Cooperative Housing is joint ownership of the facility by the residents of the building. The people living in the building own the shares and each unit has one voting share. The Board of Directors, composed of resident volunteers, is elected by the members and has the official capacity to act for the cooperative. The cooperative approach to housing instills a sense of community and pride in ownership, resulting in a deeper interest in maintaining the property and participating in the many activities planned by the cooperative members.
A cooperative is operated on a non-profit basis. Thus, any increases in monthly housing costs are limited to actual increases in operating costs. The monthly fee is an amount sufficient to meet operating costs, including payment of principal and interest on the mortgage, which is held by the cooperative. Members therefore do not have to carry individual mortgages. Part of the monthly fee is also deposited in a fund for replacement, which will be used to cover the costs of the replacement of appliances, carpets and other structural components in the future.
As a member of a cooperative, you earn equity on your membership each year. You also have the benefit of deducting your portion of the mortgage interest and real estate taxes when you file your income tax return. The building is homesteaded.