return to list of questions) 4. Who owns the units, and how is payment for housing calculated?
• Units in a co-op are not owned by individuals. They are owned by the co-operative and cannot be bought or sold for profit. However, most members feel a sense of collective ownership, pride and community in their co-op. • The monthly amount that members pay is called housing charge, as opposed to rent. Some members receive subsidy and do not pay the full housing charge set for their unit. In order to qualify for subsidy a member must show proof of their income, and a calculation is made that sets their housing charge at no more than 30-35% of their gross income – this is called rent-geared-to-income. Members pay the full housing charge when it is less than 30-35% of their income. • Housing charges are used to cover the co-ops’ costs – its mortgage, capital expenditures, contracted maintenance, office co-coordinator. Housing charges rise only as costs increase.
