What is cooperative housing?
- Equal shares – Each resident owns shares in the cooperative. Together, the residents own the property, as members of a cooperatively owned non-profit corporation.
- Ownership – The cooperative has full ownership of the building and the land.
- Community decision making – The cooperative members make decisions about the management and maintenance of the property. Every member has a vote.
LIMITED EQUITY CO-OPS
- Tax Savings – Taxes are assessed on the entire building rather than on each individual unit, leading to a lower tax bill.
- Lower closing costs – Purchasing a co-op home is not a real estate transaction, but rather a stock sale.
- Lower down payment – The co-op building loan carries more of the debt, which means there is a lower cost to individual shareholders.
- Lower monthly fees – Co-op owners make monthly payments toward the building loan, called a blanket mortgage. The payment is shared among all the co-op homeowners.