REAL ESTATE

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Bol PnUaAe PERPUE DEBE eS

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WITH REAL estate prices
skyrocketing and affordable
rentals becoming more
scarce, what is a family to
do? Co-op housing may be
the answer.

Co-ops were introduced in
Canada on an experimental
basis in the 1960s and were
adopted as a federal gov-
ernment program in 1972.
Since then, there have been
three federal programs
overseeing cooperative hous-
ing.

The present program dic-
tates that 30 per cent of each
cooperative housing project
be designated for ‘‘core-
needy’’ families or in-
dividuals, with the remaining
70 per cent occupied by
those who can afford to pay
the market rent.

Co-ops, in both urban and
rural settings, are usually
built or rehabilitated by
private companies con-
tracted by the federal gov-
erament and are managed by
the members. Members must
volunteer their time and
skills for such things as
Maintenance and accoun-
ting, however members do
not find that they spend an
unreasonable amount of
time on their co-op and en-
joy having a say in how their
residence is managed.

The mortgage on a co-op
is owned by the co-op, which
is an entity unto itself, Each
member purchases shares in
the co-op from the co-op,

entering open-ended fease
agreements with the co-op
which set out payments,
members obligations to the
co-op, and the co-op’s
obligations to its members.

Cooperatives are controll-
ed by their incorporation
and are not allowed to make
a profit, so when members
move, the co-op buys their
shares back at exactly the
price the members paid for
them. Those shares are then
sold to the next family on
the waiting list at that same
price, so ‘buying’ into a co-
op does not constitute an in-
vestment — leaving members
will not do so with a profit.

This may seem a disad-
vantage to some, however it
is this policy which keeps
this type of housing affor-
dable in the first place.

When a co-op is paid for,
monies received will be used
for maintenance costs and
renovations. When it reaches
the point where the value of
the land is higher than the
home, the co-op members,
with input from the Superin-
tendent of Co-operatives,
may decide to wind up the
co-op, and the proceeds will
go to another project.

In order to start your own
co-operative project, you
must first gather a group of
people together. You can do
this yourself, or you can
contact any of the housing
resource groups, who have a
list of people waiting for

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co-ops.

They will then match you
up with a group in your
preferred area, and you
begin the process of
building.

Some groups, if they have
the expertise and a clear
understanding of the laws
and process, decide to do
everything on their own,
however there’s a lot of
bureaucratic red tape to cut
through, and there are many
standards, rules and regula-
tions which have to be heed-
ed and followed.

The best way to go is to
enlist the aid of a non-profit
resource group, such as
Columbia Housing which,
for a fee, will take you

through the process step--

by-step. They will help you
to find an affordable site,
help you with your choice of

architect, help you through -

the mortgage process and
provide training on how to
manage your co-op.

One very important thing
to remember is that the
amount of money which a
co-op can cost is set by the
Canada Mortgage and
Housing Corporation. For

example, in the City of Van- -

couver, the maximum
amount for a townhouse
project is $97,300 and that
must include the architec-
tural and construction fees,
as well as the cost of the
land, so your choice of sites
is somewhat restricted.

75 ~ Friday, August 26, 1988 - North Shore News

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