What is a Cooperative?
A senior housing cooperative offers independent ownership benefits in a community setting. Unlike senior housing rentals, cooperative members purchase a share and own the cooperative collectively. As a member, you enjoy the tax and financial benefits of home ownership, and have control over decisions affecting your community. Best of all, someone else takes care of your home maintenance.
- Ownership – member owned, no third-party owner
- Control – members make decisions about their community
- Cost – not-for-profit; based on actual expenditures
- Taxes – deductible mortgage interest & real estate taxes to
- Financial – the appreciated share price less any necessary
- Community – active, socially supportive, carefree lifestyle
- Peace of mind – maintenance-free living & ease of travel
knowing home is secure
Benefits of a Cooperative
Because of their not-for-profit nature, membership involvement, and shared costs for services, cooperatives typically cost less to operate than other housing alternatives. These savings are passed on to each and every member of the cooperative community.
What is a share?
When you purchase an available membership in the cooperative, you are acquiring a 1/77th share in the cooperative. This allows you to lease from the cooperative the particular unit that is associated with that membership. All memberships, regardless of the cost or the size of its associated unit, have a single vote in the affairs of the cooperative.
The value of the member’s share is prorated based on the size and type of the living unit. There is one membership share for each living unit starting at $49,790. There is also a monthly carrying charge starting at $837 per month that covers all utilities except phone and internet.
One of the things our members value the most is having a say in their own community. Our members elect a Board of Directors at our annual meeting. This dedicated board oversees various operations within the cooperative.
Ten different committees offer ample opportunity for all members to get involved if they wish. Our Aesthetics, Building, Finance, Grounds, Library, Marketing, Social, Sunshine, Transportation and Woodshop committees keep our members active and engaged in the things they care deeply about. A monthly newsletter is published to help keep members informed and connected.
We are a Limited Equity Cooperative. This means that we have agreed to limit the amount that our memberships can appreciate over time, in order to keep our membership costs low and thereby make membership in our cooperative more attractive in the marketplace.
While purchasing a membership at Gramercy is not a real estate investment, your share will see equity increases over time. When it is your time to sell, you will get the then-current appreciated share price as established by the Board of Directors.
The Cooperative is a member of the Cooperative Network, a trade association representing more than 600 cooperatives in a wide variety of industries throughout Minnesota and Wisconsin. Minnesota has the largest number of senior housing cooperatives in the country.