HDFC coops are city sponsored coops. Many were rental buildings abandoned by landlords in the 70's and 80's. The city sold the buildings to the existing tenants at below market prices with low real estate taxes. In return the new owners refurbished the buildings and maintained it's affordability. Many HDFC coops have income restrictions and flip taxes.
HDFC coops are considered a form of "limited equity" home ownership. They are sold at approximately 40% -60% below market value. The maintenance is also below market but when you sell, a portion of your profit goes back to the HDFC coop hence "flip tax."
HDFC coops are usually listed with real estate brokers rather than through lotteries. Other affordable programs such as Mitchell Lama coops use lotteries. Today Mitchell Lama coops are rare and typically have 15 year waiting lists via lotteries. Mitchell Lama buildings were built in the 70's. Developers were given tax incentives to keep them affordable for 30 years. Many buildings in the Mitchell Lama program have recently privatized because the 30 years expired and are now selling for market rates.
There is also an 80/20 program in new developments. 20% affordable units, 80% luxury apartments. The 20% are by lottery via advertisements and NYC.gov website.
FHA does not give loans in coops. Coops including HDFC coops usually require a minimum down payment of 10%-20%, coops have restrictive covenants such as flip tax and board approval, FHA does not loan in buildings with restrictive covenants. Real estate is local.
Mitchell Hall, Associate Broker
The Corcoran Group
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
Top 2% of Century 21 Agents Nationwide!