Profiteering by HDFC Apartment Owners Threatens Program's Affordability

June 19, 2014 — Nearly 40 years ago, New York City began taking over derelict apartment buildings and selling units to intrepid homesteaders for just $250 a pop. Thus was born the Housing Development Fund Corporation (HDFC) co-op, designed to be affordable housing sold at token prices to New Yorkers with incomes below a certain limit.

The City now charges $2,500 for such HDFC co-ops — but some of those who rightly took advantage of the City's deal now are selling their apartments for close to market rate, which as this DNAInfo.com article points out, goes against the spirit of the working-class program, and making what are supposed to be affordable apartments unaffordable. It's not against the law, though, and so now a City-appointed task force will be recommending legislation to keep HDFC affordable apartments a reality.