FHEPS Major & Minor Rules for Eligibility to Stay in the Community �A Training for Housing Court Answers�May 15, 2026 2pm-4 pm �via Zoom�\
Presented by:
Lincoln Alkind & Susan C. Bahn
Copyrighted: May 2026 The Legal Aid Society (the permission of The Legal Aid Society must be obtained before copying or using this material). Only HRA approved legal providers may submit FHEPS applications to HRA.
�������Family Homelessness�& �Eviction Prevention�Supplement (FHEPS)��PS. The “H” is silent. HRA says it wrong.
FHEPS Training Objectives�1. Concentrate on the 7 Major Eligibility Rules�2. Study the 2022-6 Changes to FHEPS concerning rent levels, bedrooms, utilities, rent reasonableness and reasonable accommodations �3. Review the 2023 & 2024 Policy Bulletins about HRA taking over FHEPS processing at the centers and moves at homebases. (We expect in Fiscal Year 2027 the Benefits Access Centers will start issuing FHEPS shopping letters and process FHEPS to move applications.)�4. Review the Minor Rules for FHEPS
CA Eligibility Review
FHEPS is a rent subsidy program linked to the Cash Assistance (CA) recipients in the household.
If everyone in the household receives CA then FHEPS will cover the full rent up to an amount set every year. (In 2026 the amount did not go up).
If there are other people in the home with income such as SSI, they must pay a share of the rent. Such persons are NOT subsidized.
Persons without immigration status are usually not counted as having a share or toward the bedroom count.
FHEPS to stay can be used to pay arrears if the applicant intends to stay in their current apartment. Most arrears are not recoupable.
FHEPS A
An Entitlement-mostly State funded
FHEPS B
Limited to 1,000 New HH/yr-City funded
FHEPS A To Stay
FHEPS A To Move
FHEPS B To Stay
FHEPS B To Move
May be processed by authorized legal service providers, or HRA BAC Centers.
Only Homebase can process a move application in community. *
Only Homebase can process after approval from Family Justice Center/HRA.
Processed by Homebase.
Pays Arrears & Future Rent
Pays Arrears & Future Rent
Future Rent Only
Future Rent Only
Applicants must be moving from shelter, because current apartment is not viable, or for a health and safety reason or can’t get a lease to stay.
Applicants need only meet basic eligibility rules outline in this presentation.
Applicants must have a safety plan. Send to Family Justice Center. Only 25 approved per year.
Applicants must either be in shelter due to DV/IPV or need to move due to DV/IPV.
Sources of Law & Info
CA Budget DOES NOT INCLUDE FHEPS
The Cash Assistance budget for the family does not include the FHEPS Supplement.
If the mother in a family of 3 obtains Social Security Disability above the standard of need for 3 of $789, the case closes and FHEPS is lost.
If the family receives more than $789 plus the child support pass through of $200, the case closes and FHEPS is lost
SEVEN MAJOR RULES REVIEW
SEVEN MAJOR RULES
Factors: immigration status, “roommates,” budget rules and rules on bedrooms, utility deductions and rent reasonableness.
Must use resources to pay rent arrears.
Normally the applicant must owe no more than $9,000. Until 12/31/26 can be $20,000. More possible.
Almost everyone has a share to pay.
Family has at least 1 year lease/agreement to stay or apartment is rent regulated.
Family facing homelessness or is homeless.
Household includes CA ("cash assistance") and minor.
Rule 1: CA Case with Minor in the Home
Rule 1: continued
The cash assistance case must be fully open for all family members who are required by law to be on the budget and there can be no sanctions at the time of application. All roommates with immigration status must have income and pay a share of back and future rent.
This includes there can be no child support sanctions which have a 25% reduction on the CA case. They restarted 6/22. Work sanctions cause a pro rata reduction on the CA case and the subsidy. New Work sanctions have been on pause since before the pandemic but are starting soon. SNAP ABAWD sanctions start in June (very long sanctions.)
Pregnancy
Pregnancy tip
Review: When is there a case of 1 in a family case?
