What is a Co-operative?
A cooperative is a community which is owned and operated by the members who live there; or a non-profit entity owned by the people who use it. Each member of North Brighton Townhouses, Inc. is a tenant-stockholder and has an equal vote in the cooperative corporation, which holds title to the property. The corporation pays all the mortgage payments, real property taxes and management and maintenance cost. The cooperative passes on these costs to the tenant-stockholders, who pay a single monthly fee, or carrying charges, to the cooperative. A Board of Directors is elected from within the cooperative by the members of the cooperative. The Board establishes standards to keep the community a pleasant place to live, and sets down those standards in the “Rules We Live By”.
Is it like renting?
Yes, in terms of convenience. You make one payment a month without worrying about insurance, taxes, mortgage payments or maintenance. The cooperative concept of housing has a lower monthly charge than that of a rental property.
Is it like owning a house?
Yes, in many ways. You can deduct from your Federal Income tax return that portion of your monthly charges that go toward Real Estate Taxes and Mortgage Interest. What you are able to deduct will depend upon your income and other deductions.
It differs from owning your own house, in that you are not personally liable for the mortgage and you do not have to take care of all the Maintenance! The Board of Directors sets maintenance standards and retains a professional management firm to supervise the staff. Except for interior redecorating, your home is maintained for you. Complete exterior care includes structural repairs, lawn and shrubbery care, snow and trash removal and outside painting. Major interior repairs include routine handyman work, maintenance of plumbing and electrical systems, structural repairs and replacements, including storm doors and any damage not caused by your negligence.
How do I become a member?
Fill out an application to have your name added to the waiting list and make a refundable deposit. You are called when your name comes up on the list to look at available units. When you’ve decided on a unit, you purchase your membership in North Brighton Townhouses, Inc. for $190.00 and the unit is held for you.
What happens when I move?
It’s expensive and time consuming to sell an individual house. Broker’s fees and other costs often run 10 percent of the selling price. At North Brighton Townhouses, you give notice of your intent to move we sell your membership and handle the rest.
Rules We Live By (condensed)
1. No gas dryers allowed.
2. Limit of 2 animals per unit allowed. All animals must be registered prior to coming to the property. Proof of vaccination and K.C. tags numbers must be submitted and kept current in your file. Animal owner must be aware of and observe all rules pertaining to animal ownership contained therein.
3. Dual occupancy is not allowed.
4. Each licensed driver is allowed one vehicle and each unit has one numbered parking space belonging exclusively to that unit. No inoperable, unlicensed or expired tags on vehicles will be allowed to park on NBT property. No campers, boats, trailers, or trucks over one (1) ton are allowed. Operation of all motorized vehicles is restricted to the streets at all times except maintenance vehicles charged with maintaining the grounds. No gasoline or gasoline powered or propelled engines of any kind are allowed inside units.
5. Members are responsible for mowing and trimming their fenced back yards, keeping them neat at all times. Failure to mow and trim will result in the lawn crew doing the work and your account will be charged accordingly.
6. Carrying charges (rent) are due on the 1st day of each month. If payment is not received in the office by 5:00 p.m. on the tenth day of the month, a $25.00 late fee will be assessed.
7. Negligence or misuse of coop property will be chargeable to the member. Members are responsible for all windows, screens and storm doors.
8. Trash must be placed in plastic bags and securely tied before placing in dumpster.
9. Fencing regulations and an installation/alteration permit must be obtained and board approved before actually doing the work.
A COMPLETE “RULES WE LIVE BY” WILL BE GIVEN UPON THE DAY THE MEMBER TAKES OCCUPANCY.
Cooperative Housing Corporation Bylaws – spell out the individual member’s relationship and obligations to the cooperative. Also, the bylaws specify the duties of the cooperative’s board of directors and the transfer value and other procedures relative to the sale of stock.
Occupancy Agreement – sometimes called a proprietary lease — is the contract between each member and the corporation, which gives the member the right to occupy a unit, participate in the governance of the cooperative and receive tax benefits and equity increases in return for financial and participatory support of the cooperative.
Membership Agreement – documents the purchase of shares in the housing cooperative. It includes a record of the number of shares purchased, the value of the shares and the related monthly charges.
Membership Certificate – represent the tenant-stockholder’s ownership interest in the cooperative housing corporation.