Addressing the seemingly illegal rental of HDFC shares

[inkedlove]

I rented an apartment in a building about 3 months a go that I was informed was a Co-Op by the broker, that was part of the reason I selected it. I love the neighborhood and the apartment and intended to buy into the co-op if the first year renting went well. When I rented this apartment I had no idea what an HDFC was, or that this was one.

I have been involved in a legal issue with my "landlord" that revolves around a lack of maintenance. When he failed to provide necessary services (no heat for over 3 weeks and a vermin infestation spanning every room) I opted to open an HPD case that has evolved into a civil suit. In light of an approaching trial date I have been doing in depth research on the buildings registration and history an eventually looked up what the "HDFC" meant that is in the title of the "management company".

I have read a lot about the laws regarding HDFC's and it seems this is being operated in stark contrast to the original intent. There are only two "owners" and one "management company" who operated the other 10 units and rents them at market rate. I accessed the original deed from the City of New York (from 1985) and it outlines that this will always be operated solely as a low income housing project. It also prohibits the sale, transfer, exchange or lease in whole or in part. There is also a clause stating there will be no dissolution of the HDFC.

The second mortgage has been paid off but it doesn't seem that the primary mortgage owed to the city has. It seems that this "management company" is violating the law. What avenues do I have to address this? How should I bring this to the attention of the court? What are the potential legal ramifications for myself as well as other tenants renting illegal shares?

Any insight would be deeply appreciated.

I live in Brooklyn, New York

[HomeGuru]

Originally Posted by inkedlove

I rented an apartment in a building about 3 months a go that I was informed was a Co-Op by the broker, that was part of the reason I selected it. I love the neighborhood and the apartment and intended to buy into the co-op if the first year renting went well. When I rented this apartment I had no idea what an HDFC was, or that this was one.

I have been involved in a legal issue with my "landlord" that revolves around a lack of maintenance. When he failed to provide necessary services (no heat for over 3 weeks and a vermin infestation spanning every room) I opted to open an HPD case that has evolved into a civil suit. In light of an approaching trial date I have been doing in depth research on the buildings registration and history an eventually looked up what the "HDFC" meant that is in the title of the "management company".

I have read a lot about the laws regarding HDFC's and it seems this is being operated in stark contrast to the original intent. There are only two "owners" and one "management company" who operated the other 10 units and rents them at market rate. I accessed the original deed from the City of New York (from 1985) and it outlines that this will always be operated solely as a low income housing project. It also prohibits the sale, transfer, exchange or lease in whole or in part. There is also a clause stating there will be no dissolution of the HDFC.

The second mortgage has been paid off but it doesn't seem that the primary mortgage owed to the city has. It seems that this "management company" is violating the law. What avenues do I have to address this? How should I bring this to the attention of the court? What are the potential legal ramifications for myself as well as other tenants renting illegal shares?

Any insight would be deeply appreciated.

I live in Brooklyn, New York

**A: contact the state real estate licensing department.