Cooperative Conversion

See also: Condominium Conversion, Tenant Relocation

What Is It?

In a cooperative apartment complex you don't actually own any real estate. Rather, you own shares in a not-for-profit corporation, and you lease your unit from the cooperative.

The conversion of apartments to cooperative ownership is controlled both by Washington state law and by Seattle ordinance. Seattle’s ordinance:

• Provides for relocation assistance to tenants
• Outlines the required inspections for compliance with Seattle’s Housing and Building Maintenance Code
• Allows tenants to buy their own unit
• Requires 120 days' notice to tenants who must move out of the converted unit
• Requires notifications to buyers about their responsibilities and costs associated with purchasing a converted unit

If you are converting an apartment to a cooperative, you must:

• Tell tenants about their right to receive relocation assistance
• Provide tenants with information on how to end their lease
• File reports with us about the conversion and the relocation assistance payments
• Have the units inspected by a City inspector, make any needed housing code repairs, and certify and warrant those repairs

This ordinance does not cover:

• State law requirements for creating the cooperative association (see RCW Chapter 23.86)
• Condominium conversions; this is a different form of ownership governed by separate state and local laws

Read the Code

Read the Seattle Municipal Code (SMC) section about the cooperative conversion ordinance, SMC Chapter 22.902.

Proposed Changes

None