About Cooperative Ownership

Many people don’t realize that when you purchase a co-op, you’re buying shares in a corporation. This is unlike condominiums, where you’re actually buying a piece of real estate. That’s why the financial breakdown of a co-op’s expenses differ from those of a condominium. A condominium’s maintenance is just that: common charges only.

Approximately 60% of Rockcliffe's monthly fee is for common charges or operating expenses such as building and grounds maintenance, twenty-four hour security services, water, heat, etc. Nearly 20% is set aside for a reserve fund for capital improvements and replacements. In 2008 22% of the monthly fee -- representing interest on the building mortgage and real estate taxes, was tax deductible. This percentage was lower than in previous years because of an unanticipated property tax reduction. The funds that were freed up were put into reserves to keep Rockcliffe in strong financial condition and to make needed capital improvements to further enhance Rockcliffe's beauty for years to come.

Buying into a Housing Cooperative — The Cooperator: Coop and Condo Monthly