Deciding on buying a New Development Coop in East Harlem - need help.

Asked by Bronx, Upper East Side, New York, NY Mon Jul 23, 2012

Hi, I was chosen by lottery to buy a HDC sponsored New Coop Development in East Harlem (La Celia It is an affordable development. I have some concerns and need some imput by professional agents who have worked with
1. As new debelopment, the sponsor has a goal of selling 50% of the building before end of summer. Certificate of occupancy will be available after that and move in is estimated by Feb 2013. What happens if the sponsor cannot sell the target 50% of the building by then (aprox 110 units)? Will closings be posponed?
2. Will I have to pay any of the closing costs of the sponsor (NYS transfer tax etc) Can those be negotiated?
3. The sale price quoted is 260K for a 650sq. foot one bedroom (in a new building). Income restrictions apply - upper limit is 102K for 2 people. If I resell can I get a higher price for it? Same unit on a higher floor is 290K.
Anything else I should be wary about?

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Jhg19876, Home Owner, New York
Wed Aug 8, 2012
Not sure if you are still looking for an answer but since this may help someone in the future I will answer it anyway. I recently purchased a new develpment coop in east harlem (different building) and this is what I can tell you.

1. YES. Move-ins for these new developments are routinely delayed. My original move in date given to me when I accepted the unit was October. I did not move in until the following April so thats about 6 months off on the timing. It could be shorter but it could also be longer. Just keep in mind that you will have to remain flexible about your living arrangements for as long as you can.

2. YES. When my unit finally closed I did have to pay the NYS transfer tax (the building pays this up front but you pay them back at closing) and NO as far as I know it cannot be negotiated.

3. YES, you can sell the unit for as much as you want but the income restrictions of your buyers will remain. So in theory you can try to sell the unit for 500,000 but it's probably unlikely that two people making 102k can get a mortgage for that amount of money. You can though hold out and try to get as much money as possible if you take your time and do some number crunching to see how high someone in that bracket can realistically go.

Hope that helps
1 vote
Also, did you find your attorney helpful? What did he do for you?
Flag Thu Aug 9, 2012
Thanks! Mainly I am trying to see if it is worth buying.

I have already calculated that someone with income of 100K and $500 of monthly debt payment can afford about 350K @ 6% interest rate.
Flag Thu Aug 9, 2012
Fern Hamberg…, Agent, New York, NY
Tue Jun 18, 2013
- New development is not always on time so you should expect delays
- Yes usually you will have to pay your cost and the closing cost.
- Closing costs can be negotiated BUT it all depends on your competition.
- Banks do not usually loan inNew development with more than 49 percent owned by the sponsor.
- Some banks will even be pickier than that.
You should be careful when buying new development since the apartments and views from the apts
Can differ from the rendering of the architect.
Best regards
A fern Hamberger
Associate broker
0 votes
Katherine (K…, , New York, NY
Wed Feb 13, 2013
I've had two customers "win" the La Celia lottery and pass on the opportunity. I don't believe these apartments are a great deal, considering the inventory available in the neighborhood.

Feel free to get in touch directly if you have any questions. There are other HDFC apartments available nearby that I believe to be a better value.

Douglas Elliman Real Estate
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