PHFL allows higher rent collection for certain low-income housing projects.

On Dec. 15, 2022, Governor Hochul signed Section 610 of the Private Housing Finance Law (PHFL) to resolve a conflict for low-income housing owners between their rental subsidy program and rent stabilization laws. As a result of the amendment, these owners will now be able to collect the maximum payment standard or contract rent that a rental subsidy program allows without affecting what will be the legal regulated rent after the subsidy expires.

The law mandates that the regulatory agency must audit the owner’s records once every three years for compliance and also specifies new notice and disclosure requirements, as well as liability for rent overcharges if the rental subsidy terminates and the owner fails to default to the legal regulated rent.

The DHCR recently revised documents to reflect PHFL Section 610. Owners who receive PHFL 610 regulatory approval will be required to use the updated leases, rider, and related lease notice when executing a lease that includes a higher actual rent pursuant to PHFL 610. Owners who aren’t approved for PHFL 610 status are being given a transition period of 120 days from the issuance of the new documents to put them into use.

Here’s a list of forms and documents the DHCR recently updated:

• Form #RTP-8: Renewal Lease Form
• Form #RTP-8 ETPA: ETPA Renewal Lease Form
• Form #RA-LR1: New York City Lease Rider for Rent Stabilized Tenants
• Form #RA-LR1 ETPA: Emergency Tenant Protection Act (ETPA) Standard Lease Addenda for Rent Stabilized Tenants
• Form #RA-LR3: Rent Stabilized Lease Notice to Tenants – Rights Concerning Legal Rents and Higher Actual Rents
• Form #RR-1(i): Initial Apartment Registration Form
• Form #RR-2(i): Initial Registration Summary Form
• Initial Rent Registration Instructions
• Initial and Annual Registration Instructions Addendum – Regulatory Agreement Buildings
• ARRO Data Upload Instructions 2020 and Later