Cooperative apartment houses, also known as cooperative housing or co-ops, refer to a type of residential building or complex that is collectively owned and managed by a group of individuals or shareholders. Unlike traditional apartment buildings where residents are tenants, in a cooperative apartment house, the residents are members who hold shares in the cooperative corporation that owns the property.
In a cooperative housing arrangement, each member or shareholder has the right to occupy a specific unit within the building. The shareholders elect a board of directors, usually from their own ranks, to oversee the management and operation of the cooperative. This includes maintenance, repairs, financial decisions, and setting policies and rules for the community.
The cooperative corporation owns the entire building or complex, including the individual units. Shareholders pay a monthly fee, often referred to as a maintenance fee or carrying charges, which contributes to the overall expenses of the cooperative. These charges typically cover items such as property taxes, mortgage, insurance, utilities, maintenance, and management fees.
Cooperative apartment houses provide a unique form of homeownership that combines the benefits of owning a property with the advantages of affordable housing and collective decision-making. They promote a strong sense of community and allow residents to take an active role in shaping and maintaining their living environment.
It is important to note that cooperative housing may have specific rules and regulations set by the cooperative corporation, and potential residents often undergo an application and approval process before being granted membership.
