Benefits
…Creating community excellence one member at a time…

There are many benefits to cooperative ownership.  Some of these include lower real estate tax assessments, reduced maintenance costs, lower turnover rates, personal income tax deductions, member participation, member control, prevention of absentee ownership, and most importantly, pride of ownership.  Due to the low monthly costs associated with cooperatives, our members have more disposable income.

Ownership

Owners are shareholders of the corporation that own the property.  Ownership entitles Members the right to occupy one unit.  Members retain equity.

There is no ownership.  Upon expiration of lease, the tenant must vacate.

Owners acquire title to their building and yard.  Owners gain equity as their loan decreases and value of home increases.

Ownership of a unit (within a legal description of the airspace that the unit occupies) & undivided interest of the common elements, which are jointly owned with the other condo owners.

Move-In Costs

New Members purchase a co-op unit that can range anywhere from $4K to $25K, a one-time low membership fee of $200, and pay their 1st month’s carrying charges.

A security deposit is paid plus the first month’s rent.

Owners buy the property.  Buyer usually makes a down payment and obtains a loan (mortgage).  Interest is applied to the loan, and additional closing costs.

Same as the single family owners.  The first month’s condo fee is due and payable to the Condo Association.

Monthly Costs

Members pay their carrying charges, which is their proportionate share of the operating costs based on the non-profit operations of the entire entity.  The monthly carrying charges range from $380-492. Real Estate Taxes are included.

Tenants pay their rent that is specified in their lease.

Owner pays a monthly mortgage, which includes principal and interest.  Owner may be required to carry private mortgage insurance (PMI) and owner is required to pay property taxes.

Same as the single family.  The monthly condo fee is paid to the Condominium association.

Community and Governance

Members elect a Board of Directors, which at times may set up committees.  Most co-ops provide services and activities desired by their members.

Renters usually do not have a voice in rules and regulations to maintain community standards.  They do not have control over their neighbors.  This is usually at the discretion of their landlord.

Owners do not have authority or control over their neighbors.

Owners elect a Board of Directors and are similar to co-ops.

Tax Benefits

Your share of the property taxes and mortgage interest (if any) are deductible on personal income tax return.  These are already included in carrying charges

No benefit

Mortgage interest and property taxes are deductible on personal income property tax return.

Same as single family homes.

Maintenance

Cedarwood covers services to HVAC systems, hot water heater, plumbing, sewer, wiring, selected home improvement projects, and much more, at no additional cost.  There may be a minimal fee for some repairs or improve- ments.  The co-op maintains lawn and snow removal in the common areas.

The landlord is responsible for most repairs and replacements.

Owners are responsible for repairs and replacements.

Condos may vary from one to another, but usually Owners are responsible for repairs and maintenance of the exposed fixtures, i.e. furnace, hot water heater, exposed plumbing, etc.  The condominium association repairs the covered elements, i.e. sewers.  The association usually handles lawn maintenance and snow removal.