What is a SOTEL?®

Service-Oriented-Technically-Enhanced-Living®

A Proactive Adult Community for 62 and older, with collective design, it’s physical design encourages a strong sense of community and a purpose driven lifestyle for self-care & self-management. It offers the scope to cope, giving residents the tools to manage the later years of life autonomously and in control.

What does it mean to Age-in-Place?

Active-aging means remaining active as one grows older. People continue to be productive members of society, for active-aging and its healthful consequences to be achieved, social integration should be given equal importance as surroundings that are safe and easy to navigate.

Aging in place needs adequate housing and a safe and enabling environment. Older people who wish to do so should be enabled to remain in their own homes and/or their environments as long as possible regardless of their changing physical needs.

Active-aging-in-place is merged in a cohesive complementary model that is mutually reinforcing and improves resident’s participation in decision-making processes, while providing a safe and enabling environment for an aging population.

What is a Housing Cooperative?

Cooperatives are formed to meet the specific objectives of members and should adapt to members changing needs. A housing cooperative is joint ownership in the homes, clubhouse, and grounds in which all the members own a share collectively. Owned and governed by the members, the cooperative gives a unique opportunity to have a voice in the daily operations. In a maintenance-free, active lifestyle community, one is able to make time for the things that matter most. Members of a housing cooperative own and govern the building, land, and common areas. This community of neighbors contribute monthly to cover operating expenses.

Will the value of my home appreciate?

SCHEDULED APPRECIATION

Yes. SOTEL Cooperatives will use scheduled appreciation, limiting appreciation of the share value, compounded annually. This practice is widely used by cooperatives to keep the units affordable over time. This often results in a waiting lists of prospective buyers and promotes ease of re-sale. The cooperative has the option to change the scheduled appreciation if they so choose.

What are the re-sale procedures of a cooperative share?

RIGHT-TO-SELL

Re-sale process in a cooperative is handled internally by the on-site property management team to support you in your next move.

Are there ways to title my cooperative share?

Yes.

TITLING MEMBERSHIP

The cooperative will provide a process for members to title their membership share to meet estate planning needs. Single owner, joint tenants, trusts, transfer on death, or a life estate are typical methods of holding title. Proceeds of sale would go to the member’s estate or heir(s), as indicated in their estate planning documents.

ELIGIBILITY

SOTEL Communities are an age-restricted. All owners must qualify for membership by meeting the minimum age and income requirements.

Can I customize my home?

Yes. SOTEL Cooperatives offers a variety of standard and upgrade design options. Representatives of SOTEL Cooperatives will work closely with members through the selection process and any special requests. Personal design selections for standard and upgrade options are available to buyers who purchase during the development phase and prior to construction deadlines. From start to finish, you'll collaborate on selections to personalize your space, making it perfect for you. Contact us to get started.

How is a Cooperative structured financially?

MASTER MORTGAGE LOAN
To reduce costs, SOTEL Communities use a federally insured master loan to finance the project, which assures a fixed low interest rate. The cooperative holds title to the property assuming mortgage and tax obligations, relieving members of direct liability; they simply agree to pay their monthly fee, which includes an allocated portion of the master loan, interest and taxes. Members retain tax deductions for mortgage interest, as well as real-estate taxes. Because of their not-for-profit nature, membership involvement, and shared services, cooperatives typically cost less to operate and experience the lowest default rate of any housing alternative.

SHARE PRICE

This represents the difference between the total share value and the prorated portion of the cooperatives first mortgage loan. The share price is a percentage of the share value, which is repaid to the shareowner with appreciation on re-sale.

MONTHLY PAYMENT

The monthly payment includes a proportionate share of the cooperatives master loan, real estate taxes, insurance, reserves, maintenance, professional management services and some utilities. A cost breakdown will be provided to each member before finalizing their purchase.

What are some advantages of a Co-Op?

Ownership and investment. Real community. Co-op living is designed to give you more, unlike the more traditional options of condos, townhouses, or rentals.

How do I finance my home in a Co-Op?

With a cooperative, you don't need to secure individual financing for your own home. The SOTEL Community is structured as a limited-equity cooperative, in which initial buyers typically choose from among several equity options. Your choice determines monthly payment and return when your shares are sold.

Limited-equity cooperatives provide a steady annual growth of member equity at a fixed rate of return on the initial share payment. This ensures that homes remain affordable and marketable long term.

How do I preserve financial security?

The many cost advantages of co-op living includes a high level of owner financial security. You pay your one-time share payment (or equity payment) then your ongoing monthly membership fees. Because cooperatives operate at cost, co-op monthly fees are often well below rental market value.