Re: Replacement reserves
From: Joe Nolan (jnolanadobe.com)
Date: Fri, 9 Apr 2004 08:37:43 -0700 (PDT)
Elizabeth Stevenson wrote:

Co-ops ARE groovier. The reason it's hard to get a bank to finance a co-op
is that they don't make a profit for the homeowner.

I'm pretty ignorant of the details, but I do know that we can resell our shares at the market rate, which has in fact gone up some. Our bylaws call for a 25% "flip tax" on gains, so if you make a $40K gain when selling your home (shares) you give back $10K to the coop, which gets earmarked for affordability-related uses. AFAIK, this flip tax stuff is at the discretion of whoever creates the coop bylaws, but maybe our situation is specific to NY state laws, don't know.


Maybe I'll retire in Ithaca...
We have two homes available!




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