What is a characteristic of a cooperative housing arrangement?

In a cooperative housing arrangement, the property is owned collectively by a corporation or association. Residents live in the property as shareholders rather than as individual owners. Each shareholder owns a share of the corporation, which entitles them to occupy a unit within the cooperative. This means that the operation of the cooperative is primarily aimed at benefiting its shareholders, fostering a community where residents typically participate in decision-making processes regarding the management and upkeep of the property.

The cooperative model contrasts with traditional home ownership, where individuals own their specific units or homes outright. In a cooperative, the focus is on the collective ownership and operation, aligning with the concept of mutual benefit for all shareholders involved. This structure can promote a sense of community and shared responsibility among residents, which is a fundamental characteristic of cooperatives.