HDFC Income Restriction

HDFC's are often a far more challenging purchase process than a market rate co-op. To answer your question, it will depend on the building. Some HDFC's use the precise income restriction caps, others use it as a general guideline and a few ignore it altogether. You need to have at least a bit of a sense of the board. Buying in an HDFC is not easy- you want a building that is financially stable, qualifies for financing (whether you need or not- it's a red flag if all cash is required, and remember even if the building is financially stable, not every banker will underwrite in an HDFC), is well managed, whether they accept gifts, etc. Too many HDFC's adopted approach where the buyer is interviewed prior to entering contract- risky for the buyer for many reasons.

I would say it's worth it too look at HDFC's, but also keep an open mind to market rate units. The most desirable HDFC's tend to get many offers above asking price- so be prepared for that too.

Unfortunately your fiance would be your co applicant. Anyone who lives with you, even if it's a domestic partner of some sort will have to apply with you. Remember the point of a co-op is they want to vet the potential new neighbors. So unfortunately if your fiance makes a lot and your combined income is over, then you don't qualify.

However, not to worry. Why don't you just buy a bigger place? There are lots of programs that can help with your downpayment, even some banks I recall offer downpayment assistance via so called "interested party contributions" and such. You can also get some of the buyer's broker commission back via a so called commission rebate through firms like Hauseit. Plus I'm certain there are federal first time home buyer credits you can take advantage of.

Have you considered that?

Yes you'd be priced out if you live together and she's the co-applicant. If you don't live together then maybe you can buy by yourself first, then have her move in some time later. But that's tricky, don't expect coop boards to look lightly upon being tricked!

Again, you shouldn't be trying to game the system :-)

With that said, interested party contributions, seller concessions towards closing costs, Hauseit home buyer commission rebates etc. are not considered gaming and are completely legitimate. Make sure you study up on these topics before resuming your search!

I would highly recommend you study what these limits can be and how they vary before you proceed: https://www.hauseit.com/hdfc-coop-income-limit-explained-nyc/

Furthermore, HDFC coops also have a board app that you'll need to do: https://www.hauseit.com/hdfc-coop-purchase-application-form-overview-nyc/

Not necessarily more onerous than a reg coop one

My partner lives in an hdfc and has been active on her board. From what I understand her building would allow for one buyer in a partnership to purchase with their spouse being added later. Both partners would attend the interview as occupants, but who is to say that both even desire to participate in the sale or to co-own the unit at the time of sale.
The hdfc structure where 15k is added to the income cap per each additional family member is outmoded because there is no longer one breadwinner and the economics of domestic unions have completely changed since the first regulatory agreements were written. It really depends on how the coop attorney for the building is advising the board.

I think it's a huge mistake to assume there's a clear response to this. Hdfcs are not currently one size fits all, and they likely will never be. There is as much difference between them as there is co-ops across the city.

I teach a firmwide class on HDFC's. Financing in HDFC's are more of a challenge, the reverse contract signing after board package and interview- along with all of the risks that entails, and lots of other elements that I have encountered in HDFC's that I don't in market rate co-op's. These are just a few reasons why HDFC's are frequently more complicated than a market rate co-op.

Uptown - which firm are you with and what topics specifically? Would be interested in attending if you post details here

Captain, I work for Anchor Associates. The course that I teach is for agents at the firm. That said, I educate my clients to the similar level. Prior to working in real estate, I was a training manager and corporate trainer for many years in the financial sector- so training people is second nature for me.

The course delves into the origins of the HDFC program; the methods used to calculate the income restrictions; Flip tax pro's and con's; When the regulatory agreement concludes; HDC's vs. HDFC's; Challenges that agents face when working with HDFC's and I include some case studies so that agents can truly put this course into real situations.

I think the next time I offer the course I will add in: risks found in HDFC's that don't occur in market rate apartments and how proposed changes by the city are impacting HDFC's.