Senior housing cooperatives are an increasing popular housing option for active adults 55+. As the baby boom generation reaches retirement age and considers the many lifestyle choices available, the cooperative model is gaining greater popularity.
Cooperative living is simply ownership in a facility. Members become owners when they buy a share in the property and are then entitled to occupy a specific unit and cast one vote in all cooperative matters.
Each month members pay an amount that covers their share of the operating expenses of their cooperative corporation. As a result, there are no major financial surprises.
There are two primary costs involved in a cooperative:
- The Share Price is a one-time payment that purchases a share in the co-op. Your share entitles you to occupy a home within the co-op. It accumulates equity and is generally more affordable than buying real estate and still has the tax advantages.
- Members also pay a monthly carrying charge which generally includes: the mortgage payment, real estate taxes, operating expenses, lender required reserves, interior and exterior maintenance, sewer, water, trash/recycling, TV/cable and heat. This list varies by each individual cooperative. Members help set these budgets and the entire co-op operates as a not-for-profit.
Senior housing cooperatives are designed to be affordable, to provide peace of mind, to protect members’ investment, and is easy living. No more mowing and no more snow removal. Plumbing hassles or leaking roofs are handled by the cooperative not you.
Want to head to a warmer climate during the winter? No problem. Pack your bags and go. You are free to enjoy your life and do the things you like to do.