Help me move to a Seattle Housing Cooperative
January 4, 2025 3:40 PM
I'm a long-time renter in Capitol Hill, Seattle and want to stay in this neighborhood or another similarly dense, walkable one, but I'm getting fed up with management companies. I could buy a condo, but I think a co-op aligns more with my values. How does the process of finding and joining one work?
To be clear, I'm not talking about co-ops as in communal living (cool, but not for me). I'm talking about an apartment building that's collectively owned and inhabited by the co-op members. Basically, I want something similar to the living experience of renting an apartment, but with more of a say about how things are managed. I'm willing to contribute too, but part of why I'm uninterested in single-family housing is that I don't want to be solely responsible for all the maintenance.
I have a decent amount saved, so it would also be nice to own something rather than continuing to enrich landlords, but that's somewhat secondary to me. I mostly am getting fed up with the reality that there are basically two categories of apartments here:
To be clear, I'm not talking about co-ops as in communal living (cool, but not for me). I'm talking about an apartment building that's collectively owned and inhabited by the co-op members. Basically, I want something similar to the living experience of renting an apartment, but with more of a say about how things are managed. I'm willing to contribute too, but part of why I'm uninterested in single-family housing is that I don't want to be solely responsible for all the maintenance.
I have a decent amount saved, so it would also be nice to own something rather than continuing to enrich landlords, but that's somewhat secondary to me. I mostly am getting fed up with the reality that there are basically two categories of apartments here:
- Fancy new buildings with all the security and amenities whose rents go up as fast as the market will bear
- Older buildings where management companies keep the rents low to retain tenants, but which get the bare minimum of investment in upkeep
- Poor security leading to frequent package theft
- Lack of investment in upgrading the ancient elevator which seems on the verge of death
- No plans to add fiber-based Internet service or EV charging
I've lived in apartments, condos and in one co-op in the Seattle area. There are not so many co-ops in Seattle compared to the east coast (NYC in particular), but a real estate agent familiar with your area should be able to help you find co-op listings.
That being said, I went into the co-op experience with my eyes open, and for some of the same reasons you mentioned in your post. Co-op living can be a great arrangement in theory. In practice, it completely depends on the community you are joining.
Co-ops can have their advantages, but I would strongly recommend getting acquainted with the community, the actual people that will be your neighbors, before buying in. Be sure to read the co-op's quarterly meeting minutes going back at least six months (or even longer, if possible) to see what issues the community might be facing, and how they manage their situations. It can also be illuminating to look at the co-op's finances, especially their reserves. And, if any of these records are incomplete or poorly maintained, that can be a red flag.
The co-op's charter and house rules can tell you more about what kind of community you are looking at. House rules can be important. For example, co-ops can be restrictive about sub-letting or renovating your unit.
Some co-ops are better managed than others. In my case, I found out too late that the community wanted to run their co-op like a monastery, investing as little as possible in the property, consistently kicking the can down the road in terms of repair/maintenance; and any suggestion about upgrading, adding amenities or improving the property was immediately rejected. To me, that is a big problem when you live in a 75-year-old building. In theory, co-op members should have a say in the management of their building, but if there is an entrenched culture, it probably won't change. Most (if not all) co-ops were established before the condominium law in the 60s, so they tend to be at least that old. An established community can be set in their ways.
There won't be an HOA, but the co-op board functions about the same in most cases. That can be a positive or a negative depending on the community and its needs. If your needs & goals align with those of the community, then it can be a beautiful thing. If they do not, then you may be out of luck.
If you want to get involved as a board member, that can be fulfilling and a meaningful investment of your time. However, there is no buffer between the board and the community, so board members are often "on call" at all hours. In my experience on the co-op board, some residents acted like I was their personal secretary/servant. More than a few times, I got yelled at for things that were beyond my control.
When buying into a co-op in the PNW, there are only one or two lenders available, and the interest will be about 1% above the current rate for a conventional loan. In my case, the property gained almost no value during the 15 years I lived there. So, while a co-op unit is a little less expensive, it's also less of an investment.
When I moved into the co-op, I planned on making it my forever home. That wasn't meant to be because of the issues I touched on here, and a few others. Again, in theory co-op living can be a great situation. My best advice though is to do your due diligence, and then some (and then some more), before making any decisions.
posted by abraxasaxarba at 3:14 AM on January 5
That being said, I went into the co-op experience with my eyes open, and for some of the same reasons you mentioned in your post. Co-op living can be a great arrangement in theory. In practice, it completely depends on the community you are joining.
Co-ops can have their advantages, but I would strongly recommend getting acquainted with the community, the actual people that will be your neighbors, before buying in. Be sure to read the co-op's quarterly meeting minutes going back at least six months (or even longer, if possible) to see what issues the community might be facing, and how they manage their situations. It can also be illuminating to look at the co-op's finances, especially their reserves. And, if any of these records are incomplete or poorly maintained, that can be a red flag.
The co-op's charter and house rules can tell you more about what kind of community you are looking at. House rules can be important. For example, co-ops can be restrictive about sub-letting or renovating your unit.
Some co-ops are better managed than others. In my case, I found out too late that the community wanted to run their co-op like a monastery, investing as little as possible in the property, consistently kicking the can down the road in terms of repair/maintenance; and any suggestion about upgrading, adding amenities or improving the property was immediately rejected. To me, that is a big problem when you live in a 75-year-old building. In theory, co-op members should have a say in the management of their building, but if there is an entrenched culture, it probably won't change. Most (if not all) co-ops were established before the condominium law in the 60s, so they tend to be at least that old. An established community can be set in their ways.
There won't be an HOA, but the co-op board functions about the same in most cases. That can be a positive or a negative depending on the community and its needs. If your needs & goals align with those of the community, then it can be a beautiful thing. If they do not, then you may be out of luck.
If you want to get involved as a board member, that can be fulfilling and a meaningful investment of your time. However, there is no buffer between the board and the community, so board members are often "on call" at all hours. In my experience on the co-op board, some residents acted like I was their personal secretary/servant. More than a few times, I got yelled at for things that were beyond my control.
When buying into a co-op in the PNW, there are only one or two lenders available, and the interest will be about 1% above the current rate for a conventional loan. In my case, the property gained almost no value during the 15 years I lived there. So, while a co-op unit is a little less expensive, it's also less of an investment.
When I moved into the co-op, I planned on making it my forever home. That wasn't meant to be because of the issues I touched on here, and a few others. Again, in theory co-op living can be a great situation. My best advice though is to do your due diligence, and then some (and then some more), before making any decisions.
posted by abraxasaxarba at 3:14 AM on January 5
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posted by brookeb at 4:22 PM on January 4