this post was submitted on 23 Aug 2023
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Coops are co-owned by their members. Usually they have an unpaid elected or voluntary board that makes decisions. The decisions are on budget, allocation of work for the members and who to interview if there's vacancies.
The budget goes towards services, repairs, maintenance, etc
The individual members of the coop have weekly chores that they need to perform. These chores can take 2-8hrs per week depending on season and the abilities and capabilities of the individual. Often it's things like minor handyman work, yard work, painting, pulling out the garbage bins, etc
Coops like to get new members that have a profession. Plumbers, carpenters, electricians, accountants, handymen and other such professions are always in high demand. Chores related to these have their material costs covered by the board's budget. If there's overrun on the allocated time, it's usually compensated or outside professional services are hired instead.
Coop fees are usually much lower than renting. In Montréal for example rent is anywhere from ~$1300 to $2500 Canadian for a 1-2BR, depending on how close one lives to transit or downtown/popular areas. Coops usually pay around C$500-$800 in fees for the same place. All of that money goes towards the budget of the coop, none of which is used to enrich the board or any single individual.
In a lot of ways I'd rather someone who lives in a different building have more authority than my neighbor. HOAs already have a bas enough reputation
I didn't say they were? I said I didn't want my neighbors making decisions about my living situation.
What did I say that was wrong?
Meaning if they just sold the place to the people renting it out would be even more affordable?
Usually the issue would be that these places cost large sums up front to acquire, and there is inherent risk in lending money or selling something for payment over time.
The most equitable solution under those circumstances IMO would be a pay-towards-ownership rental model with an agreed stewardship rate for routine maintenance and if they terminate lease early, the accrued funds towards the ownership are disbursed. This allows the "renter" (future owner) the ability to eventually accrue the value of the home without risk of loss of investment, while also allowing the "owner" (steward) to ensure that maintenance can be performed. Would have to work out how to pay for incidental maintenance like a failed water heater or storm damage, but splitting cost across owned percentage may be fair, or based on fault, etc.
It's a lot of hassle for something that we should instead fix at the systemic level, but so long as we're looking at the current system then this ought to do well by both parties and would be accessible for those fortunate/lucky enough to be pulling significant salaries to help those less fortunate.
Cooperatives are also a good option long-term but I'm thinking in terms of folks that are living hand-to-mouth being able to earn towards a permanent home right away rather than a group of people with enough surplus money to pool for shared home(s). A well-established coop would be a better support network and may be able to grow faster (help more folks) than the alternatives.
I think the biggest problem is how does the landlord break lease? Because if you can be kicked out you lose all that you've accumulated against your will. If you can't be evicted, you've forced the landlord to both keep you as a renter and keep ownership of the property until it's paid by the renter, which isn't necessarily realistic.
They should be able to sell the property if they need to. The person renting being part of the transaction and forced to be allowed to continue renting is only kind of a solution, because the new owners might want to live in that house, or have a say in who rents it. There's also the issue of funds already accumulated by the landlord. Does that get deducted off the price they sell it for?
I think there's just a few too many veriables for it to work as a solution.
We had a pair of those in my area. They were famous for "affordable housing".
End up the pair was worth 12 mil from cashing in on all their "goodwill."
Yes, there was a news story about these people. It was 4 or 5 years ago. They were tying to get grants from our local government so they could continue to rent their properties so cheap.
They were playing themsleves off as a mom and pop that just wanted to help the community.
Ends up they owned something like 8 houses and 2 24 unit rental properties and were taking in profit on the rise in real estate all while getting grants for their good will.
The point is, landlords, by their nature, are not good Samaritans.