When there is a NEIS parent and citizen child?
When there is a pregnant person?
Parent in receipt of SSI with minor child in receipt of Cash Assistance.
Answers
Yes, when there is a NEIS parent and minor citizen child. Also when there is a citizen parent and a child without status.
Yes, when there is pregnant person but they must have immigration status and verify their pregnancy
Yes, when there is a parent in receipt of SSI with a citizen child in receipt of Cash Assistance or the opposite.
Additional Question on CA
Answer
Rule 2: Eviction or Exception
The family must be facing homelessness or be homeless AND meet one of the sub-rules:
(a) Reside in a NYC residence that is subject to an eviction proceeding; or
(b) A foreclosure action has been commenced with respect to the tenant’s apartment/building in NYC; or
Rule 2 continued
(c) The family is required to leave their NYC residence for health and/or safety reason as determined by a City agency such as DA referral or ACS referral; or
(d) Within the last 12 months have been evicted or left a residence in NYC that was the subject of an eviction proceeding; or
(e) Reside in NYC DHS or HRA shelter and w/in last 12 months prior to entering shelter have been evicted or left residence that had eviction case. Families who are homeless or in danger of homelessness due to DV get FHEPS B.
Rule 2 temporary exception
OTDA has agreed to temporarily waive the FHEPS A eligibility requirement that an applicant/participant must have a Housing Court proceeding. This eligibility requirement will be waived until at least December 31, 2026. Instead, applicant need to:
a. Reside within the City of New York,
b. Be the subject of a written rent demand threatening litigation in a non-payment case (HRA is not processing holdovers w/o lawsuit)
c. Submit a statement why the household is behind in the rent along with a FHEPS utility form.
Rule 3: Lease or Guarantee
Rule 3 continued (1 year lease or rent regulated)
(c) The applicant must submit proof of residency in the apartment, and
(d) The applicant must be named as a co-tenant on the lease, court stipulation or in a written agreement with the TOR giving residency rights for at least 12 months at the time of approval, and
(e) Arrears' period must match co-tenancy.
Rule 4: Almost Everyone Pays a Share of Rent
have a verified income.
Not Eligi
Everyone in the residence who is eligible for CA must receive CA or have a verified income.
Not Eligible due to Immigration Status (NEIS) person without income has no share and is invisible to the head count.
Guess the Public Policy ?
Why are roommates, including children with income, required to pay shares?
Why don’t NEIS Persons Have to Pay a Share When they have no Income
1. The State understands that NEIS roommates without income can’t pay a share. Since 1996 most federal subsidies require the household to cover the NEIS share.
Roommate Form-147 Q Form
Rule 5: Arrears Limit
Normally the applicant must owe no more than $9000. (Stale and missing checks will not count toward limit.) Temporarily until 12/31/2026 this amount is $20,000. More can be issued for extenuating circumstances with a written cover e-mail and documents.
State allowed HRA to pay $1000-$5000 pre-pandemic; every additional $5000 takes higher approval with extenuating circumstances since March 2020; HRA funds cannot be added to a new application for a sanction (charities can cover sanctioned arrears or rent can be abated). *
Advocate can submit application at $20,000 to toll the arrears (put on hold) and fix within 6 mo. But must update and re-sign all docs.
Rule 5: How to Deal with High Arrears?
HRA would pay pre-pandemic $9000-$12,000 for exceptional circumstances—get documentation. Think low rent, long term tenancy, etc.
Until 12/31/26, the arrears limit has been raised to $20,000. More can be issued for extenuating circumstances.*
Maybe you can get $1000 or more from client and $1000 or more from a few charities.
In some cases you can get above $20,000 approved for highly exceptional circumstances. Think cancer, terminal illness, etc.
Waive/Sever arrears in housing court.
Put application in at $20,000 even if case not settled. You have 6m to resubmit. BRAIN STORM!!!!
Rule 5: Exceptional Circumstances
Documentation is the key-can’t just say person receives SSI (document they have cancer or are in a wheel chair.)
