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.
What is the main difference between a co-op and a condo?
Co-ops typically have a much lower upfront cost compared to condos, making home ownership more accessible. Both options allow you to build equity, though U-lex is a limited-equity model where your investment grows steadily over time helping to keep homes affordable for future members. Co-ops foster community through shared ownership and decision-making and offer more predictable costs compared to condos. This is because in a co-op, maintenance and repairs are managed collectively, while condo owners are responsible for all repairs within
their unit.
What is the main difference between a co-op and an apartment?
Buying a co-op allows you to build equity while offering stable, predictable monthly fees that cover maintenance and shared expense. This is unlike renting an apartment where you’re paying for someone else’s property and subject to unlimited rent increases. The monthly cost you see for the co-op today will be very close to what it is five years in the future, which is very different than an apartment, where the rent can increase every year. Co-op ownership helps you invest in your future and offers a stronger sense of community with shared decision-making and long-term affordability that keeps your home accessible for future buyers.
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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.
When does the Income Qualification apply?
The income qualification only applies at the time of purchase up until closing. Once you complete your purchase and close, the income restriction no longer applies.
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 $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.
When can I expect to move in?
Approved buyers will be able to move in one month after construction completion.
When a unit is sold, how are new buyers selected?
All new buyers must go through the same process that the initial buyers go through. They must be first-time home buyers earning less than 80% AMI who have completed a first-time homebuyer education program. Once income qualified, they are interviewed by the Co-op’s Membership Committee, which is made up entirely of the co-op residents. The Membership Committee makes a recommendation to the Co-op’s Board
for approval and based on the recommendation, the Board accepts or rejects the new potential buyer.
How do I know if I am eligible?
Creating a profile in our registration portal on our website (https://www.homesightwa.org/) allows you to set up a counseling appointment with a homeownership counselor. With your counselor, you can confidentially discuss your financial situation and get answers to your questions, such as how to make a down payment, plus review your debt, credit and employment history. Together you will work on a personalized budget
and plan.
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How long before it can be sold?
A co-op unit can be sold at any time.
How much will my unit appreciate over time?
In this limited equity co-op, units appreciate at a fixed rate of 2% per year. This structure helps keep the units affordable for future buyers while still allowing you to build equity over time.
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What are the average monthly cost?
# of BedroomsAvg Unit Sq FtUnit Share PriceCo-op Maintenance FeeShare Mortgage at 7 1/4%*Total Avg Mo Cost w/Blanket and Share Mortgage1653$58,934$1,897.12$321.63$2,218.752863$77,838$2,505.65$424.80$2,930.4531015$91,532$2,946.47$499.53$3,446.00*The estimated Unit Share Mortgage cost is calculated as of 9.24.24 and subject to current interest rates. Note that this cost applies only if the Unit Share Price is financed by the buyer.
How much do I pay each month?
You will pay the co-op maintenance fee (this is paid every month is based
on the square foot size of your home), and the water and electric usage for your home. Your water and electric usage is separately metered for your unit, so you only pay for what you use. You will also pay your mortgage share loan, if you have one. The share loan payment goes away once you have paid off your loan.
What 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.
Will the co-op maintenance fee change?
The co-op maintenance fee may change over time. This is because it covers the building’s shared operating costs, such as janitorial services, maintenance contracts, and utilities, which can increase or decrease over time. However, most of the fee is allocated to stable long-term costs, helping to minimize significant changes. Any changes to the co-op maintenance fee will be adjusted as necessary by the board and must be approved by the members.
What are the expenses that the Co-op Maintenance Fee doesn’t cover?
Your personal unit electricity, water, phone, internet, parking, and personal insurance for the items in your home.
Is there parking available?
There are 31 parking spaces on the lower level of the building on a first come, first served basis available for $195.00 per month.
What is the required deposit for the reservation agreement?
The deposit is $1000.00 and is fully refundable until a purchase and sale agreement is executed.
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.
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.
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. However, as long as the unit is your primary residence, you are allowed to have a roommate that pays you rent. 6
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. However, any structural changes-such as opening walls, floors or ceilings-require a permit or authorization from the Seattle Building Department and the co-op board. Additionally, any modifications that create noise, vibrations, smoke or odor that could interfere with the rights of other residents require written board approval.
What are my maintenance responsibilities?
You are responsible for keeping your unit in good condition, which includes properly maintaining and safely using the walls, floors, doors, windows, plumbing, heating and electrical fixtures and all appliances in your unit. The maintenance fee does not cover repair, maintenance, or replacement of personal property. If something within your unit is damaged due to negligence or misuse, you would be responsible for repairs or replacement. However, the co-op covers repairs and replacements due to normal wear and tear. The building exterior and common areas are maintained by the corporation and included in your co-op maintenance fee.
Who can live with me?
You are allowed to have anyone you wish reside with you. Your residents and guests are subject to the same co-op House Rules of Conduct that you are.
Can I have animals?
Yes, there is a pet policy that allows common household pets.
A pet deposit of $300.00 is required.
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