An HDFC (Housing Development Fund Corporation) co-op is a form of affordable housing in NYC where buildings receive property tax benefits in exchange for maintaining income-restricted ownership. HDFC units are priced below market rate to provide homeownership opportunities for income-qualified buyers. In exchange for lower prices, buyers must meet income requirements at purchase and agree to resale price limitations. HDFCs were created to preserve affordable housing in NYC.
Income limits vary by building and are typically based on Area Median Income (AMI). Common thresholds include 80%, 120%, or 165% of AMI. Limits are adjusted annually and vary by household size. Some buildings have different limits for different unit sizes. Income is generally calculated based on gross annual income of all household members who will reside in the unit. Contact NYC HPD or individual buildings for current income limits, as they change annually. All applicants are evaluated equally based on income eligibility requirements.
HDFC units are typically priced significantly below comparable market-rate units. The exact discount varies by building, location, and unit. In exchange for lower purchase prices, buyers accept resale price restrictions that limit future sale prices. Monthly maintenance fees are often lower than comparable market-rate buildings due to property tax abatements. Prices vary - contact a licensed agent familiar with HDFC properties for current availability and pricing information.
Most HDFC co-ops have resale price caps that limit how much you can sell your unit for. These typically consider: (1) Original purchase price, (2) Approved capital improvements, (3) An annual appreciation cap set by the building (varies). The specific formula varies by building - review the proprietary lease and house rules carefully before purchasing. These restrictions are designed to preserve affordability for future buyers. Work with an attorney experienced in HDFC transactions.
Policies vary significantly by building: (1) Some buildings do not require ongoing income verification after purchase, (2) Some require periodic recertification with various consequences for exceeding limits, (3) Consequences may include surcharges, required sale, or no action depending on building rules. Always review the specific buildings policies in the proprietary lease and house rules before purchasing. Ask the listing agent and your attorney about the buildings specific income verification policies.
HDFC listings can be found through: (1) Real estate listing platforms (filter for HDFC where available), (2) NYC Housing Connect (housing-connect.nyc.gov) for lottery opportunities, (3) Licensed real estate agents familiar with affordable housing inventory, (4) NYC HPD resources. Note: HDFC inventory is limited and units may sell quickly. Having financing pre-arranged and required documents ready is advisable. All qualified applicants have equal opportunity to purchase available units.
Financing is available for many HDFC purchases, but not all lenders work with HDFC properties due to resale restrictions. Key considerations: (1) Work with lenders experienced in affordable housing programs, (2) Down payment requirements may differ from market-rate co-ops, (3) Some HDFCs may have cash-only requirements, (4) Processing may take longer due to additional documentation. Consult with multiple lenders and your real estate agent to understand financing options for specific buildings.