On June 14, 2024 HPD clarified how 421-a(16) projects can request and receive an extension of time to achieve a Completion Date (until June 15, 2031). The previous Completion Date deadline until now has been June 15, 2026. HPD’s website now explains:
Qualifying rental projects and homeownership projects with a completion date between June 16, 2026 and June 15, 2031 must have submitted a Letter of Intent to HPD no later than September 12, 2024 in order to be eligible for 421-a(16) benefits.
This Letter of Intent form (“the Form”) is solely to enable rental projects or homeownership projects to meet the requirement of RPTL 421-a(16)(a)(xxviii)(2) to notify HPD of their intention to apply for Affordable New York Housing Program (“ANYHP”) Benefits as an Eligible Multiple Dwelling upon a Completion Date that is on or before June 30th, 2031.
The Form must be submitted by an authorized signatory of the owner, and is to be submitted online. Successful submission of the Form will result in a confirmation of receipt email, a copy of which shall be required for any 421-a(16) application with a completion date between June 16, 2026 and June 15, 2031.
Developers
You must file the Letter of Intent (LOI) with HPD on or before September 12, 2024 to potentially qualify your 421-a project for the Completion Date extension. The extension is not available for 421-a projects using Affordability Option “C” or “G” (each of which require at least 30% of units affordable at or below 130% of Area Median Income). The ability to use a different 421-a Affordability Option will be key to obtaining the extension.
Lenders and Purchasers
If a 421-a project you have financed or plan to acquire will be seeking the Completion Date extension there are very specific timing, LOI documentation and eligibility requirements which must be met.
If you have any questions please contact your R&E attorney or Daniel M. Bernstein who authored this alert.