Cooperative Housing Society: Objectives,Types and Advantages

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25 OCTOBER, 2024

Housing cooperative societies have been in India for decades. They are self-regulated, member-governed entities that provide affordable housing solutions to people. Members mutually consent to form the society. This article entails a housing cooperative society, its objectives, types, and advantages.

What is a Cooperative Housing Society?

A cooperative housing society is a legal entity comprises of society members and residents. It owns and manages residential structures within premises. Members of a cooperative colony/society purchase land, develop residential structures and allot them to the members.

Individual Cooperative Societies Acts manage the workings of cooperative housing societies across India. The government entrusted Registrar of Cooperative Societies regulates the cooperative societies' rules and regulations. Usually, a housing society is a part of the NCHFI (National Cooperative Housing Federation of India) while adhering to the bylaws under the Multi-State Cooperative Societies Act of 2002.

What are the Objectives of a Housing Cooperative Society?

The primary objective of a housing cooperative society is to support its members. Some of the other objectives include the following:

Provide services to society members without aiming to earn profit
Support society members by providing them loans for constructing residential units or additional structures within the complex
Acquire land, construct flats, and distribute the residential units among the society members
Promote the housing society’s economic interests and encourage self-reliance among the society members
Undertake transparent and fair business practices
Facilitate a safe and healthy living environment by creating ideal socio-economic standards
Provide basic amenities like electricity and water
Deliver quality goods and services to society members and residents
Ensure the regular maintenance of society

What are the Advantages of a Cooperative Housing Society?

Here’s a look at the advantages of a cooperative housing society:

Membership in a housing society is open to everyone, aiming to provide service without desiring returns in exchange. Members can join or leave the society at their will.
A housing cooperative is registered under the Cooperative Societies Act. It becomes a separate legal entity with limited liabilities for its members. A registered cooperative society can also run a business under its name.
Members and grants contribute to the capital investment for society. Additionally, the government offers subsidies for smooth business processing.
The profit earned through its business operations is fairly distributed among the members of society based on their participation.
A housing cooperative society also offers advantages such as affordability, better amenities and services, safe and secure investment, democratic leadership, and shared responsibilities.

Types of Housing Cooperatives

A housing cooperative society can be of four types:

Tenant Ownership Housing Society: The society holds the land on a freehold or leasehold basis. The members own or lease the land and sublet or transfer the properties based on regulations.
Tenant Co-Partnership Housing Society: The cooperative housing society holds the land and the building on a leasehold or freehold basis. The members pay a monthly rent or initial share to obtain occupancy.
Housing Mortgage Society: The housing cooperative lends money to its members to construct houses, and the members oversee the construction work.
House Construction Society: The society constructs houses for its members, and they recover the construction expenditure as loans.

Documents Required for the Registration of a Housing Society

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

Application for registration
Details of the promoter members
Bank certificates and account statements
An explanation of society’s working
‘Form D’ account statements
Four copies of the application form duly signed by at least 90% of the promoter members
Additional copies of proposed society bye-laws
Payment proof for registration charges
An Advocate's Title Clearance Certificate
Other registrar-specified documents

Read Also: What is Meebhoomi Land Record?

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Frequently Asked Questions

Who can become a member of a cooperative housing society?

Membership in a cooperative housing society is open to all. Any individual wishing to use the services of a cooperative colony can become a member.

What is the concept of a cooperative housing society?

A housing cooperative society is a legal entity that owns real estate with multiple residential buildings. It operates under a legal framework at the national or regional level.

What is the difference between a housing society and a cooperative housing society?

A housing society gives the right to vote and attend meetings only to the first house owner. However, a cooperative housing society has joint, nominal, temporary, and associate members for participation.

How does a cooperative housing society function?

A housing cooperative is a voluntary association that works for the welfare of the contributors. Members form the institution with mutual assistance from the members.

What role do members play in the management of a cooperative housing society?

The Chairman presides over meetings, makes decisions, approves expenditures, names committee members, and initiates community-building activities. The secretary is responsible for record-keeping, organisational activities, communication and correspondence, etc. The Treasurer is responsible for financial management, budgeting, accounting, bookkeeping, asset management, investment, fundraising, compliance, etc.