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Hello all,
I was wondering if someone could clarify to me the difference between co-ops and HDFC buildings. Do both have income caps? Are there HDFC's on Manhattan, because i'm only seeing listings of them in Harlem. What is a flip tax? If you qualify for HDFC housing, can you rent it out? Does the same hold true for co-ops? Excuse my cluelessness .. thank you for your help.
HDFC's mostly were originally buidlings owned by the City of NY. The City became a Landlord to most of these buildings when the owners abandanded them for various reasons. Some of the reasons were valid. the City was losing a lot of money on these properties. Some tenants were rent control, others paying little, charged by a certain amount per room.
However over the last 20 years the City through various not for profit organizations has renovated and sold the apartments to the current tenants at a nominal fee. The City doesn't make a profit but they don't have to be have to be an unwilling Landlord either. The tenants win all the way around. They get a newly renovated apt, ownership, and a say in whether or not to sell to a certain person, and to interview potential owners. This has resulted in whole blocks being revitalized. The new owners have taken great pride in their apts and buildings.
An owner of an HDFC cannot rent an HDFC apt out to another person. The HDFC must be your primary residence for 7 years. If you sell before this time period you will face a financial penalty. After that you can sell but there is a limit, however the limit is high. Depending on what type of building it is, walkup, elevator, lower floors in walkups can recieve a higher price. Also some boroughs and areas will sell for a higher amount. Many families have sold and were able to go on and buy homes if that is what they wanted to do.
Some 3 bedroom HDFC's in Harlem in elevated buildings have sold for around $700K. A walkup that can have more square footage with 3 bedrooms can be bought for as low as $400K. In the South Bronx the price can be lower than $100K.
There are 3 kinds of HDFC.
1. HDFC not-for-profit rentals, run by various not-for-profit organizations.
2. HDFC Mutual Housing Associations that oparate basically as co-ops but the tenants do not have ownership of shares but memberships without equity. Some MAS's are self-managed by the tenants, some by outside not-for-profit sponsoring organizations. The most successful ones are the mixed managment ones run by Community Assited Tenant Controlled Housing (CATCH).
3. HDFC Cooperatives of which there are about 1500 in the City most of which have come through various programs run by HPD in order to privatize the City's in rem stock.
Currently there are about 300 buildings in the Tenants Interim Lease Progam and once they are gut rehabilitated by HPD they will be converted to HDFC Cooperatives and sold to the tenants for $250 per apartment.
HDFC cooperatives originating from HPD Division of Alternative Management Programs (DAMP) have certain restictions and depending of when the covenrsion took place they are slighly different.
The most common restriction is income: Conversions prior to 1995 require income of new shareholders not to exceed 6 or 7 times the annual maintenance plus utilities. If the incoming family has less than 3 dependents you multiply the annual maintenance plus utilities times 6. If the family has 3 or more dependents then by 7.
There are a number of HDFC cooperatives covnerted from 1986 to 1995 that have a further restriction requiring the payment to the City of 40% of any profit on the resale of the shares.
Generally all HDFCs require a "Transfer Fee" commonly called a "Flip Tax" of at least 30%. It is necessary to review the Proproietary Leases and Offering Plans to ascertain exactly what the restrictions for any one particular HDFC coooperative as there are many variations.
Buyers should do their "due diligence" and ask for at least the last 3 years of financial reports as well as copies of the minutes of the Annual Shareholders Meeting and Election of the Board of Directors; proof of insurance, including Directors & Officeers and Fidelity Bond, as well as payments of Property Taxes and Water & Sewer charges.
For more information look up the HDFC Council's web-forum: http://forums.prospero.com/HDFCCentral/
There are 3 kinds of HDFC.
1. HDFC not-for-profit rentals, run by various not-for-profit organizations.
2. HDFC Mutual Housing Associations that oparate basically as co-ops but the tenants do not have ownership of shares but memberships without equity. Some MAS's are self-managed by the tenants, some by outside not-for-profit sponsoring organizations. The most successful ones are the mixed managment ones run by Community Assited Tenant Controlled Housing (CATCH).
3. HDFC Cooperatives of which there are about 1500 in the City most of which have come through various programs run by HPD in order to privatize the City's in rem stock.
Currently there are about 300 buildings in the Tenants Interim Lease Progam and once they are gut rehabilitated by HPD they will be converted to HDFC Cooperatives and sold to the tenants for $250 per apartment.
HDFC cooperatives originating from HPD Division of Alternative Management Programs (DAMP) have certain restictions and depending of when the covenrsion took place they are slighly different.
The most common restriction is income: Conversions prior to 1995 require income of new shareholders not to exceed 6 or 7 times the annual maintenance plus utilities. If the incoming family has less than 3 dependents you multiply the annual maintenance plus utilities times 6. If the family has 3 or more dependents then by 7.
There are a number of HDFC cooperatives covnerted from 1986 to 1995 that have a further restriction requiring the payment to the City of 40% of any profit on the resale of the shares.
Generally all HDFCs require a "Transfer Fee" commonly called a "Flip Tax" of at least 30%. It is necessary to review the Proproietary Leases and Offering Plans to ascertain exactly what the restrictions for any one particular HDFC coooperative as there are many variations.
Buyers should do their "due diligence" and ask for at least the last 3 years of financial reports as well as copies of the minutes of the Annual Shareholders Meeting and Election of the Board of Directors; proof of insurance, including Directors & Officeers and Fidelity Bond, as well as payments of Property Taxes and Water & Sewer charges.
For more information look up the HDFC Council's web-forum: http://forums.prospero.com/HDFCCentral/
Question about our commercial space at HDFC building
Hi, we have been a tenant at 170 west 85th street HDFC corporation for the past 25 years. The new board in the building is refusing to meet with us and to discuss the future of our lease in the building. Our lease ends at the end of July 2014. We would like to know if we have any kind of rights as long term tenant in the building. Can they raise the rent to any amount or do they have the option to not to renew our lease. Are there any rules and regulations about our relationship with the co-op where we can read the bylaw that the co-op board is to comply with.
Hi, we have been a tenant at 170 west 85th street HDFC corporation for the past 25 years. The new board in the building is refusing to meet with us and to discuss the future of our lease in the building. Our lease ends at the end of July 2014. We would like to know if we have any kind of rights as long term tenant in the building. Can they raise the rent to any amount or do they have the option to not to renew our lease. Are there any rules and regulations about our relationship with the co-op where we can read the bylaw that the co-op board is to comply with.
what is the procedure to have the lease transferred to another relatives name if the owner dies and leaves a will leaving that relative the apartment?
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.. thank you for your help
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HDFC Co-ops
