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Advantages to living cooperatively

Historic architecture, spacious floor plans among co-op benefits

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co-op, gay news, Washington Blade

Know the differences between a condo and a co-op before you start looking.

Itā€™s Thursday night and your phone pings to tell you that you have a new message from your favorite real estate search engine. Excitedly, you open the link to find a new condominium has come on the market and, incredibly, itā€™s in a neighborhood you love and a price range your mortgage lender has said you can afford.

You scroll through the photos, then contact your real estate agent to see when you can get in to see it in person. Your agent looks it up and then promptly bursts your bubble by telling you that itā€™s not a condominium at all but something called a ā€œcooperative apartment,ā€ known colloquially as a ā€œco-op.ā€

Hmmm, you think. It looks like a duck and it quacks like a duck but itā€™s really not a duck?Ā  And what the heck is a cooperative apartment?

Ownership Structure: The main difference between a condo and a co-op is the form of ownership. When you buy a condo, you are purchasing the unit itself and a share of the common areas that correspond to the size of your unit divided by the size of the building. You become a unit owner.

When you buy a co-op, you are buying shares of stock in a corporation that owns the building. Your shares correspond to the size of your apartment (yes, itā€™s called an apartment) divided by the size of the building. The residents make up the corporation and you become a shareholder.

Financing: Not every lender can finance a co-op. Traditionally, each co-op has a few ā€œrecognition agreementsā€ with mortgage companies certified to lend on the building. Years ago, it was a small, select group, but in the past 10 years we have seen more traditional lenders such as Bank of America and BB&T authorized to lend on co-ops.

Be sure to have your agent check with the co-op board of directors to ensure you are pre-approved by a lender they will accept.

Monthly Fees: Monthly fees will generally be higher in a co-op than a condo. Hereā€™s why: Because the building functions as a single entity, property taxes are assessed on the whole building and its land, then each shareholder pays his pro-rated share as part of the monthly fee.

Utilities may also be common to the building, so your share of those costs is usually included in the monthly fee as well.

Some of the same costs you pay for in a condo fee, such as common area maintenance, lawn care and management will also be included in your co-op fee, but a large part of the fee could be due to an ā€œunderlying mortgage.ā€

An underlying mortgage, if there is one, uses the entire building as collateral and you assume your share of the balance for the remainder of the loan. Such a mortgage may reduce the amount of down payment needed for your purchase.

Document Review: In D.C., whether you buy a condo or a co-op you can read the house rules, review the financial stability of the association and opt out of your contract if you find anything disconcerting. Be sure to go over the rules for pets (some co-ops are ā€œcats onlyā€), renting (co-op rules tend to be more stringent) and in-unit washers and dryers. Many co-op buildings are older and the plumbing will not support individual units, so expect a community laundry area.

Board Approval: The co-op board of directors will require a personal interview. The board approval meeting may be as simple as answering any questions you may have, but a further review of your financial information may also be required. While federal and D.C. fair housing regulations prohibit discrimination based on 18 protected classes, the inability to pay oneā€™s bills is not among them.

Settlement: You must use a settlement firm that handles co-ops, of which there are few.

Even though you are buying shares of stock instead of a home, the District now treats co-ops like other housing for purposes of transfer and recordation tax, so your closing costs should be roughly the same as those of a condo.

So, donā€™t fret if you find that what you thought was a great condo is really a co-op. They do have advantages, such as historic or otherwise significant architecture, traditional yet spacious floor plans and all-inclusive monthly payments that may actually be less than similarly priced condos.

Perhaps itā€™s time for you to start living ā€œcooperatively.ā€

Valerie M. Blake can be reached at 202-246-8602 or [email protected]. Each Keller Williams Realty office is independently owned and operated. Equal Housing Opportunity.

