Income Restricted HDFC CO-OP

Nothing shady, some people have low incomes but money in the bank from a previous house sale, inheritance etc. The pool of buyers are there, they are just few and far between. Why it is all cash is probably a the sellers requirement but coop board can and do set rules on share sales. Most are 20% down but there are coops that do not allow financing at all.

This is the typical American way. Subsidize the wealthy, make it difficult for the middle class to become wealthy.

You plan to get wealthy with public assisted housing? Doesn't work that way, when you see a HDFC apt for sale for $500k or whatever the coop usually gets 30% to 70% flip tax of the sale. So do some research before you judge.

The all-cash requirements are usually due to the fact that many HDFC coops do not qualify for bank mortgages because of how the coop finances are being managed. It can be a seller's requirement, sure, but it's probably the coop.

Yes, most HDFCs aren't run well and would be impossible to get financing. There maybe other issues like lawsuits, lots of reasons for all-cash but that kind of requirement means fewer potential buyers.

This seems a bit exaggerated. There are certainly well-run HDFC buildings, and certainly there are many where one can get financing. I have a mortgage on my HDFC apartment, and I would say my building is on the cusp of going from being somewhat well run to being very well run. I don't think we are alone in this!

It certainly is not true that HDFC building subsidize the wealthy--that's ridiculous. It's equally ridiculous to try to use a low- and middle-income housing program as a tool for speculative investment. HDFC co-ops are what they are, a way of letting ordinary New Yorkers afford to be home-owners in this amazingly expensive city.

Maybe a bit exaggerated but not uncommon. When I bought my HDFC apartment it was difficult just to find the financials much less board minutes. Apathy and infighting is not uncommon.

There were a series of Columbia Spectator articles I found helpful.
http://columbiaspectator.com/news/2013/11/22/when-boards-go-awry-anything-goes-affordable-co-ops
http://columbiaspectator.com/news/2013/11/21/locals-weigh-future-low-income-homeowner-program
http://columbiaspectator.com/news/2013/11/24/buildings-low-income-housing-program-feel-effect-gentrification

I find the current HDFC system extremely suspect. My girlfriend and I can barely afford to make the mortgage payments plus maintenance, but we are well above the income requirements. These things are selling for cash only and it is a rarity to have a bunch of cash and low income unless you either have wealthy parents or a well-paying freelance job and took a year off. That's not what HDFC rules were intended for.

The prices should but pushed down or the income restrictions raised. I would prefer the latter, but either way would alter the playing field. As it is, I think most people are cheating the system or intentions of the HDFC rules.

Also, what is to stop me from buying an HDFC coop and then "moving" my girlfriend in after the fact?

Nothing, as long as you qualify under the income restrictions.

Good or bad an HDFC's price is influenced by the market. They are independent corporations and the market sets the prices. There are plenty of affordable HDFCs in the Bronx, upper Manhattan and Brooklyn. Others in more desirable areas are more expensive.