Description of Organization and Service Provided
Since 1978 and the opening of 7500 York Cooperative in Edina, Minnesota, over 100 cooperatives especially designed for seniors, have been completed in eight states. Seniors’ interest in cooperatives has grown rapidly, even during a period of comparatively flat demographic growth. Well over half of the cooperatives were developed since 1996, with others in various stages of development.
Cooperatives meet the needs of seniors who are (1) looking for an easier place to live, (2) are not yet ready to pay for extensive services, (3) want to retain benefits of ownership, and (4) want to live in a home that will adapt to their aging needs. The design concepts pioneered at 7500 York, including full apartment units, adaptable as owners age, interior circulation and extensive community facilities, all housed in a building owned and controlled completely by its residents, have provided a highly desirable response to those needs.
Following are some of the aspects of senior housing cooperatives:
Ownership: The building and land is owned by a cooperative corporation. The shares in the cooperative are owned by members ("residents"). The value of the share is prorated to the size of the living unit. There is one membership share for each living unit and only one vote per share.
Members elect a board of directors from amongst themselves who oversee the operation of the cooperative and make all operating decisions for the cooperative. By-laws, occupancy agreements, and operating policies provide overall guidance and include such things as member and board responsibilities, smoking and pet policies, limited equity formula, and general rules to guide the day to day functioning of the cooperative. The legal documents can be changed and amended by the members.
The membership shares may be sold, and equity returned to members or their family. Appreciation is often limited by the cooperative to ensure that units remain affordable. This practice is referred to as "limited equity", and experience is that as units become more and more affordable over time, the waiting list builds thereby assuring timely resale.
Members have occupancy rights to a specific living unit as long as they own their share, pay their monthly charges, comply with the cooperative’s occupancy agreement and are healthy enough to not be a hazard to themselves.
Monthly charges pay for operating expenses, utilities, insurance, maintenance, real estate taxes, debt service on any master mortgage and reserves.
Operating and replacement reserves are maintained by the cooperative. Operating reserves are used to cover unexpected operating expenses that have not been included in the monthly charges. Since the cooperative owns the building and furnishings such as, floor coverings, appliances and window treatments in the common areas and the living units, there is also a reserve to pay for the replacement of these items when the need arises.
Age minimum: Under federal law, 80% of the homes must be occupied by households with one member 62 and older. Most cooperatives limit all units to 62 and older.
Mortgage interest and real estate taxes are deductible from state and federal income tax. Real estate taxes are paid comparable to single-family homes; state "Homestead" exemptions apply.
A management company may or may not be retained by the board of directors to assist them in the day to day operations of the cooperative.
A HUD insured master mortgage provides the long term financing for the cooperative. Members purchase their membership share and the master mortgage provides the rest of the money to finance the cooperative’s land, building and furnishings. The HUD insured master mortgage provides a 40 year fixed interest rate. Monthly charges include the prorate share of the mortgage payment for each unit.
Typical amenities include a community room with kitchen, craft/exercise room, heated underground parking, guest room, workshop, laundry facilities in each unit and storage.Eligibility
One member must be at least 62 years old, but we do have an 80-20% rule that will allow seniors 55 years+.Cost of Service
We would be happy to have you in our office to discuss pricing, or mail you out a packet with that information.Methods of payments accepted
-Reduced Rate Accepted?
-Accepted Insurance Types
-Certifications / Credentials
-This page was last updated by the provider on 10/28/2014