Property Ownership

What is a 'housing cooperative' (co-op) and how does it work in Hawaii?

AA. A cooperative that manages multiple HOAs in a Hawaii community
BB. A corporation that owns a multi-unit building; residents buy shares and receive a proprietary lease for their unit rather than owning the unit directly—less common in Hawaii than condominiums✓ Correct
CC. A government-owned housing development managed by residents
DD. A form of timeshare ownership unique to Hawaii

Explanation

In a housing cooperative, a corporation owns the building, and residents purchase shares in the corporation which entitles them to occupy a specific unit under a proprietary lease. Unlike condominiums, co-op residents don't own real estate directly—they own shares. Co-ops are relatively rare in Hawaii compared to condominiums, though some do exist.

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