Cooperative Housing Societies
By : Neha Dhyani
Updated : Apr 19, 2022, 6:12
The Cooperative Housing Society is an autonomous Institution, an association of persons legally who are United voluntarily to meet their common economic, social, and cultural needs. Its objective is to work for its members, like purchasing lands to construct the residential buildings for their members.
The activities of these institutions are managed by each state's individual Cooperative societies' acts and rules. Minimum ten numbers of members with common objectives can form this society. To become a Cooperative Housing Society, it should get registration under Cooperative Societies Act 2002. It also provides financial assistance (loans) to its members to construct the house.
The cooperative housing movement in India witnessed growth around the start of the 20th century. The first housing cooperative in India is the Bangalore Building Co-operative Society. Generally, Indian Cooperative societies are part of the NCHF (National Cooperative Housing Federation of India).
Cooperative Housing Societies Benefits
- It is less costly than any others because of its low down payment and charges with longer mortgage terms.
- Every member has equal rights privileges.
- This house under this scheme can be used by members for self-occupation and letting out.
- Obligations like maintenance charges, repairs, electricity, waters, insurance, etc., are equally disbursed by members.
- Every member is bound to follow society's rules, regulations, and norms. So no member can overtake others. It's is reliable and stable.
Characteristics/ Features of Cooperative Housing Societies
- It is created on the idea of self-help and self-reliance.
- There are no criteria for membership, except the applicant should have common interests.
- This Institution is an autonomous and independent body.
- The contribution of members, as well as obligations, are equal for all members.
- It provides training to its members to upgrade themselves towards legal compliance efficient management strategy.
- Management here is democratically based on the principle of votes.
- It is a separate legal entity.
Types of Housing Cooperative Societies
- Tenant ownership - Here, the lands are held by leasehold or freehold by the society, but members have ownership of their homes.
- Where the society owns both buildings and the land. The society allocates flats to the members on a monthly rent basis. These are known as tenants' co-partnership housing societies.
- Where society lends money to the members to construct the building for themselves, it's known as Housing mortgage society.
- In another type, some housing societies construct houses on their members' behalf and then transfer ownership to them.
Steps to Register as a Cooperative Society
- Election of chief promoters of members.
- Members should decide the society's name (with two alternatives).
- Application for registration should contain at least 90% of promoter members' signatures. All promoters' names and occupations also. The application should be submitted with all bank certificates and Statements, copies of bye-laws proposed by society, form D account statements, challan of registration charge payment, title clearance certificate, and all other documents required by the registrar.
- Submission to the registrar should be made with requisite fees.
- Every resident should pay equal share capital.
With the objectives of eliminating economic exploitation, Jawaharlal Nehru, the first Prime Minister of India, supported the growth of cooperatives as "a part of his paradigm of democratic socialism." The cooperative housing movement in India initiative not only serves the basic cause of housing cooperatives but also contributes towards human development by providing one million jobs.
FAQs on Cooperative Housing Societies
Q.1. When does the Cooperative Housing Societies in India witness growth significantly?
The Cooperative Housing Societies in India witnessed growth significantly at the start of the 20th century.
Q.2. What a minimum number of members are required to form a Cooperative Housing Society?
The minimum number of members required to form a Cooperative Housing Society is ten.
Q.3. Which type of Cooperative Housing Society are lands held by leasehold or freehold by the society, but members have ownership of their homes?
The type of Cooperative Housing Society are lands held by leasehold or freehold by the society, but members have ownership of their homes is tenant ownership.
Q.4. In which type of Cooperative Housing Societies lends money to the members to construct the building themselves.
The housing mortgage society is the kind of society where money is lent to the members to construct the building themselves.