Co-operation · Ch 9 — Housing Co-operative Society
Types of Housing Co-operative Societies
Types of Housing Co-operative Societies
Housing co-operative societies are classified according to how the land and the houses are owned and how the society helps its members obtain a home. The four types studied in the Std XI Co-operation course are the tenant-ownership, the tenant-co-partnership, the house-mortgage, and the house-construction (or house-building) societies. It is useful to see them side by side.
| Type | Who owns the land / house | How it helps the member |
|---|---|---|
| Tenant-Ownership Housing Society | Land is held (or leased) by the society; each member owns his own house/plot | Society acquires and develops land, allots a plot to each member, who then builds and owns his own house on it |
| Tenant-Co-partnership Housing Society | Both the land and the buildings are owned by the society; the member is a tenant-owner of his flat | Society builds the flats and allots them; the member holds shares and occupies a flat, but ownership stays with the society |
| House-Mortgage Housing Society | Land and house are owned by the individual member | Society only lends money (against the mortgage of the member's property) so that he can buy or build his own house |
| House-Construction / House-Building Society | Ownership passes to the member after construction | Society undertakes the actual construction of houses for members and hands them over, often then winding up or converting into a maintenance society |
1. Tenant-Ownership Housing Society. Here the society acquires a large piece of land — either by purchase or on a long lease — develops it with roads, water and drainage, and then allots a plot to each member. The individual member owns the house he builds on his plot, while the society continues to hold (or hold the lease of) the land and looks after common facilities. This type suits members who wish to own and build their own independent house.
2. Tenant-Co-partnership Housing Society. This is the most common type in cities. The society owns both the land and the buildings, constructs flats, and allots them to members. The member takes up shares in the society and is given the right to occupy a flat, but the flat's ownership legally rests with the society — the member is a tenant-owner, or 'tenant co-partner'. Almost all the flat-owners' societies in Maharashtra's towns are of this kind.
3. House-Mortgage Housing Society. This type does not itself build or allot houses at all. It works more like a credit society for housing: it advances long-term loans to members against the mortgage of their land or house, so that each member can buy a plot or build a home of his own. The property is owned by the member; the society's role is purely to finance him. …
A housing co-operative that holds (or leases) the land and allots a plot to each member, who then builds and owns his own house on that plot while the society retains the land …
A housing co-operative that owns both the land and the buildings and allots flats to members; the member holds shares and occupies a flat as a 'tenant-owner', but legal ownership of the flat stays with the societ …
A housing co-operative that does not build houses itself but advances long-term loans to members against the mortgage of their land or house, so that each member can b …
A housing co-operative whose main object is to construct houses for its members — buying land, getting plans approved and building the houses — and then to hand them over, the cost …