Your Questions Answered

Housing cooperatives are designed specifically for adults age 62+ who want the financial benefits of homeownership without the hassles of maintenance and upkeep. Cooperative communities are member-owned and member-governed. Each member has a voice in the decisions that affect the community as well as a stake in the ownership. Most importantly, a cooperative is a community of people joining together, working together, and enjoying life together. A cooperative creates opportunities for the well-being of individual members and for the whole community. All the members own the cooperative together.

A cooperative works through the consent and cooperation of its member-owners. Cooperative members democratically elect a board of directors who govern the policies and form committees as they see fit, based on the needs and preferences of their community. Each member brings unique skills and interests to the table. By working together, members build a vibrant community that feels more like a family than a neighborhood.

Estoria Cooperatives uses a federally insured master mortgage to finance the project. The U.S. Department of Housing and Urban Development (FHA/HUD) guarantees the financing and provides the best long-term offer by using 40-year, fixed-rate financing at the lowest interest rate available. Estoria Cooperative partners with the U.S. Department of Housing and Urban Development (FHA/HUD) to provide oversight and regulations to assure quality design and construction, as well as a financial structure that is both solid and secure. This form of financing provides an economically sound investment and relieves members of any direct liability. Each share is assigned a share value, estimated by the home’s size and type. The share value also includes a divided portion of the cooperative’s building and land. The share price is the purchase price the member will pay, which is typically set between 40% to 60% of the actual share value.

Each member’s monthly fee covers a pro-rata share of the master mortgage, property taxes, required reserves, and other operating costs, such as insurance, utilities, maintenance, and the costs of employing a management company to oversee day-to-day operations. Cooperative members also benefit by sharing expenses through bulk-rate purchasing, as well as from the not-for-profit status.

A monthly fee at a cooperative differs from rental or association fees in that the fee provides benefits such as tax deductions and includes far more than a typical association fee. Interior and exterior maintenance and replacement of standard appliances and equipment within the home are included in cooperative fees. Similar to a single family home, condominium, or townhome, the monthly fee at a cooperative includes a portion of the master mortgage and property taxes, internet, TV service, and more.

Estoria Cooperative requires that at least one member-owner of each home be age 62 or better. A potential member must also show they have the resources to purchase a membership share. The application process has a minimum income requirement to help ensure potential members qualify for membership. To assure safety and security of all members, credit and background checks are also required.