The 860|880 buildings are a cooperative (not a condominium) and were established as a trust in 1949. The 860 Lake Shore Drive Trust owns two buildings that presently contain 238 apartments and a two-level parking garage.
- The Trust owns, maintains and manages the property, which includes paying real estate taxes, the mortgage on the property, day-to-day operating expenses and utilities.
- An elected board of managing trustees and a management staff operate the buildings. By purchasing a certificate of beneficial interest in the Trust and executing an apartment lease, a resident has an exclusive right to occupy a specific apartment in one of the buildings. When a resident sells an apartment, his or her certificate of beneficial interest in the Trust is cancelled and a new certificate of beneficial interest is issued to the buyer. The buyer also signs a new apartment lease.
- The monthly assessment each resident pays is determined by the apartment’s size and location and includes each resident’s pro-rata share of: real estate taxes, utilities (water, heat, electricity, air conditioning, internet service and high-definition cable TV including TIVO DVR), common area maintenance expenses, and the mortgage on the property. Each resident who leases a parking stall or utilizes valet parking also pays a fixed monthly sum as a parking assessment.
In contrast to co-op residents, condominium residents own their units and an undivided interest in their building’s common areas, e.g. hallways, lobbies, etc. They pay monthly fees to the condominium homeowner’s association for day-to-day operational expenses plus any special assessments that may be imposed by the condominium association’s board of directors. In addition, they pay real estate taxes on their own units and, in most instances, they pay all of their own utilities. Also, unlike cooperatives, condominiums are bound by very specific State laws that were enacted to apply only to condominiums.
In summary, while in many respects condominium and cooperative buildings are similar, there are some very real differences in the ownership and operational aspects of these types of community living.