There are always a few affordable HDFC co-op options uptown that are often under $200K for a 2-bedroom fixer upper. These buildings were originally government owned because landlords started abandoning their building in the tough mid century decades. In the 80s, the city owned so much stock and did not want to be landlords so tenants were offered to convert these building into co-ops through the government by purchasing their units for just several hundred dollars. HDFC guidelines keep the building affordable so income restriction apply to the HDFC co-ops and these are currently set at: 1-2 persons $57,816, 3 persons $67,452 and 4 persons $77,088.
The above 2-bedroom facing Jackie Robinson Park is going for $90K according to Streeteasy:
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One thing to keep in mind, these income restrictions are for when you buy into the co-op. If you move up in your career, get a raise, etc, you aren't going to be forced out of the building. HDFCs can be a great way for young New Yorkers to get a foothold in the city.
ReplyDeleteBut, as in any real estate purchase, it pays to be careful. Some HDFC co-ops are poorly managed or have poor financial health.
Every co-op has to keep financial records and potential buyers should always request to see these. The ones in worst shape will probably require all cash deals since banks do not want to take a risk on them.
ReplyDeleteThese buildings aren't so cheap when most ask you to pay all cash - kind of seems to defeat the purpose of affordable housing if you ask me.
ReplyDeletethe reason most ask for cash is due to a lack of corporate governance, which makes is difficult to get loans. The risks are fewer than you think.
DeleteDoes anyone know where to find these available listings? The HPD site can be a tad confusing.
ReplyDeleteOn Streeteasy, go to the advanced search filter and then click "income restricted." UHAB's web site also has some apartments listed for sale. The apartments that show up on Streeteasy are not usually the same ones that are listed on the UHAB site, so that's two useful sources.
DeleteHow can someone making that low amount of money first of all get a loan and second of all get an additional loan or find the money to rehab a fixer upper? It seems like a big set up to me. 2 people making $57K in NYC are two people who are barely making ends meet if they live in Manhattan, unless they are incredibly tight with their spending. And if they are a family with kids then there's even less money to go towards a rehab. Could someone please explain this to me?
ReplyDeleteI think that people who really want to own something know that HDFC's are pretty much the only way that working class people can afford to live in New York City. I know people who've saved the money, borrowed the cash (from parent's who have retirement savings, etc.) or like me, were only able to buy after inheriting money when my parent's passed away. Also...it's worth noting that some HDFC's have in-house mortgages that allow you to pay off part of the cost each month.
ReplyDeleteWe bought an apartment in an HDFC on Edgecombe Ave last summer, and consider ourselves very fortunate to have done so. The apartment needed lots of work, which we are still doing, and the co-op itself needs attention, too. But this is an excellent program for anyone who meets the income limitations and is willing to be an involved owner. Lower East Side People's Credit Union is one credit union that offers mortgages for HDFCs. To find available units, go on the Streeteasy advance search filter and check "income limited/restricted properties' (or something like that). Our building has one more apartment still on the market and a few that will be coming up in the future. I really think this is an excellent program and deserves to be better known. Thanks, Ulysses, for bringing it up. Not all nice places cost a million bucks!
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