HPD Units

Programs might vary, but the condo in familiar with that had offered affordable units had
*no subsequent income restrictions
*tax abatement / exemption that ran with the unit
*no ongoing government oversight beyond initial marketing
*no restrictions on renting out
*a recapture of subsidy that was provided to initial buyer, with phaseout .

So, if the original owner bought the purchase via a discount thru HPD lottery on the condition that they must use it as their primary residence for X amount of years... will that restriction also apply to the buyer if the original owner pays off the penalty upon the sale?

Not in the building my friend owns in, no.

The restrictions pass on until the subsidy is repaid. If it's the building I think you referring to, the subsidies are almost paid and it becomes a market building. Refer to your offering plan.

Should have added that if it's the HDFC condo you're referring to. The subsidy is paid off when the initial owner sells or they can pass it on to the new owner.