What Is a Housing Cooperative?
Most people in the United States either rent or own their own homes. For those who can afford it, home ownership is an excellent choice for housing. For those who cannot, however, rental housing is the traditional route. But, there is an alternative to both.
A housing cooperative is a corporation comprised of member shareholders. While members cannot claim ownership of the property, per se, the shares they've purchased earn them the right to occupy a unit on the property. Each month, members pay a carrying charge to cover the operating expenses of the cooperative. These charges should not be confused with the rent that tenants pay to a landlord. In a cooperative, even though members are not property owners, they are shareholders with an economic and social interest in the welfare of the cooperative. To both of those ends, each member enjoys an equal vote in choosing the Board of Directors who make all policy decisions regarding the operations of the cooperative.
Housing Cooperatives Versus Rentals
There are many advantages to joining a co-op:
- When filing your federal income taxes, members are classified as a homeowner, not a renter.
- There is no landlord. Members control the way the community is run by voting for the Board of Directors. Any member in good standing can run for election to the Board.
- Members pay only the actual cost of running the cooperative. No landlord is making a profit on monthly payments, so the charges are very reasonable.
- Members can stay in their homes as long as they wish, providing they do not violate the occupancy agreement.
- Since members are shareholders, they also benefit from its equity.
- The burden of general maintenance and major upgrades is shared by all co-op members.
- Members enjoy greater mobility since shares in the cooperative are easier to resell than homes.
Our Unique Community
The benefits of membership at Forest Hills Cooperative aren't just financial. Our diverse, international community offers a dynamic mix of neighbors of all ages, cultures, and backgrounds. Strolling through our neighborhoods, you'll hear multiple languages and see children of every ethnicity playing together in communal areas. If the weather is nice in the evening, you might just smell delicious, international cuisine, too! Forest Hills gives members a chance to learn more about the world from neighbors who have roots all over the globe. And, as members, our shared interest promotes genuine friendship, connection, and community.
Visit Us!
So what are you waiting for? Come by and see for yourself what makes co-op living at Forest Hills so special! We're conveniently located at 2351 Shadowood Drive, Ann Arbor, MI 48108 in Southeast Ann Arbor. We know you're going to love it here!