General Partnerships

In this ownership model, a corporation or nonprofit interested in developing affordable space simply builds or purchases the space and partners with the residents to manage and operate it. The design of the partnership and division of rights and shared responsibilities are different for each situation.

For example, a building owner might handle financial issues associated with the building (taxes, new residents, rehabbing the space), while the residents handle day-to-day management (maintenance, enforcing bylaws, electing boards).

Partnerships can form for many reasons. For example, a property gets new owners who are interested in this form of community development. Or, the partnership forms at the suggestion of community members who approach interested businesses or organizations to assist with development of a space. Each partnership model is different, and may require a little ingenuity on your part in locating a funder interested in community space development.

TIP: You must read the CC&R and bylaws of the condominium association or cooperative to get a clear picture of what it will be like to live or work there. Ask for and review minutes from the prior three years of board meetings. Also, ask for information about the organization’s capital reserves: funds set aside for emergency repairs and general maintenance.

TIP: A lawyer can help shape the values of each prospective co-ownership owner into a clear legal framework that will best protect everyone and help preserve friendships.

TIP: If you are interested in forming a condominium corporation or cooperative, read A Guide for Organizing Not-for-Profit Corporations, by the Illinois Secretary of State.