Categories: Rev. Dr. Charles Butler,
How can anyone afford to buy a home in Harlem? This is indeed a tough question. Many Harlem residents are extremely frustrated over the asking prices of homes currently on the market in our community. This frustration is to an extent justified because the area median income (AMI) for most of the Harlem residents is estimated to be in the low to moderate range. What this simply means is most Harlem community residents do not earn enough money to purchase a brownstone for 2 – 3 million dollars. So, in effect the community Harlem residents are conveniently being priced out of the market.
Obviously, there is a need for more affordable housing in communities such as Harlem. This is why the New York City Department of Housing Preservation and Department (HPD) housing lottery programs are so important to maintaining and preserving the integrity of our neighborhoods. The lottery programs are subsidized by the city and will afford low to moderate income individuals and families with the opportunity to purchase either new or renovated construction condominiums and cooperative apartment units below market value.
Usually with lottery properties the unit must be your primary residence for a specified time. This period may range from ten to fifteen years, sometimes longer depending on the property. You can purchase a second and even a third home, but the lottery property must remain your primary residence. This address must be used for your voter registration, federal tax return, and state identification. Every year HPD will seek verification that you are still at this residential address.
The purpose for the property remaining as your primary residence is to discourage private investors from purchasing the property below market value and shortly after reselling the home at market rate and realizing a huge profit. However, you can sell the property before the specified period has expired but beware you will pay a hefty fine resulting in losing most of the profit.
The true beauty of the lottery program is that buyers will immediately start building up a fair amount of equity through the purchase. Equity is the difference between what you owe (mortgage amount) on the property and the market value of the property. Once you have become a homeowner and you are investing in your future as well as being committed to the upkeep of the community which will increase your property value.
As a homeowner, you are no longer obligated to pay rent and get nothing in return except a roof over your head. Now as you pay down the mortgage balance, you are building a financial inheritance for your children and breaking the cycle of poverty by narrowing the wealth gap. For more information on the New York City Housing Lottery program, you can go to their website www.nyc.gov/hpd.
For more information on the home buying process contact Rev. Dr. Charles Butler at 212 281- 4887 ext. 231 or email cbutler@hcci.org.
