NYC Extends Deadline for Augmented CityFHEPS at Historic Rent Levels

New York City has announced an important extension for affordable housing projects seeking to secure Augmented CityFHEPS rent subsidies at historic rent levels—a significant opportunity for developers and owners working with formerly homeless households.

Due to the high volume of units currently in process and the City’s continued commitment to expanding affordable housing access, the NYC Department of Housing Preservation and Development (HPD) and the Department of Homeless Services (DHS) have extended the submission deadline for eligible projects.

What’s Changed?

Projects that meet specific eligibility criteria will now have additional time to submit their subsidy packages at historic Augmented CityFHEPS rent levels, rather than the lower rent standards introduced in Spring 2025.

• Original Deadline: December 31, 2025
• New Deadline: March 31, 2026
• Note: This extension is final—no further extensions will be granted.

Eligibility Requirements

The extension applies only to units that meet both of the following conditions:

• Units were submitted to Homeless Placement Services (HPS) by April 15, 2025, and
• Units received a Temporary Certificate of Occupancy (TCO) by June 1, 2025

Projects that satisfy these requirements and submit complete subsidy packages to DSS by March 31, 2026 will remain eligible for historic Augmented CityFHEPS rent levels.

Important Reminder for Future Submissions

Beginning April 1, 2026 through June 15, 2027, all Augmented CityFHEPS packages submitted to DSS will be subject to the 120% Fair Market Rent (FMR) payment standard, regardless of project status.

Need Assistance?

Project partners are encouraged to contact their Homeless Rental Coordinator with any questions regarding eligibility or submission requirements.

If you need legal guidance related to affordable housing development, acquisition, financing, or tax incentives, my colleagues at Rosenberg & Estis, P.C. and I are happy to help.

Learn more about our Tax Incentives & Affordable Housing Practice here:
👉 https://lnkd.in/emczAnRB

 

Disclaimer: This post is for informational purposes only and is not legal or tax advice. Readers should consult the Tax Commission’s current forms/instructions and their advisors for guidance on their specific property and filing posture.