A form of residential ownership where residents do not directly own their individual units. Instead, they own shares in a corporation that owns the entire property. These shares grant the right to occupy a specific unit within the building. Consider a building structured this way; prospective residents purchase shares, gaining a proprietary lease which allows them to live in a designated apartment within the building.
This structure offers several advantages, including collective decision-making on building management and potential tax benefits. Historically, these arrangements have provided an avenue for more affordable housing options, particularly in urban areas, as the purchase price of shares may be lower than that of a condominium unit. Furthermore, the cooperative board, elected by the shareholders, has significant control over who can purchase shares, allowing for community vetting and potentially maintaining property values.
