Cooperatives were designed as a form of homeownership in which the members collectively own and control the developments in which they live. Residents buy membership stock in the cooperative. The Cooperative owns the land, building, and any common areas. Members obtain the exclusive right to occupy a specific home.

MASTER MORTGAGE LOAN
To reduce costs, Vintage Cooperative uses a federally insured master mortgage loan to finance the project, which assures a fixed low-interest rate for a 40-year term. The cooperative holds title to the property assuming mortgage and tax obligations, relieving members of direct liability; they simply agree to pay their monthly fee, which includes an allocated portion of the mortgage principal, interest, and taxes. Members retain tax deductions for mortgage interest, as well as real estate taxes. Because of their not-for-profit nature, membership involvement, and shared services, cooperatives typically cost less to operate and experience the lowest default rate of any housing alternative.

SHARE PRICE
This represents the difference between the Total Share Value and the prorated portion of the cooperative’s first mortgage loan. The Share Price is approximately 40-50 % of the share value, which keeps cooperative homes affordable in comparison with single-family homes, townhomes, or condominiums listed at full market price.

MONTHLY FEE
The monthly fee includes a proportionate share of the Vintage’s master mortgage, real estate taxes, insurance reserves, maintenance, and utilities. A detailed cost/lifestyle comparison is enclosed listing all that is included in the monthly fee. A cost breakdown will be provided to each member before finalizing their purchase.

Vintage Cooperative holds the first right-to-sell. The resale price of the membership share will equal the member’s original investment plus the amount appreciated under Vintage’s formula. The cooperative has 60-90 days to market the cooperative share and transfer the sale. If the cooperative does not elect to transfer the share, the member may choose to continue to contract with the cooperative or may sell it on the open market to anyone who qualifies for membership. Re-sale of a cooperative share avoids the fees, title, and recording costs associated with a typical real estate transaction.

Each share has value and will appreciate. At the time of resale, the share will list at the current appreciated value. Any upgrades or betterments may be negotiable at time of sale. Priority will be given to waitlist members and closings are facilitated by the community manager. There is a steady, annual appreciation of 1.5% on the share value beginning at project commencement.

There are tax benefits for members who elect to itemize deductions on their federal income tax returns. Members may deduct their share of the cooperative’s mortgage interest and real estate taxes on their personal income tax return. Members have the same ability to exclude gain on the sale of their cooperative interest from taxation as any homeowner.

When it’s time to sell your share, Vintage’s Property Manager will prepare the proper documents and handle the transaction. Vintage regularly cultivates potential buyers for our waitlist through open houses, tours, and other events at the cooperative. Because the sale of a cooperative share is not considered a real estate transaction, you typically won’t need to engage a real estate agent or pay a sales commission.

TITLE THEIR MEMBERSHIP
Vintage Cooperative may title their membership share to meet their estate planning needs. Single ownership, joint tenants, trusts, transfer on death, or a life estate are typical forms of holding title. Proceeds of the sale would go to the member’s estate or heir(s), as indicated in their estate planning documents.

ELIGIBILITY
Vintage Cooperative is an age-restricted community. All owners must qualify for membership by meeting the minimum age and income requirements.

As a member of a housing cooperative, you’ll purchase Membership stock (a share) in the whole cooperative.

Share price is the one-time initial investment to purchase the share. For many purchasers, the equity from their previous home more than covers the purchase price of a share.

Share value is the proportionate share of the overall value of all infrastructure including the land, the building, amenities, common areas, etc. In most cases, the cost of the share price and any appreciation are recovered upon the sale of the share. See “Resale Process” for more information on this!

The monthly costs are determined by Vintage Cooperative’s yearly budget. Each year the Vintage Board of Directors analyzes and pays the actual costs associated with operating the Cooperative. Vintage Cooperative does not budget with profit in mind.

The monthly costs include:

• Property Taxes
• Insurance
• Inside/Outside Maintenance including Amenities.
• Management Service
• Portion of Master Mortgage
• Reserves

Vintage’s amenities include heated underground parking, water and sewer service, garbage/recycling removal, lawn care, snow removal, landscaping, and both fire protection/security systems.

To compare what you’re currently paying each month for these expenses, you can use our financial comparison sheet. In many cases, Vintages can offer a savings over your current service costs.

The cooperative owns and maintains the all the structures up to the standard (not including any upgrades or betterments), grounds and all common spaces. The cooperative also owns all the standard appliances, flooring, window treatments, cabinets and fixtures in the units. Repair and maintenance of all of these are included in the monthly fee.

A monthly fee includes a fund reserve to cover future replacement costs for these items, as well as a general operating reserve to cover fluctuations in operating expenses.

These fund reserves mean you are very unlikely to be faced with repair bills or sudden unwelcome assessments. You don’t need to worry about your refrigerator failing, an unexpected plumbing problem, or the cost of replacing worn carpeting or outdated window treatments.

All of these are taken care of through the monthly fee, and your resale value is protected by keeping the property in a sales-ready condition through proper maintenance and replacement.