Cooperative or Independent Senior Living

By Eunice K. Neubauer, CSA

As Senior Living Advisors we educate seniors on all types of senior living. Often people bring up cooperatives.

Minnesota is the state that started the cooperative form of senior living. 7500 York in Edina was the first cooperative in the state.  This senior living option opened in 1978 and was not only the first in the state but also the first in the nation.

It wasn’t until the 90s that independent living buildings were introduced first by Sholom. Episcopal Homes also introduced low-income independent senior rentals about this time.

Below is information on how cooperatives are similar and different from independent senior living rentals.

Similarities:

• Accessible living with no steps
• Maintenance free; no more calling for service on appliances, lawn etc.
• Community of people where you can be as involved as you choose
• Monthly rental costs often include some or most of utility expenses
• Indoor parking (typically at extra cost)

Differences:

• Purchase and own a share of a building with a Cooperative (can deduct property taxes, understand if it’s market rate or fixed rate) vs month to month rental.
• Cooperatives have larger units available than rentals generally if you can afford them.
• Senior independent rental provides more services: transportation to stores/outings, restaurant with meals if you choose, often a concierge that can help with many things
• Senior independent rentals often offer care as you age i.e. shower assistance, managing meds etc. therefore you don’t need to bring in home care or move to access care if you need it in the future

A question I like to ask seniors that often helps them decide is “Are you ok moving again?”  Many times, the answer is no.  Approximately two thirds of people need help with activities of daily living over age 65.   Also know that you must have the money to buy a cooperative and you can’t take out a loan as it is not considered real estate.

For more information or discussion about this topic we are always happy to have a conversation.

I personally thought I’d move into a cooperative some day and we could travel all over and not worry about anything while my husband and I were in our 60/70s.   Yet, the kids wanted a yard for their kids and pets, something I hadn’t thought of.  That’s something cooperative living does not provide that may be important to your family.

 It is always good to have a plan for where to live as you age.  Plans can change but thinking about it and looking at options early is always a wise decision. And talk to your kids, you might be surprised the input you receive from them.