What do HDFC coop boards look for in an applicant? What are some tips for completing a HDFC coop board package?
We’ll go through a sample HDFC coop purchase application with you in the article below and explain what you’ll need to do to successfully receive HDFC board approval.
Table of Contents:
HDFC Coop Boards Are More Careful
HDFC coop boards are typically more careful when vetting potential purchasers and applicants than your regular co op board.
That’s because they have to be given the more diverse applicant pool they’ll encounter when it comes to financial qualifications.
Because HDFC coop apartments are advertised as low income housing and generally trade at a lower price point vs comparable condos or coops, HDFC coop boards will encounter a lot more applicants who may not be financially qualified to purchase an apartment.
As you will see from the sample HDFC coop purchase application form for a building in NYC we’ve included below, the HDFC coop board is supremely focused on whether the applicant is financially reliable.
The HDFC coop purchase application form asks multiple times whether the potential buyer consistently pays their bills and rent, and asks for references to verify their reliability. This has nothing to do with being unfair or discriminatory.
If the HDFC approves an applicant who does not meet the co op’s financial requirements and this buyer later stops paying their monthly co-op maintenance fee, then everyone in the building will have to suffer.
The building may have to waste precious resources to litigate against the defaulting resident, and everyone will have to pay extra to make up for the delinquent shareholder before the situation is sorted out.
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Please take a look at the sample HDFC coop purchase application below. Please note that the board is very focused on verifying whether the potential applicant is financial reliable and will pay their monthly maintenance charges if they receive co op board approval and move in.
This section consists of the instructions for the co op board package and should be followed to the letter.
That means if they are asking for 9 copies of the entire package, you really do need to provide 9 collated copies!
HDFC Co op Application for Purchasers in NYC
The board of directors of Fifth Street HDFC in NYC hereby resolves to adopt the following resolution regarding prospective buyers and the material they are to provide for the Board’s review:
1. Rent receipts, or documentation to the best of the person’s ability, for having paid on time and in full for one year previous the rent due for the dwelling occupied. Included in this information should be the name and address of the landlord, and the specific rent amount.
2. References. Three letters of reference are required, one professional and two personal. These references are to provide information regarding the buyer’s
a) consistency
b) ability to meet obligations
c) intention to reside in the apartment for an extensive period of time
d) ability to work with others.
The applicant will provide with these references the phone numbers and times of day at which the people providing the references may be contacted by the Board of Directors.
3. Financial information. The financial information is to include the following:
a) Income tax returns for the past two years
b) A list of bank accounts, what type they are, and the name and address of the bank or banks where the accounts are held for the past year. A letter of reference from a bank officer where each account is held is required certifying that each account is on file, the period of time each has been operational, and that the person holding the account is in good standing. One letter for each and every account is required.
c) Records of any and all other holdings, i.e. real estate, private equity, money market funds, stocks, bonds etc.
4. Statement of intent. The statement of intent from the applicant is to include the following:
a) Why you desire to live in this building
b) How long you have lived in your present residence
c) If you intend to use the apartment for your work as well as for your residence
5. The applicant must have read or had a lawyer read the original co op offering plan for Fifth Street HDFC in NYC before the coop board interview.
6. In addition to the professional reference requested in section 2 above, the applicant must provide a letter from the applicant’s employer addressing specifically the length of employment to present, dependability, etc.
The Board of Directors reserves the right to request further documentation for any information it requires. The prospective buyer is required to provide nine copies of all of the information to the Board. After the Board members have had a chance to review the material, they will decide if and when to schedule an interview with the applicant. If two people are applying jointly, each must provide the material listed on the application forms.
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Please take a look at the sample HDFC coop purchase application form below. This is the actual application form that needs to be filled out, and included in the wider board package as specified in the previous section. That means this form needs to be assembled along with the reference letters, tax returns and other backup documentation requested in the HDFC coop purchase application instructions.
HDFC Coop Application Form – NYC Purchasers
Section 1
Date of application:
Name(s):
Present address:
Home Phone: __ Work Phone:
How many are to occupy the apartment?
Number of adults: __ Number of children:
Section 2
Employment (start with most recent)
Dates:
Employer (including phone number and address):
Position:
Income:
Dates:
Employer (including phone number and address):
Position:
Income:
Dates:
Employer (including phone number and address):
Position:
Income:
Section 3
Present landlord:
Address:
Phone:
Present rent:
How long have you lived here?
Previous landlord:
Address:
Phone:
Previous rent:
How long did you live here?
Section 4
Personal references:
Name:
Address:
Phone:
Name:
Address:
Phone:
Professional reference:
Name:
Address:
Phone:
Section 5
Best time(s) to contact you:
Phone:
Time:
Days:
Section 6
Your lawyer’s information
Name:
Address:
Phone:
Have you signed regarding this apartment?
When did you/will you?
Section 7
Bank accounts
Name of bank:
Address:
Account number:
Type of account:
Person to contact:
Phone:
Note: This sample HDFC coop purchase application form is much shorter and simpler than many coop board application forms we’ve seen. This may be because the building is self managed in order to save money from having to hire a professional managing agent. In fact, many self managed buildings will simply create their own sales application forms!
Potential purchasers of HDFC coop apartments should take the sales application extremely seriously. Just because the building is income restricted does not mean the co op board will be cutting you some slack.
You’ll need to make sure your purchase application is filled out completely. Never leave any blanks and write N/A if the question does not apply to you.
Pay Attention to Detail
Make sure you type up the application, even if the instructions do not specify.
Use software like Adobe Acrobat which will allow you to save changes, or free software like HelloSign where you may not be able to save changes.
A quick Google search should reveal many options that will allow you to type on the PDF HDFC coop purchase application. Pay attention to detail and proofread your entire application a few times to make sure there are no spelling or grammatical errors.
The sample HDFC co op purchase application above does not ask for a completed REBNY Financial Statement, but you should provide one anyway so the board will have an easy summary of what your assets, income and liabilities are. Make sure any bank statements or other account statements you provide as backup add up and match the numbers you provide in your personal financial statement.
Ask for references from your co-workers, employers, banks, friends and family early.
Reference letters typically take the longest to gather, so you should get a head start as soon as you receive the HDFC coop application from the real estate listing agent.
Make sure you follow the HDFC coop application instructions to the letter.
Make sure you’ve included everything the board has asked for in the final coop board package. The board package should have page dividers of different colors so the board can easily tell the different sections apart. You should also include a cover letter and a table of contents. Make sure the HDFC coop board understands that you are a true professional!
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Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided.
