HOW IS A SENIOR HOUSING COOPERATIVE STRUCTURED FINANCIALLY?

To reduce costs, Willow Brook Cooperative uses a federally insured master mortgage loan to finance the project. Willow Brook Cooperative has locked an interest rate of 5.9 percent for a 40-year term. The cooperative holds the title to the property assuming mortgage and tax obligations, relieving members of direct liability; they simply agree to pay their monthly fee, which includes an allocated portion of the mortgage principal, interest, and taxes. Members retain tax deductions for mortgage interest, as well as real-estate taxes. Cooperatives cost less to operate and experience the lowest default rate of any housing alternative because of their not-for-profit nature, membership involvement, and shared congregate services.

WHAT ARRANGEMENTS FOR FINANCING ARE AVAILABLE?

Buyers of a cooperative typically take out a home equity loan to pay for their membership share until they have sold their current home. Since the initial share costs are low, a portion of the proceeds from the sale of their home is used to purchase a share in the cooperative. Willow Brook Cooperative has set up a loan program with Voyager Bank; contact Melissa Duffey, Willow Brook Cooperative Housing Director, for more details.