How Is Cohousing Different from a Cooperative Or a Conventional Strata Title / Condominium?

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How is Cohousing different from a Cooperative or a Conventional Strata Title / Condominium? Conventional Cohousing Cooperatives Strata Title / Condominium Ownership The legal structure is one of the The cooperative owns the unit. Strata title allows for individual Structure decisions the group will make over Members purchase shares, which ownership of homes and the course of their development. gives them the right to occupy common ownership of shared Typically cohousing groups in the unit. This is not a common amenities. Each unit has a Canada choose strata title / ownership form in BC and it is separate title and can be condominium (not cooperative) very difficult to get a mortgage mortgaged individually. This is a because it is much easier to get because the shareholder does common ownership form in BC financing for this type of not hold title to the unit. and subject to the purchaser’s ownership. qualifications, it is easy to get a mortgage. Financing the The future residents participate in Over the years, federal and An individual or corporation Development the planning and development and provincial governments have provides the equity to finance provide the equity to finance the funded various programs to help the development and construction. Once the Canadians create non‐profit construction with an expectation development is completed, the housing coops, but that funding of selling the units once the construction loans are paid off and is no longer available. Without development is completed. each household purchases their the government programs, there individual units. To date there have are no financial advantages and been no government subsidies for many challenges to setting up as the development of cohousing a cooperative, so there are very communities. few new cooperatives being developed. Purpose In general, the purpose of a The purpose of government In general, the purpose of a cohousing development is to create funded cooperatives was to conventional strata title project a neighbourhood that meets the create affordable housing. is to develop housing that will needs of the residents and allows generate a profit for the for the balance of privacy and developer. community. Cohousing projects are generally not‐for‐profit. Resale In order to maintain the integrity of The Board of Directors of the The value of the unit fluctuates a cohousing community over time, housing cooperative determines with the market, unless there it is important for the seller to work who can purchase shares in the are covenants in place that with the community and educate cooperative. In the government restrict the re‐sale in some way. potential purchasers about funded cooperatives, the share Each homeowner is responsible cohousing prior to finalizing a sale. value is fixed and does not for finding a buyer and can sell Most cohousing communities fluctuate over time. When a their home at whatever price the maintain waiting lists of people shareholder leaves the market will bear and to interested in purchasing a home cooperative, they sell their shares whomever they please. should one come available. Unless at the price they paid for them. Typically, in a conventional there are covenants in place to development the strata restrict the re‐sale value, the homes corporation has no interest in are sold for market value. The who purchases and no system Strata Property Act prohibits the for supporting an owner to find strata corporation from restricting a buyer. the owner to freely sell their strata lot and since most cohousing projects are strata title, they are subject to this Act. .

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