In it, but not of it. TPM DC
Hoffman's campaign successfully forced moderate Republican Dede Scozzafava out of the race, only to see Scozzafava endorse Democrat Bill Owens, and for Owens to win the special election by 48%-46% margin. This was a pick-up for the Democrats, after incumbent Republican Rep. John McHugh had been appointed Secretary of the Army by President Obama.
Hoffman did not live in the district, but was located just slightly outside of it in Lake Placid. It should be noted that the United States Constitution does not require members of the House of Representatives to live in their districts, only within the state.