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New York City Launches Pilot Program to Support Struggling Housing Development Fund Corporation (HDFC) Cooperatives

Strategic Insights

— 2 min read

New York City's Housing Development Fund Corporation (HDFC) cooperatives are an essential part of the city's affordable housing landscape, providing a reliable path to homeownership for low- to moderate-income New Yorkers. However, some co-ops are struggling to manage their finances and maintenance needs, leading to concerns about their long-term stability. In response, Mayor Eric Adams, New York Attorney General Letitia James, and the New York City Department of Housing Preservation and Development (HPD) have announced a new pilot program, the HDFC Cooperative Technical Assistance Program (CTAP), to provide targeted technical assistance to selected HDFC co-ops. The program, backed by settlement funds from the Office of the New York Attorney General, aims to strengthen the financial, operational, and physical health of these co-ops, ensuring they can continue to offer safe, affordable homeownership opportunities for low- and moderate-income New Yorkers.

Key Takeaways:

  • The HDFC Cooperative Technical Assistance Program (CTAP) is a two-year pilot program that will provide targeted technical assistance to selected HDFC co-ops in New York City.
  • The program, backed by settlement funds from the Office of the New York Attorney General, aims to strengthen the financial, operational, and physical health of HDFC co-ops.
  • The program will focus on addressing common issues affecting HDFC co-ops, including:

+ Addressing municipal arrears and other outstanding payments

+ Stabilizing finances through sustainable repayment plans or refinance options

+ Supporting renovations and addressing housing violations

+ Establishing good governance practices

+ Supporting estate and probate issues

  • Approximately 20-30 HDFC co-ops will be assisted through the pilot program.
  • The program is funded by the Office of the New York State Attorney General as a result of the 2012 National Mortgage Settlement and the 2013 Residential Mortgage-Backed Securities Working Group.
  • Mayor Adams has made historic investments to create more affordable housing and ensure more New Yorkers have a place to call home, including creating record amounts of affordable and market-rate housing and passing ambitious plans to create tens of thousands of new homes.
  • The program is part of the Adams administration's ongoing work to help more families achieve and maintain homeownership, including expanding the city's HomeFirst Down Payment Assistance Program and launching a new rent reporting pilot.

Statistics:

  • Over 1,200 limited equity HDFC cooperatives exist in New York City.
  • Approximately 20-30 HDFC co-ops will be assisted through the pilot program.
  • The program is funded by settlement funds from the Office of the New York Attorney General, which secured $25 billion from five of the nation's largest mortgage services in 2012.
  • The 2013 Residential Mortgage-Backed Securities Working Group secured a $13 billion settlement from JPMorgan Chase for the company's role in the mortgage crisis.
  • In Fiscal Year 2025, the Adams administration created the most affordable rental units in city history.
  • The Adams administration has passed ambitious plans that will create tens of thousands of new homes.

Sources:

  • New York City Department of Housing Preservation and Development (HPD)
  • Office of the New York State Attorney General
  • Urban Homesteading Assistance Board (UHAB)
  • National Mortgage Settlement
  • Residential Mortgage-Backed Securities Working Group
  • JPMorgan Chase
  • New York City Mayor Eric Adams' Office
  • New York Attorney General Letitia James' Office

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