June 20, 2019 – In a short note issued today, Moody’s Investor Service stated that New York State’s recently-enacted Housing Stability and Tenant Protection Act will not impact the performance of NYC Housing Development Corporation’s multifamily portfolio.

Moody’s noted that HDC imposes strict income restrictions for tenants living in HDC-funded units and restricts landlords’ ability to increase rent beyond what tenants in specific income buckets are able to pay, oftentimes calculated as a percentage of the Area Median Income (AMI). In other cases, rents are simply capped at a percentage of renters’ income.

For projects that receive funding from the U.S. Department of Housing and Urban Development (“HUD”), federal approval is needed for rent increases.

Moody’s said the following:

HDC conservatively underwrites its projects with the expectation of incremental rent increases. This buffers its projects against significant changes in federal or state policy that could limit rent increases and against rental market conditions in New York City that could soften rents.

To learn more or request a copy of the report, contact Moody’s Investor Service at +1 (212) 553-1653.

Contact Karen Bigelow at KBigelow@BuyMuni.com.