The Ultimate HDFC Co-op Guide: What Every NYC Buyer & Seller Should Know

What Is an HDFC Co-op?

HDFC stands for Housing Development Fund Corporation. These co-ops were created in the 1970s and 1980s by the City of New York to provide affordable homeownership opportunities in previously neglected or abandoned buildings.

They offer below-market pricing, but with that comes:

• Income restrictions

• Primary residence requirements

• Board approval

• Resale and flip tax limitations

Income Limits (AMI) by Neighborhood – 2025 Examples

Income limits are based on a percentage of Area Median Income (AMI), updated yearly by HUD and NYC HPD. Buildings typically cap eligibility at 120%, 130%, or 165% of AMI.

Here are some 2025 AMI guidelines (rounded for simplicity) by household size and building area:

Example:

• 54 E 129th St (East Harlem): 120% AMI

• 163 Lenox Ave: 165% AMI

I’ll confirm the specific AMI limit for any HDFC you’re interested in — each building can vary.

FAQ for Buyers: What You Need to Know

Q: Can I qualify if I make slightly over the limit?
No. Income limits are usually firm. Some buildings may review exceptions, but it's rare. Bonuses, pensions, and even rental income can count toward your total.

Q: Do HDFC co-ops allow financing?
Some do — but many require 50% down or even all-cash. I’ll connect you with lenders who specialize in HDFC deals.

Q: Can I rent out the apartment later?
Generally, no. HDFC units must be your primary residence, and many buildings do annual occupancy audits.

Q: Can I use gift money or co-purchase?
Gift money may be allowed if well-documented, but co-purchasing rules vary by board. I’ll help you evaluate your options.

Q: Are HDFC units eligible for STAR or property tax abatements?
Yes — some are. But eligibility varies by building and unit classification.

FAQ for Sellers: Key Considerations

Q: What are resale restrictions?
Most HDFCs have Resale Caps, which limit how much profit you can make. These caps are either:

1. Formula-Based: e.g., original purchase price + 6% annually

2. Fixed % Return: e.g., 20% above your purchase price

3. Board Review or Right of First Refusal

Example:

• Some East Village buildings allow market-rate appreciation

• Many Harlem HDFCs enforce strict formula caps

Q: What is a Flip Tax?
A flip tax is a fee paid upon sale — typically to the co-op — and is used to support building reserves.

• Ranges from 5% to 30% of profit, depending on the building

• Some base it on the total sales price, others on net profit

• Often increases based on how quickly you sell after purchasing

 I’ll review your proprietary lease or bylaws to determine your specific flip tax structure.

Q: How long does it take to sell an HDFC unit?
Typically 60–90 days after offer acceptance — but only if priced right and marketed to income-qualified buyers. I streamline this process through targeted outreach and detailed buyer vetting.

Extra FAQs & Pro Tips

Q: How can I find available HDFC listings?
Many HDFCs don’t hit public sites like StreetEasy. I maintain a private list of upcoming or off-market HDFC units — ask me about it.

Q: What happens if the board rejects my application?
Boards don’t always give reasons, but I help prevent this by preparing a detailed financial overview, covering every HDFC requirement.

Q: Can you represent both buyers and sellers?
Yes, as long as both parties give informed consent. In HDFC deals, having someone experienced on both sides can expedite approvals and avoid deal-killers.

Downloadable Checklist: What You’ll Need for an HDFC Application

1. 2–3 years of tax returns

2. Pay stubs + employment letter

3. Bank + investment statements

4. Proof of primary residence

5. Board package (with income verification)

6. Mortgage pre-approval (if applicable)

Need a printable checklist? I’ll send one directly to your inbox — just ask.

Let’s Talk About Your HDFC Goals

Whether you're trying to buy your first HDFC in East Harlem or maximize your resale value in the East Village, I’ve seen it, sold it, and studied it.

 Contracts recently at 163 Lenox Ave & 54 East 129th St
 Sold in Manhattan & Brooklyn where most are - LES, Nolita, East Village, UWS
 Searched and strategized in Greenpoint, Williamsburg, Clinton Hill

 Schedule a free consultation
 DM me “HDFC” for this guide as a downloadable PDF
 Follow @DanielleSellsNYC for more HDFC tips & listings