HDFC COOPERATIVES

There are almost 1200 HDFCs sprinkled across New York City and while not prevalent they are an important housing option for many New Yorkers. HDFC stands for (Housing Development Fund Corporation) An HDFC is a coop that has a legal designation to provide low and moderate-income New Yorkers housing. In many ways, an HDFC behaves much like any other NYC coop except that they have income restrictions. Those income restrictions apply to potential buyers and are typically tied to the AMI (Area Median Income) and family size.

So for instance you might find a 2Br in the East Village with the following income restriction:  One Occupant – $163,185, Two Occupants – $186,450, Three Occupants – $209,715 (165% AMI). It is important to note, that like most coops, all HDFCs are slightly different in how they are run, how strictly they follow the rules, what their income restrictions are, and how they are determined. While there are certainly some drawbacks to HDFCs they have provided home ownership opportunities and affordable housing to thousands of New Yorkers.

PROS

• They generally come with lower monthly maintenance fees.
• They typically (Not always) cost less than a comparable non HDFC apartment would cost.
• They are often more welcoming of lower levels of post-closing liquidity and higher debt-to-income ratios than a typical coop might be.

CONS

Nothing, once you have passed to board and closed you are free to make as much or as little money as you like.

There are two methods HDFC cooperatives generally use to determine income limits for incoming buyers: a percentage of the AMI or a formula comprised of monthly maintenance, utilities (gas/electric), and the months in a year.

Please see the Income Limit AMI chart and explanations: INCOME LIMITS

Yes, it can be used as a pied-a-terre, but there are restrictions to consider. You must have another primary residence. Renting the property requires HDFC board approval. Some HDFCs may have specific restrictions on pied-a-terres, so its better to consult the board before making any decision.

HDFC's are meant to be primary residences and most are pretty strict in enforcing that mandate. However, many HDFC's do allow subletting with board approval and/ or in special circumstances.