Housing Cooperatives: How Shared Home Ownership Works

A housing cooperative is a legal entity that owns one or more residential buildings. Instead of owning an individual house or flat outright, residents usually hold shares or membership rights in the cooperative that owns the property. Housing cooperatives generally operate in two forms: non-equity and equity. In non-equity co-ops, members receive occupancy rights through a membership or occupancy agreement similar to a lease. In equity co-ops, members may purchase rights that are formally registered. The cooperative’s incorporation documents, bylaws and occupancy agreements set out members’ rights, responsibilities and rules. This model differs from conventional home ownership, condominium living and renting.

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