The Community Associations Institutes reports that almost 74 million people in the U.S. live in a community association. Moreover, the number of community associations is increasing, growing between approximately 352,000 and 354,000 in the past year. Two popular types of associations in Arizona are condo associations and housing cooperatives. This post will explore the differences between condo associations and housing co-ops.
What is a condo?
In a condo, residents live in separate units, usually attached, with shared common areas such as a recreation center, clubhouse, swimming pool and playground. When a person purchases a condo, they purchase not only the unit where they live, but also a certain percentage of these common areas. Condo owners will pay association fees and property taxes. Condos have an association that governs the complex.
What is a co-op?
Like condos, residents in a co-op live in separate units, usually attached. However, in a co-op you purchase a share of the entire property through a lease, including the unit you reside in. Those who live in a co-op do not personally own their unit but do have a say in the management and operations of the co-op. Co-op fees combine all monthly expenses, including utilities and taxes into one bill. Co-ops are governed by a board, whose members vote on any changes or additions to co-op policies.
Learn more about condos and co-ops
This post is for educational purposes only and does not contain legal advice. Those who want to learn more about condos and co-ops may find our firm’s website on this topic to be a useful resource.