HDFC resale policy?

[princess4ny]

Hi, I wanted to know does an HDFC have the right to deny a buyer who meets the income criteria but has a small family for a 3 bedroom apt.

[TenantNet]

We've had some posts on HDFC's recently. Do a search for them. Generally HDFCs are co-ops and in addition to income limits they probably lay out how many people can live in each unit. See what their guidelines are.

[cardinalfang]

An HDFC cooperative board, like any other cooperative board, can refuse to approve a buyer for any number of reasons based on its business judgment, as long as the reason does not violate antidiscrimination laws. Since an HDFC co-op is intended to provide affordable housing for families that would otherwise face difficulty in finding it through the private market, the board might very properly consider the size of the available apartment and the size of the family as a factor in determining whether to approve a buyer. A childless couple or a couple with one child would not be eligible for a three-bedroom apartment in any other public or subsidized housing program, so it's unlikely that not approving this would be considered unreasonable in an HDFC co-op.

[reysmont]

Generally all of the above comments are true.

The following guidelines were developed by the Council of New York Cooperatives and Condominiums with the Real Estate Board of New York to facilitate the process. The HDFC Council has also adopted them.

CNYC & REBNY PUBLISH CO-OP BOARD ADMISSIONS GUIDE
http://www.cnyc.com/pdf/Co-op_Board_Adm%C9sions_Guide.pdf

CNYC and the Real Estate Board of New York have published a new guide designed to explain the anti-discrimination requirements that all Boards must follow. Included are recommendations on how a Board should conduct the application process.

Co-op Board Admissions Guide
This guide is designed to explain the anti-discrimination requirements that all Boards must follow. Included are recommendations on how a Board should conduct the application process.

There are currently fourteen protected categories under which claims can be brought against a New York City cooperative either in the courts or before a city, state or federal administrative body if a prospective purchaser believes that a rejection was due to discrimination because of their:

Age, Disability, Partnership Status, Alien Status, Gender (including gender identity), Race, Children(or childless state), Lawful Occupation, Religion, Country of National Origin, Marital Status, Sexual Orientation, Creed, Military Status

It is unlawful to discriminate or refuse to sell or rent to a person based on any of the above named 14 categories. These categories cannot be referred to in any advertisement offering or seeking property for sale or rental. These laws prohibit the representation to any person that a dwelling is not available for inspection, sale, or rental, when the dwelling is in fact available. It is also prohibited to make any representations in connection with the purchase, sale, or rental of any property, that there will or may be physical deterioration of dwellings in the area, and regarding changes that have occurred or may occur in the racial or religious composition of a neighborhood.

Board Responsibilities in the Admissions Process
While Boards have the freedom to set admissions policy and procedures, below are recommendations on how a Board should conduct the admissions process.

The Application Package and Process
•Establish a standard application package. REBNY and CNYC have each prepared a model Purchase Application for the Sale of a Cooperative Apartment and a Sublease Application for the Sublease of a Cooperative Apartment.

•If the Board has specific requirements that differ from the standard package, a statement should be added to the application.

•While the application process established by each Board is unique, a goal should be set of 6 weeks from receipt of a complete package for a response by the Board. Disclose any deadlines or established time frames for review. For example, if applications are only considered at a monthly meeting, advise the date of the meeting and how far in advance the package must be received to be considered at the meeting.


The Application Review
•Review the corporation’s by-laws regarding who is authorized to review applications and make decisions concerning admissions.

•Appoint a subcommittee or Admission’s chair to oversee the application process. The subcommittee, chair, managing agent, or other professional should ensure that each package is complete before submitting it to the Board.

•Timeliness in the admissions process is important. A timely review process is in the best interest of directors, shareholders, and new neighbors.

•Identify circumstances that justify a longer review process and be proactive with those applicants. For example, advise brokers that credit checks for applicants from out of state or country take longer to process and allow advance submission of credit authorization to speed up the process.

•Maintain confidentiality of all applicants’ information.

•Conduct a complete review of the application package, credit report, and other supporting information and contact all references before scheduling an interview. Verify all information.

•Avoid any dealings between board members and applicants before the interview takes place.

Interview
•If the application, including financials, is complete and satisfactory, schedule an interview.

•Make a decision promptly after the interview if no further information or assurances are needed.

Response
•Promptly inform the applicant of any additional information required or decision made.

•If a rejection is contemplated, the Board should consult its attorney before making this decision.

•Acceptance or rejection notification should be sent by the managing agent or attorney for the cooperative.

•After a decision has been made regarding an applicant, have Board members shred or otherwise destroy the financial statements and personal information in purchase applications other than a file copy.

The HDFC Council recommends that the HDFC cooperatives voluntarily adhere to these guidelines and add verification of income in accordance to the restrictions found in your Offering Plan, Proprietary Lease, Corporate By-Laws and Deed.

You can view it in the context of the entire discussion by going to:
http://forums.delphiforums.com/HDFCCentral/messages/?msg=717.1

[TenantNet]

This has been reposted in the Forum Reference Section at http://tenant.net/phpBB2/viewtopic.php?p=36062#36062