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

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 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

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

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

Other forms of housing Building co-ops Cohousing Strata corporations

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

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

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

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

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

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

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.

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

Developing New Housing Co-ops The four pillars – People – Land – Buildings – Money

Development Agenda Mission and vision The four pillars Business plan – Capital – Long-term viability

Partnership Opportunities Local governments with land Investors with patient capital Members with equity

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?

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

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

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

Reports from working groups Mission and vision Land Building Financing

Wrapping Up Observations Next steps…