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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.