My husband owns (an apart) shares of a HDFC co-op. We would like to sell. What can we do?

Asked by Jasmin, New York, NY Thu Aug 21, 2008

Who can help us if the board isn't helpfull?

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5
Milton D. Jo…, , Bronx, NY
Thu Aug 21, 2008
Vey good question: I found the best answer at: http://www.uhab.org
"... HDFC co-ops are "limited-equity." They are required by law to remain affordable for low-income people. The resale guidelines of HDFCco-ops vary to some degree among buildings. In most cases, the sale price is limited by the fact that the incoming shareholder (purchaser) must meet the income guidelines of the HDFC. So although the price is not limited, the income of the purchaser is. Where there is a profit to the buyer, there is usually a split of the proceeds between the departing resident and the co-op itself."

See web reference link for more info.


Milton Johnson
http://www.milton4realestate123.com
1 vote
Christine Go…, Agent, New York, NY
Sun Jan 4, 2015
Hello Jasmin,

How are you? I hope you're doing well.

I don't know if your husband is still looking to sell his HDFC coop but if so, please feel free to contact me. If your building is self managed, I can reach out to the board and coordinate the sale process on your behalf.

I currently have 2 beautiful & affordable apartments available in an HDFC coop building.

I hope this information is helpful to you. I wish you all the best :-)


Looking forward,

Christine Gordon
Licensed Real Estate Broker
Gorick Realty, Inc.
Cell: 917.881.2924
Fax: 347.328.9352
View listings at http://www.gorickrealty.com
"Home is where the heart is."
0 votes
Jess, , New York, NY
Wed Feb 11, 2009
Thanks for the shout-out Milton - HDFCs are in fact sellable on the open market, and though UHAB, a nonprofit that specializes in HDFCs, doesn't advocate using brokers (you know...we're talking affordable housing, here) they can help in moving those sales along. Just please be sure you and your broker know completely and fully what the limitations are, and try to have an open honest dialogue with your broker about how they're selling it. When I was a buyer, I saw too many apartments that were HDFCs, but nobody mentioned the restrictions for fear of losing the sale. I would've been more interested if I knew there was an HDFC support network, but all I saw were buildings that seemed at face to be inaccessible (because I wasn't able to talk to the board or sellers) and the potential for a financially unstable purchase.

DO - have all the restrictions, board background, maintenance costs, and possible financials that may affect maintenance on hand for the broker to share. Otherwise it will be just tons of wasted time.

DON'T try to shut buyers out by being vague about the details of the HDFC's board, or resale/buyer caps.

DO - Pitch what a great deal it is to live in a permanently affordable situation in NYC.

DON'T keep your board in the dark about your intentions - if the board can help back you in the sale (the inevitable benefit being the flip tax they get) it will seem more appealing for the buyer who is readying to enter a community-feeling environment.

A good idea that some HDFCs do is sell the shares back to the building. The seller gets whatever the building would've capped the profit at, and nobody wastes fees on banks and brokers, and then the building can re-sell the unit and get some much-needed capital at a whole price into the building. (Plus it puts the marketing on them.)

Also, consider going to neighbors or board members to see if relatives may want to buy. It could be the fastest process for selling.

Lastly, you are highly encouraged to post a free listing with UHAB at our website, http://www.uhab.coop
Web Reference:  http://www.uhab.coop
0 votes
Aileen-Manha…, , New York, NY
Sat Aug 23, 2008
You can hire a Realtor to market and sell your apartment. Just because it's an HDFC apartment doesn't mean it can't benefit from the marketing advantages of a real estate professional. Your Realtor can also do the leg work of contacting your board or the management co. regarding the income and re-sale restrictions/procedure.
0 votes
Milton D. Jo…, , Bronx, NY
Thu Aug 21, 2008
Contact the coop board for values restrictions and the income restrictions (usually based on the income of the number of people), any other important changes (amendment to the offering plan) than may of accured after your husband had acquired the shares.

Also have your attorney look over the offering plan and any amendments.

FYI, Offering Plan aka Prospectus, Black Book.

Milton Johnson
http://www.milton4realestate123.com
0 votes
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