Housing cooperatives are a legal hybrid between an apartment and a condo. Typically, cooperative housing units are part of a multi-unit building, but rather than paying a mortgage, you are a shareholder in the building, entitling you to an apartment with legal documentation similar to a lease agreement. Like condos, the rules of the co-op are regulated by a governing association with appointed board members.
Elements of design:
- A cooperative housing agreement is essentially a lease, a purchase of a share of a corporation
- Cooperatives are largely managed by the tenants of the building with monthly shareholder meetings to determine and uphold the rules of the building
- Unlike renting, there are tax benefits to ‘owning’ a share in a cooperative residential building