Moving a disabled person from the apartment would create a substantial hardship bc family lives near treating source, apartment is on first floor, child progressing in Special Ed (get IEP), etc.
Family has long standing ties to the community that would create hardship-ie. neighbors babysit, language ties, daycare close, etc.
Very large households of five or more individuals, pregnant woman, or two or more children under 4.
Contributions from community show a community buy-in (charities).
Rule 6: FHEPS is a Last Resort
The applicant family must have no other resources to pay the back rent. All roommates except SSI recipients must also pay their share of the arrears. If they do not have the arrears they must apply for a “one shot”.
The family must use their $10,000 resource maximum if they have funds in the bank, SSI money of parents/adults or any tax return funds. There must be no other way to pay the arrears or ongoing rent.
January 31 to May is HRA tax season. HRA wants to know what happened with the tax return and whether ERAP was obtained was paid during pandemic if arrears include pandemic years. Often listed on a breakdown.
The applicant family must have no other resources to pay the back rent. All roommates except SSI recipients must also pay their share of the arrears. If they do not have the arrears they must apply for a “one shot”.
The family must use their $10,000 resource maximum if they have funds in the bank, SSI money of parents/adults or any tax return funds. There must be no other way to pay the arrears or ongoing rent.
January 31 to May is HRA tax season. HRA wants to know what happened with the tax return and whether ERAP was obtained was paid during pandemic. Often listed on a breakdown.
Warning on Savings/Resources
Rule 7: What is the Maximum Rent Allowed?
Several factors go into figuring the maximum rent for the lease that can be charged:
Rule 7: Maximum Rent Permitted (continued)
FHEPS Levels as of 10/2019- 2/15/2022
Family Size | Shelter Allowance | Shelter + Subsidy= FHEPS Maximum | Shelter + Subsidy= Enhanced Maximum |
1 | $277 | $277 + $771 =$1048 | $277 + $988 =$1265 |
2 | $283 | $283 + $813 =$1096 | $283 + $1040=$1323 |
3 | $400 | $400 + $911 =$1311 | $400 + $1180=$1580 |
4 | $450 | $450 + $861=$1311 | $450 + $1130 =$1580 |
5 | $501 | $501 + $1192=$1693 | $501 + $1539=$2040 |
6 | $524 | $524 + $1169=$1693 | $524 + $1516=$2040 |
7 | $546* | $546 + $1353=$1899 | $546 + $1745=$2291 |
FHEPS CHANGES in 2022
FHEPS Rents Rise to 100% of Fair Market Rents
Rent Subject to Payment Standards effective 7/1/2025
NUMBER�OF BEDROOMS | ALL | WITHOUT�COOKING�GAS�& ELECTRICITY | WITHOUT�COOKING�GAS ONLY | WITHOUT�ELECTRIC�ONLY | NO UTILITIES |
UTILITIES | INCLUDED (Subtract these too based on fuel source) | ||||
INCLUDED (highest amount paid) | |||||
0 | $2,646 | $2,526 | $2,620 | $2,550 | Heat/Hot Water? |
1 | $2,762 | $2,624 | $2,733 | $2,653 | Heat/Hot Water? |
2 | $3,058 | $2,881 | $3,025 | $2,914 | Heat/Hot Water? |
3 | $3,811 | $3,596 | $3,774 | $3,633 | Heat/Hot Water? |
4 | $4,111 | $3,857 | $4,070 | $3,898 | Heat/Hot Water? |
5 or more | $4,728 | $4,435 | $4,683 | $4,515 | Heat/Hot Water? |
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2022 Changes: A. Bedrooms
FHEPS Levels Now Based on Number of Bedrooms
Question
Carrie has no immigration status or income. Her children Henry and Peter receive CA for two.
What size apartment can they rent with a FHEPS shopping letter?
Answer
Ideally a one bedroom because there are two countable people.
Carrie can sleep in the livingroom. They can also rent a larger apartment but the rent less utility deductions can be no more than a one bedroom apartment less utilities.
