The Development Team Below are the typical professional services involved in starting a
new housing co-ops.
The Cooperative Organizer
The CEO who encourages, trains, coordinates the efforts of all the others involved -
architects, lawyers, builders, managers and above all members.
Legal Counsel
The legal counsel prepares all of the legal aspects and handles the detailed negotiations
involved in acquiring the property. You will want legal help in negotiating the best terms
for the contract in being sure you are gaining a good title. Because each state has its
own laws affecting the holding of real estate, your attorney should review all the co-op's
documents (bylaws, occupancy agreement, etc.) to be sure they conform to the laws of your
state. Co-op and real estate law varies from state to state. At the closing, when the
title passes into the co-op's hands, there are many details regarding the title, the
mortgage, the loan note, and other documents that must be checked over by the attorney.
Your attorney should also review the agreement before you hire management.
Architectural/Engineering Services
You will need an architect or engineer involved in the earliest stages of planning. If you
will be buying an existing building, they will assess and draw up plans for the rehab
work. If you will be building from the ground up, you'll need an architect to prepare a
blueprints for the construction.
Contractor/Builder
A large portion of the total costs will be the cost of construction or rehabilitation. The
contractor/builder will provide you with estimates of the costs of these services and when
ready, will bring in subcontractors to get the work done.
Marketing Agent
Depending on the size of the cooperative you are starting, you may need a marketing agent.
The marketing agent will handle talking to prospective members to explain what the co-op
is, how it works, the members rights and obligations, what the various documents mean, and
what the costs will be. Sometimes in a tenant conversion, the tenants can handle this
themselves, especially if the co-op is small. For larger properties, the marketing agent
plays a key role in preparing brochures and other advertising, and setting up the sales
office. The marketing agent also develops a marketing plan, including the printed
materials, media events, public relations with community groups. The marketing agent
accepts applications from prospective members and processes them. The marketing agent also
works closely with management to coordinate move-ins when the homes are ready.
Management Agent
Though some co-ops are managed by the members, almost all larger co-ops require
professional staff to manage the day to day operations of the cooperative. Initially,
management will need to set up the books and financial records for the co-op, work with
any contractors, and assist with the marketing agent in getting people moved in and
completing the necessary paperwork, such as setting up the initial membership files.