A co-op (aka a housing cooperative) is a type of housing owned by a corporation made up of the owners within the co-op. The corporation owns the interior, exterior, and all common areas of the building. In fact, co-ops in New York outnumber more traditional condo units by a ratio of almost 3 to 1.
What is a cooperative unit?
Of the many definitions of “cooperative,” the one I like best is this: a multi-unit apartment building where each resident has an interest in the entire building, and a lease (or contract or share of stock) enabling the owner to occupy a particular apartment unit there.
Who is the owner of a co-op housing unit?
A “housing cooperative” (or “co-op”) is the legal term for a housing unit that is owned and controlled jointly by a group of individuals who have equal shares, membership, and/or occupancy rights to the housing community.
How are housing cooperatives different from other types of ownership?
A housing cooperative or “co-op” is a type of residential housing option that is actually a corporation whereby the owners do not own their units outright. Instead, each resident is a shareholder in the corporation based in part on the relative size of the unit that they live in.
Can you own more than one share in a California Housing Co-op?
Share prices in these cooperatives are usually low, and member households may not own more than one share. To further preserve affordability and prevent speculative resale, price restrictions are put on the sale of shares. California legislation recognizes and regulates limited-equity housing cooperatives.
How are limited equity housing co-ops funded?
Limited Equity Housing Cooperatives are developed to offer permanently affordable homeownership opportunities for low and moderate income households. The development of these types of cooperatives is often funded with a combination of private and public funds.
