DAMP HDFC Cooperative Income Standards:
HDFC cooperatives sold from DAMP have maximum income standards for shareholders, tenants of the cooperative, and subtenants of shareholders. The standard definition of low income has changed during the existence of the program;so shareholders must consult their corporate documents to determine the standard applicable to their cooperative. One common standard is that the income of the incoming family can be no more than six times the annual maintenance plus a factor for utilities for families of fewer than three dependants. For families with three or more dependants, the factor is seven times the maintenance plus a factor for utilities. 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.
120% and 165% Median Income Standards for 2011:
|Household Size||Maximum Income 120%||Maximum Income 165%|
New Law Offers Housing Fund Development Corporations Created Through Tenant Interim Lease and Community Management Programs (TIL and CMP) the Opportunity to Resolve Tax Arrears
Since 1979, the Department of Housing Preservation and Development has sold formerly City-owned buildings to Housing Development Fund Corporations (HDFCs) created through the Tenant Interim Lease (TIL) and Community Management (CMP) Programs. While most of these HDFC cooperatives have functioned well under their certificates of incorporation and bylaws, some have fallen into real estate tax arrears and will need assistance to restore their fiscal solvency. Those HDFCs, created through TIL and CMP, which owe real estate taxes because of extraordinary expenses or lax management practices, now are eligible to take advantage of a new law under which their obligation to pay real estate taxes that accrued before January 1, 2001 is suspended for a period of ten years and then forgiven if, at the end of the ten year period, the HDFC has complied with the regulatory agreement described below.
Only HDFC cooperatives that acquired their property from the City of New York are eligible for this opportunity. Taking advantage of the new law is optional. HDFC cooperatives must decide what to do; however, HDFCs electing to participate are required to sign a 30-year regulatory agreement with HPD, adopt a new proprietary lease, by-laws and certificate of incorporation, and provide the ten items described at the end of this document.
HDFC cooperatives which need assistance meeting the requirements of this new law, should contact TIL staff at (212) 863-7318 or the Urban Homesteading Assistance Board (UHAB).
- In Brooklyn at (212) 479-3328
- In Manhattan and the Bronx at (212) 828-2670
The 30-year regulatory agreement requires, among other things, that the HDFC cooperative manage itself according to its certificate of incorporation and bylaws and submit certain documents annually to the HPD Asset Management Division. To review a sample 30-year regulatory agreement, click here.
Signing this 30-year regulatory agreement also eliminates the "60/40" provision that now mandates certain HDFCs to remit to the City 40% of the profits realized on the resale of shares.
HDFCs should consult with an attorney before signing the 30-year regulatory agreement.
The ten items required from all HDFC cooperatives wishing to take advantage of the new law are:
- Certified copy of the minutes of the meeting of the last annual election of the HDFC. (Unless otherwise noted, certification consists of the signature of the secretary, the date and the imprint of the corporate seal.)
- Certified copy of the audited annual financial report prepared by an accountant for the most recent fiscal year.
- Certified copy of the minutes of the meeting of the HDFC board of directors where the 30-year regulatory agreement was approved.
- Certified copy of the minutes of the shareholder meeting where the 30-year regulatory agreement was approved.
- Copy of the rent roll certified by the treasurer.
- Certified copies of the newly adopted corporate documents: proprietary lease, by-laws and certificate of incorporation.
- Certified copy of the minutes of the shareholder meeting or meetings where the new corporate documents were adopted.
- Projected budget showing financial condition which, with tax-forgiveness, can support maintenance at a level affordable to low- and moderate-income families.
- Certificate of insurance for fire and liability coverage.
- Plan for curing Housing Maintenance Code violations.