housing co-ops
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Housing Co-ops. in the Cowichan Valley. Working Session. March 15, 2014. Yesterday. About CHF BC What is a housing co-op? Some background on co-op housing The co-op advantage Starting a housing co-op: challenges and opportunities Questions and discussion. Today’s Challenge. - PowerPoint PPT PresentationTRANSCRIPT
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Housing Co-opsin the Cowichan Valley
March 15, 2014
Working Session
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Yesterday
• About CHF BC• What is a housing co-op?• Some background on co-op housing• The co-op advantage• Starting a housing co-op: challenges and
opportunities• Questions and discussion
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Today’s Challenge
• Review the distinction between non-profit and equity housing co-ops (and others)
• Identify interest in either model• Hold working sessions to explore the models
further• Discuss next steps
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A community
A membership association
A housing business and real estate asset
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Two types of housing co-ops
• Non-profit (rental)• Equity (ownership)
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Other forms of housing
• Building co-ops• Cohousing• Strata corporations
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Cohousing
• Very similar in financial structure to equity housing co-ops
• Use BCA or strata legislation as corporate form rather than CAA
• Intentional communities
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The Co-op Advantage
• Housing at a fair price• Security of tenure• Democratic member control• Community
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Non-profit housing co-ops
• A legal association of members• Members own the co-op, the co-op owns the
housing• Members work together to create a viable
business and a co-operative community• A non-profit co-op is a home, not an
investment• Goal is security of tenure, not equity
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Equity housing co-ops
• A legal association of members• Members own the co-op and their homes; the
co-op owns the common areas • Members work together to create a viable
business and a co-operative community• An equity co-op is both a home and an
investment• Goals are security of tenure and equity
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Non-Profit Housing Co-op Finances
• Members buy a share ranging from a small amount to $5,000 or more in some cases
• The share purchase is returned if the member leaves the co-op
• No interest or dividend is paid on the share• Shares serve as working capital and security
deposits
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Non-Profit Housing Co-op Finances
• Members pay a monthly housing charge (rent)• The housing charge is the member’s share of
debt service, operating costs and allocations to reserves
• Some members pay a housing charge geared to their income
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Equity Housing Co-op Finances
• Member shares are traded at market value (sometimes limited in return for government assistance or to reflect a social mission)
• Shares often serve as the initial development capital for the co-op
• Members own their homes and pay a monthly fee for maintenance, administration, etc.
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Non-profit or equity: your choice
• Who lives in non-profit and equity co-ops?• Wealth vs income• Do we need partners?
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Developing New Housing Co-ops
• The four pillars–People–Land–Buildings–Money
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Development Agenda
• Mission and vision• The four pillars• Business plan–Capital–Long-term viability
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Partnership Opportunities
• Local governments with land• Investors with patient capital• Members with equity
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Working Groups
• Mission and vision–Why are you forming a housing co-op?–Who will you serve?–What’s your long-term, shared vision
of your co-op community?
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Working Groups
• Land–Where will you live?–Do you already have land?–If not, how will you acquire your land?
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Working Groups
• Buildings–What building form do you prefer?–Will you build or buy?–How big will your co-op be?
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Working Groups
• Money–Do you have any?–How will you finance your co-op?–What can you risk?
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Reports from working groups
• Mission and vision• Land• Building• Financing
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Wrapping Up
• Observations• Next steps…