A housing cooperative is an association of people who come together to develop and build their own homes on a not-for-profit basis. Instead of buying from a developer, the members take on the project collectively and pay the real cost of construction.
Homes developed by the people who will live in them
Members gradually contribute the amounts needed to buy the land, commission the design and build the property. When the work is finished, each member receives the home allocated to them.
There is no developer adding a profit margin, although there are technical, legal and financial costs, which are set out in the cooperative’s budget.
- It is a collective, not-for-profit project.
- Members contribute the money gradually.
- Each member receives their home when construction is complete.
Who decides: the members’ general meeting
The cooperative’s highest authority is the general meeting, where every member takes part and votes. The general meeting usually elects a governing board that represents and runs the cooperative day to day.
In a cooperative, every member is both a future neighbour and part of the decision-making.
The articles of association set out how decisions are made and the rights and obligations of each member.
What the management company does
Running a cooperative requires technical, legal and financial expertise. That is why cooperatives usually hire a management company to:
- Find and assess the land.
- Coordinate architects, the construction company and public authorities.
- Keep the accounts and report to the members.
- Organise the general meetings and prepare the paperwork.
After the keys are handed over
Handing over the homes is not the end of the road. The cooperative usually closes its accounts, and the neighbours organise themselves as an owners’ association. A good management company supports this stage too.