What is Co-op Housing?
Any group of people can form a co-operative. The members own the cooperative and the cooperative provides a service they need. Housing co-operatives provide housing.
Since the 1930s, Canadians have been building and living in housing co-ops. The people who live in the housing are the co-op’s members. They elect, from among themselves, a board of directors to manage the business of the co-op.
Each member has one vote. Members work together to keep their housing well-managed and affordable.
Over the years, federal and provincial governments have funded various programs to help Canadians create nonprofit housing co-ops. The co-ops developed under these programs provide good quality, affordable housing. There are more than 255 nonprofit housing co-ops comprising 14,300 units in British Columbia.
As a co-op member, you have security of tenure. This means that you can live in your home for as long as you wish if you follow the rules of the co-op and pay your housing charge (rent). As a co-op member, you have a say in decisions that affect your home. You and your neighbours own your homes cooperatively. Members form a community that works together to manage the co-op. Co-op communities are made up of all kinds of people - people with different backgrounds and incomes and special needs. These diverse and vibrant communities are the unique strength of the co-op housing movement.
Co-op Principles
Source: International Cooperative Alliance News, No. 5/6, 1995.
Definition A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. Values Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
Principles The cooperative principles are guidelines by which cooperatives put their values into practice.
1st Principle: Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
2nd Principle: Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organized in a democratic manner.
3rd Principle: Member Economic Participation Members contribute equitably to, and democratically control, the capital of their cooperative At least part of that capital is usually the common property of the cooperative Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
4th Principle: Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5th Principle: Education, Training and Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.
6th Principle: Cooperation. among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
7th Principle: Concern for Community Cooperatives work for the sustainable development of their communities through policies approved by their members.
Living in a Housing Co-op
Being a co-op member means having control over your housing. It also means you have a responsibility to make sure that your co-op is a well-managed and pleasant place to live. If you join a co-op, you will be expected to do the following:
Buy shares in the co-op
Pay a monthly housing charge Attend members’ meetings
Participate in running the co-op join a committee or the board
help with maintenance organize social events
Before you apply to become a member, ask yourself if you will have the time and energy to participate in your co-op. The above guidelines are part of the cooperative principles which all cooperatives put into practice:
open membership
democratic member control
economic participation
independence cooperative
education cooperation. with other cooperatives
community.
Who lives in co-ops?
Housing co-ops are mixed communities. Members of housing co-ops come from a variety of backgrounds and have a wide range of incomes. Some members pay the full housing charge. This is often called a "market" housing charge. Other members with lower incomes pay less. This is called a subsidized housing charge. Some units in every co-op are subsidized.
What is subsidy?
Nonprofit housing co-ops receive money from the government (federal and/or provincial) to help the co-op subsidize a certain number of housing units. The housing charge for these units is adjusted to the income of the household. If a household qualifies for a subsidy, their housing charge is usually set at 25-30% of the household’s income plus charges for utilities.
©Killarney Gardens Co-op 2004