National Association of Housing
Cooperatives
The National Association of Housing Cooperatives is a nonprofit national federation of
housing cooperatives, mutual housing associations,
member associations, other resident-owned or controlled
housing, professionals, organizations, and individuals interested in promoting the
interests of cooperative housing communities. Incorporated in 1960, NAHC is the only
national cooperative housing organization. Membership in NAHC provides many benefits.
NAHC is supported and governed by its members. The membership is represented through a
national board of directors, which guides the policy
of the organization. At the annual meeting, members elect members of the board of
directors and vote on bylaw changes and other items.
NAHC's mission is to:
Represent, inform, perpetuate, serve, and inspire the nation's housing
cooperatives.
NAHC's conflict of interest policy:
The NAHC conflict of interest policy was
adopted by the NAHC Board of Directors as a method to steer clear of
unethical behavior by disclosing relationships that might influence
board decisions.
What is a Housing Cooperative?
In the United States, more than 1.2 million families of all income levels live in homes
owned and operated through cooperative associations. People of varying needs and desires
have found several ways to apply cooperative concepts in meeting their housing needs.
Cooperative housing is not a new concept. The first housing cooperative in the nation
was organized in New York City in the late 1800s. Today, large numbers
of housing cooperatives are located
in major urban areas such as New York City, Washington, D.C., Chicago, Miami, Minneapolis,
Detroit, Atlanta, and San Francisco.
Cooperative members own a share in a corporation that owns or controls the building(s)
and/or property in which they live. Each shareholder is entitled to occupy a specific unit
and has a vote in the corporation. Every month, shareholders pay an amount that covers
their proportionate share of the expense of operating the entire cooperative, which
typically includes underlying mortgage payments, property taxes, management, maintenance,
insurance, utilities, and contributions to reserve funds. There are many benefits to cooperative ownership. Some of these
include personal income tax deductions, lower turnover rates, lower real estate tax
assessments, reduced maintenance costs, resident participation and control, and being able
to prevent absentee and investor ownership.
Housing cooperatives come in many shapes and sizes: cooperatives include townhouses,
garden apartments, mid-and high-rise apartments, single-family homes, student housing,
senior housing, and mobile home parks. The purchase price of cooperative membership can be
left to the market or the price can be maintained at below market in order to preserve
affordability. All cooperatives share a common set of
principles
adopted by the International Cooperative Alliance.
The key aspect in any cooperative is democratic control by the members in order to
achieve an agreed upon common objective. Democratic control is typically accomplished
through governance by volunteer boards of directors elected from the entire membership. In
addition to the board, co-ops often have many committees, such as a membership committee,
maintenance committee, activities committee, and newsletter committee. Most co-ops hire a
manager or management company to perform management functions; smaller co-ops will often
have no paid staff or management but will have members handle all the maintenance and
operations responsibilities.
There are a number of different types of housing
cooperatives:
Market-Rate Cooperatives
In market-rate cooperatives, shareholders may buy and sell their shares at full market
value.
Limited-Equity Cooperatives
Limited equity co-ops limit the resale value of shares. The maximum resale value is
predetermined by a formula established in the cooperative's bylaws. Generally targeted at
low- and moderate-income people, the purpose of limited-equity cooperatives is to prevent
speculation, encourage long-term residency, and preserve the "affordable"
character of the co-op for a wide variety of future residents. Many limited-equity
cooperatives were developed by nonprofit organizations with government assistance.
Leasing Cooperatives
In a leasing cooperative, the cooperative does not own the building or property. Instead,
the cooperative leases the property from its owner. Usually the cooperative has a
long-term lease, sometimes with an option to buy. The residents manage and operate the
housing on a cooperative basis.
Senior Housing Cooperatives
Senior housing cooperatives are housing communities
designed for senior citizens. A number of different types of senior housing cooperatives
exist. CSI Support & Development Services is a senior mutual housing association with over
40 buildings in 4 states, housing over 5,000 seniors of modest means. The
Senior Cooperative Foundation
helps develop senior housing cooperatives in rural areas. In addition, retirement oriented
communities have been developed using the cooperative form of ownership, most notably in
popular sunbelt locations.
Manufactured Housing Communities (also known as Mobile
Home Parks)
A growing number of manufactured housing
communities own the land comprising the community on a cooperative basis. Cooperative
ownership gives manufactured home residents control over management and operating costs of
the park, while owning a manufactured home of their own.
Housing Cooperatives For People With Special Needs
In addition to co-ops for seniors, some
cooperatives have been developed for individuals with disabilities. For example, Silent
Cooperative in Illinois is designed for hearing-impaired people. Another example is Co-op
Initiatives, a nonprofit organization in Connecticut, which develops cooperative housing
with some units reserved for developmentally disabled individuals. Their mission is
independent living opportunities for persons with all types of disabilities.
Student Housing
Cooperatives
Student housing cooperatives exist at a number of
college campuses across the United States. They provide affordable housing to college
students in dormitory, house, and apartment settings. The
North American Students of Cooperation
(NASCO), an association of student cooperatives throughout the U.S. and Canada, maintains
a comprehensive listing of student cooperatives.
Artist Cooperatives
Typically organized as leasehold or limited-equity
cooperatives specifically for artists and art studios, artist cooperatives are a method of
ensuring permanently affordable combined workspace and housing for artists since often
artists' communities experience gentrification.
Artspace in Minneapolis has been one of the main groups involved
with developing artist cooperatives.
Mutual Housing Association
A mutual housing association is a nonprofit corporation set up to develop, own and operate
housing. Mutual housing associations always involve substantial resident participation in
the community and are often also owned and controlled by the residents of the housing
produced. As in leasing cooperatives, there is no equity accumulation for members, or
credit for mortgage principal paid.
Other Cooperative-Like Organizations
The following are types of housing organizations share some similarities with housing
cooperatives, but are not necessarily owned on a cooperative basis.
Intentional Communities
As the name implies, intentional communities are for people seeking a large level of
community in their living situation, generally focused around a common purpose or shared
values. The term intentional community encompasses a broad range of living situations,
ranging from a neighborhood-like setting to more communal communities. Intentional
communities are typically not technically organized as cooperatives, but they often follow
cooperative principles and are democratically controlled by the residents. The Fellowship for Intentional Community is an excellent
resource and publishes a directory of Intentional Communities.
Cohousing
Cohousing is a form of housing that offers residents a strong sense of community in a
close-knit neighborhood environment. In addition to individual units, cohousing
communities generally have extensive common amenities including a common house and
recreation areas. Cohousing developments are designed and managed by the residents.
Although a few cohousing communities in the U.S. are organized as cooperatives, most are
structured as condominiums or planned unit developments. For more information on
cohousing, visit the Cohousing
Network's website.
Condominiums
In a condominium each resident owns their own unit in a building, instead of owning a
share in a corporation that owns the whole building and related areas as in a cooperative.
There are monthly carrying charges similar to cooperatives for the operational costs of
the common areas and grounds. Also like cooperatives, condominium owners usually elect a
board of directors to govern the operations.
