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A “Housing Cooperative” is an organization that fits somewhere between home ownership or a Condominium organization and renting.
Unlike a home or condominium, you have no personal obligation for a mortgage. The mortgage is held by the cooperative corporation. Your investment is limited to a membership in the cooperative, (which is much like a share of stock). A housing Cooperative is owned solely by the “members” (families) that own memberships and live there. The value of that membership, because it is a part of a real estate venture, has the value of one part of all the land and buildings that the cooperative owns, and like other real estate investments (a home), it appreciates in value. And like other home ownership types, real estate taxes and mortgage interest expenses paid by the cooperative corporation are deductible on a pro-rated basis by each of the members.
Unlike a typical rental apartment, you have much more freedom to decorate and make other improvements to the inside of the dwelling unit. Also, because each family is a member, they can participate as fully as they wish in the corporate choices, rules, and governing of the organization. There are NO outside ownership or landlord interest besides your fellow families.
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