Real Estate

HDFC Coops – The Best Real Estate Deal in New York City?

HDFC Coops: New York City’s Best Real Estate Deal

Frustrated with high apartment prices in New York City? Well here’s the good news: If you’ve ever wanted to live in New York City at an affordable price, look no further. If you qualify, you may have found the best deal in New York City.

HDFC Coops, a little-known niche market in New York real estate, represents the “latest great deals” in New York City. These co-op apartments often sell 40% to 60% less than comparable regular condos or co-ops for sale. HDFC (which stands for Housing Development & Finance Corporation) has been around for many years, but it is not until the last few years that more and more people are discovering these amazing deals. They are only available in New York City, although there may be other programs in other cities that are similar.

The history of HDFC

HDFC cooperatives are city sponsored cooperative apartments that offer many of the benefits of a normal cooperative apartment, but also have some purchase restrictions and often have an “additional tax” on the sale.

An HDFC cooperative arose for one of two possible reasons. They may have originally been a rental building that had been abandoned by a landlord or the landlord may have owed back taxes or water and thus lost the building to the city.

The City then rehabilitated the building, trained tenants on the property, established the Coop financially to be self-sufficient, and then sold the apartments to existing tenants for $ 250 each. Yes, it’s true, $ 250!

The premise is that instead of the City being a homeowner, it has now trained a group of homeowners who care about their building and its future. It has been a very successful system.

Normally, over the years, these HDFC cooperatives changed hands among friends or family for very cheap prices. In recent years, some farsighted brokers have realized the value these co-ops represent and, by marketing themselves more professionally, much higher prices have been obtained for the owners.


This has benefited both the buyer and the seller of an HDFC apartment. A salesperson has now made much more money than he ever thought possible and has the opportunity to make his dreams come true. Many HDFC cooperative salespeople moved to the suburbs and bought a home or took a dream vacation, bought a better car, and lived a more enjoyable lifestyle. Remember, the original owners of the HDFC cooperatives were there because they normally lived in an abandoned and dilapidated building, so getting $ 150,000, up to $ 500,000 for one of these apartments that they paid only $ 250 for is a huge windfall.

The buyer has the opportunity to own a piece of New York City, one of the most expensive real estate markets in the world, for a fraction of the price of normal co-ops or condos. Very often, HDFC co-ops sell for $ 400- $ 600 per square foot, while co-ops and condos in New York can sell for $ 900- $ 3000 per square foot. This is clearly a big difference.

Also, don’t think these HDFCs are in bad neighborhoods because many of them are in the best neighborhoods in New York City, such as the Upper East Side, Upper West Side, Lower East Side, and Williamsburg, Brooklyn.


It sounds too good to be true? Well, not too good to be true, but you must qualify to buy. In many cases, to qualify to buy and cooperate with HDFC, you must generate less than 120% of the area median income. In 2008, this figure was $ 64,500 for 1 buyer and $ 73,725 for 2 buyers in a family and $ 82,950 for 3 buyers in a family. Alternatively, some buildings, depending on the bylaws of the cooperative, have income restrictions to purchase based on a multiple of the annual maintenance and utility charges that the apartment carries. In any case, in general, the management company and / or the Board of Directors of the cooperative will analyze the adjusted gross income of your tax returns for the previous 2 years.

In addition to an income restriction to buy, many HDFC Coop have a “variable tax” when they sell. Generally, this invested tax is calculated as a percentage of the profit you make. Profit is defined as the sale price minus the purchase price. The invested tax could be as low as 5% and can go up to 85% of your earnings.

Clearly, you need to take these factors into account and, depending on the additional tax the cooperative has, the price and value of the apartment can vary greatly.


We’ve seen that an HDFC co-op represents a great opportunity to own a piece of the “world’s largest city” at a fraction of the price of other co-ops and condos, but with that comes some buying and selling restrictions that you often have to return. a portion of their earnings to the cooperative and / or the city.

Tips when buying or selling an HDFC cooperative

Find a broker who understands the HDFC Coops rules and restrictions. There are many complexities to the process and if a buyer or seller is not properly qualified, they may lose a lot of time only to find that they cannot buy or sell the apartment.

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