TIL assists organized tenant associations in City-owned buildings to develop
economically self-sufficient low-income cooperatives where tenants purchase
their apartments for $250. Tenant associations enter into a lease with the City
to maintain and manage the buildings in which they live.
TIL provides training to tenant associations in building management,
maintenance, and financial recordkeeping. During City-ownership, rehabilitation
is funded through a combination of City and Federal sources utilizing private
construction management firms to supervise the work. Rental income covers
operating expenses, minor repairs, and management fees. Rents are restructured
before buildings are sold to the Cooperative Corporation so that
buildings remain financially viable after sale.
Program Director: Victor M. Hernandez
For additional information on
TIL, please call (212) 863-7318
DAMP HDFC Cooperative Income Standards:
HDFC cooperatives sold from DAMP have maximum income standards for
shareholders, tenants of the cooperative, and subtenants of shareholders. The
standard definition of low income has changed during the existence of the
program so shareholders must consult their corporate documents to determine
the standard applicable to their cooperative. One common standard is that the
income of the incoming family can be no more than six times the annual
maintenance plus a factor for utilities for families of fewer than three
dependants. For families with three or more dependants, the factor is seven
times the maintenance plus a factor for utilities. The other common standards
are that incoming families can earn no more than 120% of the median income of
the metropolitan area or 165% of the median income of the metropolitan
Cooperative Median Income
||Maximum Income 120%
||Maximum Income 165% |
It should be noted that under the private Housing Finance Law, all
HDFCs must be low income. If the specific definition of low income for
your HDFC cooperative was time limited and has expired, your cooperation must
adopt a new standard. The highest standard that this agency will accept is
165% of the median income for the metropolitan area.
New Law Offers Housing Fund Development Corporations Created Through
Tenant Interim Lease and Community Management Programs (TIL and CMP) the
Opportunity to Resolve Tax Arrears
Since 1979, the Department of Housing Preservation and Development
has sold formerly City-owned buildings to Housing Development Fund Corporations
(HDFCs) created through the Tenant Interim Lease (TIL) and Community Management
(CMP) Programs. While most of these HDFC cooperatives have functioned well under
their certificates of incorporation and bylaws, some have fallen into real
estate tax arrears and will need assistance to restore their fiscal solvency.
Those HDFCs, created through TIL and CMP, which owe real estate taxes because of
extraordinary expenses or lax management practices, now are eligible to take
advantage of a new law under which their obligation to pay real estate taxes
that accrued before January 1, 2001 is suspended for a period of ten years and
then forgiven if, at the end of the ten year period, the HDFC has complied with
the regulatory agreement described below.
Only HDFC cooperatives that acquired their property from the City of New York
are eligible for this opportunity. Taking advantage of the new law is optional.
HDFC cooperatives must decide what to do; however, HDFCs electing to participate
are required to sign a 30-year regulatory agreement with HPD, adopt a new
proprietary lease, by-laws and certificate of incorporation, and provide the ten
items described at the end of this document.
HDFC cooperatives which need assistance meeting the requirements of this new
law, should contact Asset management staff at (212) 863-7327 or the Urban
Homesteading Assistance Board (UHAB).
Signing this 30-year regulatory agreement also eliminates the "60/40"
provision that now mandates certain HDFCs to remit to the City 40% of the
profits realized on the resale of shares.
HDFCs should consult with an attorney before signing the 30-year regulatory
The ten items required from all HDFC cooperatives wishing to take
advantage of the new law are:
- Certified copy of the minutes of the meeting of the last annual election
of the HDFC. (Unless otherwise noted, certification consists of the signature
of the secretary, the date and the imprint of the corporate seal.)
- Certified copy of the audited annual financial report prepared by an
accountant for the most recent fiscal year.
- Certified copy of the minutes of the meeting of the HDFC board of
directors where the 30-year regulatory agreement was approved.
- Certified copy of the minutes of the shareholder meeting where the 30-year
regulatory agreement was approved.
- Copy of the rent roll certified by the treasurer.
- Certified copies of the newly adopted corporate documents: proprietary
lease, by-laws and certificate of incorporation.
- Certified copy of the minutes of the shareholder meeting or meetings where
the new corporate documents were adopted.
- Projected budget showing financial condition which, with tax-forgiveness,
can support maintenance at a level affordable to low- and moderate-income
- Certificate of insurance for fire and liability coverage.
- Plan for curing Housing Maintenance Code violations.