Important Change to NYC Subsidy Program for Applicants for Affordable Housing Units

by | Dec 13, 2022 | Industry Updates

Please be advised that NYC has expanded the Augmented CityFHEPS subsidy program to include applicants in the Housing Connect lottery system qualifying for CityFHEPS benefits and currently residing in a DHS shelter. Augmented CityFHEPS will pay the advertised rent amount (i.e., up to the full 130% of Area Median Income level), which typically exceeds the CityFHEPS payment standard. NYC is also in the process of promulgating amendments to the CityFHEPS program that expand the eligibility criteria for rental subsidies and reduce red tape and other administrative burdens.
For developers of projects including affordable housing, such as under the 421-a tax exemption program, this policy change should be factored into your analysis when determining the rents at which affordable housing units are marketed. If you have questions about this change and how it may affect the upcoming marketing of affordable units, please contact your market agent or please contact Daniel M. Bernstein for further information.