Estoria Oak Marsh

Housing cooperatives are designed specifically for adults age 62+ who want the financial benefits of homeownership without the hassles of maintenance and upkeep. Cooperative communities are member-owned and member-governed. Each member has a voice in the decisions that affect the community as well as a stake in ownership. Most importantly, a cooperative is a community of people joining together, working together, and enjoying life together. A cooperative creates opportunities for the well-being of individual members and for the whole community. All the members own the cooperative together. 

A cooperative works through the consent and cooperation of its member-owners. Cooperative members democratically elect a board of directors who govern the policies and form committees as they see fit, based on the needs and preferences of their community. Each member brings unique skills and interests to the table. By working together, members build a vibrant community that feels more like a family than a neighborhood.

Estoria Cooperatives uses a federally insured master mortgage to finance the project. The U.S. Department of Housing and Urban Development (FHA/HUD) guarantees the financing and provides the best long-term offer by using 40-year, fixed-rate financing at the lowest interest rate available. Estoria Cooperative partners with the U.S. Department of Housing and Urban Development (FHA/HUD) to provide oversight and regulations to assure quality design and construction, as well as a financial structure that is both solid and secure.

Each member’s monthly fee covers a pro-rata share of the master mortgage, property taxes, required reserves, and other operating costs, such as insurance, utilities, maintenance, and the costs of employing a management company to oversee day-to-day operations. Cooperative members also benefit by sharing expenses through bulk-rate purchasing, as well as from the not-for-profit status.

A monthly fee at a cooperative differs from rental or association fees in that the fee provides benefits such as tax deductions and includes far more than a typical association fee. Interior and exterior maintenance and replacement of standard appliances and equipment within the home are included in cooperative fees. Like a single-family home, condominium, or townhome, the monthly fee at a cooperative includes a portion of the master mortgage and property taxes, internet, TV service, and more.

Estoria Cooperative requires that at least one member-owner of each home be age 62 or better. A potential member must also show they have the resources to purchase a membership share. The application process has a minimum income requirement to help ensure potential members qualify for membership. To ensure the safety and security of all members, credit and background checks are also required.

There are several ways to finance the purchase of your cooperative share. Many buyers use the proceeds from the sale of their current home to finance, or an interested buyer may choose to use available funds from investments. Additionally, a buyer can take out a short-term home equity loan to purchase their share while they sell their current home. Because the initial share cost is low, remaining equity from the home sale can be spent on upgrades during the development phase or invested to apply earned interest to their fees to lower their monthly living costs.

Share values and share prices appreciate over time using the limited equity formula set forth in the cooperative’s bylaws, which limits appreciation to 2.75% of the share value compounded annually.

You can sell your cooperative share at any time. According to the bylaws, the cooperative will have 60-90 days to market the share to those on the cooperative’s established waitlist before the member may choose to resell on the open market. When reselling, the potential buyer must meet the qualifications for membership. Unlike most real estate transactions, selling through the cooperative allows you to avoid realtor’s fees, as well as title and recording costs. Proceeds of the sale go to the seller, less a reasonable transfer/administrative fee established by the board of directors.

Prior to construction deadlines, a buyer can make personal design selections and choose from a variety of available standard or upgrade options for their home amenities. Share prices include standard home amenities, and upgrade options are at an additional cost. A housing specialist works closely with member-owners to help them personalize their home and make it their own.