What is the main purpose of cooperative ownership?

The main purpose of cooperative ownership is to provide a proprietary lease for specific apartments. In a cooperative (or co-op) structure, individuals purchase shares in a corporation that owns the entire building or complex, rather than owning their individual unit outright. This system grants them the right to occupy a specific unit through a proprietary lease, which gives them an exclusive right to use that apartment while also being part of the collective ownership and governance by the cooperative corporation.

This arrangement fosters a sense of community and collective decision-making among shareholders, and can often streamline operations such as maintenance and management of the property. By having a proprietary lease, each owner has a legally binding agreement that relates directly to their use and enjoyment of their living space within the cooperative framework.

Other options do not capture the essence of cooperative ownership as effectively. For instance, granting full ownership of the building is contrary to the cooperative model, where shares are owned instead. Offering equal rights is more of a byproduct of the cooperative model rather than its main purpose, and eliminating monthly maintenance fees is typically not feasible, as maintenance is a shared responsibility among all residents.