About Co-ops
What Are Housing Co-Ops?
Co-operative housing is an interesting form of attainable housing where the ownership structure is one in which the members have an equal ownership of their co-operative corporation jointly but not severally. “Jointly” means that they have ownership rights in common with all other members and together can exercise all the powers of an owner. “But not severally”, means that members cannot separate their ownership “portion” from that of other members’ ownership “portion”. Co-ops are a reaction to the over commodification of housing in our society.
Members of a co-op collectively govern and operate the co-op. Governance authority is ultimately in the members as a whole. Governance is exercised by the Board of Directors. Members elect the Board of Directors from among those who live in the same co-operative community. The Board of Directors sets policies and procedures, hires and oversees professional staff, and takes personal responsibility to ensure that the co-op is achieving its goals, and meeting its regulatory requirements.
In summary, housing co-ops offer a unique style of living, wherein co-op members are neither renting nor owning in a traditional sense. Instead, they are members of an organization which owns and runs the building(s) in which those individuals live. A key benefit of being part of a housing co-operative is that it is run by the same people who live there – contributing to a sense of community and offering self-governance.
What Are the Perks of Living in A Co-Op?
One of the biggest differences between co-operative housing and renting is the sense of self-governance that comes with being a member of a co-op. Members can make decisions about their own homes, voting on everything from how what the housing costs are to what kind of improvements or renovations will be done. Additionally, since members are expected to contribute a specified number of volunteer hours each month for the betterment of the co-op, a real sense of community quickly develops.
Co-ops generally lower the cost of living with lower than market housing charges. Limestone City Cooperative Housing (LCCH) will provide a further cost of living benefit in the form of access to lots of healthy food further lowering the cost of living.
What Is Expected of Members?
Members are expected to co-operate with their neighbours and co-op staff in order to make life better for themselves and all members in the co-op. Members are expected to contribute a certain number of volunteer hours to the co-op community in a particular period of time. The specific amount is voted on by the members and varies from co-op to co-op. Preliminary estimates for LCCH, suggest we will need about four hours per week from each household.
Members are encouraged to attend and vote at the Annual General Meeting, sign up for committees and work groups, and have a community minded mental outlook. LCCH will also foster a learning organization mind set to facilitate the flourishing of members and get the best governance and operational results from its member led and run organization.
Co-Op Housing and Neighbourhood Health
Healthy neighbourhoods are ones where residences, employment opportunities, amenities and services are concentrated near each other, where active transportation such as walking, cycling and transit are encouraged, and the housing choices suit a mix of incomes, life stages, and abilities.1 Housing affordability, accessibility, and healthy neighbourhoods are intertwined with cultural recognition and public health.1 Co-operative housing and in particular LCCH contributes to all of these community and neighbourhood health criteria.
The Need
Kingston has a housing affordability crisis limiting Kingston’s social and economic vitality.1 Household incomes are polarized and there is a clear contrast between renters and owners. The situation is forecast to become worse as demand for attainable housing increases particularly from these mixed-income high-growth sectors:
- In-migration from younger seniors (age 55-74)
- Young families (age 25-44) and
- Post-secondary students, entry level workers
The City of Kingston is supportive of proven concepts such as well-governed co-ops to be expanded.1 LCCH would ensure that approximately 250 mixed-income individuals and families would have a safe, attainable, well-maintained home.
Our LCCH project will increase the long-term housing supply in Kingston, aiding in the alleviation of inflationary pressures on accommodations, decreasing resident turnover rates, reducing gentrification and renovictions, aiding employers hiring and retaining staff by providing volunteer and employment, minimizing car dependent commuting into the city, and expanding supportive and attainable housing.1
Do Members Pay Rent?
Co-op members don’t pay rent or a mortgage. Instead, they pay “housing charges.” Unlike a landlord, co-operatives do not house people for a profit.
Instead, monthly housing charges are set by the members themselves on at at-cost basis, meant only to cover the expenses of running the co-op. The Co-Operative Corporations Act specifically prohibits housing co-operatives from being run on any for-profit model.
Co-Operative Housing and the Cost of Living
Many Kingston residents are struggling with the high cost of housing, lack of suitable housing for their demographic and inflation pressures in general. Housing co-operatives offer a permanently affordable, community-based solution for increasing a community’s housing stock (which has also been shown to boost local economic productivity).3
Co-operative housing offers a distinct living experience where members collectively operate their housing community by electing a Board of Directors comprised of fellow residents.
Unlike traditional renting or owning, co-op residents are part of the organization that owns and manages the property, fostering a strong sense of community and self-governance. This model not only allows residents to have more control over their homes, from setting housing costs to deciding on renovations, but also promotes a collaborative environment where members actively participate in shaping their living space. Co-operative housing is one of the best ways to address the housing crisis, and yet there are only a handful in Kingston.
One of the distinguishing features of co-operative housing is its emphasis on self-governance and community involvement. Members have the opportunity to make decisions regarding.
various aspects of their housing, promoting a sense of ownership and responsibility. Through contributing volunteer hours for the betterment of the co-op, residents quickly develop meaningful connections and foster a supportive community atmosphere. Co-operatives offer residents greater flexibility and freedom over their living situations compared to traditional landlord-renter arrangements, while providing a safe, well maintained, affordable place to live and ensuring housing costs remain reasonable.1
Financially, co-operative housing operates on a non-profit basis, unlike landlords who seek profit, co-ops set monthly housing charges at cost, covering only the expenses necessary for running the community. This ensures that residents are not subjected to market-driven rent or mortgage payments, making housing more attainable for all members.
Research has shown that as the affordability of other housing has become increasingly uncertain, co-operatives offer greater stability and affordability over time compared to market housing.3 Increasing the number of co-operative housing developments in Kingston contributes to effectively addressing our housing affordability crisis while promoting community engagement, resilience, and new economic opportunities to combat climate change.
Feasibility Study
A high level proforma feasibility analysis of the LCCH project was drafted (Table 1).
With the City donating the land and contributing a hypothetical $5M grant towards a 248 unit not-for-profit housing project, and with a conservative contribution based on 18 hours per month of volunteer time from the indoor farming component (Table 2) of the housing project of about $337, the base monthly housing charges (exclusive of heating costs and taxes) may be:
- studio (450sf) $737.
- 1 bedroom (560sf) $917.
- 2 bedroom (660sf) $1081.
- 3 bedroom (800sf) $1310.
These numbers will provide an ample LCCH reserve fund for maintenance and upkeep of the property for the long term.
Kingston has encouraged the building of affordable housing by eliminating planning fees for affordable units (80% of CMHC median market rent or lower) in a new residential building and eliminated planning fees for not-for-profits (containing affordable units).1
An additional, and significant, investment in time and effort is required to conduct a through and more detailed feasibility study, to update the assumptions with more precision, and to successfully compete for grants and/or attract capital investment to advance the project.
1 Mayor’s Task Force on Housing Final Report
2 City of Kingston and County of Frontenac Municipal Housing Strategy Final Summary Report
3 Co-operative Housing Today and Tomorrow: Building new co-op homes to address the affordable housing crisis,
https://chfcanada.coop/wp-content/uploads/2024/02/CHF-Canada-Federal-Budget-2024-final.pdf