Glossary of Terms

Can low-income tenants really run their own buildings?
Can residents of HDFC co-ops get rich off their apartments?

Is UHAB a landlord?
What does it mean if someone calls a building a "UHAB building?"
How do buildings end up working with UHAB?
What is UHAB's relationship to HPD?
What is UHAB's relationship to Wave Crest Management Team, York Management, and H.S.C. Management (aka 10K or 14K)?

Can my building become a co-op?
How do I get an apartment in an HDFC co-op?
What does it mean if a tenant organizer calls my building?
I live in an HDFC co-op and I have a question about a problem we are facing.

How do I buy a building in New York City?

I. The idea of affordable co-ops

Can low-income tenants really run their own buildings?
Absolutely. Resident-controlled co-ops not only provide stable, secure, affordable housing, they foster civic engagement and neighborhood improvement. A study by the City University of New York of housing privatization programs found that "The program that performed the best was tenant co-operative ownership. It was head and shoulders above the others in terms of management quality and building services, had many fewer problems with drugs and crime, showed the greatest tenant satisfaction, and was comparable to other sales programs in terms of preserving rent affordability."

Affordable co-ops do face challenges, since they are often taking over buildings that landlords have abandoned and they have limits on how much rent they can charge. Most co-ops succeed in meeting these challenges, however, and even in difficult times the sense of pride that comes from owning is empowering and makes a significant improvement in residents' quality of life.

Can residents of HDFC co-ops get rich off their apartments?
No. HDFC co-ops are "limited-equity." They are required by law to remain affordable for low-income people. The resale guidelines of HDFCco-ops vary to some degree among buildings. In most cases, the sale price is limited by the fact that the incoming shareholder (purchaser) must meet the income guidelines of the HDFC. So although the price is not limited, the income of the purchaser is. Where there is a profit to the buyer, there is usually a split of the proceeds between the departing resident and the co-op itself.

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II. UHAB's role

Is UHAB a landlord?
No. All of UHAB's programs are focused on creating and supporting co-ops that are owned and controlled by their residents. For buildings in the Tenant Interim Leaseprogram, UHAB never owns the building at all. Only recently in programs such as Third Party Transferand TILII, which do not allow the buildings to be sold directly to the tenants, does UHAB take temporary ownership while renovations are happening and the tenants complete the paperwork and training necessary to become a co-op. UHAB never keeps ownership of these buildings, and buildings only work with UHAB if they choose to do so.

What does it mean if someone calls a building a "UHAB building?"
This could mean many different things, including:

• The building is an HDFCco-op that has joined UHAB as a member to receive certain member benefits.
• The building is temporarily owned by UHAB while they prepare to become a co-op (see above: Is UHAB a landlord?)
  
• UHAB doesn't own the building, but is working with the building actively in some way, such as helping residents apply for a program that will let them become a co-op, training leaders, providing technical assistance, or monitoring the building's financial health.
  
• The building went through a UHAB program in the past when it became a co-op. It is independent now, but feels connected to UHAB in some unofficial way.

How do buildings end up working with UHAB?
For buildings that we work with as developer or technical assistance provider, sometimes an organizer contacts a building that might be eligible to become a co-op or might benefit from a new program like tax relief, to let them know about those options. In other cases, buildings contact UHAB first, or are referred by other organizations.

UHAB is the only citywide agency which whose sole purpose is to promote and assist HDFCco-ops. Therefore, almost every co-op has worked with UHAB at some point in their cooperative development. All Manhattan and Brooklyn TILbuildings receive mandatory training from UHAB under UHAB's contract with HPD. Some Third Party Transferbuildings becoming co-ops receive training from UHAB if they are partnered with UHAB. Other organizations working with buildings sometimes contact us to provide training to residents.

What is UHAB's relationship to HPD?
UHAB is not a government agency. It is a private not-for-profit organization that contracts with New York City's Department of Housing Preservation and Development to perform services such as training of tenants living in TILbuildings and HDFCco-ops. UHAB also participates as a developer in HPD's Third Party Transferprogram and receives loans from HPD to rehabilitate buildings. UHAB also contracts with New York State and the Federal Government to assist homesteaders, tenants, and co-ops.

What is UHAB's relationship to H.S.C. Management (aka 10K or 14K), Wave Crest Management Team, and York Management?
Because UHAB does not manage property, in buildings where UHAB will temporarily serve as the owner we are required to hire management companies who are responsible for the day-to-day financial and physical upkeep of the buildings. In most cases, UHAB needs to assign the management company prior to actually taking possession of the building. We use HSC, York, or Wave Crest in most of our buildings. These companies are independent of UHAB and contract with us.

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III. For Tenants

Can my building become a co-op?
If your building is owned by New York City, your tenant association can apply to have the building enter the Tenant Interim Leaseprogram. If you do not think you are ready for TIL, you can contact UHAB to see if you are eligible for the TIL IIprogram, which has lower threshold requirements.

