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What is cooperative housing? <br />Cooperative housing combines the advantages of home ownership with <br />the conveniences of community living. Although there are different types of <br />cooperatives, all have certain principles in common: joint ownership of the <br />property and operation by a Board of Directors elected by the residents. <br />At Gramercy Park Cooperative, each resident purchases a share in their own <br />common - interest corporation. These shares provide the equity necessary for <br />the corporation to secure a mortgage. Unlike a condominium where each <br />resident must qualify and obtain individual financing from a variety of <br />lenders, the cooperative has one mortgage with the payments and operating <br />expenses shared by all members. <br />Gramercy Park Cooperative will qualify for an FHA insured, 40 -year <br />mortgage, allowing the building to be constructed and managed for an <br />affordable cost. FHA requirements mean each cooperative must conform <br />to rigorous quality and operational standards. <br />The cooperative holds title to the property, assuming mortgage and tax <br />obligations and relieving members of direct liability for these items. <br />Members support the cooperative through their occupancy agreements <br />and monthly fees. <br />Under State and Federal law, cooperative members are homeowners, <br />entitled to deduct a proportionate amount of the building's mortgage <br />interest and real estate taxes from individual tax returns. <br />Cooperative housing has been successful because it creates an "owner <br />attitude" among members who take pride in their property as well as in <br />directing the affairs of the community. <br />Page 42 <br />