Here is the latest from HPD.
What does it mean for you?Dear Client,
We are reaching out with the latest update on the Augmented CityFHEPS Program and its impact on affordable housing developments moving forward.
If you have a pending Workbook, an approved Workbook, awaiting TCO, or are in the Marketing and leasing process, it is crucial to review the details below carefully, as these changes may significantly affect your project’s structure and financial benefits. Our team is available to discuss the implications of these updates and how they may impact your project and equity.
Key Update: Changes to Augmented CityFHEPS
The NYC Department of Housing Preservation and Development (HPD) has announced immediate changes to the Augmented CityFHEPS Program:
CityFHEPS voucher holders who are homeless (DHS Shelter residents) will no longer qualify for 130% AMI rent levels.
Their voucher payments will now be capped at 120% of the 2024 Fair Market Rent (FMR), which HUD publishes annually.
This policy change will be phased in as outlined below.
Rate
Studio
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
100% FMR
$2,386
$2,451
$2,752
$3,434
$3,700
120% FMR
$2,863
$2,941
$3,302
$4,121
$4,440
Below is the verbatim update from HPD: As part of the City’s ongoing efforts to contain costs and in furtherance of our responsibility to update our programs over time, the New York City Department of Social Services (DSS) and Department of Housing Preservation and Development (HPD) will be adjusting how the CityFHEPS rental subsidy applies to households moving into HPD affordable housing.
The CityFHEPS rental subsidy limits for households moving into HPD affordable units through a Housing Connect lottery or Homeless Placement Services referral process will continue to cover higher-than-standard CityFHEPS rents (“Augmented CityFHEPS”) until June 15, 2027 but will be limited to rents at or below 120% of the 2024 Fair Market Rent (FMR).
Tenants with CityFHEPS who are already in place will not be affected by these limits for the duration of their tenancy.
New limits to Augmented CityFHEPS will be implemented in phases, beginning April 15, 2025, as follows: Tenants selected through Housing Connect lottery:
For applicants with CityFHEPS who are approved by HPD/HDC for a Housing Connect unit through April 15, 2025, historic Augmented CityFHEPS rent levels will be maintained and will not be subject to new limits
For applicants with CityFHEPS who are approved for a Housing Connect unit from April 16, 2025 through June 15, 2027, Augmented CityFHEPS will cover rents up to 120% FMR..
Tenants selected through Homeless Placement Services (HPS) referrals:
For referrals in process, historic Augmented CityFHEPS rent levels will be maintained if the subsidy package is submitted by September 30, 2025
Effective October 1st, 2025, through June 15, 2027, all Augmented CityFHEPS packages submitted to DSS will be subject to the 120% FMR payment standard.
For new projects or units looking to collect Augmented CityFHEPS:
Starting April 16th, no new units may be referred to HPS using the historic Augmented CityFHEPS standard. Units will be subject to the new payment standard at 120% FMR.
Any units created (i.e. receive Temporary Certificate of Occupancy) after June 15, 2026 will not be able to collect Augmented CityFHEPS for any tenants.
Frequently Asked Questions (FAQs)
What happens to the rent amounts of existing tenants under the Augmented CityFHEPS program?
Existing tenants with CityFHEPS will not be affected by these limits for the duration of their tenancy. Important: Ensure that your CityFHEPS tenants remain in place and renew their vouchers timely so you can continue receiving Augmented CityFHEPS payments for the unit. In the case the tenant vacates the apartment, you would only be able to rerent the unit at the max of 120% FMR.
What is the deadline to have my project grandfathered under the existing CityFHEPS payment structure?
For projects leasing through the Housing Connect Lottery process: The deadline is April 15, 2025. By this date, you must have the tenant approved by HPD for the affordable unit to qualify for Augmented CityFHEPS payments.
For projects leasing through the HPS process: You must have your workbook approved, the Certificate of Occupancy (TCO) in place, and the project referred to the HPS marketing team by April 15, 2025. You will then have until September 30, 2025, to secure a tenant referral, and subsidy package is submitted to HPS for voucher processing.
Can I increase the rent at any point?
Augmented CityFHEPS allows rent increases in accordance with the annual adjustments set by the DHCR.
Next Steps & Assistance
Reside New York has reached out to HPD for clarification on reasonable requests. Projects that are already in progress may require leniency from HPD to complete their development under the existing Augmented CityFHEPS allowances.
We are here to service all your Affordable Housing marketing needs. For more information about our affordable marketing services kindly reach out to our professional team at info@residenewyork.com, or by phone to Sam Rosenberg – 718-387-4448 – Ext 130
We stand behind your project from the planning stages to 100% timely occupancy, and BEYOND!
Sincerely,
Martin Joseph
Augmented CityFHEPS Program and its impact on affordable housing developments moving forward.
