New York City's Affordable Housing Crisis Threatened by Bureaucratic Halt on Life-Saving Program
In a move that has left many in the affordable housing community reeling, the Department of Housing Preservation and Development (HPD) announced in May 2025 that it would be halting the processing of new applications for Section 610, a policy designed to preserve affordability in rent-stabilized buildings. The pause threatens not only the continued viability of these properties but also the very fabric of the city's affordable housing ecosystem.
Section 610, signed into law by Governor Kathy Hochul in December 2022, has been hailed as a rare moment of policy innovation that benefits both building owners and tenants. By allowing owners to collect the full amount of federal and local housing vouchers, even when that amount exceeds the building's registered legal rent, Section 610 provides a vital lifeline to struggling buildings. Tenants continue to pay only 30 percent of their income toward rent, while building owners receive additional income to cover rising operating costs and repairs.
However, HPD's decision to halt new applications for the program, citing federal funding uncertainty, has sent shockwaves through the community. Critics argue that this move is misguided and ignores the very real financial challenges facing affordable housing providers. Insurance costs have skyrocketed, property taxes continue to climb, and labor and material costs for maintenance have surged.
The consequences of inaction will be dire. Insufficient cash flow means deferred maintenance, which leads to building deterioration. Deterioration results in tenant displacement and the loss of affordable units from the city's housing stock. This is a story that has played out countless times across the five boroughs.
HPD's justification for halting the program rings hollow. Federal funding uncertainty is not new, and existing commitments should be prioritized over arbitrary shutdowns. Moreover, the timing couldn't be worse. New York is in the midst of implementing its most ambitious housing agenda in decades, with a focus on creating new affordable units across all neighborhoods.
Despite concerns about profitability, Section 610's design includes safeguards to prioritize affordability over profit maximization. Regulatory agencies assess project financials to prioritize buildings with the greatest need, and rent stabilization protections remain in place. If a tenant loses their voucher, rents must drop back to the legal regulated amount.
HPD claims that it will continue processing authorizations for certain programs, but this carve-out is insufficient. CityFHEPS and HASA vouchers serve thousands of New Yorkers, including families with children and individuals experiencing homelessness. Excluding these programs from Section 610 means that buildings serving our most vulnerable residents are left without financial support.
The city should reverse course and reopen Section 610 applications with prioritization criteria based on demonstrated financial need. If federal budget constraints genuinely require limiting the program's scope, a transparent waitlist and approval process would be more suitable than an arbitrary shutdown.
Most importantly, preserving existing affordable housing is just as critical as building new units, often at a lower cost. Every dollar spent propping up struggling affordable buildings through Section 610 saves the much larger investment required to replace those units once they're lost.
New York cannot afford to let bureaucratic caution and budgetary pessimism undermine smart housing policy. Section 610 works. It should be expanded, not abandoned. The affordable housing crisis demands bold action, not timid retreat.
In a move that has left many in the affordable housing community reeling, the Department of Housing Preservation and Development (HPD) announced in May 2025 that it would be halting the processing of new applications for Section 610, a policy designed to preserve affordability in rent-stabilized buildings. The pause threatens not only the continued viability of these properties but also the very fabric of the city's affordable housing ecosystem.
Section 610, signed into law by Governor Kathy Hochul in December 2022, has been hailed as a rare moment of policy innovation that benefits both building owners and tenants. By allowing owners to collect the full amount of federal and local housing vouchers, even when that amount exceeds the building's registered legal rent, Section 610 provides a vital lifeline to struggling buildings. Tenants continue to pay only 30 percent of their income toward rent, while building owners receive additional income to cover rising operating costs and repairs.
However, HPD's decision to halt new applications for the program, citing federal funding uncertainty, has sent shockwaves through the community. Critics argue that this move is misguided and ignores the very real financial challenges facing affordable housing providers. Insurance costs have skyrocketed, property taxes continue to climb, and labor and material costs for maintenance have surged.
The consequences of inaction will be dire. Insufficient cash flow means deferred maintenance, which leads to building deterioration. Deterioration results in tenant displacement and the loss of affordable units from the city's housing stock. This is a story that has played out countless times across the five boroughs.
HPD's justification for halting the program rings hollow. Federal funding uncertainty is not new, and existing commitments should be prioritized over arbitrary shutdowns. Moreover, the timing couldn't be worse. New York is in the midst of implementing its most ambitious housing agenda in decades, with a focus on creating new affordable units across all neighborhoods.
Despite concerns about profitability, Section 610's design includes safeguards to prioritize affordability over profit maximization. Regulatory agencies assess project financials to prioritize buildings with the greatest need, and rent stabilization protections remain in place. If a tenant loses their voucher, rents must drop back to the legal regulated amount.
HPD claims that it will continue processing authorizations for certain programs, but this carve-out is insufficient. CityFHEPS and HASA vouchers serve thousands of New Yorkers, including families with children and individuals experiencing homelessness. Excluding these programs from Section 610 means that buildings serving our most vulnerable residents are left without financial support.
The city should reverse course and reopen Section 610 applications with prioritization criteria based on demonstrated financial need. If federal budget constraints genuinely require limiting the program's scope, a transparent waitlist and approval process would be more suitable than an arbitrary shutdown.
Most importantly, preserving existing affordable housing is just as critical as building new units, often at a lower cost. Every dollar spent propping up struggling affordable buildings through Section 610 saves the much larger investment required to replace those units once they're lost.
New York cannot afford to let bureaucratic caution and budgetary pessimism undermine smart housing policy. Section 610 works. It should be expanded, not abandoned. The affordable housing crisis demands bold action, not timid retreat.