If you are living in a building that has been designated by New York City for the Third Party TransferProgram, the tenants can sign a petition to have UHAB selected as their building's sponsor, and after the building is rehabilitated and the tenants take training classes, the building can become a co-op.

If your building falls into other categories, such as being abandoned by the landlord, in a HUD program, or foreclosed upon by a bank, the possibilities of becoming a co-op vary from building to building.

In any case, to find out what your options are, call Dina Levy at 212-479-3302.

How do I get an apartment in an HDFC co-op?
The co-ops we work with are resident-owned and operated, and each building is independently responsible for filling its available units. UHAB is not involved in the sale or rental of individual co-op units.

The Homesteaders Federal Credit Union (HFCU) does maintain a list of low-income co-ops for sale. Please note that the list is available only to HFCU members, is only for sale units, not rentals, and is an optional service, so not all available units will be listed. The HFCU, originally a project of UHAB, is now an independent, full-service credit union with years of experience working with low-income co-ops and their residents. You can contact HFCU at 212-222-0328, or at www.homesteadersfcu.org, to learn more about their banking services and the apartment list.

What does it mean if a tenant organizer calls my building?
UHAB's VISTAorganizers target outreach to buildings that are either slated for foreclosure by the city, about to enter into a city disposition program, or are otherwise "at risk" of losing their affordability restrictions or in substandard condition. In addition, UHAB organizers will respond to phone calls from tenants in buildings that are interested in cooperative conversion.

Organizers will help residents to form tenant associations that can utilize grassroots organizing strategies to address problems in the building and eventually look for creative paths to achieving co-op conversion. UHAB's organizers are always focused on the long-term benefit for the tenants as a group. If they contact your building it does not mean UHAB wants to buy it for itself. (See Is UHAB a landlord?)

I live in an HDFC co-op and I have a question about a problem we are facing. Where can I get more information about how to solve it?
UHAB's website, www.uhab.coop, has many useful resources for co-ops. (This coming spring, the text of all of UHAB's manuals and handbooks will be added as well.) You can or you can call our main office at (212) 479-3300, our Harlem office at (212) 828-2670, or our Brooklyn office at (718) 246-9760. Contact for information on saving money through UHAB member buying programs, (212) 479-3334.

IV. Other

How do I buy a building in New York City?
The City of New York does not sell occupied buildings to individual purchasers. Some vacant properties are sold at auction by the Department of General Services. They print a booklet of available properties when an auction is scheduled. Since UHAB only works with low-income groups of residents, we are not able to assist individuals interested in purchasing buildings for their private use.

Co-op or cooperative: In a housing co-op, a cooperative corporation owns the building, and the residents own the corporation through stock issued by the corporation. Resident shareholders receive a proprietary lease for their apartment, for which they pay a monthly "maintenance charge."

DAMP: Division of Alternative Management Programs. This is the section of NYC's Department of Housing Preservation and Development (HPD) which develops and sells city-owned property. The majority of the sales have been to resident co-ops; the remainder is to non-profit and for-profit groups.

DEP: Department of Environmental Protection

DOB: New York City Department of Buildings

DOF: New York City Department of Finance. The department that handles taxes, tax arrears, and water bill arrears.

HDFC:"Housing Development Fund Corporation" This is a special New York State corporation provided in the NYS Private Housing Finance law. Many, but not all, are organized as co-ops. Most HDFCs are simultaneously incorporated under the NYS Business Corporation Law (so that they can issue stock as a co-op), while a few are under the NYS Non-Profit Law. Non-profit HDFCs can only issue membership certificates. All HDFCs are required to provide housing affordable to low-income people. UHAB exclusively helps tenants create HDFC co-ops.

HPD: New York City Department of Housing Preservation and Development

Limited-equity:Limited-equity means that both the equity required to purchase a unit and the profit from sale are limited, keeping housing permanently affordable. All the co-ops UHAB works with are limited-equity co-ops.

Third Party Transfer: Third Party Transfer is an HPD property disposition program created in 1996, which allows the city to foreclose on distressed tax-delinquent properties and transfer them directly to a new, more responsible, owner, without taking ownership itself. Buildings have an option to work with UHAB who will take ownership temporarily and help the residents create an HDFC co-op.

TIL: Tenant Interim Lease program. This is a program of DAMP/HPD, in which tenants of city-owned buildings can go through an interim period managing the building while they receive training and support. The City does major capital improvements to the building before (usually) the tenants buy their apartments for $250 each, as part of a limited-equity co-op. UHAB and the Task Force on City-Owned Property worked with the city to create TIL in1978.

VISTA: Volunteers in Service to America (VISTA) is a program of Americorps, which is part of the federal government's Corporation for National Service. VISTAs work for a year or two with a nonprofit organization on projects that fight poverty. They receive a small stipend and an educational award.