70% flip tax on HDFC co op ... is this a warning?

This is not uncommon for HDFC. From my experience, HDFC bldgs can be a nightmare to run with some pretty wacko tenants, so that should be your "warning sign". In any case, these buildings are discounted and meant to help out those with lower incomes (in theory) and therefore not meant to be bought and sold for profit, hence the high flip tax. Overall they're not highly monitored, so its kind of the wild west of nyc real estate... you'd be amazed at some of the things that go on.

Is it 70% on profits or just 70% on deal value? What if the unit needs significant renovations?

The flip tax is there to ensure "flippers" are not buying these properties. It keeps the value of the units down, so people earning moderate salaries can still afford the units.

Typically, you see VERY low turn-over in these buildings.

I live across from an HDFC building. The people seems very nice. Income restrictions are far superior to Section 8 housing, which is probably the second worst housing development in the last 100 years.

Don't be fooled PH, I just moved into an HDFC and 30% of the occupants are on section 8, either as tenants OR owners. This is endemic to HDFC conversion plans wherein to maintain affordability post-conversion (when the maintenance charges are typically doubled), residents skip the 15 year line for section 8 and obtain the benefit, even as owners...

Maybe I'm disconnected from reality, but why would anyone need section 8 support to pay a $500/month maintence bill? Wouldn't a job at min wage support that level of rent?

"Maybe I'm disconnected from reality, but why would anyone need section 8 support to pay a $500/month maintence bill? Wouldn't a job at min wage support that level of rent?"

You mean I have to get a job?

Not if you are sucking off the gov't teet, it seems. This is why USA is worthless and weak. The unemployeed should be working, not just sitting around collecting unemployment, section 8 rent subsidies, and other hand outs. At least give the unemployed a book and make them learn something to get their checks!

HDFC usually give the buildings that they convert mortgage money and tax abatements to save the buildings and provide low or middle income housing. The high flip tax is to pay down the mortgage loan, and sometimes a portion goes back to the building to provide a reserve fund. Generally this goes on for 20-25 years after which the buildings can elect to get out of the program.

Many section 8 people do work. Of course, there are many lazy people on section 8.

70% filpping tax is a good sign, that means the building is for residents, not for flippers. you don't want flippers as neighbors, trust me

section 8 is unfair, but it is necessary for the government to continue the control. as you can see, most people who join OWS are the formerly middle-class-to-be people, but rarely see those section 8/foodstamp recipients. the tradition poor people are actually living well now

How fortunate you are to not experience the pain of losing your job, not being able to pay your rent and feeling hopeless...those are the OWS people...seeing it all go down the drain and not being able to do anything to stop it.

i can't speak for occupy other towns because i have not been to those protests, but i did go ows twice. once during the week and once on a weekend to see how much support they had from the still employed people. im pretty comfortable saying that most of the 'protesters' have not experienced the pain of losing their jobs recently, nor are they likely to have regularly paid rent at any time in the past. many of them are hobos and squatters, they're transients and the economic downturn did not make them that way. there is a large contingent of young people and students who have essentially sold themselves into indentured servitude in exchange for an education, and they do have a point although i think their anger is misguided. they shouldn't demanding that 'wall street" or "the rich" pay their tuition debt, they should start their own protest movement against the education bubble that's responsible for sending every middle class and up young adult into the start of their life already drowning in debt. they should remove themselves from this weird unfocused orwellian anger movement and set their sights on the obscenely profitable college education industry and bring attention and outrage to an a legitimate problem deserving sincere public outrage. but hey won't because they're stupid. they'll just protest greed and corn syrup and masturbation and eyeliner and who knows what else.

"they should remove themselves from this weird unfocused orwellian anger movement and set their sights on the obscenely profitable college education industry"

agreed, tuition debt unlike others follows you forever.. college administrators will make sure of that.

>How fortunate you are to not experience the pain of losing your job, not being able to pay your rent and feeling hopeless...those are the OWS people...seeing it all go down the drain and not being able to do anything to stop it.

That's not who these people are. These are people who want more government for their selfish benefit.

OWS protesters are dirty hippies who don't want to work. Have you seen them? If not, trust me.

They would not qualify for section 8, as you need income (any amount will do) to qualify. I believe many of the OWSers are supported by their parents, so perhaps an HFDC house will do, as they meet the income restruction and could by with a "gift" from family. Even the OWSers would probably not like the 70% flip tax.

they're not hippies, they're hobos and everyone knows hobos don't have parents. they multiply by mitosis.

don't know why so many people intend to lie and spread rumors

most people who join the OWS jasmine revolution/democratic movement are not hippies or hobos, most of them are young college grads who couldn't find a job or former middle class who lost their jobs. and in this extreme capitalism economic, only the 1% are getting richer and richer, the 99% surfer more and more. it's natural for the 99% start doubting the 2-party dictatorship regime.

and Pawn_Harvester, you know nothing about section 8. at least in harlem, there are tons of people who NEVER worked but receiving section 8 and other benefits. that's why we don't see these people joining the democratic movement

I just did a google search on "caonima".

Interesting.

Caonima, I don't know about section 8 from experience, but I do know how to read.

http://www.nyc.gov/html/nycha/html/section8/lh_app_faqs.shtml#q15

Regarding not being able to find a job. I was a dishwasher for 4 years. Those jobs are available. Unemployed grads may not be able to find the jobs they want, but there are jobs. For many people, doing nothing all day is preferable to working for $10/hour in a bad job, especially when the govt and family is delivering a fat handout.