With income caps and access to tax subsidies from the state government, Housing Development Fund Corporations, or HDFC condominiums, can be a lower-cost path to home ownership for New Yorkers who find themselves priced out of the market. While other affordable housing options are subject to a wide variety of regulations, HDFC property management organizations are generally free to run their buildings like any other condo, with only a few key differences in the financial structure.
Income Caps & Qualifications
HDFCs came about several decades ago when the state allowed tenants in buildings that weren’t being cared for to take over the structure and form their own organization, with the help of tax breaks and subsidies to keep the operating costs down. In most cases, HDFC properties pay approximately one-third less in taxes than similar buildings organized as traditional co-ops.
Every tenant of an HDFC must meet strict income requirements, which are based either on the average income for the area or the building’s maintenance fees and other utilities. Because incomes in New York are on the rise, and HDFC property management organizations typically don’t take assets into account, even potential tenants making $100,000 annually may be able to qualify for an affordable housing option.
Prices of HDFC Condos
The prices of real estate throughout New York have risen, and HDFC properties are no exception, with most selling for hundreds of thousands. However, they are still usually much more affordable than other properties in the same area, often presenting the only affordable choice for families wishing to buy a home.
As New York City’s premier HDFC property management specialists, Arc Property Management Group offers the unique experience and in-depth understanding of relevant regulations to ensure the success of your condo association. For more information about their wide range of residential services, visit their website now or call (800) 769-8084, and like them on Facebook for more tips and updates.