NYC Council Approves Permanent Expansion of HPD’s Certificate of No Harassment Program

Int. 839-A would replace the expiring pilot with a permanent program and materially expand portfolio-level risk for multifamily owners.

The New York City Council approved Int. 839-A on August 13, 2026, setting the stage for a significant and potentially permanent expansion of the Department of Housing Preservation and Development’s Certificate of No Harassment (CONH) program. The bill is currently awaiting mayoral action. If it becomes law, most of its substantive provisions will take effect on April 15, 2027, while the existing pilot list will remain in effect until HPD publishes the first list under the new framework.

The legislation is important not only for properties already subject to CONH requirements, but also for owners, purchasers and lenders evaluating multifamily portfolios. Among other changes, a harassment determination or CONH denial involving one property could cause other buildings registered to the same owner to be placed on the program list.

How the Current CONH Pilot Program Works

New York City’s CONH pilot program was established in 2018 and later extended through September 27, 2026. It applies to certain multiple dwellings identified by HPD based on statutory criteria that include building distress, certain vacate orders, participation in specified enforcement programs, the discharge of a 7A administrator and findings of tenant harassment.

A building on HPD’s program list generally must obtain a CONH—or an available waiver or other permitted alternative—before the Department of Buildings will approve construction documents or issue permits for covered work. Covered work includes demolition, specified changes in use or occupancy, changes to apartment layouts or the number of dwelling units, and applications for a new or amended certificate of occupancy.

For a program building, HPD’s inquiry generally examines whether harassment occurred during the 60 months preceding the CONH application. A denial or rescission can prevent DOB approval of covered work for 60 months, absent an authorized cure agreement. As a practical matter, CONH status can therefore affect development timing, financing, valuation and the feasibility of a proposed business plan.

To bypass the consequences of a denied CONH, the owner can enter into a cure agreement with HPD which would include a restrictive declaration promising to build or set aside permanent low-income housing within the same building or within another building in the same community district.

Key Changes Under Int. 839-A

1. The Pilot Program Would Become Permanent

The bill would remove the pilot program’s scheduled expiration and establish CONH as a permanent program. HPD would publish a new program list every three years beginning April 15, 2027 and recalculate the Building Qualification Index on the same three-year cycle. The index would continue to use agency data—such as hazardous and immediately hazardous violations, emergency repair liens, ownership changes and other indicators of distress—to identify buildings for potential inclusion.

2. One Building’s History Could Affect an Owner’s Broader Portfolio

The most consequential change for many owners is the bill’s portfolio-wide reach. HPD would be required to add buildings having the same owner, as identified through annual HPD property registrations, as a building where:

• a court or New York State Homes and Community Renewal made a final determination of harassment within the preceding 60 months; or

• HPD denied or rescinded a CONH within the preceding 60 months.

This provision could transform what historically may have been treated as a property-specific issue into a portfolio-level regulatory concern. Because HPD would rely on the owner identified in annual registration statements, ownership and registration structures—and the accuracy and consistency of those filings—will warrant closer review.

3. Owners Would Receive Notice and Assume New Posting Obligations

HPD would be required to notify an owner when a building is added to the program list. The owner, in turn, would have to post the notice conspicuously in the building, including in common areas. Failure to post would constitute a non-hazardous violation and could result in a civil penalty.

The bill would also require notice of a CONH application to be posted in the building’s common areas, increasing the visibility of the application to current occupants and facilitating tenant participation in HPD’s review.

4. The Bill Establishes a Removal Process for Certain Buildings

For buildings placed on the list through the Building Qualification Index, the legislation creates a defined process to request removal. An owner could apply beginning 180 days after the list on which the building first appears is created. The owner would also need to seek dismissal of Housing Maintenance Code violations, and HPD would attempt to inspect dwelling units and public areas as part of the review.

Removal would not be available where specified disqualifying conditions remain, including certain open heat, hot-water, lead-paint, mold, pest, gas or electricity violations; unpaid civil penalties or emergency repair charges; particular false certifications; or other enumerated enforcement conditions. For remaining violation categories, the bill sets percentage-based thresholds for the number of violations that may remain open. HPD would be required to determine the request within 30 days after completion of the dismissal-request reinspection.

5. Limited Exception for Cosmetic Work and Routine Maintenance

The bill expressly excludes cosmetic work—such as painting and cleaning—and the repair or replacement of broken or faulty hardware, fixtures and appliances, provided the work does not require a DOB permit. Examples in the bill include doors, doorknobs, faucets and toilets. Although narrow, the exception provides useful clarification that ordinary, non-permitted maintenance does not itself trigger the CONH requirement.

6. Expanded Reporting and Oversight

Beginning April 15, 2031, and every three years thereafter, HPD would be required to report publicly on the program. The report would address, among other items, buildings added to and removed from the program list, CONH approvals and denials, cure agreements, owner outcomes, tenant conditions and recommendations for future program adjustments.

Practical Implications for Owners, Purchasers and Lenders

If enacted, Int. 839-A will make CONH review an even more important component of acquisition, financing and pre-development diligence. Parties evaluating a regulated multifamily property should consider:

• checking the current HPD program list and HPD Online records for the subject property;

• reviewing the proposed scope of work to determine whether it falls within a covered category;

• investigating the property’s violation, vacate-order, enforcement and tenant-complaint history over the relevant lookback period;

• evaluating CONH denials, rescissions and harassment determinations elsewhere in the seller’s or sponsor’s portfolio;

• confirming that annual HPD registrations accurately identify ownership and managing-agent information; and

• addressing CONH risk through transaction timing, closing conditions, representations, indemnities and other appropriate contractual protections.

Owners of buildings added through the Building Qualification Index should also assess promptly whether the statutory removal procedure is available and what corrective work, violation dismissals or payments would be required before an application can succeed.

What Happens Next

As of August 18, 2026, Int. 839-A is awaiting mayoral action. If it becomes law, the existing pilot list will continue to govern until HPD publishes the first list under the permanent program, and the principal amendments will take effect on April 15, 2027. Owners and transaction parties should monitor the bill’s final disposition, HPD rulemaking and publication of the new program list.

Sandman Malin PLLC advises owners, purchasers, lenders and other real estate professionals regarding New York City housing regulation, regulatory due diligence and administrative proceedings. For questions concerning whether a property is subject to CONH requirements or how the proposed changes may affect a transaction or development plan, contact the firm.

Attorney Advertising Disclaimer: This article is for informational purposes only and does not constitute legal advice. The application of the law depends on the particular facts and circumstances. Prior results do not guarantee a similar outcome.