Introduction

Cooperative Housing means co-operative or joint ownership of a housing development by those who live in it.  The not-for-profit cooperative corporation's "Articles of Incorporation" and "By-laws" are specially designed so the cooperative corporation will be owned and operated by its members.

Financing of REALIFE Cooperative is provided by members' equity (through their share purchases), along with a HUD insured 35-year blanket mortgage for the project.  Cooperative members are in effect their own landlord, thereby enabling the cooperative to be built and operated at an affordable cost.  Because of the requirements of the mortgage program, each project must conform to quality, approval and operational standards established by HUD (U.S. Department of Housing and Urban Development).

A cooperative is a unique form of home ownership in that the corporation holds title to the dwelling units and directly assumes the mortgage, tax and other obligations necessary to finance and operate the development, thereby relieving the members of any direct liability for those items.  Members support the cooperative through their occupancy agreements, which eliminates the necessity for each member to be an individual mortgagor under a HUD insured mortgage.

The cooperative approach to housing has been successful largely because it provides a housing alternative for living which is very much like continuing home ownership.  With cooperative ownership, a pride of ownership is instilled in its members, which results in a deeper interest in maintaining the property and participating in shared government.

© 2004 Realife Cooperative of Rochester.  All rights reserved.