Pursuant to a recent amendment of the Private Housing Finance Law (PHFL) previously discussed in our January 23, 2023 client alert, owners of affordable housing properties are now permitted under certain circumstances to collect rents above the Legal Regulated Rent so long as a Regulatory Agreement is in place with a State or Municipal Agency, Public Benefit Corporation, or a Political Subdivision of the State and where a federal, state, or local program provides rental assistance for the housing accommodation.
PHFL Section 610 requires that the property be subject to a regulatory agreement with a state or municipal agency or public benefit corporation that permits the collection of such higher rents. NYC HPD has provided guidance to owners seeking to amend existing HPD regulatory agreements to enable collection of higher rental assistance rents. HPD and HDC will prioritize projects in their existing portfolio where additional rental subsidy will address urgent cash flow or repair needs or occupied rent stabilized projects in HPD’s development pipeline.
