We really wanted and needed ALL of the information clearly shown and explained to us prior to making a final decision and Valley View Cooperative did just that.
John ans Susan Anderson
FAQ’s About Senior Living at Valley View Cooperative
What is a housing cooperative?
A housing cooperative forms when people come together to own and control the buildings in which they live. Each member owns a share, but together, they own all of the building, land and any common areas. Each member pays a monthly amount (called carrying charges) based on the square footage of their unit to cover operating expenses.
￼￼In determining if a cooperative is right for you financially, compare the annual cost of living in your home including maintenance expenses vs our monthly carrying charge – we think you will be surprised what a great financial bargain our cooperative is. In a cooperative, you know your costs each month – there are no surprises.
How does a cooperative work?
The cooperative is a legal corporation. Members living in the co- op, run the co-op – from organizing social activities, to maintenance, to handling finances, to landscaping. Members set the by-laws of the co-op and also elect, from among themselves, a board of directors. The board makes sure that things run smoothly according to the co-op’s by-laws and operating agreements. The board organizes member meetings on a regular basis.
Here at Valley View Cooperative, we have a seven member Board of Directors, elected by the membership for a term of three years. Ebenezer Management Services has been hired as our management company. In turn, they hire our full-time Resident Services Coordinator, full-time maintenance person, part-time housekeeper and assist the Board of Directors with budget/ financial reports, communications and legal issues.
￼What do I pay at closing?
You pay the share price of the unit at closing.
What monthly payments do I have to make?
Each member makes one easy monthly payment covering their pro-rata share of the budgeted costs of the cooperative. These costs include taxes, mortgage payments, repairs, maintenance, reserve funding, water, sewer, garbage and cable.
Here at Valley View Cooperative, our members pay for their own electricity, phone service and garage rent.
What tax benefits are available to me?
The pro-rata share of the mortgage interest and taxes is deductible on your income tax form by each member – the same as in home ownership.
How do I acquire equity?
As with any mortgage, as the market value of your cooperative interest increases, you build home equity. The equity increases at a specified rate each year effective January 1.
Cooperatives are set up many different ways as to how they operate, their financial structures, and the share prices and monthly payments charged. Valley View Cooperative is a limited equity cooperative. Shares increase in value each year by a pre-determined formula established by the By-Laws – currently, your share will increase in value by 3% per year. With reserve funding coming, we strive to keep our homes affordable for our members.
Why is being a cooperative member better than renting or owning a condo?
- Lower Monthly Costs: Because cooperatives operate at cost, co-op’s carrying charges are often 15-25% or more below rental market value. Monthly charges are more likely to remain the same instead of annual rent increases.
- Tax Deductions: For income tax purposes, co-op members are considered homeowners and can deduct their share of the real estate taxes and mortgage interest paid by the cooperative.
- Home Equity: Your membership share increases in value annually.
- Limited Liability: Co-op member/owners have no personal liability and need not individually qualify on the co-op blanket mortgage and the corporation is responsible for paying off any blanket loans.
- Overall Savings: Co-op members benefit from economies of scale in operating costs as well as being a not-for-profit operation. Almost all building improvements and repairs and most maintenance issues are handled with no extra cost to you. The spreading out of these costs among co-op members cushions the economic shock of emergency repairs.
- Community Building: Cooperatives provide homes for members, builds a community of neighbors, provides social activities, and building security.
- Cooperative vs. Condo: A co-op member owns interest in the corporation and its property as a whole, plus the exclusive right to occupy a particular unit. Co-ops assist members to find prospective buyers and there are no real estate transaction fees.
A condo owner owns fee title to a unit plus an undivided interest in the common property of the condominium development. Owners must find their own buyer and the sale is a real estate transaction.