What is Co-operative Housing?

In Canada, co-operative housing is less common than in parts of Europe or Asia, where in some countries it comprises 50% or more, of the housing stock.

The Canadian government supported co-op housing in the 1970’s and 80’s, but in the mid-90’s, got out of funding housing completely. We are part of a movement that believes it’s time to revisit the idea that housing should not be a commodity used to build wealth, but as a human right. We feel the capitalization of housing stock is a major factor in the housing crisis we now see in this country.

In a housing co-op, with very few exceptions, the land and buildings are owned by the co-op legal entity.
The co-op holds the mortgage and manages the property, through it’s members board. Individual members do not carry a mortgage.
Members of a co-op purchase a share in the co-op, which in turn, makes them member-owners of the co-op. The cost of a member share may vary according to the size of the unit.
Owning a share gives the individual the right to reside in their home as long as they wish, and as long as they abide by the co-op established policies for membership. Housing security of tenure is guaranteed in this way.
There is no profit to a developer or a landlord in co-operative housing.
The monthly housing costs consist of each household’s share of the cost of servicing the financing debt (blanket mortgage) plus the costs of operation. These will include maintaining a contingency fund for repairs and maintenance of the co-op’s buildings.
The resident members would generally form their own management board, serving agreed-upon terms.
The Intentional community concept of being self-governing, fits nicely with the co-op model of ownership.
As a wealth-building asset, a co-op share does not appreciate the way a market condominium would, although over time the co-op’s holdings could accrue value. Investment into non-housing entities will offer the possibility of wealth-building and allow incremental withdrawing as needed. This is especially true for seniors, who would not want to face a forced move into rental housing.
With a lower barrier to entry, there is security in knowing the vagaries of the housing market will not put a family into a place of housing insecurity.
Leaving your co-op home would mean selling your share back to the co-op. It would then be offered to an applicant whom the board has determined would be a good fit, and who agrees to abide by the board established policies and guidelines for the community.