Welcome to 3020 Porter St NW, Unit 102
Washington DC 20008 in Cleveland Park
Are you looking for the perfect starter home or perhaps someplace to downsize to? This is a 650 square foot updated co-op with a stainless and granite kitchen, updated bath, hardwood floors, the possibility of garage parking, a common patio for the residents and extra storage. This co-op has no underlying mortgage and low co-ops fees which include property taxes, insurance and water and sewer. If you are a pet lover, you will be happy to hear that you can have a cat.
3020 Porter St NW is just two blocks to the Cleveland Park metro and close to a micro Target, great restaurants, a grocery store, movie theater, and Vace's, one of the best pizza places in DC!
WHAT ARE THE BENEFITS OF OWNING A CO-OP?
Because coops generally emphasize owner occupancy, there is a higher percentage of owner occupants in coops versus many condos. This higher owner occupancy percentage carries with it a higher level of membership interest and involvement in the operation of the coop. This sense of community is strengthened when the Board interviews prospective owners once the buyer and seller have a ratified contract or a tenant who is interested in renting in the building. This interview process allows the buyer or prospective tenant to understand the community that he or she is joining and to ask questions about the bylaws and rules. The application process and interview also provide a means to ensure that prospective owners are financially able to afford the costs associated with ownership. The interview process also allows the Board of Directors to welcome prospective buyers and tenants into the coop community.
HAVING A SAY IN THE DECISION MAKING AND OPERATION OF THE COOP
The coop's bylaws typically give the members of the coop a voice and a vote in the
operation of the coop. The members vote on the Board of Directors and various important matters at annual or special meetings. They can participate directly in the affairs of the coop by serving on the Board of Directors or on standing or ad hoc committees.
TAX BENEFITS AND TREATMENT
Coop owners enjoy the same tax benefits enjoyed by any one who owns real estate. The real estate taxes and interest on an underlying mortgage (also known as a blanket loan) that are paid by the coop are passed on to the owners as a pro rata allocation according to the ownership shares. The owners then deduct the taxes and interest on federal, state and local income forms Owners can also deduct the interest on financing of their individual units.
THE COOP CAN LIMIT RENTALS
Properties with an excessive number of rentals are difficult to finance with federally-ensured mortgages. Non-resident owners may not have the same level of interest in the day to day affairs of an entire condo community or be willing to suffer an increase in condo fees for maintenance or new amenities. On the other hand, coops generally limit owners' ability to rent their units. Rentals are subject to Board approval in many coops. Most coops also have bylaws that (a) limit the situations in which a unit may be rented such as the owner is temporarily transferred out of the Washington area; (b) limit how long a unit can be rented, such as a year or two and (c) in some cases limit the total number of units in the building that can be rented at any one time.
Clearly if you are considering a coop but are not sure that you will be able to occupy it on a long term basis (five years or more), it may be that a condo is a better option for you.
A SIMPLER TRANSFER PROCESS AND SLIGHTLY LOWER SETTLEMENT COSTS
The transfer of a coop unit is simpler than that for other types of residential sales, The coop documents, which include the shares of stock and proprietary lease, a coop ownership contract and other related documents, are transferred by the Board of Directors. The settlement is typically handed by a title company familiar with coop transfers. Most settlements in DC are handled by Edmund J. Flynn Company, which has been specializing in coops since 1920 and created documents for many of the coops around the city.
DC changed the laws pertaining to the sale of coops several years ago and now requires that the buyer and seller pay transfer and recordation taxes similar to those assessed on the sale of real property. However, no title search or title insurance is required and there are no escrows for property taxes since these are included in the monthly coop fee.
PRIVACY
Most coops do not have a separate tax record showing the owners' names. If you want to maintain your privacy but do not want to go to the effort of setting of a trust or LLC to take title to your property, you might enjoy the anonymity that many coops provide in the title records.
If this explanation of why coops are a good choice makes you want to move to a coop this year, just click here to find all the coops in DC currently on the market - or call the Lise Howe Group at 240-401-5577 to start your search or ask more questions!
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