HDFCs and Shareholders: How a Corporation Runs

HDFC's and Shareholders

How a Corporation Runs


NYS Private Housing Finance Law

Article XI creates Housing Development Fund Corporations. Sections 576 and 402 defines income eligibility for prospective HDFC residents.


NYS Business Corporation Law

HDFC is to be run as a business following certain rules and lows set by the State. By-Laws are based on this law.


Certification of Incorporation

Defines Corporation's purpose to provide housing to low and moderate income people based on the HDFC Corporation’s Income Requirements.


Corporation

owns the building. It legally protects its owners, the shareholders, from certain legal and financial problems. Corporation's value is divided equally into shares per apartment, assigned at 250 shares per unit.


By-Laws

the rules which govern the Corporation, such as elections, meetings, and financial reports. Every NYS Business Corp. has them.  Shareholders can change certain sections of the bylaws by a majority vote, if such changes do not conflict with what is established under NYS Business Corporation Law


Shareholding Tenants

Known as shareholders, they own the corporation which owns the building they live in. Each shareholder has a share or stock certificate which shows ownership of part of the corporation. These certificates have value and can increase in cost. Shareholders have ultimate control of the corporation. They elect A Board of Directors who will make decisions for them. To the extent allowed by law, shareholder can change their corporate rules if such changes offer no conflict with the NYS Business Corporation Law.