What is a Cooperative and How Does It Work?
Housing Cooperatives are a form of multifamily homeownership. Shareholders or tenants join together to form a not-for-profit cooperative corporation that owns and operates the building in which they live. As owners, members exercise control over their housing situation by electing a board of directors made up of their resident peers.
Prospective residents buy a share or membership in the cooperative, but the cooperative owns the land and the building. Members (or shareholders) are entitled to live in the cooperative as part of their membership benefits.
Members pay a fixed amount each month that covers basic expenses including: mortgage, property taxes, maintenance, insurance, utilities and required reserves.
Advantages in Cooperative Living
Home Selection: Individual homes that are comfortable and quiet, designed with features to make life easier and safer. Floor plans in a variety of sizes, styles and prices are offered. Charter residents can personalize their home from our selection of floor coverings and other finishing touches during construction.
Ownership and Control: Members actually own the cooperative through their share of the not-for-profit cooperative corporation; there is no equity investor or landlord. You and your neighbors govern the cooperative with assistance from the managing agent.
Cost of Operation: There is no equity investor. Occupancy charges are equal to the actual cost of owning and operating the property.
Hassle Free Lifestyle: Realife cooperatives provide all the benefits of home ownership without the worries of maintenance and upkeep. Professional on-site staff manages snow removal, lawn care and maintenance of the building and your home.
Homeowner Tax Advantages: Mortgage interest and real estate taxes are deductible in a housing cooperative.
Equity Growth Potential: Realife Cooperative members earn limited equity on your home based on the square footage of your unit and number of years you live at the Cooperative. The limited equity keeps it affordable for the first members and future members.
Overall Value: Expenses in a cooperative are spread across the entire membership proportionately, making the cost of living generally lower than a comparable single family home.
