Resident rights in a housing cooperative

Understanding Resident Rights in a Housing Cooperative

A housing cooperative, also known as a co-op, is a type of residential property ownership where individuals own shares in a corporation that owns the property, rather than owning the property directly. These residents, or shareholders, have certain rights and responsibilities that are typically outlined in the cooperative’s bylaws or proprietary lease.

One of the fundamental rights of co-op residents is the right to occupy a specific unit within the property. This right is usually contingent on the resident fulfilling certain responsibilities, such as paying monthly maintenance fees and complying with the cooperative’s rules and regulations.

Another significant right is that of decision-making. In a co-op, residents often have a voice in the management and operation of the property, including electing the board of directors and voting on major decisions. The extent of this right can depend on the number of shares a resident owns in the cooperative.

Co-op residents also have the right to sell their shares and transfer the associated proprietary lease to a new owner, subject to the approval of the cooperative’s board. Some co-ops may have restrictions on sales and transfers to maintain the cooperative nature of the property.

Finally, co-op residents have the right to certain protections under local and federal laws, such as nondiscrimination in housing and fair treatment by the cooperative’s board. However, these rights can be subject to certain limitations and exceptions.