About Co-operative Housing | Mission Statement
Co-operative housing is people joining together to provide housing for themselves on a co-operative basis. Faced with continually increasing rents, the high price of private homes and the anonymity of most rental projects, more and more people see co-operative housing as the way to obtain a secure home, at a price they can afford, in a community environment.
In Canada there are two types of co-operative housing. The building co-operative, in which co-operators get together to build homes that they will individually own upon completion, was made famous in the Atlantic region. The newer type, which this document describes, is the non-profit continuing housing co-operative, where members jointly own the housing they live in and lease the units to themselves at cost.
Non-profit housing co-operatives can either be new construction or rehabilitated existing housing, or a combination of both.
Housing co-operatives are independent, self-directing, legal associations. The people living in the co-operative units form the membership of the corporation. Each resident-member has one vote in the affairs of the co-operative. Every year the members elect, from among themselves, a Board of Directors to manage the affairs of the co-operative.
On moving into the co-operative, people normally pay a small membership fee, a first and last month's housing charge and a maintenance guarantee. (Some co-operatives require a member loan which is refundable when the resident moves out.)
The resident-members make monthly payments to the co-operative which cover the cost of the mortgage, taxes and all operating costs. Items such as hydro are sometimes paid individually. There is no profit to anyone.
Co-operatives depend for their healthy operation on the active participation of their member-residents. This often begins with planning and designing the co-op. It definitely includes attending and participating in major decisions at members' meetings, and taking your turn on the committees and Board of Directors that run the co-op.
Problems have be to handled by people pitching in and helping instead of sitting back and complaining. The co-op will require the services and advice of professionals and usually will hire a manager but the final decisions and responsibility rest with the members.
Members do not individually own the units they occupy at any time.
Ownership in a continuing co-op rests with the co-op corporation. However, you have the right to permanent residency and only willful and serious breach of the co-op's occupancy by-laws or the rules agreed upon by the co-op's members is cause for termination of your right to occupancy.
Members may move out at any time, giving proper notice as indicated in the occupancy by-laws. Just as there is no purchase of the unit on moving in, there is no sale on moving out. Money paid as monthly payments is not refundable. Neither is there a possibility for capital gain.
No. There are four important advantages to non-profit co-operative housing over rental housing:
1. Unlike rents, co-op housing charges rise only with increases in operating costs and do not include any profits. Over time co-operative housing charges become significantly lower than rents for comparable private market accommodation.
2. Co-operative housing ensures an equal voice among residents in the decisions affecting their housing. There is no landlord.
3. Co-operative housing provides a unique opportunity for people to build a community and to share and assist each other in ways beyond their housing needs.
4. Democratic control guarantees that money budgeted for maintenance is spent on maintenance and not skimmed off for extra profit while the property deteriorates.
There are no income qualifications for any individual or family. Most non-profit co-operatives attempt to maintain a broad social mix, with emphasis on those of lower and moderate income.
For additional information please see the Co-operative Housing Federation of Canada's What is a housing co-op? page or the Co-operative Housing Federation of Toronto's About Co-op Housing page.
© Copyright 2010 Dufferin Grove Housing Co-operative.