Contract Rents

Rent Reasonability

HPD is obligated by HUD to determine that rents for subsidized apartments do not exceed rents for comparable unsubsidized apartments in the building or neighborhood. This "rent reasonableness" test is performed prior to approving subsidy and at any subsequent request for a rent increase. The owner may supply HPD with information on comparable apartments using the HPD Rent Comparable Form.

Rent Increases

Owners may apply to HPD for an increase in the contract rent once annually. Request must be submitted to HPD 60 days in advance of the effective date of the increase. Requests received by HPD after the effective date, if approved, will be made effective the 1st or 15th of the month that is 60 days after the date that HPD received the request. The owner’s proposed rent must be confirmed to be in accordance with any federal, state or local housing laws and regulations that apply to that particular building and/or apartment. To demonstrate this compliance, owners are encouraged to supply supporting documentation with their request. Owners should complete and return a Rent Increase-Decrease Request Form.