FHEPS Changes in 2022: �B. Utility Deductions
Utility Deductions
Under the payment standards, if the landlord pays for heat, hot water, lights and a gas stove in an unregulated apartment the landlord can charge“all utilities included” level.
Deductions are made from that level if the tenant has to pay for heat, hot water, lights and a gas stove or an electric stove.
Deductions for heat and hot water are listed on the second page of the payment standards form that is published each year. HRA-146z(E)
Question
Katya has no immigration status and no income. She and her two citizen children are shopping for a one bedroom. They find an unregulated apartment where the tenant must pay for cooking gas and electric.
A. What is the most rent the landlord can charge to be approved for FHEPS?
B. What is deducted from the maximum payment standard?
Answer
The maximum rent the landlord can charge for a 1 bedroom without cooking gas and electric is $2762, effective 7/1/2025.
The utility deduction is $2762--$29 (cooking gas)-$109 (electricity)=$2624
Rent Subject to “Rent Reasonableness”
FHEPS Changes 2022: C. Rent Reasonableness
When Shopping for New Apartment
When approved by CityDSS via HomeBase for looking for a new apartment the tenant is given a “shopping letter” based on household countable members and bedroom size.
If the household is approved for a two bedroom (for 3-4 countable people) and finds a three bedroom within the two bedroom cost that is ok.
The household cannot pay the difference for the cost of a larger apartment above their approved bedroom size.
2022 Changes: D. Reasonable Accomodations
Few Tips on Rent Reasonableness
If there are more countable people than the maximum size apartment, the rent will likely pass rent reasonableness: 6 countable people in a 2 bedroom.
If the apartment is in a high rent zip code --such as most long gentrified neighborhoods-- the maximum rent is likely to pass.
Zip codes that were not as gentrified such as Far Rockaway and East New York are more likely to have rent reasonableness deductions.
Reasonable Accomodation for Disability
FHEPS Changes 2023
HRA Publishes PB Explaining 2020 TakeOver
Processing of FHEPS applications following the termination of contracts 1/2020 with 6 large social services providers.
Moves for FHEPS are moved to homebases.
High arrears cases were supposed to go to homebases to negotiate the arrears down but not to process. THIS HAS STOPPED!
Centers are supposed to process pro se FHEPS applications via HDU.
But the centers were not trained on this until 4/25.
Restorations and modifications are supposed to be done at application and recertification or upon request at the centers. The centers have been doing this sometimes.
June 2024 Change: HRA will no longer refer high arrears to HB!�
2024 FHEPS CHANGES
If client given a utility form to get signed then likely HRA is working on a FHEPS application
HRA stops referrals to HomeBases for High Arrears.
HomeBases should only be referred FHEPS moves. Soon BACS will do.
FHEPS Applications are likely processed if Utility form is requested.
FHEPS MOVES: INCENTIVES VARY
Different Move Incentives for FHEPS
Moves From Shelter by HRA | Moves in the Community by HomeBase via HRA |
First month in full and 3 months of the subsidy at lease signing | First month in full and 3 months of subsidy at lease signing |
Signing bonus may be eliminated soon. | None |
Unit hold incentive equal to one month’s rent if apartment held for 1 or more months due to City delays. Adams tried to remove in 2025. Unclear what Mandami will do. | None |
Broker’s fee up to 15% of yearly rent | ½ a month broker’s fee and broker may not charge difference and tenant may not pay difference if obtain HRA ½ month. |
Can the Rent be a Penny over FHEPS Max?
MINOR RULES
Minor Rule 1: “Roomates”�Must Pay a Share
Roommates who are not part of the mandatory filing unit, must pay a share that is 30% of their gross income or their pro rata share of the rent which ever is LOWER.
We train more on this in FHEPS Applications
Minor Rule 2: Processing FHEPS Applications in the Pandemic
Processing FHEPS at Centers Remains Questionable
(A)applicants and recipients could not get FHEPS rent modified if the rent increased or their was a household composition change
(B) FHEPS was being taken off the budget at recertification without notice.
(c) Applicants and recipients could not obtain FHEPS at the BACs or on ACCESS HRA.
