HDFC Loans

About HDFC

In the 1970s, hundreds of city-owned buildings in the neighborhood were abandoned by private landlords and later converted to Housing Development Fund Corporations (HDFCs).

Since then, homeownership for low- and moderate-income people throughout New York City has primarily taken the form of HDFCs or limited-equity cooperatives (co-ops), where income restrictions help maintain affordability. Despite this, many low- and moderate-income residents still lack access to the credit and information needed to become homeowners.

✔️ LES People’s FCU provides personalized service and deep expertise in New York City HDFC laws and codes.

HDFC Loan Basics

Any HDFC building can borrow from LES People’s FCU. We provide personalized service and expertise in New York City HDFC laws and codes.

Loans are available for:

  • ✔️ Capital improvements & repairs
  • ✔️ Establishing a reserve account
  • ✔️ Tax relief
  • ✔️ Other worthwhile purposes

Loan Details:

  • ✔️ Amounts start at $10,001, no maximum (subject to NCUA 15% net worth cap; larger loans may involve partner credit unions)
  • ✔️ Terms up to 15 years depending on use and repayment ability
  • ✔️ Longer amortizations up to 30 years with balloon due at 15 years
  • ✔️ Interest rates based on 3-Year Treasury + 2.5%–4.5% (floor 7.75%), adjusted every 3 years

Process Timeline:

  • ✔️ Application processing: ~30 days after complete package submission
  • ✔️ Loan closing: 45–60 days after signed commitment letter
  • ✔️ All loans serviced by LES People’s FCU (including tax & insurance escrows)

    • With LES People’s FCU, your HDFC building gets trusted local expertise and dedicated service from start to finish.

    Contact us today to get started!

    *All loans subject to credit approval and membership eligibility.

 
 

Eligibility

Any HDFC building in New York City is eligible to become an HDFC member of the Credit Union and participate in our HDFC Lending and Services Program.

    • Annual Account Service Fee (charged on July 31) - $5.00

    • Minimum deposit required/value of one share - $25.00

    • Minimum balance to avoid Monthly Maintenance Fee - $75.00

    • Monthly Maintenance Fee of $3 for accounts with combined balance below $75.00

    • Initial deposit required - $50.00

    • No Monthly Maintenance Fee

    • No minimum balance required

    • Unlimited check transactions

    • A valid government picture ID such as Driver’s License, State issued ID, Passport, NYC ID, Consular ID, or Benefit card

    • Present a most recent proof of address such as a utility bill, pay stub, voter ID or a notarized letter of residence

Apply for an HDFC Loan

Gather the following information and submit the complete package to our Commercial Lending Manager at lending@lespfcu.org.

Security and Special Covenants

  • Loans are secured by a valid first mortgage on the land and building owned by the borrower

  • LES People’s FCU will lend up to 75% of the appraised value of the land and building being used to secure the loan

  • Article 8A Loans and loans from other public funds are subordinated to the LES People’s FCU’s Mortgage Loan

See our current Fee Schedule .

Contact one of our Member Service Representatives if you have additional questions at (212) 529-8197 or by emailing lespfcu@lespfcu.org.