FINANCIAL FACTS ABOUT HOME OWNERSHIP AT SRCC
Santa Rosa Creek Commons (SRCC) is a 27-unit cooperative community. Members of each unit purchase a membership share, which represents part ownership of the entire property. Members also pay a monthly carrying charge which is their share of the annual budget. SRCC is a self-managed community and requires significant participation by all members.
COST OF SHARES
The cost of a SRCC is related to the type of unit that you occupy as well as the cost to build it in 1982. Effective October 2022, Share prices range from an estimated $10,000 to $33,000 depending on the type of unit.
INCREASES IN SHARE VALUES
Each fiscal year the Board of Directors (i.e., all members) considers an increase on the value of shares.
This is based on the annual increase in the cost of living index (consumer price index).
CARRYING CHARGES --
For the fiscal year starting July 1, 2022, these figures are:
Studio,1 bath: $396 - $550
1 bedroom 1 bath: $631 - $855
2 bedroom, I bath: $946 - $950
3 bedroom, 1.5 bath: $1,264
*Monthly utility charge: $50 per person is added to this charge.
Carrying charges cover mortgage payments, insurance, taxes. shared utilities, garbage, recycling, reserve funds, maintenance, accounting and legal fees. All members pay gas and electricity within their units.
TAX BENEFITS AND REQUIREMENTS
In accordance with the SRCC Occupancy Agreements, all members must maintain full-time residence at SRCC. Although some members own other residences, all are expected to fill out the Homeowners’ Property Tax Exemption form giving SRCC as their primary residence. The exemptions give SRCC an annual saving in our property taxes.
All members may claim an income tax deduction for their share of property taxes paid by the cooperative. Members may claim their share of mortgage interest payments as a tax deduction.
WHEN A MEMBER LEAVES
SRCC refunds the current value of the share to the departing member after deducting any member-caused repair costs and any outstanding charges owed to SRCC.
SRCC reports the amount paid to the departing member to the IRS. Any increase in this sales value over the amount paid by the member and the time he/she bought the share is considered a capital gain at the time of sale.
BASIC INFORMATION ABOUT INSURANCE AT SRCC
SRCC has insurance for fire and earthquakes, covering such damage to any SRCC-owned buildings and structures. Residents’ personal property is not covered. We recommend that residents purchase individual homeowner or condominium insurance to protect their personal property.
SRCC also has liability insurance, including bodily injury. This protects SRCC from claims or lawsuits that could be brought against SRCC should visitors incur injury while on the premises of our common property, but does not cover visitors who injure themselves within a private SRCC apartment. We recommend that members purchase their own insurance to cover injuries that may occur to guests within their own unit.
SRCC insurance does not cover injuries or medical insurance needs of SRCC residents. Residents who are injured on SRCC property are not covered by SRCC insurance, even if they are performing volunteer tasks or are just using the grounds. We recommend that members provide their own health and medical insurance coverage.