Housing cooperatives are a distinctive form of ownership that are membership-based. They combine the pride and benefits of home ownership with the convenience and cost-efficiency of community living. Cooperative housing means joint ownership and operation of a housing development by those who live in it. Each member of the cooperative purchases a share in the limited equity corporation. These shares provide the equity to secure a mortgage. While the cooperative holds the title to the property, members have an exclusive right to occupy their home through their ownership in the cooperative.

The American Cooperative on Lake Phalen (TACLP) is a limited equity cooperative, utilizing HUD (Housing & Urban Development) to guarantee the financing for the project. HUD’s involvement adds oversight and regulations, which help to assure quality design and construction. HUD’s guarantee then ensures the lender that payments will be made. When a member buys into TACLP, the member does not pay the market value of their selected unit. Rather, the member pays a specified “limited” amount of the unit’s market value and the TACLP holds a mortgage for the remainder. Each year the member’s unit will increase in value by a pre-set amount. When the member’s share is resold, in accordance with the by-laws of the cooperative, the member and their estate receives the amount of the initial share cost, plus a fixed appreciation of the initial dwelling unit value of the home, less a small transfer fee. Members own a share in the non-profit corporation that holds the title to the building. While the cooperative holds the title to the property, Members have an exclusive right to occupy their home and sign an occupancy agreement with the cooperative. Members are issued a share in the cooperative which gives them voting rights to elect the cooperative’s Board of Directors. Each unit/home represents one voting share.

CooperativeApartmentCondominiumPurchase/ OwnershipMember selects a unit and purchases a share that is jointly owned by the member and the cooperativeResident pays rent to a landlord. Resident does not own the apartmentResident may obtain a mortgage to fund the unit and own the unit.Closing CostsNo closing costs.Application fee and security depositProperty tax, title insurance, appraisal, real estate agent and inspection fees,Monthly fees/HOAMonthly member fee that covers everything except electricity and personal property/unit insuranceDepends on the rental company. Utility costs may be extra. Personal property insurance.Monthly HOA fees typically cover ground and common area maintenanceMaintenanceAll indoor and outdoor maintenance is covered through the monthly member fee.Maintenance typically included in rent.Indoor maintenance responsibility of the resident. Outdoor maintenance is usually covered by the monthly HOA fee.EquityFinancially sound investment with market rate fluctuationsNo equityFinancially sound investment with market rate fluctuationsGovernanceMember governance with elected board of directorsDetermined by landlord property managementMay have resident governance with a board of directors

Each month, members/shareholders pay an amount (monthly carrying fees) that covers operating expenses. These include the following:Property tax of the buildingProperty insurance of the building and groundsGas and electricity in the public areasWater and sewageTrash and recyclingProperty maintenanceBuilding maintenanceHome/unit repairsMajor appliance maintenance Landscaping, lawncare and snow removalFire protection systemOnsite property managerCleaning service of all common/shared areasCable TV and WiFiReserves and savingsAll amenities (e.g fitness center, community kitchen, underground heated garage) Monthly charges increase only when the board of directors determines that taxes or operating costs justify an increase.

Monthly unit electricityPersonal property/unit insurance

The American Cooperative was developed by Gramercy Development Companies and is managed by Ebenezer Management Services.

Yes, up to two pets (cats, dogs, birds, fish) per unit.  Dogs must be under 25 pounds.

No

Each wait list reservation requires a $500 deposit. When a signed Wait List Agreement and deposit is received, the potential member is assigned a priority number. The priority numbers are used to place potential cooperative members on the wait list. The reservation deposit is fully refundable if, for any reason, the potential member changes their mind.

It is advisable to get on a wait list even before you are ready to move as it can take 1-2 years before a unit becomes available.

When you are notified a unit is available, you can decide to explore the purchase of the unit by taking a tour of the unit and meeting with the property manager. You can also decide to defer pursuing the unit.  If you defer, you will remain on the wait list and be notified when another unit becomes available in the future.

The members, as a group, are democratically responsible for overall cooperative governance, including electing a board of directors, amending bylaws and making decisions about the cooperative’s jointly owned property. The board is responsible for the operation of the cooperative, overseeing management and setting budgets and policies. All members must be familiar with the cooperative’s governing documents.The American Cooperative on Lake Phalen has three staff members: the Property Manager, a Maintenance Technician, and house keeper for all community spaces.  The cooperative pays their salaries, but they are employees of Ebenezer Senior Living, the property management company.

Yes, all members have the right to reserve and use the common areas in the building. Those areas include the guest suite, club room with the full kitchen, adjoining billiard room, lower level patio, and the roof top terrace. Approval of reserved space is on a first come basis.