Private Housing Finance Law Section 610

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. Properties within HPD’s Asset Management Portfolio must be current on submitted financials in order to proceed with processing a 610 request.

Please see the HPD Section 610 Regulatory Agreement Amendment Standard of Procedure.

Please note, 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 receive 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.

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 your property has received resources from both HCR and HPD, you should apply to whichever agency provided the LIHTC or tax-exempt bonds.  Regardless of which agency you apply to, if your property received resources from both agencies, your property must have its HPD Regulatory Agreement amended as the provisions governing rent stabilization are contained in that agreement.  For example, if you apply to HCR and are found eligible, HCR will transfer your application to HPD to amend the regulatory agreement. HCR will notify you if your application is conditionally eligible and confirm the date of its transfer to HPD.

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