FAQ
What is a housing cooperative?
A housing co-op can come in many different shapes and sizes. The primary difference from other types of housing ownership is that the buyer is buying shares in a corporation. The corporation owns the building and land, and all the members of the co-op are homeowner shareholders in the corporation. By purchasing shares, buyers have the right to occupy their unit. The buyer’s number of shares in the co- op will depend on the square foot size of their unit. As a co-op, each household has an equal voting right. The co-op is run by a board selected by popular vote of the co-op members.
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What is the income qualification?
Prospective buyers’ household incomes must not exceed 80% of Seattle’s area median income. See the chart for 2024 below.
Individuals in your householdYearly gross income (before taxes) cannot be more than:Monthly gross income (before taxes) cannot be more than:1$77,700$6,4752$88,800$7,4003$99,900$8,3254$110,950$9,2465$119,850$9,9876$128,750$10,7297$137,600$11,4668$146,500$12,208Can I own another property?
The co-op is for first-time homebuyers who have not owned another property in the last 3 years at the time of closing. After closing on the co-op, another property can be purchased. The co-op unit must remain your primary residence.
Can I meet the income requirement if I have received a one-time inheritance?
Yes, an inheritance is not considered income.
How is the co-op home share price calculated?
To make becoming a co-op home member affordable to a broad range of households, the share prices are approximately at $92.00 per square foot. Share prices are set based on the square foot size of your unit.
How do you decide who will get priority to buy shares in the co-op?
A primary list of buyers who have completed all the readiness steps and have been pre-approved as income eligible buyers will be maintained by HomeSight. Once eligibility is confirmed and the reservation fee is paid, the applicant will be added to the pool of approved income-qualified buyers.Can I pick the unit I want?
Yes, you can select your unit. Buyers will be offered their selection based on their date of confirming income qualification, execution of the reservation agreement, and submission of the deposit.
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How long before it can be sold?
A co-op unit can be sold at any time.
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What are the average monthly cost?
# of BedroomsAvg Unit Sq FtUnit Share PriceHOA Maintenance FeeBlanket Building MortgageShare Mortgage at 7 1/4%*Total Avg Mo Cost w/Blanket Mortgage onlyTotal Avg Mo Cost w/Blanket and Share Mortgage1653$58,934$420.71$1,476.41$321.63$1,897.13$2,218.752863$77,838$555.66$1,949.99$424.80$2,505.65$2,930.4531015$91,532$653.42$2,293.05$499.53$2,946.47$3,446.00What are the monthly charges for?
The co-op charges residents a monthly co-op maintenance fee. The charges cover your proportionate share of operating and maintaining the
cooperative, which includes the cooperative corporation’s building mortgage payments, property taxes, management fees, maintenance costs, insurance premiums, common area/building utilities, and contributions to reserve funds. The share loan cost applies only if the buyer chooses to finance a portion of the share price.
What are the expenses that the Co-op Maintenance Fee doesn’t cover?
Your personal unit electricity and water use, phone or internet access, insurance, etc.How much can I expect my monthly payment to go up on a yearly basis?
You can expect the portion of the maintenance fee that covers the services, labor and materials for operating and maintaining the cooperative to increase with inflation. This includes property taxes, management fees, maintenance costs, insurance premiums, common area/building utilities, and contributions to reserve funds. The co-op maintenance fee will be adjusted as necessary by the board and approved by the members.Do I pay real estate taxes?
Real estate taxes are paid by the cooperative corporation, as owner of the property. The cost is covered by the monthly co-op maintenance fee. Even though you don’t pay real estate taxes directly, federal tax law allows you to deduct your share of the co-op tax payments, as well as your mortgage interest payments, on your personal income tax return.
Who takes care of the building and property?
A HUD-approved property management company will manage the building operation. The property manager will be responsible for taking care of maintenance and repair work inside your unit and all the areas outside of your unit including lawn care, collecting monthly co-op maintenance fees from co-op owners, paying co-op bills on behalf of co-op owners, keeping the co-op’s financial records, helping to make sure co-op owners are following co-op rules, and assisting the co-op board to prepare the annual co-op budget.
What is the minimum amount that I must provide from my own funds?
The minimum cash that you must put into the share purchase is 20% of the share price.Is there assistance available for the down payment?
HomeSight can provide a deferred loan of up to $10,000 for down payment assistance. The loan and interest are paid back at the time the unit is sold.
Where can I obtain share loan financing?
Verity Credit Union has a share loan program, pre-approved with HUD, to assist in financing a portion of the share price. Verity will also have a Sharia compliant share loan available. You may select a different lender; however, the loan documents will need to be approved by HUD.
Can I pay the share mortgage earlier?
Yes, the share loan mortgage can be paid off early and in accordance with your loan agreement.
Can I rent the home?
The purpose of this co-op is to provide affordable co-op ownership housing to income qualified families as their primary residence. Renting your unit will be prohibited.
What renovations and modifications can I make to my unit?
You are allowed to make minor changes such as painting the walls and changing faucets, toilets, etc. Any changes that will involve and/or result in structural changes (for instance opening a wall, floor or ceiling); require a permit or authorization from Seattle Building Department; or create noise, vibrations, smoke or odor, which could interfere with the rights, including the right to quiet enjoyment, of other residents of the Building will require written Co-op Board approval before work can be started.
What are my maintenance responsibilities?
You are required to maintain and, in all ways, keep in safe and good condition and working order, all walls, floors, doors, windows, plumbing, heating and electrical fixtures and all appliances in your unit. The building exterior and common areas are maintained by the corporation and included in your co-op maintenance fee.
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