A cooperative apartment house refers to a residential building or complex that is collectively owned and managed by a group of individuals or shareholders. This type of housing arrangement allows residents to own and occupy their individual units within the building through purchasing shares in the cooperative corporation that owns the entire property.
In a cooperative apartment house, each resident holds shares in the corporation that represent their ownership stake in the building. Instead of owning the unit outright, shareholders have the right to use and occupy a specific apartment within the cooperative, typically under a long-term lease or occupancy agreement.
Cooperative apartment houses are known for their democratic decision-making structure, as each shareholder has a proportional vote on matters that affect the building’s management and operation. This includes decisions on maintenance, repairs, and common expenses. Shareholders elect a board of directors to oversee the day-to-day operations and make management decisions on behalf of the cooperative corporation.
Residents in a cooperative apartment house collectively contribute towards the building's expenses, which commonly include mortgage payments, property taxes, insurance, utilities, and maintenance costs. These costs are typically divided among the shareholders, based on the proportionate share of ownership represented by their number of shares. Cooperative Housing Associations or Cooperatives often facilitate the administration and coordination among the shareholders.
Overall, cooperative apartment houses serve as a collaborative housing arrangement that offers residents the benefits of ownership and the advantages of collective decision-making, fostering a sense of community and shared responsibility among the residents.