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Real Estate

Avoiding the basement blahs

Renovating a lower level can add significant value to your home

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Basement renovations often include home gyms or movie theaters. (Photo by pics721/Bigstock)

Sadly, we have waved goodbye to summer and are now slowly shifting from enjoying outdoor activities to things we can do indoors. If you are lucky enough to have a basement, renovating it into livable space can be a great winter project to dramatically increase the functionality and value of your home. 

Basements come with unique challenges due to their location below ground level, and overlooking critical aspects can lead to long-term problems. They are particularly vulnerable to dampness. Failure to address moisture can lead to mold growth, structural damage, and health hazards.

To tackle moisture control, start by checking for water leaks or seepage through the walls and floor. If moisture is present, you may need to apply waterproofing solutions to the exterior or interior walls of your home. Installing a vapor barrier is advisable to prevent condensation from damaging insulation and walls.

Make sure the basement has proper drainage systems, such as a sump pump and foundation drainage. The sump pump can remove water that collects around the foundation, while an effective drainage system redirects water away from the home. Installing a dehumidifier can also help. 

Basements also tend to be colder than the rest of the house. Proper insulation in the walls and floor helps regulate temperature, reducing heating costs in winter and maintaining a cool, comfortable, and energy efficient environment in summer. Insulating the ceiling can reduce noise transfer between the basement and the upper floors, making the space quieter and more private.

Before any significant work begins, it’s crucial to assess the basement’s structural integrity. This includes checking the foundation for cracks or signs of shifting, which could indicate a bigger problem, particular with the plethora of old houses in the area.

If you notice any large cracks or signs of movement, consult a structural engineer or foundation expert to determine whether repairs are needed. Small cracks can be sealed, but larger ones may require reinforcement or more extensive foundation work.

Depending on local building codes, you may need to install egress windows if you are adding bedrooms or turning the basement into a rental unit. Egress windows provide an escape route in case of emergencies and allow more natural light to enter the space, making it feel more welcoming.

When adding a bathroom or kitchen, youā€™ll find that installing plumbing in a basement can be more challenging because of the need to pump wastewater upwards. You may need a macerating toilet system or a sewage ejector pump to manage this. I learned this the first time I found that, contrary to what we have been told, water can indeed travel up.

Adding more outlets, lighting, appliances, and ventilation systems may necessitate electrical upgrades. Since basements are often unfinished, you may have exposed wiring, which should be properly enclosed or rerouted to meet code. Depending on the scope of the renovation, you might need to upgrade your homeā€™s electrical panel to handle the increased demand.

Proper ventilation is often overlooked in basement renovations but is essential for maintaining air quality and preventing the buildup of stale air or harmful gases. Installing mechanical ventilation, such as an HRV (Heat Recovery Ventilator) or an ERV (Energy Recovery Ventilator), can help ensure a consistent flow of fresh air in the basement.

Radon, a naturally occurring radioactive gas, can enter homes through cracks in the foundation. Since radon exposure is a leading cause of lung cancer, itā€™s wise to test for it before beginning the renovation. If elevated levels are detected, you may need to install a mitigation system.

Once the technical aspects are addressed, focus on creating a functional and aesthetically pleasing layout. The design of your basement will depend on how you plan to use the space, whether itā€™s a guest room, home theater, office, workout area, or game room.

Since natural light is limited in basements, it is important to plan your lighting carefully. Recessed lighting is a popular choice because it doesnā€™t take up ceiling space, but you should also consider adding floor lamps and sconces to make the space feel brighter and more inviting.

Choose flooring that can withstand moisture, such as vinyl planks, tile, or sealed concrete. Since basements can double as storage areas, consider incorporating built-in shelving, closets, or under-stair storage to maximize the available space.

Whether doing it yourself or hiring professionals, renovating a basement is a rewarding project that can add significant value to your home, but it comes with challenges. From moisture control and insulation to plumbing and air quality, careful planning is crucial to ensure a comfortable, functional, and safe space to enjoy indoor hobbies and emerge from winter free from the Basement Blahs.


