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Mitchell J Hall
The Corcoran Group (917) 312-0924 mhall@corcoran.com http://corcoran.com/mhall       
Listed by: Mitchell Hall |
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Our recent listings
Studio in Clinton | Maintenance: $250/month
Prewar "Micro-Unit" Apartment Location, Location, Location! 2 Bedroom off Central Park Upper West Side
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Good morning Mitchell. I like this. What is that man doing...? In any event, I hope the listing sells quickly and well for you.
Good morning Sheila. Thank you. I think this one will sell quickly, It's the price. I'm already getting offers and haven't even shown it yet. I don't even have any interior photos.
In the street neighborhood photo? I think the man is looking at the menu outside the cafe.
Mitchell: You and I live in different real estate worlds. Amazing that 400 sq. ft. can demand this price. Probably a bargain and great find in New York ... but here in the southland of Chicago?? Not even conceivable! One of the very reasons I love reading your posts. I learn about a totally different market, gain from your visions and input .... and stretch my mind ...
Best of luck with the sale. Hope it's quick and smooth,
Gene
Hi Gene, Thank you. I never understood why prices are so much lower in Chicago than NYC.
This apartment is actually priced far below market value. Most comparable pre-war studios are in the $300K to $400,000 range condo studios $450K - $550K
This apartment is in an HDFC coop. A NYC "affordable housing" program. The real estate taxes are reduced. That is why there are income restrictions. The maximum income allowed to purchase is 165% of the ADI area median income. It is an HDFC Coop (Housing Development Finance Corporation) A program through NYC HPD Housing Preservation Department. Some HDFC coops only allow 120% of ADI. It all depends when they were set up and it's in their Certificate of Incorporation documents.
They were meant to be for "low income" families. The definition of "low income" can and has changed. That is why I prefer the term "affordable" because many of the buyers today are moderate or middle income families. HUD determines the ADI (area median income) each year.
Back in the 1970's and early 80's many rental buildings were abandoned by landlords and owners that may have owed back taxes or city water charges and the buildings were taken over by the city.
NYC HPD (Housing Preservation Department) through an affordable housing program helped to rehabilitate the buildings, trained the existing tenants and in some cases squatters on ownership, set the coop up financially to be self-sustaining, and then sold the apartments to the existing tenants for very low amounts some as low as $250 in exchange the new owners had to maintain the buildings and keep them "affordable".
Former mayor Ed Koch was responsible. In 1989, he left office having created 3,000 apartments out of 10,000 abandoned or city-seized buildings, leaving another 33,000 units in the pipeline. Over the next 15 years, a total of 200,000 apartments inside these properties were completed, and are for low and moderate income families.
Today, I'm one of the few Manhattan brokers that represents both sellers and buyers in HDFC coops, a relatively unknown market niche. For qualified buyers HDFC coops can be a great investment.
Mitchell: Thanks for the explanation and historical facts on these properties. I guess I'm a bit of a real estate nerd for sure ... as I find your info fascinating. And you never know when you might be called upon to know it and use it. I figure the more I know, the better. You're a great teacher ... one of the biggest reasons I love reading your posts ...
Thanks again!
Gene
Gene, I'm a real estate nerd too. I learn a great deal about financing, the appraisal process and about Chicago from your great blogs.
The more we learn the better and we learn something new on activerain everyday.
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