4 ADJUSTINGTODAY.COM HOAs and Co-Ops Many of the principles and practices used to regulate condominium communities are also used by community associations of owners of detached, single-family residences (known as “HOAs” for “homeowners associations”). Like condominium communities, HOAs may have collectively owned recreational facilities and open space, but their resident members own their dwelling structures, along with a narrow piece of land where the dwelling is located. HOA residences are therefore usually insured individually under homeowners policies, while the association insures the common property. Cooperative apartment communities, commonly known as “co-ops,” function much like condominium communities except that a resident does not own a unit but rather a share in the corporation that owns the structure(s). A resident’s share is usually commensurate with the size of his or her unit in relation to the entire co-op community. The corporation then provides a proprietary lease to the owner/resident for their unit. Co-op residents own the right to lifetime occupancy of their units and they can generally sell or bequeath that right. Any transfer, however, will require the approval of the co-op board of directors. It is also common to restrict the rental of the unit to others. Ownership rights and insurance considerations regarding fixtures and improvements to a unit by an occupant are determined by the documents establishing the co-op. Ownership rights and insurance considerations regarding fixtures and improvements to a unit by an occupant are determined by the documents establishing the co-op.
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