What is a Co-op?
First and foremost, a Cooperative is a home designed to fit your changing lifestyle.
- A Cooperative is a non-profit corporation comprised of individuals who join together on a democratic basis to own and control the building in which they live. The “Members” own the building, property and all the common areas.
- Pullman Place is a limited equity cooperative which means members earn a predetermined increase in equity for each year that they live in the cooperative ensuring that resale of cooperative interests remains affordable for future buyers. As a member you own a cooperative interest represented by a Membership Certificate and an exclusive right to occupy a particular dwelling unit that is owned by the cooperative corporation.
- The Cooperative holds a master mortgage that is insured by HUD for the entire building, property and grounds. Individual members do not need personal mortgages. The Cooperative Members pay a monthly fee that covers their proportionate share (based on square footage) of the operating expenses, taxes and the master mortgage.
- Members participate in the decision making process of operating the Cooperative by electing a Board of Directors from among the Members of the Cooperative. Each Member unit owns one vote. The Board of Directors is responsible for the general operation of the cooperative. The board hires and oversees a management company to administrate the day-to-day operations, sets community policies, approves the operating budget and carrying charges and approves candidates for cooperative membership.
- Cooperative Members have the right to be considered homeowners with the benefit of deducting their proportionate share of the mortgage interest and real estate taxes on their personal income tax return.
- Commitment to community and involvement are the major differences between cooperatives and other housing types. Participation by individual members toward group goals is what builds cooperative communities.
- When a member wishes to move out, their share is resold and the member and/or their estate receive the amount of the initial share cost plus the equity, or predetermined increase, for each year the member lived in the cooperative. The selling member is responsible for expenses associated with refurbishing the unit. The Cooperative has an option, but not an obligation, for a period of 60 days to purchase the Membership. Until the membership interest sells, the member is responsible for the monthly fee, even if the member no longer lives there.