding availability.

Projects whose regulatory agreements have already been amended and executed may still apply for rent increases: 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. Requests to increase rent are subject applicable program requirements such as rent reasonableness.

The maximum possible rent increase is the subsidy payment standard. For units with tenant-based subsidy, the rent amount requested cannot exceed the lesser of the payment standard for (i) the unit size payment standard or (ii) household size payment standard, pursuant to the subsidy agency’s payment calculation and subject to the subsidy provider’s rent reasonableness requirements.

Nothing under PHFL 610 permits the owner to request modification of contract rents that increases the tenant’s portion of rent.

PHFL Section 610 in NYC: Consolidated Guidance for Owners

Contact

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