Lease Up Process – Lease Renewals, New Rentals, And Transfers

Notice:
In June 2019, the Housing Stability and Tenant Protection Act of 2019 (“TPA of 2019”) became law. Lease renewals and contract rent changes, processed after the passing of TPA of 2019, are subject to the law. Please make sure all lease renewals and contract rent changes submitted to NYCHA comply with the TPA of 2019. If you have any questions regarding the TPA of 2019, please contact the Office of Rent Administration at New York State Homes and Community Renewal.

As a Section 8 owner, you can renew the lease with your tenant(s) when the existing lease is set to expire. This process to renew an existing lease or request a contract rent change is known as a lease renewal. Below is an overview of the lease renewal process:

Section 8 Lease Up Process


Submit Lease Renewal Request

  • Submit a completed "Landlord Request for Lease Renewal Approval" form and all required documents at least 60 days prior to the effective date of the new lease.
  • The fastest way to submit this form is via the Owner Extranet.
  • You may also submit in-person, at a Walk-in Center (WIC), or via mail.

NYCHA Reviews Lease Renewal Request and Supporting Documents

  • NYCHA will review your request and all submitted documents.
  • NYCHA will also perform a rent reasonableness evaluation.
  • Your rent must be deemed reasonable before your lease renewal request is approved.

NYCHA Approves or Rejects Request

  • You and the tenant will be notified in writing of any approvals or rejections.
  • If your request is rejected, NYCHA will notify you of the next steps.

In addition to submitting a written lease renewal request, you must also submit applicable supporting documents. A list of the documents that must be provided based on the type of unit you own is provided on the back of the NYCHA "Landlord Request for Lease Renewal Approval" form.

NYCHA will not process a lease renewal request until all required documents have been submitted and, the rent has been determined reasonable.

You will be notified in writing of the outcome of the review. If approved, you and the tenant will be notified of the new tenant share, NYCHA’s share to the owner, and the effective date of the change. You can also see the status of your request on the Owner Extranet.

Rent Reasonableness

HUD requires NYCHA to determine rent reasonableness to ensure that rents charged by owners to Section 8 participants do not exceed rents currently being charged for comparable unassisted units in the private market. NYCHA considers the following factors when determining rent reasonableness: location; unit size and type; age of the subject unit; property amenities and services; and utilities provided by the owner as specified by the lease.

A rent reasonableness evaluation is conducted prior to entering into the HAP contract with an owner and approving a rent increase. NYCHA utilizes a third party vendor, GoSection8, for all rent reasonableness evaluations. GoSection8 utilizes both a unit to unit and unit to market approach to select the closest and most similar unassisted units within the given area.

HCV Rent Reasonableness and RGB Order Number 53

Reminder: On June 23, 2021, the NYC Rent Guidelines Board enacted Order Number 53 (Order #53), to implement the following annual rent adjustment for rent stabilized leases commencing between October 1, 2021 and September 30, 2022: one-year lease= 0% for the first 6 months of the lease and 1.5% for the remaining 6 months of the lease. For two- year leases 2.5%.  To comply with the implementation of the rent adjustments enacted by Order #53, which includes rent stabilized leases commencing on or after October 1, 2021 and through September 30, 2022, NYCHA has implemented the following:
Lease Renewals will only require ONE lease renewal submission for one-year and two-year leases:

1. One- year lease term: NYCHA will process the one-year lease renewal 1.5% increase upon completion of a successful rent reasonableness valuation after the first 6 months of the lease. Once the increase in rent is found to be reasonable, NYCHA will automatically process the increase

  1. Check the box indicating that  the lease is  a “one-year lease”
  2. Add the following information to Section Part B: Tenant’s Response to Owner
  3. Add a line to represent the first year of the lease: write in the 0% increase  for the first six months
  4. Add another line to represent the final six months of the lease: write in the 1.5% for the final six months of the lease and the monthly rent that reflects 1.5% increase

2. Two-year lease term- No change to the submission process

  1. Check the box indicating that  the lease is  a “ two-year lease”
  2. Enter the new rent amount with the increase using the RGB adjustment of 2.5%

Note: For all lease renewals and contract rent changes, NYCHA complies with HUD regulations that require a  rent reasonableness determination. If the rent is found not reasonableness at the start of the 2nd year increase, then NYCHA will notify you via mail.

New Rentals And Transfers

Voucher holders have the option to transfer to a new unit when their lease expires or is set to expire within 60 days. Below is an overview of NYCHA's transfer process:

Section 8 New Rentals Transfers

Submit Transfer Request

  • NYCHA will review the tenant's transfer request
  • If the transfer request is aproved, NYCHA will issue the tenant a transfer voucher and briefing package during a briefing event.

Search for a Unit

  • The tenant has 120 days to find a unit to rent unless NYCHA grants the tenant an extension.

Return the Briefing Package

  • You must complete all required owner documents before the transfer will be approved.
  • Tenants must schedule an appointment to return the completed briefing package.

NYCHA Inspects the Unit

  • Upon approval of the briefing package, you must call the CCC to schedule an inspection of the unit.
  • The unit must pass inspection before the transfer is approved and the tenant moves in.

Move-In

  • If the unit passes inspection, NYCHA will issue the tenant a move-in letter authorizing them to move into the unit.

As an owner, you must complete and return the following documents before the rental will be approved:

  • Additional Landlord Information Form.
  • Housing Assistance Payments (HAP) Contract.
  • Lease Agreement.
  • Request for Tenancy Approval (RFTA).
  • W-9 (Request for Taxpayer ID W-9 Form).

NYCHA will review the completed briefing package, and once approved, you must call the Customer Contact Center to schedule an inspection of the new unit. NYCHA will only approve the new unit if it passes inspection. Once the unit passes inspection, NYCHA will issue the voucher holder a move-in letter authorizing them to move into the new unit.