Cooperative housing (shortened to co-op) is a type of common interest development where each person owns a share of the complex instead of owning a unit like in a condominium. These are used mainly in cities as alternatives to condominiums which tend to be costlier, and they provide the same amenities like security and maintenance as condominiums. Each member owns shares relative to the value of the unit the member lives in, and each member gets to vote on who is part of the board of directors. The board of directors manages the co-op and makes decisions like who can buy into the co-op. While often cheaper than condominiums, co-ops often come with more restrictions and covenants like not being able to renovate without approval, and the shareholders of the co-op do not own title to their rental units.
[Last updated in June of 2021 by the Wex Definitions Team]