Things are slowly improving with training and time but……
Minor Rule 3: Yearly FHEPS Increases Now in January (but really in February) but none in 2026
Minor Rule 4: Rent Increases for Unregulated Apartments
Minor Rule 5: Rent Regulated Leases do Not Have to be a Year Long
Minor Rule 6: FHEPS Modifications& Reporting Changes Timely
Minor Rule 7: FHEPS Restoration
FHEPS Restoration Rule 8: After a Year
AFTER One Year of FHEPS being off the budget, there must be a rent demand or a new lawsuit.
However because of the Legal Aid lawsuit, Tolliver, HRA is supposed to restore FHEPS back to the beginning of April, 2020 if a family situation fits the lawsuit. Speak to the FHEPS team about a Tolliver referral.
Minor FHEPS Rule 9: Recoupments & Restorations
When restoring FHEPS (either within 1 year or many years)-- if seeking arrears during any month that FHEPS was on the budget—missing roommate shares are recoupable. There is 1 recoupment in a FHEPS lifetime when seeking a restoration or modification. When recouping a small amount get charity funds.
Minor FHEPS Rule 9�Example
Marie had FHEPS for her family of 3 from 1/25 to 6/25. Her shelter allowance ($400) was budgeted due to work income and she did not pay her shelter share to the landlord. Her CA case (and therefore FHEPS) was closed from 7/25-9/25 due to increased income. She sought a FHEPS restoration in 10/25 when her CA opened She will be recouped for budgeted shelter share for 1/25-6/25 only because her shelter allowance was budgeted.
Minor Rule 10: HomeBase Processes Moves
Moves in the community can be for:
Minor Rule 10: Last Child Aging Out While Applying
Minor Rule 11: FHEPS IS ONLY A RENT SUBSIDY
Minor Rule 12: FHEPS & Rent Status
Minor Rule 13: Sanctions Reduce FHEPS Subsidy & CA
(An application will not be processed if there is a sanction on the budget.)
Minor Rule 14: FHEPS Checks Issued by CRPU
Minor Rule 15: FHEPS Checks
Minor Rule 16: Time Limits
Minor Rule 17: Convert to CityFHEPS?
Households who were previously in DHS shelter system are eligible for CityFHEPS if no longer eligible for FHEPS. A lawsuit is needed to transition. Some other households may fit other CityFHEPS rules in the community. Most households will not be eligible for a rent subsidy at this time so talk to your client about their future plan for paying the rent if the children are aging out or your client is going back to work.
Can you get them SCRIE or DRIE now?
Section 610 for the Private Housing Finance Law & FHEPS
A recent change in Section 610 of the Private Housing Finance Law (PHFL) allows owners of affordable housing to collect more than the legal rent if the property receive rental assistance such as FHEPS, CityFHEPS, HASA benefits or Section 8.
The landlord must adjust the regulatory agreement with the housing agency that is involved with the Section 610 financing such as HPD, HCR , HDC, NYS Housing Finance Agency. That agency will issue an
“approval letter” permitting the building or buildings to raise the rent on apartments with the subsidy (while the subsidy is in effect).
More on Section 610 of PHFL
The landlord then must send the tenant a renewal lease explaining the changes in the law and execute a new lease with the tenant when the old lease expires.
The landlord must also fill out a utility form for FHEPS and CityFHEPS subsidized apartment.
The tenant can apply at their center or on Access HRA.
This has lead to much confusion with the landlords because they think they can get increases based on the number of bedrooms , not by the FHEPS rules which includes bedrooms/countable people/utilities.
Benefits of Rent Subsidies
Contacting The Legal Aid Society
On the first appearance in Housing Court, the Judges are assigning legal services attorneys to tenants. At this time there are not enough attorneys to give everyone free representation.
Many organizations give free advice to tenants over the phone.
For LAS Access to Benefits call 888-663-6880 10 am-3 pm (no housing case)
For LAS Housing Help call 311 during regular business hours and ask to speak to a tenant advocate about a case in housing court.
Questions?