HDFC Coop Maximum Income Standards

HDFC Cooperative Maximum Income Standards

HDFC cooperatives have maximum income standards for shareholders, tenants of the cooperative, and subtenants of shareholders. The standard definition of "affordable" has changed during the existence of the program so shareholders must consult their corporate documents to determine the standard applicable to their cooperative.

Building requirements can vary based on variables such as how long the building has been an HDFC Coop, restrictive covenants such as flip taxes, right of first refusal, and board approval.

One common standard is that the income of the incoming family/household can be no more than six times the annual maintenance plus a factor for utilities for households of fewer than three. For households with three or more occupants, the factor is seven times the maintenance plus a factor for utilities.

                                                         

6-7 x Annual Maintenance:

Some HDFC coops may be subject to governing documents or agreements like a Deed that, instead of specifying an AMI level, refers to a formula in Section 576 of the Private Housing Finance Law to determine the maximum income for new shareholders.

This formula requires that units be made affordable to new shareholders (i.e. purchasers) that earn no more than 6 (for a 1-2 person household) or 7 (for a 3+ person household) times the annual maintenance fee plus utility costs plus six percent (6%) of the current shareholder’s (i.e. seller’s) original investment

Outlined below are the steps to calculate the maximum household income in an HDFC coop subject to Section 576 restrictions.

Example 1: 1-bedroom apartment being sold to a 2-person household

Here is an example using the Section 576 formula for determining a new purchaser's maximum income based on the following details:

• Unit size: 1-bedroom apartment
• Monthly maintenance: $700
• Annual maintenance: $8,400 ($700 x 12 months)
• Annual utilities: $1,164 ($97 per month x 12)
• Seller's purchase price ("original investment"): $260,000
• 6% of the original investment: $15,600 (6% of $260,000)
• Purchaser's household size: 2
• Multiplier based on household size (required by the Statute): 6x

AMI (Area Median Income)

The other common standards are that incoming families can earn no more than 120% of the median income of the metropolitan area or 165% of the median income of the metropolitan area.

45 West 110th Street (165%)

16 Morningside Avenue, HDFC (120%)

The following is the maximum Income allowed for HDFC coops 

based on Area Median Income (AMI) and Family Size for 2022

About Affordable Housing

The New York City Department of Housing Preservation HPD is responsible for building or preserving 300,000 affordable homes by 2026.

Housing is considered affordable if it costs about one-third or less of what the people living there earn, also known as Area Median Income (AMI).

Area Median Income (AMI)

2022 New York City Area AMI

Family Size	30% AMI	40% AMI	50% AMI	60% AMI	70% AMI	80% AMI	90% AMI	100% AMI	110% AMI	120% AMI	130% AMI	165% AMI
1	$28,020	$37,360	$46,700	$56,040	$65,380	$74,720	$84,060	$93,400	$102,740	$112,080	$121,420	$154,110
2	$32,040	$42,720	$53,400	$64,080	$74,760	$85,440	$96,120	$106,800	$117,480	$128,160	$138,840	$176,220
3	$36,030	$48,040	$60,050	$72,060	$84,070	$96,080	$108,090	$120,100	$132,110	$144,120	$156,130	$198,165
4	$40,020	$53,360	$66,700	$80,040	$93,380	$106,720	$120,060	$133,400	$146,740	$160,080	$173,420	$220,110
5	$43,230	$57,640	$72,050	$86,460	$100,870	$115,280	$129,690	$144,100	$158,510	$172,920	$187,330	$237,765
6	$46,440	$61,920	$77,400	$92,880	$108,360	$123,840	$139,320	$154,800	$170,280	$185,760	$201,240	$255,420
7	$49,650	$66,200	$82,750	$99,300	$115,850	$132,400	$148,950	$165,500	$182,050	$198,600	$215,150	$273,075
8	$52,830	$70,440	$88,050	$105,660	$123,270	$140,880	$158,490	$176,100	$193,710	$211,320	$228,930	$290,565

NYC Income Bands and Percent of AMI

Income Band	Percent of AMI
Extremely Low-Income	0-30%
Very Low-Income	31-50%
Low-Income	51-80%
Moderate-Income	81-120%
Middle-Income	120-165%

The above information is provided as a general guide. Each listing will state the specific income requirements for each building. 

It should be noted that under the Private Housing Finance Law, all HDFCs must be low,/moderate, or middle/income. The specific definition of low income for some HDFC cooperatives was time-limited and has expired, the cooperation must adopt a new standard. The highest standard that HPD will accept is 165% of the median income for the metropolitan area.

Selling Your HDFC Coop

2022 updated