What are they? Before looking at the pros and cons of each, let's define terms. Here is a brief description of the three forms of owned housing prevalent in Manhattan.

Cooperative apartments, commonly referred to as a co-op, are the most prevalent form of home ownership in Manhattan, accounting for approximately 80% of all resident-owned apartment buildings in the borough.

A cooperative is a building or complex owned by a corporation and operated for the benefit of persons living in the building.  Coop owners, often referred to as shareholders because each owner receives shares of stock based upon unit size, are entitled, by reason of a proprietary lease, to the exclusive use of a certain dwelling unit of space.   The value of the unit is based upon the number of shares allocated to that space, along with location of the building and services offered.  The cooperative is operated by a Board of Directors, elected annually by the shareholders at their annual meeting.  The members of the board act like the corporate officials of a business, except that they are unpaid volunteers and do not strive to make a profit or suffer a loss.   They set all policy decisions for the property.  In addition, they determine the monthly fees, referred to as maintenance expenses, used to pay for the staff and upkeep of the building, and for taxes.  Oddly enough, the ownership of a coop apartment is considered personal property, as opposed to real estate, and no property title or deed is transferred. 

Condominiums are considered real property, just like freestanding houses, the difference being that ownership of a condo is ownership of an individual property in a multi-unit structure, along with joint ownership of common elements such as hallways, stairs, recreation areas, etc.

A condominium association, which includes all apartment owners, elects a Board of Managers to construct its house rules.  The Board of Managers determines the cost of operating the building and sets the monthly maintenance expense, called common charges. In addition to common charges, taxes for condominium units are paid directly to the city and state, twice a year by the individual unit owner.

Townhouses, often referred to as "brownstones" because of the material make-up of many of the older buildings, are freestanding houses. Townhomes may be inhabited by a single corporation, person or family, or may be divided into individual co-op or condominium apartments.  In addition to maintenance expenses (and duties) the owner(s) of the building must also consider taxes, city codes, water charges, insurance and any actual construction costs.

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