Valerie M. Blake is a licensed Associate Broker in DC, MD & VA with RLAH Real Estate / @properties. Call or text her at (202) 246-8602, email her at DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.Ā 

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Real Estate

The new kids on the block

Homeowners now entering market on own terms

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(Photo by Maridav/Bigstock)

As interest rates begin to cool off for the first time in a few years, prospective ā€œfirst time homebuyersā€ may have their wheels spinning again about whether itā€™s a good idea to buy a home. Still, the idea of home ownership may feel out of reach for some; historically, the prevalence of homeowners has been low in certain subsets of the population. It wasnā€™t until the 1900ā€™s that laws were enacted to grant women and people of color equal access to property ownership:

1968: The Fair Housing Act prohibited discrimination in home buying, homeownership, and rental real estate based on sex, race, religion, and other protected classes. 

1974: The Equal Credit Opportunity Act (ECOA) prohibited discrimination in consumer credit practices based on sex, marital status, and other factors. This made it easier for women to buy homes by allowing them to apply for loans and credit without a male co-signer. 

Even with these laws in place, socioeconomic disparities and lack of access to generational wealth have slowed progress in this area. Generational wealth occurs when resources are passed on to family members when the family homeowner or the head of household passes away. In areas like D.C. this type of asset can be worth hundreds of thousands of dollars, and can be used to pay off student loans, help younger members of the family purchase their first or second homes wherever they live, or be invested in other ways. 

While this may have been the key to buying property in the past, people today are pursuing homeownership for themselves and their own means ā€” especially women. Many real estate agents in the D.C. metro area can testify that they are working with individuals who are the first in their family ā€” and often the first woman in their family ā€” to buy a home. The days of waiting until marriage to invest in property are slipping away; these days people marry later, may not stay married, or may choose not to marry at all. ā€œI didnā€™t consider buying a home at first, because I didnā€™t really see myself as a ā€œtypicalā€ homeowner; I was single and wasnā€™t sitting on a stockpile of cash,ā€ says Jordyn White, a D.C. resident who bought her first home at 29. ā€œA trusted friend encouraged me to explore first-time homebuyer programs, and Iā€™m glad I did. My monthly mortgage payment is similar to what I would likely pay to rent in the same area, and now I have created a path to generational wealth for my children.ā€

The rates of homeownership for people of color and women are steadily rising. A 2023 Pew Research Center survey using 2022 census data found that single women owned 58 percent of the nearly 35.2 million homes owned by unmarried Americans, while single men owned 42 percent. Single homeowners have peace of mind in knowing that they own assets by themselves.  

Compass real estate agent Katri Hunter has helped many of her clients buy their first home. She reports, ā€œI find more and more that I have single clients that approach me in their early/mid-30’s and say that they thought they would be buying their first property with a significant other and then decided to take things into their own hands ā€¦ I tell people all the time to consult an estate planner when and if they do decide to get married to discuss pre-marital assets and keeping those in their own name. I think people really take more pride and ownership buying property on their own rather than something they dread.ā€

Katri Hunter can be reached at [email protected]. JosephĀ Hudson is a referral agent with Metro Referrals.Ā He can be reached at 703-587-0597 orĀ [email protected]

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Real Estate

Ensuring safer water in rentals with ā€˜Lead Free DCā€™ initiative

An excellent opportunity for landlords to replace old service lines

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Clean drinking water is essential and as a landlord there are programs to assist. (Photo by gamenacom/Bigstock)

Maintaining a safe and healthy environment for your tenants is a top priority as a landlord in the District of Columbia. One critical aspect of this responsibility is ensuring the water in your rental properties is free from lead contamination. The “Lead-Free DC” initiative, led by DC Water and supported by the District of Columbia, offers an excellent opportunity for landlords to replace old lead service lines and contribute to the broader effort of safeguarding public health.

