What is a Cooperative?
A Cooperative is a non-profit Corporation financed by a single overall mortgage on the complex; no second mortgages are allowed. This means that you will be making an all cash purchase. As a non-profit Corporation we sell shares equal to the number of units on the property. These shares are sold to qualified, approved individuals who are then in turn members of the Cooperative through this share purchase.
Please keep in mind that you are not buying real estate. You are purchasing a share of stock in Kings Mill Cooperative.
As the owner of this share Kings Mill must be your primary residence, as a homestead is claimed for residents. The price of this share of stock is negotiated between the buyer and the seller. There is no guarantee of price at present nor in the future. The right of occupancy of a unit is all that is represented by the purchase of a share of stock. Purchase & occupancy of a share home is on an "As is" basis.
This corporation is managed by a Board of Directors, elected by the Membership. The Board is supported by a number of committees, each chaired by a member of the board, and composed of volunteers from the community. In other words, the Members of our Co-op manage the affairs of our community.
Each Owner-Member pays a monthly carrying charge to the Corporation. Taken from these monthly charges are: the community mortgage payments and taxes, gas utilities for heating, water & sewage, trash removal, use of the recreational facilities, pool, all maintenance of Kings Mill property & accruing of a reserve fund for emergencies. All of your housing expenses are paid except electricity, telephone and cable.
After purchasing a share, Members can deduct the mortgage interest and real estate tax expenses from their Federal Income Tax returns. In the case of Kings Mill residents, this expense represents approximately 40% of the monthly carrying charges.
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