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Limited equity cooperatives sometimes also have maximum income limits for new members.These restrictions can usually found in the cooperative's bylaws or lending agreements.
The amount of the monthly charge varies from co-op to co-op.
The charges cover the members’ proportionate share of operating and maintenance.
Sometimes, however, the Board of Directors will allow members to make alterations to individual apartments on a case by case basis.
In a leasing cooperative, the cooperative leases the property from an outside investor (often a nonprofit corporation that is set up specifically for this purpose).
In a market-rate cooperative members can buy or sell a membership or shares at whatever price the market will bear.
Purchase prices and equity accumulation are very similar to condominium or single-family ownership.
Note, organizing members of a new cooperative will usually have access to much lower "insider" prices and more favorable terms.
Housing Cooperative operations are usually governed by two documents: Articles of Incorporation - a short document , typically two or three pages, that registers the cooperative with the government, and gives it some special protection and additional responsibilities under the law; and Bylaws -a longer document, typically 30 pages or more, that details the rules for operating the cooperative.
Since the cooperative corporation does not own any real estate, the cooperative is not in a position to accumulate equity (just as a renter doesn't build any equity).
However, the cooperative is often in a position to buy the property if it comes up for sale later and convert to a market rate or limited-equity cooperative.