Key Questions & Answers about the new Regulatory Agreement that HPD has been imposing on HDFC Co-Ops

It’s a binding contract between the HDFC co-op and the City of New York (through HPD) that sets rules for sales, ownership, occupancy, and affordability.

Only Eligible Households: income below 120% of Area Median Income (AMI), assets below 175% of AMI for a family of four, and no ownership or lease of another residential property within 100 miles of NYC.

Yes. Shareholders must use the apartment as their primary residence at least 270 days per year, submit annual Owner Occupancy Certifications, and not sublet or lease the unit (with rare exceptions).

Only with Board and Monitor approval. Rent cannot exceed carrying cost, and subletting is limited to 15 months in any 5-year period. Only Eligible Households may sublet.

A fee paid to the HDFC upon sale of a unit: typically 10% of sale profit, but 100% if sold within 3 years of purchase (excluding inheritance or foreclosure).

Yes, but the loan must be from an approved lender, not exceed 90% of the maximum allowed sale price, and be approved by both the Board and the Monitor.

That’s a Prohibited Event. Penalties include monthly or one-time fees, depending on the violation, and must be paid to the HDFC or the Monitor.

An independent group approved by HPD to ensure compliance with the Agreement. They approve sales, sublets, collect penalties, and oversee elections.

The HDFC pays all monitoring costs. Payments may not be delayed or withheld without HPD’s consent.

Yes. Maintenance fees must increase by at least 2% per year, unless HPD grants a waiver.

Sales must be listed on NYC Housing Connect, approved by the Board and Monitor, made only to Eligible Households, and priced below the Maximum Sale Price. Proceeds support reserves or repay city loans.