HPD finally released their Letter of Intent (“LOI”) for the 421a extension. This comes a few days prior to the deadline imposed by the law (60 days after release of the Budget Bill) and is eagerly awaited by developers and lenders alike.

Projects with an intention to apply for 421-a(16) benefits and anticipate completion of construction between 6/15/2026 and 6/30/2031 should submit this Form to HPD. Information such as ownership structure, residential unit count, and proposed Affordability Option need to be completed in the Form.

However, it is explicitly stated that the Form and/or the Affordability Option selected on the Form do not bind the project if construction is completed prior to the original deadline (6/15/2026). This means that developers who are unsure if they will need to utilize the extension (with an intent to apply for affordably Option C if that is not the case), can submit an “LOI” in which they indicate that the project will pursue Options A, B, D, E, or F, and then modify the Affordability Option if construction is complete prior to 6/15/206.

Of course, in accordance with the 421-a(16) rules, an Affordability Election can only be changed until a Notice Of Intent to begin marketing is filed.

The deadline to submit the LOI is on 9/12/2024.

Additionally, HPD opened up registration for 485-x benefits. Although the application forms are not available yet (HPD expects them to be available at the end of the year), the initial Registration Notice can already be filed. For projects that commenced construction prior to 4/20/24, the Notice must be submitted within 6 months, and for projects that commenced construction after 4/20/24, the Notice must be filed within 6 months of the project’s commencement of construction.