All HDFC coops are incorporated under Article XI and must comply with its requirements. Article XI requires HDFC coops to provide housing for persons and families of low income. Under the NYS Private Housing Finance Law, low income means persons and families whose household income does not exceed 165% of Area Median Income (AMI). However, oftentimes HDFC coops are subject to stricter income requirements in their Deed, Certificate of Incorporation, Bylaws, Offering Plan and Regulatory Agreement (if applicable). Each HDFC must comply with the most restrictive requirements in place.
Maximum income determined by AMI level
Some HDFC coops have governing documents or a Regulatory Agreement that determines maximum household income according to the AMI.
The median income for all cities across the country is defined each year by U.S. Department of Housing and Urban Development (HUD). The 2021 AMI for the New York City region is found below. Learn more about 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 | $25,080 | $33,440 | $41,800 | $50,160 | $58,520 | $66,880 | $75,240 | $83,600 | $91,960 | $100,320 | $108,680 | $137,940 |
| 2 | $28,650 | $38,200 | $47,750 | $57,300 | $66,850 | $76,400 | $85,950 | $95,500 | $105,050 | $114,600 | $124,150 | $157,575 |
| 3 | $32,220 | $42,960 | $53,700 | $64,440 | $75,180 | $85,920 | $96,600 | $107,400 | $118,140 | $128,880 | $139,620 | $177,210 |
| 4 | $35,790 | $47,720 | $59,650 | $71,580 | $83,510 | $95,440 | $107,370 | $119,300 | $131,230 | $143,160 | $147,810 | $196,845 |
| 5 | $38,670 | $51,560 | $64,450 | $77,340 | $90,230 | $103,120 | $116,010 | $128,900 | $141,790 | $154,680 | $167,570 | $212,685 |
| 6 | $41,520 | $55,360 | $69,200 | $83,040 | $96,880 | $110,720 | $124,560 | $138,400 | $152,240 | $166,080 | $179,920 | $228,360 |
| 7 | $44,400 | $59,200 | $74,000 | $88,800 | $103,600 | $118,400 | $133,200 | $148,000 | $162,800 | $177,600 | $192,400 | $244,200 |
| 8 | $47,250 | $63,000 | $78,750 | $94,500 | $110,250 | $126,000 | $141,750 | $157,500 | $173,250 | $189,000 | $204,750 | $259,875 |
Maximum income determined by formula (NYS PHFL Section 576)
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 (please use numbers located under Utility Allowance for utility amounts corresponding to unit size) 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
For comparison, the 2020 Area Median Income level for a 2-person household earning $72,984 is 80% AMI.
Example 2: 3-bedroom apartment being sold to a 4-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: 3-bedroom apartment
- Monthly maintenance: $900
- Annual maintenance: $10,800 ($900 x 12 months)
- Annual utilities: $1,752 ($146 per month x 12)
- Seller's purchase price ("original investment"): $240,000
- 6% of the original investment: $14,400 (6% of $240,000)
- Purchaser's household size: 4
- Multiplier based on household size (required by the Statute): 7x
For comparison, the 2020 Area Median Income level for a 2-person household earning $102,264 is 90% AMI.
HDFC coops should always refer to their governing documents such as a Certificate of Incorporation, Bylaws and Offering Plan, and any Deed, Regulatory Agreement, or similar document in determining income restrictions. Each HDFC must comply with the most restrictive requirements in place.
source: https://www1.nyc.gov/site/hpd/services-and-information/hdfc.page
