Housing cooperative

A new ownership model

Modern collective housing projects reveal the spatial benefits of new housing types, but innovative ownership and management models also offer advantages. A housing cooperative is an interesting alternative to classic rental and ownership models. Some pioneers, such as Wooncoop, Collectief Goed, Oak Tree Projects and IBK, demonstrate the feasibility of the cooperative model in Flanders.

At Architectuurwijzer and Cera, we believe in the potential of the housing cooperative as an emerging player in the housing market, alongside project developers, social housing companies and resident groups. We are working on building knowledge and raising awareness through a joint project. For more information, visit www.cooperatiefwonen.be.

What is a housing cooperative?

In a housing cooperative, the residents do not own their house or apartment. By purchasing shares, they become co-owners of the cooperative company, which in turn owns the residential building. In exchange for their share, the residents receive lifelong rights to a tailor-made home, as documented in a rental contract. They also have the right to vote in general meetings.

Why?

The housing cooperative can contribute as a new model to the following ambitions in Flanders: affordable housing, high-quality and sustainable housing, diversity of housing types, family-friendly housing, apartment building management, a collective neighbourhood approach, flexible housing, new perspectives for assisted living, heritage preservation opportunities, etc.

Financing a cooperative housing project

When developing a new residential project, both future residents and investors can buy shares through the housing cooperative. This capital, along with a loan, is necessary to execute the project. To do so, the housing cooperative must find a site at an acceptable price. To keep construction costs to a minimum, it's crucial to build rationally and cost-effectively with a view towards long-term building management.

Living at cost price

The goal of a housing cooperative is to maximise goals, not profits. For the cooperative members, the shared goal is affordable and high-quality housing. Residents want low rental prices, which makes a rent discount more interesting than share dividends. Rent is not 'wasted money', but a reimbursement of expenses to the housing cooperative. Or as Wooncoop puts it: you're renting from yourself.

The rental price of a residential unit is calculated based on the building costs, the mortgage, the building's management costs, future renovation costs, the operating costs of the cooperative, and the dividend for investors. The housing cooperative wants to strike a balance between the rental price and the costs. The rental price is not subject to private market speculation.