A common misconception is that HFH hands out houses to poor people. HUD does that and it doesn't really work. You end up with "the projects", a swath of bad hood, buildings stripped of copper before they're completed, and a bigger disaster.
Instead, HFH involves the community, especially and centrally the prospective home owners, who are screened for having steady jobs, existing contributions to their community, and other indicators. Nobody could buy a house on one minimum wage income or even two, no matter their character, and that's the niche filled. The owners participate in the chapter via "sweat equity", where they might help with others' houses in addition to their own, alongside volunteers from the community. They buy the house from HFH with a low-interest mortgage; it's not a gift. Owners are also monitored and advised afterwards, and they often continue to hang around chapters helping the next batch. The result is pride in their home, bonds with the chapter, and an improved neighborhood.
I have no clue what the NYC chapter was thinking but it doesn't meet the core values, but we should concede inner city chapters have different challenges than suburban or rural ones.
Source: former chapter board member