How can an apartment that’s selling for $500,000 or $1 million have income restrictions?
This is an issue that many HDFC [Housing Development Fund Corporation] cooperatives face. They are special-purpose co-ops that were created under the New York State Private Housing Finance Law, with the purpose of providing home ownership opportunities for low-to-moderate income New Yorkers. Some are new construction, but most were created from buildings that had been abandoned or neglected by their landlords. Tenants banded together and invested sweat-equity to try to stabilize the buildings and, along with it, their neighborhoods. The city foreclosed on landlords who had been neglecting their buildings and failing to pay taxes. The units were transferred to not-for-profits or to tenant organizers and sold to them for anywhere from $250 to $2,500. The buildings were brought back onto the city tax rolls. The buildings were stabilized. The tenants became homeowners.