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Condominiums and HOAs may dominate Florida's shared ownership landscape, but cooperative associations offer a fascinating alternative with their own distinct legal framework and operational quirks. This week, Board-certified community association attorney and Becker shareholder David Rogel joins Take It To The Board host Donna DiMaggio Berger to unravel the mysteries of this older form of shared ownership that continues to house Floridians in everything from high-rises to single-family homes.

At its core, understanding cooperatives requires grasping their fundamental difference from condominiums: in co-ops, the association owns the entire property, while residents own shares in the corporation with exclusive use rights to their units. This structure creates unique dynamics in financing, governance, and property transactions that directly impact property values and owner rights.

Donna and David navigate the evolution of cooperative law, explaining how these communities—many established in the 1950s and 1960s—operate under bylaws and articles of incorporation rather than declarations. They dispel common misconceptions, including the notion that Florida cooperative boards have unlimited discretion to reject potential buyers, a practice more commonly associated with New York City co-ops.

For those curious about conversion options, Donna and David outline the process of transforming a cooperative into a condominium, a trend gaining momentum as owners seek to increase property values despite the potential for higher property taxes. They also address the unique challenges of cooperative terminations, which lack the statutory framework available to condominiums.

Whether you're a cooperative resident wondering about your property rights, a board member navigating governance questions, or simply curious about alternative forms of community living, this episode provides valuable insights into a housing model that has served Floridians for generations and continues to evolve alongside its more prevalent condominium counterpart.

Conversation Highlights Include:

• Typical governing documents for a cooperative
• Different types of housing that can be used for a cooperative (e.g., vertical construction, mobile home, single-family homes)
• Legal implications of being a shareholder vs. unit owner
• Biggest misconceptions about co-ops
• Cooperatives and cash-only sales
• Why developers stopped using the cooperative form of ownership in Florida
• Process of converting cooperatives to a condominium form of ownership
• Procedural and Substantive differences in Chapter 718 and Chapter 719 of Florida Statutes

Related Links:

• Podcast: Contemplating Condo Terminations with John Cadden of the Condominium Advisory Group
• Article: Legislative Changes Opens the Door to New Options for Resolving ‘Disputes’ In Condominium and Cooperative Associations
• Online Class: Knowledge is Power: Navigating Florida Condo & HOA Laws