How a Cooperative Works
The Cooperative is a Corporation governed by a Board of Directors, which operates under the Cooperative’s Bylaws and a Regulatory Agreement.
The Cooperative Corporation owns and operates the property, and each member owns a share in the Corporation. When you pay the equity value (sale price) and your one-time membership fee, you receive a Membership Certificate representing your share in the Corporation.
You also sign an Occupancy Agreement, which gives you the legal right to occupy your particular home. Each month, you pay a charge toward operational expenses.
As a member in the Cooperative, you receive the same tax benefits as single-family homeowners.
You may deduct the portion of your monthly charge that applies toward real estate taxes and mortgage interest. The management company will provide this information at year end.
Equity accrues at a rate predetermined by the Corporation Bylaws. Buyers know, in advance, how much their equity will increase.
By controlling the rate of equity value (sale price) increase, the Cooperative maintains affordable housing for you and those who follow.
You can sell your share in the Corporation when you decide to move out. Enjoy peace of mind knowing that your obligation ends at the end of your notice period.
The Corporation takes care of selling your share. Re-sale price is determined by adding the original amount paid (equity value) and the pre-determined increase amount.
As a member, you have an equal voice in the operations of the Cooperative. The Cooperative holds General Membership meetings throughout the year, where each member has a voice.
At the annual meeting, members vote to elect a Board of Directors who will represent their interest. The Board directs the management company in budget and operations decisions.
Upon request, you have access to routine Board meetings, minutes, and financial information.
Understanding Monthly Charges
Members pay monthly charges, which is their contribution toward operations and reserve expenses.
YOUR OUR MONTHLY CHARGES INCLUDE:
• Insurance for the common areas
• Heat inside your home
• Water and sewer
• Trash removal
You pay only Telephone, Cable and Electric for your home.
• Maintenance inside your home
• Maintenance outside your home
• Replacement reserves – for long range stability and economic viability of the Cooperative
• Administration and professional management