What is a Co-op?
A co-operative is a group of people who form a corporation to provide a service for themselves. In a housing co-op, the residents are voting members of a non-profit housing corporation and through volunteer efforts provide housing services for themselves.
The members elect a board of directors and hire staff to manage much of the day-to-day business of the Co-op. The members also work on committees and meet on a regular basis to vote on issues, politics, elections, and the budget
Essentially, a housing co-op is a type of housing run by its resident members. How is this different from other types of housing?
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Home Ownership - Owned, occupied and maintained by an "individual" owner.
Rental - Tenants rent an apartment or other accommodation from a landlord who owns and operates the building. Tenants' rights are governed by various legislation.
Condominiums - Condos can be apartment or townhouse styles. Individual units are owned within a group of buildings/ units. Condominium corporations are formed to govern common area policies, expenses and fees.
Co-operatives - Co-op buildings and property are owned by the co-operative corporation. Members do not own their individual units - however, they are voting members of the co-operative. It is collective ownership.
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Non-profit co-operatives are run on a "cost only" basis, meaning that the budget and housing charges of the co-op are set according to a break-even cost basis. Non-profit means excess profits do not go to an outside landlord and surplus earnings are retained for everyone's benefit.
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Having members do volunteer work in the co-op also reduces expenses and keeps housing charge increases at a minimum. Co-ops are also protected from fluctuating mortgage interest rates by an adjusting grant system established in cooperation with Canada Mortgage and Housing Corporation.
A co-op is a community where people get to know each other, work on committees together, work out ideas in a democratic manner and share in a community, learn together, share social functions, and encourage people to live co-operatively.