What is a Market Rate Cooperative?
City Bella on Lyndale is a market rate cooperative. Buyers of a residence receive a share in the corporation which owns the entire complex. They also receive an Occupancy Agreement giving them exclusive residency in their unit with all the rights and privileges of home ownership including the tax advantage of homesteading. The buyer may pay cash or obtain a share loan with all the conventional loan options. When selling, the member may list the unit at a price determined with the realtor, and benefit from any appreciation in value that may have occurred during their ownership.
Residents of City Bella pay a carrying charge similar to condominium association fees. In addition to paying for maintenance of common grounds, the carrying charge also covers the maintenance, repair, and future replacement of the major elements of the unit, including the furnace, air conditioner, and all appliances. In contrast, in-unit maintenance and repair is usually the responsibility of the unit owner in a condominium.
As a cooperative homeowner you have certain rights and responsibilities. These are outlined in the cooperative’s documents, which typically include the Articles of Incorporation, Bylaws, Proprietary Lease or Occupancy Agreement, Subscription Agreement, and Rules. Shareholders have a right to elect and remove Board members and amend the Bylaws. Shareholders have the responsibility of paying the monthly carrying charge on time and the responsibility to follow the rules and regulations of the cooperative.
If you need further information about market rate cooperatives, please contact a realtor.
City Bell featured in NCB video
City Bella and several of our members are featured in a recent video “Co-ops Helping Co-ops – Stronger Together” produced by National Cooperative bank that discusses the advantages of cooperative way of doing business. Click Here to view the video.