Owners may request changes in the rent that they receive for an assisted unit at the end of the initial HAP contract. This most often is connected to the lease renewal.

To request a lease renewal or rent change, owners must submit a Rent Increase/Decrease request form, the signed renewal lease, and any supporting documentation to HPD at least 60 days in advance of the proposed effective date of the change. HPD does not notify owners of upcoming lease expirations or automatically process lease renewals or rent increases, even if the rent change was approved by another part of HPD. It is solely the owner’s responsibility to request a rent change or lease renewal. Please remember that all Contract Rent requests must be in accordance with the terms of the currently existing lease agreement and the HUD Tenancy Addendum (HUD form 52641-A). When HPD receives a Contract Rent request, any Proposed Rent amount will be subject to a Rent Reasonableness review. Additionally, approvals of all reasonable Rent Increases are contingent upon the availability of funds. More general guidance for requesting rent changes for units receiving HPD administered rent subsidies may be found in the DTR Owner FAQ .

Many housing units receiving rent subsidies are also subject to rent stabilization rules. Rent subsidy rules require that we comply with local rent regulations when determining the appropriate contract rent for an assisted unit. Meeting the requirements of both local rent regulation and the housing subsidy program can be a challenge, the following is guidance for specific situations.

The NYC Rent Guidelines Board RGB issued an order for two-year lease renewals that includes multiple phases of rent increases within the lease term. The lease renewal form for tenancies subject to Order #55 is available from the New York State Department of Homes and Community Renewal (DHCR): Lease Renewal Form

Owners are responsible for requesting a modification of the contract rent for each year during the two-year lease term. Requests should be made 60 days prior to the effective date of the requested change. Requests should be made via the DTR Portal, the Rent Increase/Decrease Request form and. supporting documents uploaded.

Owners may submit separate rent change requests for each year of the renewal lease period at the same time, by creating two requests, one for each year period of the lease.

However, the rent change request for the second year must include the start date of the second year of the lease period, rather than the start date of the lease. The same lease should be uploaded in support of each modification request.

When an applicant is leasing a rent-stabilized unit with their rental subsidy where either they have an existing two-year lease agreement subject to Order #55 or they elect to enter into a two-year lease under this order, the proposed contract rent on the Request for Tenancy Approval (RFTA) form must reflect the legal rent for the current period (1st or 2nd year) of the lease agreement. The executed two-year lease agreement must be submitted to HPD along with the signed HPD HAP contract.

In 2022 the NY Private Housing Finance Law (PHFL) was amended to add Section 610. This amendment allows owners of affordable housing properties subject to rent stabilization laws to collect the full rental subsidy amount for rent-assisted units, even if it is above the legal rent under the Rent Stabilization Law, without affecting the amount the tenant has to pay. The properties must have a Regulatory Agreement with a local government entity (including, but not exclusively HPD) that specifically permits the owner to access this provision of law, to receive rents that exceed the legal rent for units with rental assistance.

Owners submitting requests under the provisions of Section 610, must complete a Rent Increase/Decrease Request form, supply the Section 610 exhibit from the Regulatory Agreement and supply an executed renewal lease that includes the DHCR published Section 610 lease rider, confirming the tenant has been notified of their rights under this law. The addition of this rider to the lease agreement and the collection of a higher rent will only be approved at a lease renewal following the execution of an applicable regulatory agreement or amendment. This rider and rent change may not be applied during an existing lease term.

Requests should be uploaded to the DTR Portal 60 days prior to the proposed effective date of the rent increase request. HPD will review the request to determine that the proposed rent is reasonable. Rents that are not reasonable, may not be approved by HPD. Please note that while requests may seek a rent increase that exceeds the legal rent under the Rent Stabilization Law, the proposed rent may not exceed the payment standard under the rent subsidy program minus any tenant-paid utility allowance.

Developments with tenants assisted with Section 8 tenant protection vouchers, referred to as Enhanced Section 8, have rents determined on an annual schedule. These vouchers are not subject to the voucher payment standards and instead, the contract rents are based on market comparables, which are most often unassisted units in the same development.

