If you are wondering why we should convert our cooperative to a condominium conversion, here are just a few reasons:
- The primary advantage of condominium ownership over cooperative shares in a corporation is the enhanced value of the former, due to a general aversion by buyers towards co-ops as a consequence of high maintenance and the absence of real property ownership.
- Immediate Equity Appreciation, Higher Values
- Home Equity Loans Available, Higher Reserves for Community
- Better Regulation Enforcement and Lower Board Member Risk
- Stable or Lower Monthly Costs! Your monthly costs would be less then $200 including property taxes, maintenance employees, community reserves fund, water, ect... You currently pay anywhere between $527 to $687!
First Step: Educating the Community: In order for conversion to a condominium to occur, the Shareholders must vote to permit the Board of Directors to pursue the dissolution and restructuring of the Corporation. Prior to the vote, our attorney, with the approval of the Board of Directors of the cooperative, will schedule a series of educational meetings for you in order to inform you of the benefits, advantages and costs of the conversion and other issues which may affect your vote.
Step Two: Special Meeting: Notices and a Proxy/Ballot for the vote will be distributed to all the Shareholders calling for a Special Meeting. The Shareholder will be asked to vote on a resolution that allows the Board of Directors to pursue dissolving the Corporation and replacing the cooperative with a condominium. All Shareholders are strongly urged to complete the Proxy/Ballot prior to the meeting date, even if you intend to be present at the meeting. This will assure that your voice is heard and your vote is counted.
Step Three: Assuming the Members votes "Yes" to allow the Board to pursue dissolution, The attorney, with the participation of your Board, will prepare all the required documents including the master deed, bylaws, rules and regulations and other material necessary to form the new condominium. These documents will be filed with the appropriate authorities.
Step Four: Post-conversion marketing is conducted after the building has converted to a condominium. The purpose of this marketing plan will be to maximize the value of all units in the building by re-introducing the building/complex as a condominium to the real estate community and through limited regulation of the marketing of units as volume and selling prices for a certain period of time.
Are you PRO-CONDO? Let your Board know.
Homewood Terrace Mutual Homes, Inc. is currently considering the option to become Homewood Terrace Condominiums in Auburn Washington. By becoming a condominium, the cooperative will give the members a deed to their unit and that member will become a owner of a $100,000.00 unit.
