What is Cooperative Housing?

Principles and Resources

Co-op Housing is collective ownership of a housing development by all resident members of the co-operative. With that collective ownership comes many of the same responsibilities of homeownership including budgeting, maintenance, landscaping and planning for the future.

Many of us have only recently heard of cooperatives, but they have existed in one form or another since ancient China and Babylon. Ancient history of our own continent includes cooperative apartment complexes built by the Pueblo Indians as early as 900 B.C. With more than 800 rooms, Pueblo Bonito covered over three acres!

Benjamin Franklin provided us with the first recorded "modern" co-op in the movement. In 1752 he created a mutual fire insurance company, the Union Fire Company in Philadelphia. Over the years following Franklin's company, marketing co-ops appeared in Canada. In the U.S. people joined to sell their goods, saving time and making more money in such businesses as a dairy co-op in Connecticut, a cheese co-op in New Jersey, a hog slaughtering co-op in Ohio, and a co-op for wool in New York, to name some of the "firsts."

Many recognize England during the late 19th century as the starting point of the named and organized co-op movement. A British industrialist, Robert Owen, developed the more philosophic aspect of the new movement. He brought his ideas of the housing co-op movement from England to Indiana and started New Harmony, a utopian experiment. Families shared living, kitchen, and dining spaces clustered in the center of the 1000 acre property. Another famous cooperative was developed in Oneida, New York.

During the Industrial Revolution, 28 weavers decided to combat the oppressive factory working conditions by setting up a cooperative store to help each other in those hard times. These innovators are known as the “Rochdale Pioneers” and they drafted the original “Cooperative Principles” and started raising money for a cooperative business. The Pioneers opened the new store in 1844 and it grew to be one of the largest retailers in town.

In 1881 the earliest co-op apartment building organized in New York City as the Barrington Apartments. Later, a group of Finnish immigrants in Brooklyn cooperatively ran apartment houses. Although they didn't have much as immigrants, they were able to join their resources and not use any outside money.

From these starting points the cooperative movement has grown into virtually every sector of the economy. The realms of food, finance, agriculture, housing, insurance, and schooling all have co-ops. Today, more than 1 million apartments of cooperative housing are scattered throughout the United States. Whenever economic and social needs have presented themselves, some people have found cooperative solutions. They are the same forces that encourage co-ops to grow today!

Here are the Seven Principles of Co-operative Housing:

Voluntary and Open Membership ~ Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without unjust discrimination.

Democratic Member Control ~ Co-operatives are democratic organizations controlled by their members where elected representatives are accountable to the membership. Members have equal voting rights (one member, one vote).

Member Economic Participation ~ Members contribute equitably to, and democratically control, the capital of their co-op. Members allocate surpluses for such things as developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-op. Co-op members will receive a limited return investment on their shares.

Autonomy and Independence ~ Co-operatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-op autonomy. Honest business practices with members and the general public are essential.

Education, Training and Information ~ Co-operatives provide education and training for their members, elected representatives, managers, and employees so they contribute effectively to the development of their co-op. They inform the general public about the nature and benefits of co-operation.

Co-operation among Co-operatives ~ Co-operatives serve their members most effectively and strengthen the co-op movement by working together through local, national, regional and international structures.

Concern for Community ~ Co-operatives work for the sustainable development of their communities through policies approved by their members.

Co-operative Resources

National Association of Housing Co-operatives (NAHC) www.coophousing.org

Co-operative Housing Federation of Toronto www.coophousing.com

Co-operative Life www.ncba.org/housing

Co-operative Housing Coalition www.chc.coop

International Co-operative Alliance (ICA) www.coop.org

Department of Housing & Urban Development www.hud.gov