The owner is required to supply the following documents to the Division of Tenant Resources 90 days before the building anniversary date:

• HPD rent roll
• Preferential Rent Report

If you need these Excel templates or to submit your request, please send an email message to enhanceds8owner@hpd.nyc.gov.

HPD reviews the information submitted on the rent roll and selects comparables from similar unassisted units within the development for each assisted unit model type. A list of these comparables will be provided to the owner/property management for review and comments. HPD will consider the owner’s feedback in the final comparable selection.

HPD provides the owner with written notice of the approved rents for all assisted units as well as vacant units, instructions and deadlines for lease submissions. Each lease must be submitted by uploading it to the DTR Portal

Both owner and tenant receive written notification of the approved contract rent and the approved effective date via an updated Rent Breakdown letter.

Contract rents for units with Section 8 PBV assistance may only be changed at the contract anniversary. To request a change in contract rents, the owner must submit a written request for the proposed rents with an updated HPD rent roll and any supporting documentation.

Requests for rent increases should be sent via email to PBV@hpd.nyc.gov 60 days in advance of the PBV HAP contract anniversary date. If the rent increase request is not made during this annual period, it may not be considered until the next contract anniversary. PBV contract rents may not exceed 110% of the Fair Market Rent (FMR), or if applicable, the Exception Payment Standard (EPS), or any other applicable rent restrictions.

HPD determines if the owner’s proposed rent is reasonable and issues written notice of the approved rents for all units on the contract and instructions for submitting renewal leases to HPD, including the deadline for lease submissions. All leases must be uploaded to the DTR Portal for processing.

Rent increases will not be implemented until the signed lease is submitted. HPD will process each submitted request resulting in an updated Rent Breakdown letter sent to the owner and the tenant.

HPD administers project-based rental subsidies in developments providing permanent supportive housing through the NYC 15/15 program. Contract rents are limited to the lowest of the NYC 15/15 maximum contract rent (based on the FY Rent Schedule)the reasonable rent or the legal registered rent.

Contract rent increases may be requested as leases renew by uploading a renewal lease to the DTR Portal account in the Request tab and not Document Upload. You should also include a Rent Increase/Decrease Request Form with your submission. Completed rent increase requests should be submitted 60 days prior to lease expiration, late submissions will result in a prospective effective date.

HPD administers Continuum of Care-project-based rental assistance in these permanent supportive housing units. HPD will determine the maximum contract rents for units with CoC Shelter Plus Care (SPC) assistance annually. Those determinations include a rent reasonableness analysis and where applicable, unit rents may not exceed the legal rent stabilized rent.

After this rent determination is made, following the HUD NOFA award announcement, subrecipients (sponsors) must then submit individual rent increases request for each CoC SPC unit as the lease renews. All requests must be uploaded to the DTR Portal for review and processing.

Rent increases for CoC-Mod SRO contracts are limited by the lesser of the applicable Operating Cost Adjustment Factor (OCAF) published annually by HUD or their budget-based rent.

Requests for a rent increase for CoC Mod SRO HAP contracts will be made and reviewed during the annual CoC Mod SRO HAP contract renewal process. The submission of an executed renewal of HAP Contract listing the new contract rent by a CoC Mod SRO project owner constitutes a request for a rent increase.

Once a contract-wide rent increase has been approved through the CoC Mod SRO HAP contract renewal execution and Rent Reasonableness determination, owners or management companies must submit individual rent increase requests to HPD for individual CoC Mod SRO participants, as leases renew. If the unit is subject to rent stabilization rules, the rent for the unit may not exceed the legal registered rent. All requests must be uploaded to the DTR Portal for review and processing.

Rent increases for Mod Rehab contracts are limited by the Operating Cost Adjustment Factor (OCAF) published annually by HUD.

Requests for a rent increase for Mod Rehab contracts will be made and reviewed during the annual contract renewal process. The submission of an executed renewal of HAP Contract listing the new contract rent by a Mod Rehab project owner constitutes a request for a rent increase.

Once a contract-wide rent increase has been approved through the contract renewal execution and Rent Reasonableness determination, owners or management companies must submit individual rent increase requests to HPD for each assisted unit, as leases renew. If the unit is subject to rent stabilization rules, the rent for the unit may not exceed the legal registered rent. All requests must be uploaded to the DTR Portal for review and processing.