Affordable housing players bristle under New York's paused voucher reprieve

"The program, called Section 610, allowed landlords to collect the full value of a federal rent voucher when it was more than the rent. But money came from the federal Section 8 program. In March, when Section 8 funding appeared in jeopardy, the city paused authorizations. In July, New York State's housing department seemed to put the final nail in the coffin, ending authorizations for landlords who receive certain city subsidies."

"Samantha Magistro, CEO at affordable housing developer Bronx Pro Group, has applied to the program for 15 different projects. Her first 10 requests were granted, giving her portfolio some room to breathe. But her most recent five requests have yet to be processed. Magistro, who chairs the board of the New York State Association for Affordable Housing, said her concern is for smaller and nonprofit developers."

"Launched in 2022, Section 610 was aimed at projects facing financial difficulties. Certain building owners who had agreements with the city to limit rent could demonstrate financial need. With a Section 610 authorization, they could amend their agreements upon lease renewal to collect the full amount of a federal voucher, without changing costs for tenants. Advocates for affordable housing developers and landlords are looking to both federal and local authorities to fund the program as expenses grow."

Section 610 allowed certain rent-restricted building owners to collect the full value of federal vouchers when vouchers exceeded contracted rent, providing extra income without raising tenant costs. Launched in 2022 for financially distressed projects, the program required demonstration of need and allowed amendments at lease renewal. In March the city paused new authorizations amid concerns about Section 8 funding, and in July the state halted approvals for owners receiving some city subsidies. Developers, especially smaller and nonprofit operators, face rising expenses and sporadic rent collections and are urging federal and local funding to restore the program.

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