3 thoughts on “City-Sponsored vs. Market-Rate: Which Coops Get a Better Deal from the Tax Man?

  1. What is the legality of this controversy?

    From Article XI Section 573:

    3. The certificate of incorporation of any such corporation shall, in addition to any other requirements of law, provide:
    a. that the company has been organized exclusively to develop a housing project for persons of low income;
    b. that all income and earnings of the corporation shall be used exclusively for corporate purposes, and that no part of the net income or net earnings of the corporation shall inure to the benefit or profit of any private individual, firm, corporation or association;

    – See more at: http://codes.findlaw.com/ny/private-housing-finance-law/pvh-sect-573.html#sthash.IhHhlk5s.dpuf

  2. I appreciate the HDFC Coalition for bringing this issue to your attention. Many shareholders want an opportunity to address this issue with HPD before the City Council has to vote on the proposed Regulatory Agreement. They want a voice in any changes to their R. A’s

  3. Under the present changes to the RA where the DAMP tax would be eliminated, the insistence on keeping HDFCs for moderate income households does not hold. Without the tax exemption, HDFCs would be assessed at market-value, thereby bringing the maintenance to market rents accordingly. Many of the shareholders who’ve lived in their homes for over 25 years, are in their 50s and 60s+ by now, and could no longer afford to stay in their homes.
    It is nonsense! It is cynical. It is deceptive.
    I’ve never thrown out a bushel of apples because a few were rotten!

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