HDFC's rules regarding the resale and transfer of apartments are found in three legal documents: The Certificate of Incorporation, the By-laws, and the Proprietary Lease.
The below link to the NYC Housing Preservation Department should provide the information you're looking for. Good Luck!
I'm a broker specializing in the Harlem/Hamilton Heights area especially in HDFC buildings. Finding a bldg that's financially sound is key to any property purchase. There are definitely by-laws for each HDFC co-op and the Shareholders and Board need to abide by these rules. Some of the rules can be amended by filing legally.. i.e. fliptax but only if the bldg has strong financials.
You could check out my website at http://www.corcoran.com/kshenker as I presently have an apartment for sale and several more down the road.
Vice President, Assoc Broker
I don't know much about HDFC co-ops, but my colleague actually has a listing in Harlem in an HDFC building. She just went into contract on another listing which she had in the same building, which is a long way from getting closed. If you like, send me an email with your contact info and I can put you two in touch. I am confident that she will be able to answer your questions regarding this issue.
I am a broker who has sold several HDFC apartments in the past year. If this needs to be an all cash purchase, you immediately know the building is not in good enough shape financially to get bank approval for mortgages. You should be able to obtain some past financials for the building. There is also a proprietary lease which clearly states the rules and regulations that this HDFC must abide by. There are strict income levels and rental restrictions.
I currently have an HDFC apartment on the market.
Please check my listing for 626 West 136 street #12.
I would be happy to answer any questions or assist in your search.
every hdfc building has it's own by-laws. reviewing the financial health of an hdfc is very important. make sure you are working with a broker/agent and lawyer who is very familiar with these buildings. even though the finances may be "odd" compared to a "regular" co-op, if you have the right help it can all work to your benefit. they can be a great investment for low to middle income people.