Private Housing Finance Law Section 610 Guidance

Under Section 610 of Private Housing Finance Law (PHFL), owners of affordable housing projects that are subject to a regulatory agreement with a state, municipal agency, public benefit corporation, or a political subdivision of the state, and where a federal, state, or local program provides rental assistance payments to the project, may collect rents that exceed the legal regulated rent for the project, if permitted under the regulatory agreement.

For HDC projects, this requires amending HDC’s regulatory agreement to permit the collection of rental payments by owners of affordable housing projects up to the maximum payment standard or contract rent under the applicable rental assistance program without affecting the amount the tenant has to pay. Given that rental assistance is generally limited by federal appropriations, and state and local budgets, HDC intends to prioritize amending regulatory agreements for projects within its portfolio with the greatest need, particularly projects experiencing financial stress or in urgent need of repair.

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 HDC is limiting new requests for new PHFL Section 610 regulatory agreement authorizations. HDC 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, HDC 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.

Regulatory agreements that have already been executed authorizing PHFL Section 610 rent increases are not affected.

For guidance and FAQs on these executed authorizations, please visit PHFL Section 610 in NYC: Consolidated Guidance for Owners

If you have questions, please email: mortgageassistance@nychdc.com