What is a housing cooperative, and how does ownership work?

A housing cooperative is a community owned by the people who live there. Instead of buying an individual condo or renting an apartment, you purchase a share in the cooperative corporation. That share gives you the right to live in a specific home and a voice in how the community is run. At Village Cooperative, members collectively own the building, grounds, and shared spaces. The cooperative handles maintenance and day-to-day property operations, so you can enjoy the benefits of homeownership without many of the responsibilities of maintaining a house.

How much does it cost to live at Village Cooperative?

There are two costs: a one-time share purchase and a monthly expense. Your share purchase makes you a member-owner of the cooperative. Share prices vary by community, floor plan, and home location, generally ranging from $150,000 to $300,000 or more. The monthly expenses cover the cooperative's operating expenses, including maintenance, utilities for shared areas and certain home utilities, property taxes, insurance, the master mortgage, and reserve funds for future repairs and replacements. Your Sales Manager can walk you through the costs for a specific home so you understand what you're paying for before making a decision.

What do the monthly expenses cover?

Think about everything that goes into maintaining a house: lawn care, snow removal, repairs, insurance, property taxes, and eventually replacing things that wear out. At Village Cooperative, those responsibilities are handled collectively. Your monthly fee helps pay for interior and exterior maintenance, groundskeeping, building operations, the cooperative's master mortgage, and reserve funds for future expenses. That means fewer unexpected repair bills and less time spent finding contractors or arranging maintenance. You can spend more time enjoying your home instead of taking care of it.

What happens to my equity when I sell my share?

When you're ready to move, your ownership share can be sold to another qualified buyer. The cooperative helps facilitate the resale process, including connecting with prospective members and people on the waiting list. Village Cooperative uses a limited-equity model, which means share values increase according to a formula established in the cooperative's governing documents rather than fluctuating directly with the housing market. When your share sells, you receive the applicable resale value, including accrued equity, subject to the cooperative's resale terms and any applicable expenses. The process does not require a traditional real estate listing or agent commission.

How is Village Cooperative different from renting or buying a condo?

With a rental apartment, you pay monthly rent but don't build ownership equity. With a condo, you own your individual unit and are generally responsible for more of its interior maintenance and repairs. Village Cooperative offers a different approach. You own a share in the entire cooperative, build equity according to its limited-equity structure, and share the costs of maintaining the property with other members. You also have a say in how your community operates. Members elect a board of directors, with one vote per home. It's homeownership designed to give you more freedom, more predictability, and a greater sense of connection to the people around you.

Why Cooperative Living Appeals to Adults Planning Their Next Chapter

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When Is the Right Time to Move?

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What Is A Cooperative?

Discover how cooperative ownership works and what makes it different.

Frequently Asked Questions

What are the closing costs?

There are no closing costs. As a new member buying an equity share in our cooperative, you simply pay your share price at closing.

How does owning in a cooperative compare to renting?

Lower monthly costs. Because cooperatives operate based on actual costs in a not-for-profit model, cooperative operating and carrying charges are often below rental market value. Approximately 70 to 75% of the operating costs in the co-op are fixed (mortgage, operating reserve, along with repair and replacement reserve).
Tax deductions. For income tax purposes, cooperative members are considered homeowners and may deduct their share of the real estate taxes and mortgage interest paid by the cooperative.
Predictable home equity growth. Cooperatives provide for annual growth of members’ equity at a fixed rate of return on investment that renting simply can’t offer. Using this “limited equity” approach, appreciation is limited by the cooperative and determined by a simple formula established in the Cooperative Corporation’s by-laws. This ensures that homes remain affordable and marketable for the long term.
Limited liability. Cooperative member/owners have no personal liability and do not need to individually qualify on the cooperative master mortgage. The cooperative corporation is responsible for paying off any blanket loans.
Community building and pride of ownership. Cooperatives provide homes for members and build community for the cooperative as a whole through group activities and social functions. Unlike renting, ownership instills a sense of pride of ownership. Do you take better care of a car you own or a car you rent?
Stability and peace of mind. Ownership in a co-op community brings about stability and long-term neighbors, which our members will tell you creates a more cohesive community all around that you will enjoy for years to come.
Security on two important fronts. Cooperative tenure is secure, within the guidelines of the law, cooperative bylaws and occupancy agreements. In addition to legal protections, Village Cooperatives offer secure buildings with clean, well-lighted, underground parking.
Democratic member control. Each membership provides the right to occupy a home and each home has one vote regardless of its size. This sense of control and having a voice in decisions is another key distinction between cooperative owner/members versus apartment renters or condominium owners, who have little or no say in what happens with their building. With cooperatives, you don’t have landlords or outside investors because you essentially become your own landlord when you join.

Do you have a waiting list?

Yes. Each Village Cooperative community maintains a waiting list. This enables prospective members to indicate the type of home desired and timing for when they wish to be notified of the availability of resale homes. To join the waiting list, you simply complete an application and submit it along with a nominal and refundable deposit.

Who can live at Village Cooperative?

Village Cooperative communities are designed for active, independent adults. Most new communities require at least one member of the household to be 62 or older, although age requirements can vary by location.

Members must also meet the cooperative's financial qualifications, including the ability to purchase their ownership share and afford the monthly expense.

You don't have to be retired to live here. Many members continue working, traveling, and enjoying the activities they've always loved, without the work of maintaining a house.

What tax benefits are available to me?

The tax benefits are identical to those for a single-family house. Members may deduct their pro-rated portion of the cooperative’s mortgage interest and real estate taxes on their personal state and federal income tax returns. They have the same rights to exemption from capital gains taxation as any other homeowner.