What is a cooperative?

What is a cooperative?

A cooperative is a not for profit corporation owned and operated by its members. Members purchase a share in the cooperative. The cooperative owns the building, land, and common areas. Each member, through a monthly charge, pays a portion of the cooperative's monthly operating expenses, including maintenance, utilities, taxes, principal, interest, and lender required reserves.

Members elect a board of directors from the membership to oversee management of the day-to-day operations. Cooperative living fosters a strong sense of community while respecting each member's rights to privacy and lifestyle choices.

What does it cost to own?

Share costs have two components: 1) the share price and 2) the monthly charge. Both are based on unit size. Willow Brook share prices are a one-time cost.

The Willow Brook monthly charges are based on unit size and represent each unit's proportion of the entire cooperative's operating costs.

Monthly charges include: mortgage principal and interest, mortgage insurance premium, real estate taxes, one underground parking space, gas heat, sewer, water, removal of trash and recyclables, basic cable, professional property management, and onsite staff.

In addition to paying for the monthly charge, members personally pay for electricity, telephone, air conditioning, and home owner's insurance premium to cover their personal property.

Is there a tax advantage to cooperative share ownership?

Cooperative members receive the same tax benefits as homeowners do. Each member may annually deduct their unit's property taxes from their federal and state income taxes plus any interest they pay on the cooperative's mortgage.

What happens when I choose to sell?

The cooperative holds the first right to purchase a withdrawing member's share. If the cooperative does not choose to purchase the share within 60 days, the share is made available first to the existing membership for a limited time. If no existing member elects to purchase the share, within a limited period, the member may sell his or her home on the open market to anyone who qualifies for membership or elect to have the cooperative market their share to the open market.

How is my share price determined?

Share price increases over time. The price increases annually via a formula outlined in the cooperative's bylaws. Unit size is a factor in determining share price.