How to Form a Residential Condominium Condominiums are a form of joint property ownership and maintenance in which a common, undivided interest in components such as buildings, streets, recreational facilities, and infrastructure is shared by a group of individual condominium unit owners. Unlike cooperative housing where tenants own shares in the corporation which owns the property, condominium ownership can be bought and sold on the market just like single family housing. Condominiums may be formed when a property is developed, or existing structures may be converted to condominium ownership after rental operation.
Condominiums are subject to a growing body of State laws and regulations.
See the Uniform Common Interest Ownership Act of Nevada as an example. Individual condominiums are governed by owner associations , which oversee their management and operation. For existing properties, determine if the property is subject to state condominium conversion laws, which cover matters such as tenant rights to purchase and relocation payments. The Massachusetts law , for example, applies to conversion of four or more units . If affordability is a key concern consider financing mechanisms such as HUD's HOME and CDBG programs.