A BRIEF INTRODUCTION TO CO-OPERATIVE HOUSING

Co-Operative Ownership Versus Renting
Co-operative Housing: Housing Co-op's are independent, self-directing, legal associations. Each resident member has one vote in the affairs of the Co-operative. An elected resident Board of Directors is responsible for the day-to-day operations of the Co-op. The Co-op has committees to assist the Board with budgeting, membership selection, maintenance and social event planning.

Co-op members have the security of knowing that: they will not lose their housing through the decision of outsiders. There is not a landlord who can decide to sell the property.

Co-Operative Ownership Versus Individual Ownership
Rules are agreed by majority vote of the members in the Co-op. Operating costs are agreed by the vote of the general membership. FORD ROAD has hired management. Committees comprised of volunteer members in the Co-op handle the numerous aspects of running the complex, thereby controlling and reducing operating costs.

* IN ADDITION TO ATTENDING THE GENERAL ANNUAL AND SEMI-ANNUAL MEETINGS ONCE A YEAR, MEMBERS OF FORD ROAD CO-OP ARE REQUESTED TO PARTICIPATE REGULARLY IN AT LEAST ONE COMMITTEE.

Generally speaking this interprets to approximately four hours of volunteer time per unit, per month.

Co-Operative Principles and Objectives
Open and Voluntary Membership: Membership is voluntary and available without social, political or religious discrimination to all persons who are willing to accept the necessary responsibilities of membership.

Democratic Control: One member, one vote. The responsibilities of ownership are shared by all members.

Return of Surplus to Members: Savings, if any, from efficient operations of the Co-operative will be distributed to all members in the form of lowered housing charges.

Provide Housing on a Non-Profit basis: Monthly charges are established to cover mortgage payments and other operating costs with a small contingency set aside to cover unexpected expenses.

Offer Security of Tenure: Members of a Housing Co-operative retain occupancy of their units as long as they wish. Evictions occur only when the member fails to pay housing charges, fails to maintain his/her home or has abused the Co-operative's rules and the well being of neighbours.

Create a Community: Through the Co-operative's committees, the Board of Directors, member's meetings and social activities, members have the opportunity to meet others and take action around common problems.

Management of Housing Co-Operatives
Housing Co-Ops are responsible for their own management.
Both volunteers and paid personnel run most Co-Operatives.

The General Membership has the final authority in the Co-Op. They elect the Board of Directors, and approve Co-Op policies. The Board has the legal power to carry out the business of the Co-Op, but they can be removed by vote of the General Membership.

Professionals are hired by the Co-Op Board of Directors for accounting and legal requirements. However, much work is done by volunteer committees, which report to the Board of Directors and to the General Membership.

Who Lives in Housing Co-Operatives

The people who live in housing Co-ops represent a broad cross-section of cultural, ethnic and income groups.

Summary of Advantages

• Housing Co-ops do not have landlords.
• You know your neighbours.
• You have an equal vote.
• You control your operating costs.
• Your housing charges remain lower than inflation.
• You are part of an active community.

Summary of Obligations

• There is no profit in your investment.
• You live by the rules set by the majority.
• You must participate to reduce costs.
• You accept a mix of incomes.
• You accept a mix of ethnic groups.

A housing Co-Operative is a corporation owned equally by each resident member.

As a Co-Operative member, you do not directly own your unit. Instead, you have shares in a corporation, which owns the property.

Membership in a Co-Operative gives you the right to occupy a home in the development. It also allows you to take part in a "community atmosphere", as a voter in the general membership, a member of the Board of Directors, or as a committee member.

* MEMBERS OF FORD ROAD ARE REQUIRED TO PARTICIPATE REGULARLY IN A LEAST ONE COMMITTEE

Acceptance in Ford Road

New members are reviewed by Ford Road Membership Committee, and recommended to the Board of Directors for final approval.

When applicants are being considered, no discrimination is allowed on the basis of race, colour, sex, or creed. Because of city by-laws, there is a limit to the number and size of pets allowed in the Co-Op.

A member must meet financial requirements, be of legal age, and agree to sign required documents. As a member, you will be required to join a committee or the Board of Directors.

To become a member of Ford Road you must purchase a share at a cost of $1,200.00 for an apartment and $1,800.00 for a townhouse. These share funds may be used by the Co-Op to pay for items which are not included in the mortgage, due to government-imposed cost limits.

Housing Payments

In a housing Co-Op, the member's monthly payment is called a "housing charge", instead of rent, because members each share the mortgage repayment and operating costs.

Monthly housing charges cover the cost of the mortgage repayment, taxes, property maintenance, and replacement reserves. In Ford Road, heat and electricity are the responsibility of each member.