How is a co-op different than a condo?
In cooperatives, a non-profit corporation owns all of the individual housing and common spaces. Co-op members own a share of stock in the co-op corporation which entitles them to occupancy in a unit of the housing. Members elect a board of directors which is legally responsible for the housing. Members pay a monthly pro rata share of all of the costs of their housing unit, including principle, interest, taxes, insurance, maintenance, reserve fund, education, etc. They receive full homeowner tax benefits. Departing members may sell their shares back to the co-op or to a new member approved by the co-op. New buyers must go through credit checks just as in a conventional purchase. Some co-ops have resale controls so that the housing remains affordable to future users whose incomes are similar to the initial owners. Resale controls will be utilized in the L.A. Eco Village. In condos, each unit of housing is privately owned and deeded. The common facilities are owned cooperatively through a
