A style of homeownership in which you don't own the real estate. Instead, you own shares or a membership in a cooperative housing corporation, which in turn owns or leases the real estate. As part of your membership, you have an exclusive right to live in your specific unit for as long as you want, as long as you abide by the rules of the cooperative. You also have a vote in the affairs of the corporation.
A form of ownership different from that of a condo. Condo owners do directly own their property, as well as a proportionate stake in the common areas. One similarity: Both condo and co-op owners usually elect a board of directors and hire a management company to make decisions and handle day-to-day operations.
A style of housing that can take many forms. Co-ops are often high-rise apartments, but they don't have to be. They can also be garden-style apartments, mobile home parks, townhouse communities, groups of single-family houses, and senior-housing facilities.
An arrangement that comes with a monthly fee. The amount of the monthly charge varies from co-op to co-op, but it usually covers the owner's proportionate share of operating and maintaining the cooperative. These expenses can include mortgage payments or a lease on the building and land, property taxes, management fees, maintenance costs, insurance premiums, utilities and contributions to reserve funds. These fees are often higher than the fees charged for comparable condos, but that doesn't make them a bad deal. Prospective co-op buyers should find out exactly what is included in the fee.
A style of ownership that requires special arrangements at the settlement table, because the sale involves personal property, not real estate. Financing for co-ops is more difficult to find than for condos or single-family homes, and owners are often limited to a handful of lenders. The upside: Closing costs are generally cheaper than for a comparable condo unit.
A type of housing that can involve lengthy applications, financial disclosures and interviews with board members. Many people like this, though, because it can reduce the risk of too many of the units going to investors and renters instead of resident owners.
A form of ownership particularly popular in New York City, where about a third of all homes are co-ops, according to the National Association of Housing Cooperatives. The District is also home to a number of co-ops, including many prominent apartment buildings along Connecticut Avenue NW.
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