Hi Everyone!
I am a disabled senior. I want to sell my home in rural Tennessee and move to a Senior Community in my home state of Michigan. I have found what seems to be a nice apartment building in my desired area.
It is owned by a non-profit corporation, and the rent is subsidized. It is a Senior Co-op Apartment building and I was wondering what a co-op apartment is? The website says residents must be part of the decision making, attend meetings, vote on issues, etc. That does not bother me. I'm wondering about the tenant selection process. How do they choose who can or can't live there? Can anyone who knows about them share with me the pros and cons of living in a Senior Co-op Apartment and how they select tenants?
It got wonderful reviews and has won some awards. There is a long waiting list so I will have to sell my home and find housing until my name comes up on the list.
Thank you so very much.
Something about you would be required to sell your interest back to the Co-op, and not necessarily at a profit. Maybe the Co-ops are not all that way, but if I am going to buy a home, it is an investment. And the Co-op board has to approve your buyer.
found this:
[If it's a co-op unit you're selling, are there restrictions on if, when, and to whom you can sell your shares? You might not be able to sell to the potential buyer of your choice.
If selling your shares in a co-op, will the sale be difficult because the board of directors has power to set the selling price? It the board plans to set the price at a higher amount than you think the market will bear, you might need to take up the matter with the board beforehand.]
I live in Michigan. There's also one in my community, and while it may sound great, there are issues with the community that wouldn't invite anyone to live here if they knew what the situation is. There's another in a neighboring community that suffered some negative publicity when one of the residents was shot. The neighborhood itself is attractive, but there are issues known locally that aren't published openly (such as 4 legged undesirable critters).
If you want more info on these local ones, just PM me and I'll share what I know.
One thing you should plan for is annual cost increases, and residents who get involved w/o knowing how to do so, and can cause friction when they won't collaborate on solutions.
You should also investigate the non-profit that owners the co-op, and especially explore its history, whether it owns other co-ops and if they're in good standing.
You pay maintenence each month (not rent) to the corporation which pays for custodial services, defray the mortgage on the building and real estate taxes. If you've taken a mortgage to buy your shares, you pay that as well.
(This is how NYC coops work; I don’t know if Michigan is similar).
You should read the offering starement carefully and have a lawyer look it over before you agree to the contract to purchase shares.
In some coops (at least in NY), the coop board has to approve each sale. Potential buyers can be rejected for undisclosed reasons with no recourse. Other places have an easier approval process.