Housing Development Fund Corporation ( HDFC ) cooperatives were formed pursuant to Article XI of New York's Private Housing Finance Law and the Business Corporation Law. In practice, HDFC cooperatives are limited-equity cooperatives, providing income-restricted homeownership opportunities to low-income New Yorkers. HDFC co-ops provide a unique and important role in NYC's affordable housing landscape. For decades HDFC co-ops have provided one of the only paths to homeownership opportunities for low- and middle-class New Yorkers. Over 1,300 such cooperatives exist in the city.
While most HDFC co-ops are stable properties that demonstrate the benefits of multigenerational affordable homeownership, a significant percentage of HDFC co-ops are struggling with financial and/or physical distress. Oftentimes, the financial and/or physical distress is symptomatic of governance problems, limited board and shareholder engagement, vacant units in need of repair, and complex probate issues stemming from deceased shareholders.
For these reasons, the Office of the Attorney General ( OAG ) is dedicating a portion of settlement funds awarded to New York under the JP Morgan Chase Settlement and National Mortgage Settlement to create the HDFC Cooperative Technical Assistance Program ( CTAP .) The OAG will work closely with New York City's Department of Housing Preservation and Development ( HPD ) on this program; HPD will assist in developing and managing the program, including identifying eligible HDFC co-op properties for engagement.
The OAG anticipates awarding, through this Request for Applications, a grant of up to $750,000 to a nonprofit organization to act as a Cooperative TA Provider to provide technical assistance to cooperatives in New York City under CTAP. The Cooperative TA Provider will engage HDFC co-ops identified by HPD and offer targeted technical assistance that would help co-ops on a path toward stabilization. Technical assistance includes connecting co-ops with a source of funds for vacant unit or emergency repairs, resolving municipal arrears, addressing operational needs, obtaining legal assistance, and implementing more effective governance structures.
Qualifying organizations interested in applying for these funds must complete this application.
A copy of the Request for Applications (RFA) #24-014 will be available at the OAG website on April 8, 2025:
https://ag.ny.gov/resources/government-organizations/contract-procurement-opportunities/request-applications
Questions/inquiries and/or requests for clarification will only be accepted via e mail and in writing and should be submitted to the following e mail address: purchase@ag.ny.gov with the subject line of Questions for RFA #24-014 HDFC Cooperative Technical Assistance Program [Insert Applicant's Name] .
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Service-Disabled Veteran-Owned Set Aside: No
Minority Owned Sub-Contracting Goal: 0%
Women Owned Sub-Contracting Goal: 0%
Service-Disabled Veteran-Owned Business Contracting Goal: 0%
Disadvantaged Owned Sub-Contracting Goal: 0%
Due date:06/04/2025 5:00 PM
Contract term: 8/1/25-7/31/27
County(ies): All NYS counties
Business entities awarded an identical or substantially similar procurement contract within the past five years:
None
Background
The Housing Development Fund Corporation (HDFC) cooperatives were established under New York’s Private Housing Finance Law and the Business Corporation Law to provide limited-equity homeownership opportunities for low-income New Yorkers.
HDFC co-ops play a critical role in New York City's affordable housing landscape, with over 1,300 such cooperatives existing in the city. While many HDFC co-ops are stable, a significant number face financial and physical distress due to governance issues, limited engagement from boards and shareholders, and vacant units requiring repair.
To address these challenges, the Office of the Attorney General (OAG) is launching the HDFC Cooperative Technical Assistance Program (CTAP) using settlement funds from the JP Morgan Chase Settlement and National Mortgage Settlement. The OAG will collaborate with the Department of Housing Preservation and Development (HPD) to identify eligible HDFC co-op properties for assistance.
Work Details
The selected nonprofit organization will serve as the Cooperative TA Provider under CTAP, providing targeted technical assistance to 20-30 HDFC cooperatives in NYC. The services include:
1. **Resolve Arrears**: Assist co-ops in paying off municipal arrears through sustainable repayment plans or legal proceedings.
2. **Stabilize Finances**: Improve operational health by restructuring maintenance fees, refinancing debt, identifying unnecessary expenses, and implementing cost-saving measures.
3. **Address Rehab Needs**: Develop targeted rehabilitation scopes for repairs such as vacant unit repairs or emergency replacements, securing necessary financing.
4. **Achieve Good Governance Practices**: Help resolve governance issues by updating house rules, bylaws, and filling board vacancies.
5. **Estate Issues**: Assist shareholders with estate planning and handling probate matters.
6. **Remove Housing Violations**: Work on removing violations that hinder rehabilitation efforts.
Period of Performance
The contract period is tentatively set from August 1, 2025, to July 31, 2027.
Place of Performance
The services will be performed at the grantee's premises or designated locations within New York City.
