115 and Frederick Douglass

It is another residential development by Artimus, who developed nearby Brownstone Lane I & II, SoHa 118, 444 Manhattan Ave (rental) as well as the rental building at the SWC of 116th and Fred Doug Ave and the under construction rental at Manhattan Ave and 119th/120th block. Not sure if the 115th and Douglass project is rental or condo, but either way it will have around 35% subsidized apartments, similar to those other projects. Artimus bought all of this vacant land from the City, and the heavy affordable housing requirements was part of the deal. Likely will be 8 stories, consistent with the heights along Fred Doug. Should help spruce up that area which needs more market based apartments to revitalize the neighborhood.

what is the maximum income for these subsidized apts (the ones that are condos? And how is it computed?

To NYC born, the maximum income varies widely from as little as 60% of median income to as much as 165% of median income. As of 2007, that translates into household income levels around $50,000 to up to $177,000, depending on the number of people in the household. The single best source for finding about these apartments is to register for e-mails at the NYC HPD web site. Mayor Bloomberg plans to add another 100,000 units of subsidized apartments in the city in the next 3 years. Note, that subsidized apartments are not public housing (not NYCHA). Sometimes, they are actually quite nice. At Brownstone Lane II in 2007, for example, subsidized units sold for around $325,000, while the same apartment sold for $660,000 at full market rate.

Do condos that are HPD always remain so. That is, upon resale does the equation change? Do they ever revert to market units? And how often is median area income computed?

#^, I'm curious about this, too. I recently saw a condo in Harlem that sold as HPD last year and is being "flipped" for a nearly $1MM profit, with the price recently lowered from what would have been a $1.2MM profit. I thought such flips were not possible with HPD apartments. Can anyone explain how this works?

Oops, I meant #6.

Does anyone know about HPD apts and whether they are always subject to a % of median area income? How often is this median area income computed? Does the % ever change? Do the apts ever revert to market units? How does one get this information?
Thanks.

With an HDFC building there's no graduation (see link below). There are both income and resale limits "forever". However, I believe that certain plain old HPD buildings can graduate after a certain period of time. I also think that HPD does not impose resale limits, just income limits.

http://www.uhab.org/index.cfm?fuseaction=Page.viewPage&pageId=510&parentID=476

Daniel, thanks. Do you know if the same applies to buildings purchased by the NYC Housing Partnership? The apartment I'm thinking of was purchased from the NYC Housing Partnership a year ago, and is now on the market for much more money, with no income restrictions. I'm just curious, as such a quick sale, for so much more money, seemed questionable to me. Maybe this apartment "graduated" in one year?

I think you guys are confusing a few different acronyms and programs.

HPD is an NYC govt. department, like the Department of Education or Transportation, that oversees all housing issues. They sponsor various different programs with various goals (sadly, these are sometimes at cross-purposes with one another).

HDFC (Housing Development Financial Company, I think) is a program that was initially intended to "sell" to the existing rent-regged tenants crumbling buildings that the City had taken away from private landlords for nonpayment of taxes and violations. These were saddled with affordable-housing-oriented resale restrictions, with sunset clauses. Try ACRIS on nyc.gov/hpd for the original documents. The terms varied over the course of the program, but on the order of 25-35 years, usually with very flexible guidelines that could be altered by their coop boards. Unfortunately, corruption and inexperience at running buildings has made some HDFC buildings no-buys even with extreme discounting. Proceed with caution, make sure audited financials are in order, ask lots of questions about building systems replacements, engineering studies, and obligations to rent-regged tenants who didn't "buy" (for $100-$1000 per room; some people are afraid of change), and underlying mortgages.

UHAB is an incompetent road-to-hell-paver that deals out misinformation and has tried (with some success) to turn a good program that puts buildings on a path to normalcy into one that serves to bring them down to the level of NYCHA housing projects. Rather than trying to help the poor, they seek to trap them in poverty for eternity. Don't trust what their website says.

HPD, NYC Partnership, and local community organizations have sponsored, using private developers, gut-rehabs of boarded-up buildings and new construction on empty lots -- all of which also wound up owned by the City after landlord default and/or fire (often arson). Sometimes the units at sale were initially all middle-income-restricted, sometimes just a set-aside percentage with the rest market-rate. These have virtually no resale restrictions, flip taxes, income guidelines etc. The one common theme is that they must be owner-occupied for the first 35 years, the goal being to stabilize the building and neighborhood [although enforcement of that requirement is lax anyway].

Alanhart, you really know your stuff. Thanks for the info. We are closing on a HDFC apartment in the next few weeks and think we know what we're getting into. I sure hope so!

Nice summary Alan.

Same question, the development on the north side of 115 by Frederick Douglass, across from the Palomar. Anyone have any insight?