There are more than one million units of cooperative housing in the United States today, mostly in major cities. The first co-op was established on West 18th Street in New York City in 1876. They were originally called “Home Clubs” and were created to provide people with the economies of home ownership without all the responsibilities. A cooperative is a corporation that is owned and operated by its members through a one-share, one-vote democratically controlled entity.
What is the cost to buy into Riverside Crossing?
The first cost is to purchase a share of Common Stock. Under Montana law, each Share has a set price. Riverside Crossing has a share price of $50,000 and is issued as a Share Certificate. This share cost provides the basic infrastructure of the the cooperative. Walking paths, sewer and water, streets & sidewalks, street & path lighting, Common House, shared green spaces, community gardens & landscaping, pocket patios with fire-pits, and much more. The share price never changes and when you decide to sell your share the price for the next member will be $50,000. The remaining amount is the cost of the cottage. So a cottage that is marketed at $350,000, for example, is $50,000 for the Share Certificate and $300,000 for the cottage. When you sell the cottage it may have a market value of $380,000. The next buyer will purchase your Share at $50,000 and the remaining cost of the cottage for $330,000. All monies are returned to the member, or the member’s estate minus some transfer fees.