A housing cooperative is a corporation owned and governed by the people who live there. When you move in to a cooperative, you become a member of a community and a shareholder in a corporation. Each member of Oakdale Residential Cooperative has an equal vote in the cooperative corporation, which holds title to the property. A Board of Directors is elected by the members of the cooperative. The Board establishes standards to keep the community a pleasant place to live, and sets down those standards in the Rules & Policy documents.
Membership is similar to renting in terms of convenience. You make one payment a month without worrying about insurance, taxes, mortgage payments or maintenance.
It’s like owning a house in many ways. You can deduct from your federal income tax return that portion of your monthly charges that go toward real estate taxes and mortgage interest. What you are able to deduct will depend on your tax situation.
How your money is spent. Each dollar in your monthly payment is carefully allocated to provide the finest housing at the lowest possible cost -all on a non-profit basis. Your monthly payment covers all expenses and reserve funds and utilities (except electricity). A substantial portion is tax deductible
Affordable monthly fees
Modern kitchen with stove
* Non-profit business owned by the people that live in them
* Deduct your portion of taxes and mortgage interest
* Remain in your home for as long as you wish
* Lower prices than similar rental units.
* Residents control the living environment
* Board of Directors elected by you, the members
Benefits of Cooperative Living
NO LANDLORD – Residents in a Cooperative do not own their homes. However, they are not renters either. Instead they own a share of the Cooperative, which entitles them to live in one of the Cooperative’s houses.
NO STRESS – The Cooperative entity is responsible for major repairs such as replacing roofs, installing new windows, major leaks, back-ups, snow removal, and lawn maintenance.
YOUR VOICE – Cooperative members get the opportunity to vote for the Board of Directors and have input on the policies and activities of the Cooperative. TAX
DEDUCTIONS – A portion of the mortgage interest and real estate taxes that a member pays is tax deductible.
Well, first of all, there is no landlord in a co-op! Because the residents own the corporation, they are their own landlords. The staff works for the corporation at the direction of the Board of Directors. As a result, no profit motive comes into play and your monthly carrying charges are considerably less than rental charges for comparable townhouses.
Secondly, some of what you pay in carrying charges pays real estate taxes on the property and you – as a partial owner of the corporation – are allowed to deduct that cost when filing your income taxes. Likewise, you would receive a deduction for your share of the interest paid on the corporation’s mortgage if it has a mortgage.
Finally, a small amount of your carrying charges also is held in reserve to protect you from catastrophic costs in the case of emergency repairs or other major corporate expenses.