orangejuicecake t1_jbegibq wrote on March 8, 2023 at 1:46 PM

the state financing tenants to buy and convert to HDFCs is a great idea. Too bad HDFCs work best with people who have a lot saved and a small salary

bitchthatwaspromised t1_jbelai4 wrote on March 8, 2023 at 2:23 PM

Looking at HDFC listings makes me so sad. Like I qualify but they say all-cash only or the 20% down is like over 100k. Idk how any real non-trust fund Columbia student buys one

cocktails5 t1_jbhwy60 wrote on March 9, 2023 at 3:55 AM

The city had a solution to this: replacing the current HDFC agreement with one that included asset limits. HDFC owners threw a fit because it would have tanked their property values because the HDFC market right now revolves around these all-cash offers from people who on paper don't have an income. They tried to entice the HDFCs with more tax abatements but nobody seems interested.

casicua t1_jbemje6 wrote on March 8, 2023 at 2:32 PM

I remember looking at HDFCs when I was younger and first looking to buy a home and their requirements were absurd and in no way viable for middle or low income families. Half of them were either cash sales or required a higher down payment than a standard mortgage.

CactusBoyScout t1_jbezwvg wrote on March 8, 2023 at 4:02 PM

If they require cash it’s typically because their coop is poorly-run financially and can’t get approved by banks to take mortgages. So you wouldn’t want that coop anyway.

Trust that the owners would love to take mortgages because it means they could sell their units for more. But their financials aren’t good enough.

cocktails5 t1_jbhxtcc wrote on March 9, 2023 at 4:03 AM

No it's because they neglected to put asset limits on HDFC purchases. The HDFC market is warped by asset rich people who haven't had an income in two years and thus aren't restricted by the income limits. The income limits make it so that anybody that falls within those limits can't afford the purchase price even with a mortgage when they're competing against these asset rich/no income cash offers. And the co-op owners know that they can get more money in the sale by going after those people.

I've seen some particular egregious examples where the income limit is like $50k/yr and the unit is listed at over a million dollars. Rich people love it because they still get to take advantage of the tax abatements/low maintenance.

CactusBoyScout t1_jbhymr3 wrote on March 9, 2023 at 4:10 AM

I’m not sure why you’re confidently asserting that it’s only the explanation you’re offering.

I’ve looked into the HDFC buildings near me. The all-cash ones were cheaper than ones that took mortgages when you looked at comparable units. Clearly they’re not getting more money.

And I asked my realtor friend who lives in an HDFC unit and she said it’s almost always bad finances and an inability to get approved by banks.

Sounds like you’re looking at some pretty extreme cases likely in Manhattan based on the pricing.

cocktails5 t1_jbi3lea wrote on March 9, 2023 at 4:56 AM

Here's a recent example:

https://streeteasy.com/sale/1648536

$220k/yr income limit for a family of 4. Nobody is ever going to get a mortgage approved for that place within that income limit.

https://streeteasy.com/sale/1631168

1.1 million studio, 154k income limit.

Chewwy987 t1_je0j55y wrote on March 28, 2023 at 3:20 PM

These buildings might have better financials csudd ask price I’d higher or the old owners of the hdfc unit decided to cash in and make bsnk