Why Lead-Free Water Matters

Lead exposure is a serious health concern, particularly for young children and pregnant women. However, even in rental properties where no small children currently reside, lead in drinking water poses an ongoing risk to all occupants. Long-term exposure to lead can lead to various health issues, including cognitive impairment, cardiovascular problems, and developmental delays. As such, addressing lead pipes is not just a matter of compliance but a strategic investment in the long-term value and safety of your property.

Resources Available to Landlords

The District of Columbia, through DC Water’s “Lead-Free DC” initiative, provides several resources to help landlords replace lead service lines:

1. Free Pipe Replacement: DC Water offers free replacement of lead pipes on public property, such as the pipes running under streets and sidewalks. This service is available to all property owners, including landlords, and significantly reduces the cost burden of making your rental property lead-free.

2. Partial Replacement Assistance: For lead pipes on private property (e.g., those running from the property line to your building), DC Water offers partial financial assistance. The cost to replace these pipes is typically shared between DC Water and the property owner, reducing the overall expense.

3. DC Lead Pipe Replacement Assistance Program (LPRAP): This program specifically helps low-income residents replace lead pipes on their property at no cost. While it primarily targets homeowners, landlords with qualifying properties may also benefit from this program.

4. Federal Programs: The U.S. Environmental Protection Agency (EPA) and the Department of Housing and Urban Development (HUD) provide grants and low-interest loans to property owners for lead hazard reduction, including pipe replacement. These programs can further alleviate the financial burden associated with removing lead from your rental properties.

Strategic Value of Going Lead-Free

Investing in lead pipe replacement is a strategic move that offers significant long-term benefits:

ā€¢ Increased Property Value: As awareness of lead-related health risks grows, properties with modern, lead-free infrastructure are likely to become more desirable and command higher market values.

ā€¢ Tenant Retention and Attraction: Tenants increasingly prioritize health and safety in their living environments. A lead-free property can be a key selling point, helping you retain current tenants and attract new ones.

ā€¢ Regulatory Compliance: As regulations surrounding lead in drinking water continue to tighten, staying ahead of the curve can save you from potential legal issues and costly retrofits in the future.

ā€¢ Community Contribution: By participating in the “Lead-Free DC” initiative, you are not only protecting your tenants but also contributing to the broader effort of making the District of Columbia a healthier place to live.

Understanding Potential Costs

While much of the pipe replacement work is covered by DC Water and other programs, there may be some additional costs to consider. For example, once the old lead pipes are removed, the area where the pipes were accessed might need restoration. This could include patching up driveways, sidewalks, or landscaping around the foundation of your property. Although these costs are relatively minor compared to the health and safety benefits, it’s essential to budget for them when planning the work.

A “No-Brainer” Decision for Landlords

Replacing lead pipes is more than just a necessary updateā€”itā€™s a no-brainer decision that will pay dividends in the long run. The peace of mind that comes from knowing your rental property is free from lead risks is invaluable, and the potential increase in property value and tenant satisfaction makes it a wise investment.

Take advantage of the resources available through the “Lead-Free DC” initiative and other programs to ensure your rental properties offer safe, lead-free water for all tenants, now and in the future.

Further Access Information for Readers:

DC Water – Lead-Free DC Program:

https://www.dcwater.com/resources/lead

This page provides detailed information about the Lead-Free DC initiative, including how to apply for pipe replacements and available assistance programs.

DC Water – Lead Pipe Replacement Assistance Program (LPRAP):

https://www.dcwater.com/lprap

This page offers insights into the Lead Pipe Replacement Assistance Program, focusing on how low-income property owners can receive help in replacing lead pipes.

EPA – Lead in Drinking Water:

https://www.epa.gov/ground-water-and-drinking-water/basic-information-about-lead-drinking-water

This URL covers essential information on the risks of lead in drinking water and federal programs available to help property owners.

Scott Bloom is owner and Senior Property Manager of Columbia Property Management. For more information and resources, go to ColumbiaPM.com.

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