Kildahl Park Pointe - 888 Cannon Valley Dr. - Northfield, MN 55057 - 507.650.7100

www.kildahlparkpointe.com

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   FAST FACTS:

  • KPP is a non-profit corporation
  • Residents own 100% of stock (one share per unit)
  • KPP shares grow at a fixed, guaranteed rate
  • A Board of Directors is elected from the membership
  • Members participate in all decision-making processes
  • Only owners occupy KPP, no renters or outside investors


















    HISTORY:


    It is believed the first housing cooperatives were formed in the late 19th
    century. Today, the Dakota in New York City (of John Lennon fame) and 999
    Lake Shore Drive in Chicago are two of the more notable examples. Senior
    cooperatives (residents must be 55+) evolved in the 1970s. The concept
    caught on, especially in Minnesota where state legislation regulates how co-
    ops are operated and establishes the rights and obligations of shareholders.
    There are more senior co-ops in Minnesota than any other state in the country.

    The board of directors typically elects its own officers, such as a president,
    vice-president and so on. The board may then establish standing committees
    from among the shareholders to make recommendations to the full board.
    Standing committees typically include finance, property, marketing, and policy.

    There are two types of housing cooperatives; market rate and limited equity.
    In a market rate co-op, the share price floats on the open market…share-
    holders may sell at whatever price the market will bear. In a limited equity   
    co-op, the share price is secure. The value appreciates at a fixed rate. The
    purchase price of a comparable limited equity co-op is typically much lower
    than a market rate co-op. The limited equity concept maintains affordability
    thus facilitating a timelier resale.

    ADVANTAGES:

    When summarizing the advantages of senior cooperative living, advocates
    usually speak of an affordable, convenient, independent life-style free of the
    responsibility and expense of home ownership. The three pillars of that
    lifestyle are:

    1. Security: Both physical and financial. A modern building structure
    incorporates many of the elements that provide physical security: locked
    doors, perimeter lighting, indoor parking, security cameras, smoke and CO2
    detectors, fire alarms, and a fire suppression system (sprinklers).

    The financial benefit of a limited equity co-op is security. Like a savings
    certificate (CD), the value of a limited equity co-op share is locked in. It grows
    at a fixed rate. Market fluctuations do not impact an owner’s return on
    investment.
 
    2. Affordability: The purchase price of a limited equity share is often one third
    to one half the cost of a comparable market priced co-op or condominium. That
    is value! Further, the purchasing power of the cooperative allows the co-op to
    purchase services and commodities at bulk rates: utilities, cable, cleaning
    services, entertainment, lawn care, snow removal, etc. The members of the   
    co-op benefit from these savings.

    3. Livability: Co-op residents enjoy extended living areas which help enable an
    active lifestyle. For example: indoor parking and a car wash bay, a fully
    equipped workshop and exercise room, a lounge area, a craft room, a library,
    and a large community room with a full kitchen. Of course resident interest
    and initiative is what drives the utilization of those facilities. Freed of the
    responsibilities of home maintenance, residents are able to participate in any
    number of activities - some organized, some spontaneous.

    It’s important to emphasize that all aspects of co-op living are resident-
    managed...from creating the budget, to hiring staff, to setting house rules, to
    deciding what time to dim the hall lights. It’s all managed by a member-
    elected board of directors and operating committees of member volunteers. It
    truly is cooperative.

    A housing cooperative is a legal entity – usually a non-profit corporation that
    owns real estate. The shareholders in the housing cooperative are its occupants
    who purchase a share granting the right to occupy one housing unit. Each owner
    pays a monthly fee covering their proportional share of the expense of operating
    the corporation (based on the size of the home). The operating fee covers
    mortgage, taxes, insurance, utilities, maintenance, and contributions to reserve
    funds. Each cooperative home owner is entitled to the same tax advantages as
    any other home owner. Further, a cooperative home can be homesteaded.

    All affairs of the corporation are managed by a board of directors elected by the
    shareholders (residents) from among the membership. Professional real estate
    management is usually retained to oversee day to day operations, but all
    financial and strategic decisions are made by the board with guidance from
    resident committees.

Senior Co-ops are for Active Seniors