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Limited Equity Ownership
Summerhill Cooperative® is our “limited equity” financial model for resident-owned cooperatives. A housing cooperative is a legal arrangement formed when people join together on a democratic basis to govern the operation of the cooperative in which they live. Each member purchases a share in the corporation (Share Cost).

For limited-equity cooperatives, a HUD-insured, 40-year fixed-rate master mortgage for the entire building is provided. Individual owners do not have to seek out and obtain individual financing on their homes.

There are two costs to secure ownership under the limited equity model:
• Share Cost, a one-time payment that purchases a share in the corporation. Share payments provide equity to secure the cooperative's mortgage(Summerhill shareholders have the option to pay a minimum share payment, which ranges from $49,000-$108,000. The other option is for the member to pay 100% of the cooperative unit value, which ranges from $130,000-$250,000.)

• Monthly Ownership Fee, covering mortgage principle and interest, real estate taxes, building and unit insurance, operating expenses, replacement reserves, interior and exterior maintenance, professional management, heat, sewer, water, trash removal, and underground parking. (The only expenses typically not included in the Summerhill Cooperatives' monthly fee is telephone, electricity, personal contents insurance and cable television.)

Resale
Your share increases in value at a predetermined rate annually. The original share price that you paid, plus annual increase will be returned to you or your estate upon the sale of your home. The cooperative also maintains a waiting list for the purpose of facilitating the share resale. The cooperative resells the share at no sale cost to you.