Developers propose two 100% affordable HDFC co‑ops in CB2; team asks for board support to advance HPD approval

Developers presented two privately financed, 100% affordable buildings to the CB2 Land Use and Housing Committee on Sept. 10 and asked the board for support as they advance approvals with HPD and the city council.

Alvin Schein, attorney for the developer, said the projects — 30 Thompson Street and 285 Hudson Street — are each designed as 100% affordable developments and the ownership’s preferred outcome is to deliver both as HDFC co‑ops (homeowner cooperatives) rather than rentals. The team said that approach would make the apartments permanently affordable under MIH rules and that they plan to seek an Article 11 tax exemption (the co‑op tax exemption process) as part of the financing and closing process.

Project details and financing - 30 Thompson Street: The team described a roughly 18‑story building of about 50,000 square feet with 44 units. The architect described masonry and metal cladding, large windows and a 17‑foot ground‑floor height for a gracious street front and to accommodate flood‑resilience measures. - 285 Hudson Street: Described as a 10‑story building of roughly 16,000 square feet with 24 units. - AMI and unit mix: The team said both buildings are being planned to meet an average 60% AMI requirement; 30 Thompson was described as using a 40/60/80 AMI mix (developers said that mix is used to deliver the 60% weighted average), with an emphasis on two‑bedroom units appropriate for family housing. The team also said at least 50% of affordable apartments would be two‑bedrooms (meeting the MIH two‑bedroom option) and that at least 10% of residential floor area would be at 40% AMI, per HPD requirements. - Subsidy and ownership: Presenters said no large government subsidy is committed; the buildings are privately financed and would rely on the Article 11 tax exemption and private market financing. The developer said they will apply to HPD to allow these projects to be delivered as HDFC co‑ops rather than rental apartments.

Why it matters The applications are noteworthy because they represent a model that produces permanently affordable, privately financed homeownership opportunities — HDFC co‑ops — within areas experiencing substantial market pressure. If HPD and the city council approve the Article 11 tax exemption and the HPD homeownership path, the buildings would be 100% affordable in perpetuity under MIH rules.

Public reaction and committee response Public commenters and several committee members praised the idea of permanently affordable homeownership in the district and asked technical questions about how the co‑op ownership model would be priced, how buyers would be selected (lottery), and how any tax incentives would be obtained. The team said they would market the units via a lottery process similar to other HPD affordable lotteries and that initial buyers would be subject to income and asset limits consistent with HPD practice.

Next steps The developers asked the committee for a written resolution of support to carry to HPD and to the city council (the Article 11 tax exemption requires city council approval). Committee members discussed drafting a resolution to be considered by the full board and indicated general support for advancing the homeownership model, with requests for further documentation on the proposed Article 11 timeline and the draft co‑op rules for resale restrictions and eligibility.

Ending Developers said they will prepare documentation and follow up with CB2 and HPD; the committee indicated it would work on a formal resolution to convey support to HPD and the city council if applicants provide the requested materials.