The KRIEGSFELD CORPORATION is the listing agent for all shares for all units available for purchase from the NEW Parkchester Housing Cooperative. The KRIEGSFELD CORPORATION is an agent of the seller. Buyers working with buyer brokers or buyer agents will need to disclose the agency arrangement to the Co-op. A potential buyer may use a licensed buyer broker or agent for representation. Such verified arrangements with a licensee can result in a sales commission payment for such services similar to most MRIS offers of broker cooperation. To assist their clients, buyer brokers or agents will need to become familiar with certain information about this program.
1. The NEW Parkchester Housing Cooperative (the “Co-op”) was established in 1989 and acquired the property in 1991. The Members recently adopted new organizational documents to allow full equity (“market rate”) ownership of shares. As a result of this change, NEW Parkchester is now offering to sell a limited number of new membership shares that entitle the buyer to occupy and use a specific vacant unit. Sales of cooperative shares are not the sale of real property since the NEW Parkchester Housing Cooperative actually holds title to the land and improvements. A personal stock certificate and occupancy agreement are issued to each Member rather than a deed. The Cooperative policies are approved by the elected resident Members who serve on the Board of Directors
2. Available units can be viewed during sales office hours with sales agents and at other times with buyer agents using Sentrilock boxes for access. Please contact us to schedule a tour of the property. The initial phase includes 13 units of 7 types located in three buildings (2900, 2905 and 2906 Pomeroy Road). Floor plans for each of the seven units are provided on the website, but actual units may vary slightly in size and/or layout.
3. To initiate a purchase, prospective buyers will need to select an available unit and review the available disclosures such as the Seller Property Condition Disclosure, DC and Federal Lead Paint Disclosures, Co-op Bylaws, etc. These documents are available for download below.
4. Contract offers should be submitted on a Co-op purchase agreement form with proof of financing, a Co-op membership application and an earnest deposit. The offer should be based on use of the unit as a primary residence and the buyer must have income that is less than 95% of adjusted median income for the District of Columbia (approximately $100,000 for a family of 4 in 2015).
5. Buyers may include contingency items in their offer such as a home inspection or appraisal, but as with any property sale, the seller (the Co-op) reserves the right to reject any contract or any contingency. Buyers may propose optional upgrades to be made in their unit prior to settlement if they can afford the extra cost and make a non-refundable deposit to cover at least 50% of the cost.
6. Share loan financing is available to new buyers at market terms and rates through the DC Government Employee Credit Union and their affiliates. These organizations are familiar with the program and have agreed to offer competitive terms to qualified buyers.
7. The NEW Parkchester Housing Cooperative is also offering qualified buyers down payment assistance in the form of a substantial deferred payment share loan with a 3% annual interest rate. These “Co-op Loans” vary with the size of the unit, but are at least 18% of the purchase price and do not have to be repaid until a Member sells or refinances their share. To qualify for a Co-op Loan, a potential buyer must be prepared to make a cash down payment of at least 2.5% of the purchase price and meet various other income and credit requirements. Buyers seeking Co-op Loan approval must also be approved as new Members of the Cooperative.
8. Buyers with approved financing and membership can proceed to pre-settlement activities such as appraisals, final walk through inspections, etc. The seller/Co-op is offering financial incentives for buyers who agree to have their settlement with the law firm of Eisen and Rome. A cooperative settlement requires use of the designated Transfer Agent (KRIEGSFELD CORPORATION for NEW Parkchester), but there is no title insurance to purchase. Buyers at NEW Parkchester may also qualify for abatement of the 1.1% DC transfer tax based on their documented household income.
9. The NEW Parkchester Housing Cooperative is not currently approved for FHA or FNMA financing programs. However, buyers using HPAP, EAHP or other down payment sources may combine them with a deferred payment Co-op Loan if they meet the requirements.
10. Once a new buyer becomes a Co-op Member, purchases a share and takes possession of their unit, they will be responsible for making monthly payments known as operating assessments. These are similar to condo fees in that they are an allocation of the Board approved annual operating cost based on unit size. These are subject to change based on decisions made by the Board of Directors.