LAGUNA WOODS, CALIFORNIA

     Laguna Woods is the largest private, gate-guarded community for adults 55 years and older on the West Coast. Less than ten minutes from Laguna Beach in the beautiful Saddleback Valley, the city was incorporated after a vote of the 18,000 residents in 1999.

     Laguna Woods is both one of California's newest and oldest cities. Incorporated in 1999 as Orange County's 32nd city, the average age of Laguna Woods residents is 78. Ninety percent of the City’s 4 square miles is contained within the senior citizen gated community of Laguna Woods. The balance of the City contains three additional senior residential communities and several thriving commercial centers.

     Convenience to shopping areas, houses of worship, medical care facilities and cinemas are some of the reasons this city is so popular to those looking to retire.

     Laguna Woods also provides social facilities along with a multitude of amenities for the active senior.

     The city of Laguna Woods is nestled in the Saddleback Valley region of South Orange County west of Interstate 5. Comprising four square miles of land and approximately 20,000 residents, Laguna Woods is a quaint community that encompasses the large retirement village. 

     Incorporated on January 1, 1999, Laguna Woods began contractual law enforcement services with the Orange County Sheriff's Department on July 1, 1999. The citizens of Laguna Woods benefit from the lowest crime rate of any city in Orange County, .76 Part One crimes per 100 residents in the year 2000.

200+	Clubs & Organizations
6	Clubhouses (click here to learn more about the clubhouses)
5	Pools
6	Tennis Courts (Lighted)
2	Golf Courses (27-hole championship course & 9-hole par 3 executive course)
3	Lawn Bowling Greens
18	Shuffle Board Courts
1	Equestrian Center (40 stalls, 3.5 miles of trails)
10	Craft Workshops
2	Garden Centeres (933 cultivation plots)
2	Recreational Vehicle Storage Areas (413 spaces)
1	Library
14	Manned Security Gates
1	Auditorium/Theatre (seats 834)
1	Administration Building
1	Service Center

Some differences between condos and coops.

Ownership - The main difference between condos and coops is the actual form of ownership. A condominium is real property and ownership is evidenced by a deed allowing the owner to occupy the space as each owner sees fit. A coop is personal property and ownership is evidenced by shares of stock in a corporation in combination with a proprietary lease which allows each shareholder the right to occupy space under specific restrictions. Condominiums have a condominium association and coops have a board of directors, each committee serves a similar purpose of making decisions on behalf of the owners and shareholders, respectively. For tax purposes, both generally filed as a non profit corporation.

Occupancy Restrictions - Another major difference between coop and condo is the set of restrictions placed upon the shareholders of a coop in use of occupancy which contained in the proprietary lease. The proprietary lease may restrict the amount of financing one can obtain using the shares as collateral, it may restrict a shareholder from subletting their space, or from having a specified number of occupants, or from having pets, or whatever else the "board" deems to be appropriate. The proprietary lease also gives the board of directors the right to refuse any prospective buyers or sublets for any reason, or no reason. Most coops have a very formal application and interview process before the board reaches their decision. Condominiums on the other hand have virtually one restriction which is their "right of first refusal." The right of first refusal gives the condominium association first opportunity to buy an apartment from a selling owner at the same terms under contract with a prospective buyer. Condo associations rarely exercise this option.

Feeling of Neighborhood - Because of the lack of controls in place, condominiums may become less homogenous in nature and may have somewhat of a more transient feeling. Cooperative apartment corporations on the other hand tend to be highly homogenous and more stable in terms of neighborhood.

Purchase Prices - As a broad rule of thumb, coops tend to have lower purchase prices than condos.

Common Elements and Services - As broad rule of thumb, condos generally may be slightly less expensive to maintain over time. Owners of condominiums pay for the common elements (ie: management, staff, doormen, plumbing, roofing, common walls, etc.) in the form of common charges, and they pay their taxes separately. Most condo owners are generally responsible for paying their own utility usage. Coops on the other hand pay for the common elements in the form of maintenance charges which generally include everything to upkeep the building, including taxes and most often utility usage. Another component of the maintenance fee that generally does not exist with a condominium is the cost associated with an underlying mortgage (introduced in the history section). Some coops and condos offer recreation, parking, storage and other facilities as a part of the common charges or maintenance, others require additional payments. To be able to compare an apple with an apple, it is very important to understand what costs are included in the common charges or maintenance, and what services are offered in return.

Mortgage Vs. Assess - coops have no restrictions other than that imposed by the lender in terms of size of underlying mortgage. Underlying mortgages on condos have restrictions. In the event the building needs money, coops may be in a more flexible position not to assess each owner.

Settlement Costs - The closing costs to obtain a mortgage for a condominium are very expensive in relation to settlement costs to finance coops. The major differences are the inclusion of mortgage recording tax, title insurance and tax escrow when obtaining a mortgage for a condo, as these items are not required to close on a cooperative apartment loan.

Availability - In Manhattan, it does not take long to figure out that there are very few condos, and that most buildings, particularly "prewar" buildings are coops.

Which is better? - Answering this question is like trying to determine if an apple tastes better than an orange. Both are excellent forms of ownership, condos may not be for everyone, coops may not be for everyone; It is up to each individual to become an informed consumer, to identify their personal preferences, physically look at the spaces, analyze the cost and benefits of each, and make an informed decision.