A cooperative corporation is a business trust that holds the title to a cooperative building and grants occupancy rights to shareholders of the corporation. Cooperative housing is not the same as a condominium. A condominium association is a group of individually owned units with an association of homeowners that handles the upkeep and maintenance of common elements. In contrast, cooperative housing is a corporation that holds the title to a building. People who live in a unit of the building must purchase a share of the corporation, and they get a lease instead of a deed in exchange for their purchase. Common upkeep and maintenance happens through the actions of the corporation’s elected boards; these members must be elected from existing shareholders. To become a member of the corporation’s shareholders, a potential unit buyer must be accepted by the board. and a shareholder cannot sell his or her share until the board approves the buyer.
