Cooperative housing society: Objectives, types and advantages

For decades, there have been cooperative groups in India. They are organizations run by its members that set their own rules and help people find inexpensive accommodation. Members agree to form the society with each other. This article talks about a housing cooperative society, its goals, types, and benefits.

What is a society for cooperative housing?

A cooperative housing society is a legal group made up of people who live there and members of the society. It owns and takes care of the homes on the property. People who live in a cooperative colony or society buy land, build homes on it, and give them to the members.

Individual Cooperative Societies Acts govern how cooperative housing societies run in India. The government put the Registrar of Cooperative Societies in charge of making sure that the norms and regulations of cooperative societies are followed. Most of the time, a housing society is a member of the NCHFI (National Cooperative Housing Federation of India) and follows the rules set out in the Multi-State Cooperative Societies Act of 2002.

What are the goals of a housing cooperative society?

The main goal of a housing cooperative association is to help its members. Some of the other goals are as follows:

• Give services to society members without trying to make money.

• Help members of the community by giving them money to build homes or other buildings in the complex.

• Get land, build apartments, and give them out to people in the society.

• Support the housing society's financial goals and help its members become more independent.

• Do business in a clear and fair way.

• Set up the best social and economic criteria to make a safe and healthy place to live.

• Give people essential services like water and electricity.

• Give people in society and residents good goods and services.

• Make sure that society is regularly maintained.

What are the benefits of living in a cooperative housing society?

Here are some of the benefits of living in a cooperative housing society:

• Anyone can join a housing society, and the goal is to help others without expecting anything in return. People can join or quit the society whenever they want.

• The Cooperative Societies Act says that a housing cooperative is legal. It becomes its own legal entity, and its members' liabilities are limited. A registered cooperative society can also do business in its own name.

• Grants and members help pay for the society's capital investments. The government also gives businesses money to help them run smoothly.

• The profit made from its business is properly shared among the people in society based on how much they helped.

• A housing cooperative society also has benefits including being affordable, having better amenities and services, being a safe and secure investment, having democratic leadership, and sharing duties.

Different kinds of housing cooperatives

There are four types of housing cooperative societies:

• The Tenant Ownership Housing Society owns the land either freehold or leasehold. Members own or lease the land and can rent or sell the properties according to the rules.

• Tenant Co-Partnership Housing Society: The cooperative housing society owns the land and the building, either as a leasehold or freehold. To get in, the members have to pay a monthly rent or an upfront share.

• Housing Mortgage Society: The housing cooperative lends money to its members so they can build homes, and the members are in charge of the construction.

• House Construction Society: The society builds homes for its members and then loans them money to pay for the work.

Documents Needed to Register a Housing Society

The following documents are necessary for the registration of a cooperative colony:

• Request for registration

• Details of the promoter members

• Bank certificates and account statements

• A description of how society works "Form D" account statements

• Four copies of the application form, each signed by at least 90% of the promoter members

• More copies of the proposed society's rules

• Proof of payment for registration fees

• A Certificate of Title Clearance for an Advocate

• Other documents that the registrar says are needed