How-To Guide: Starting a Housing Cooperative
ONTARIO – Do you or your group of coop housing champions dream of starting a housing cooperative? There is no one-size-fits-all approach to establishing a new coop but this guide outlines some of the key steps to turn your cooperative housing dream into a reality.
Information is organised below for each major step you’ll need to take – just know that some steps are easier than others. For example, creating an organisation is a fairly simple process, while acquiring buildings or land and developing buildings is not.
This guide is meant to provide an overview of the process so that your group can assess your current skills and resources and better understand if starting a housing coop is the right step to take.
- Organize Your Group
Early on in this process you’ll want to solidify your core group. Together, you will create a vision and share the work involved with achieving your coop housing goal. Typically, at least three people are needed to incorporate a coop, so keep this in mind now while you’re still organising your core group.
This is also a good stage to brainstorm coop names and – once you have a preferred name – consider reserving it now prior to incorporation. Registering a name is a provincial/territorial responsibility with registries for each jurisdiction, though there is no registration of names in Newfoundland and Labrador. You might also want to purchase the domain name for a future website.
- Clarify Your Vision
Creating and clarifying a vision for your group is critical. This vision will help guide you in each decision you make. At every stage of the journey you’ll be able to ask yourselves, “Is this decision we are making in alignment with our vision?”
Some questions to consider:
What is the need within our community that we seek to meet?
Why do we want to use the coop model?
Does our group follow and support all of the internationally-recognised cooperative principles?
What do we hope to achieve by creating a new coop?
Is our interest only in housing or are we looking to create a community space or hub?
Are we looking to create affordable housing?
Are we looking to create accessible housing?
Are we looking to create environmentally-sustainable housing?
Have we thought about how we will operate new coop housing?
- Review Co-op Housing Legislation
It is a good idea to review the coop housing legislation for your region. Cooperative housing legislation is governed by each province or territory, so regulations change depending on where you reside.
Find the Co-op Act for your to better understand the regulations that will govern your new cop, once it is formed.
- Select a Model
There are a number of models for cooperative housing that exist across the world
For instance, continuing co-operatives, which are the majority of coops in Canada, operate on a non-profit basis and provide members with an alternative to renting and individual ownership.
Equity coops use equity from members to operate, with a variety of models depending on how the coop is incorporated and organised.
Continuing coops, and some equity coop models, may require multi-stakeholders, including social organisations or government partners, to be financially viable. This type of partnership is harder to secure for new or small groups without a history of successfully managing and operating non-profit housing.
Some questions to consider:
Which model fits best with our group’s coop housing goals and vision?
Does our group have the financial capacity to make equity contributions?
Does our group have the non-profit housing experience and expertise to obtain private or government funding or financing? If not, are there potential groups or organizations in our area we can partner with? Are there social service organisations in our jurisdiction we could partner with?
- Find Support
There may be government programs in your region for building, acquiring, or converting affordable housing. However, funding is typically provided for organisations with experience, not new or smaller groups.
If your non-profit group has land but can’t access funding to build, have you considered partnering with an existing coop or a land trust in your area?
If your co-op group has raised some, but not all, of the needed funds, have you reached out to other charitable groups or housing organisations who may have an interest in partnering with you on your project?
- Work with Consultants and Advisors
You will need the expertise of consultants and advisors to pursue development. There can be significant differences between the for-profit and non-profit worlds when it comes to housing development and real estate law so you will want to seek experts with non-profit and/or coop housing experience.
Some questions to consider:
Do we need the help of a development consultant at this stage to determine if our plan is feasible?
Have we found a lawyer with experience in coop housing?
Have we reached out to any coop housing sector groups for ideas or suggestions of non-profit professionals?
Do we have funds set aside for engaging consultants at this time?
- Incorporate your Cooperative
Before Incorporating, you’ll need to have decided on a legal name for your coop.
The Incorporation process is different depending on your location. You may prefer to have a lawyer assist with the submission process or your group may choose to file the incorporation documents on your own, following the perimeters set out by your province or territory.
- Join Co-op Sector Organisations
Once your group has incorporated, you are now eligible to join cooperative organisations in your country such as CHF Canada in the “Coops under development” membership category. Dues are charged on an annual basis, and your group will gain access to all of CHF Canada’s programmes and services, including template bylaws, development educational resources and our referral program to connect you with development professionals in your region.
In British Columbia, Alberta, Quebec, Newfoundland and Labrador, and some parts of Ontario, there are regional coop housing federations that also provide services to housing coops, including advice and advocacy. out to them directly for information on becoming a member.
- Build, Acquire, or Convert Housing
Last on the list, but a crucial part of the process, is building, acquiring, or converting housing. It’s already been mentioned that government funders will be most likely to support organisations with a history of successful coop housing management. As such, existing coops can have an easier time accessing funding to develop on their current land or expand.
This stage will require consultants and technical professionals. Be sure to select a good team as they will guide this stage of your journey.
https://thecooperator.news/chf-canada-others-urge-action-on-affordable-housing-in-alberta-election/
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