Housing Co-ops

1. Housing Co-ops in the Cowichan Valley Working Session March 15, 2014

2. 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

3. 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

4. A membership association A housing business and real estate asset A community

5. Two types of housing co-ops • Non-profit (rental) • Equity (ownership)

6. Other forms of housing • Building co-ops • Cohousing • Strata corporations

7. Cohousing • Very similar in financial structure to equity housing co-ops • Use BCA or strata legislation as corporate form rather than CAA • Intentional communities

8. The Co-op Advantage • Housing at a fair price • Security of tenure • Democratic member control • Community

9. 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

10. 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

11. 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

12. 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

13. 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.

14. Non-profit or equity: your choice • Who lives in non-profit and equity co-ops? • Wealth vs income • Do we need partners?

15. Developing New Housing Co-ops • The four pillars • People • Land • Buildings • Money

16. Development Agenda • Mission and vision • The four pillars • Business plan • Capital • Long-term viability

17. Partnership Opportunities • Local governments with land • Investors with patient capital • Members with equity

18. 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?

19. Working Groups • Land • Where will you live? • Do you already have land? • If not, how will you acquire your land?

20. Working Groups • Buildings • What building form do you prefer? • Will you build or buy? • How big will your co-op be?

21. Working Groups • Money • Do you have any? • How will you finance your co-op? • What can you risk?

22. Reports from working groups • Mission and vision • Land • Building • Financing

23. Wrapping Up • Observations • Next steps…