Matheson Heights Housing Co-operative

3514 Blue Jay Crescent

Vancouver, B.C.  V5S 4E4

 

 

THE NUTS & BOLTS OF CO-OPERATIVE LIVING

 

It is possible to find good quality, low cost housing in Canada.

 

MORTGAGE

The Act provides funds to co-operatives to allow them to obtain a mortgage at current rates but to pay only 2% interest on that mortgage.  The difference is paid by the Federal Government through the office of Canada Mortgage and Housing Corporation (CMHC).

 

The amount the Federal Government will pay to the Co-op each year is estimated in advance, and is then adjusted when final costs chow up in the financial statement.  Sometimes the estimated is too high and the money is then returned to CMHC.  If this money isn’t paid back promptly, CMHC can suspend or reduce further payments until the books balance again.  The 2% mortgage write-down continues for the life of the mortgage; in this case, over a period of 35 years.

 

In granting the mortgage to the Co-op, the government has imposed a specific condition, that at least 15% of the housing units be occupied by persons who have very little money, and who pay only a percentage of their gross income for housing charges.

 

If the Co-op fails to provide an average of 15% of its units to low income families, the amount coming from the Federal Government will be discontinued.

 

The rule of paying only a percentage of one’s gross income for the housing charges applies to persons of ample income as well.  There is a maximum and a minimum housing charge set for each unit.

 

Depending upon the Co-op’s financial health, housing charges may be reduced.  The member must prove they need financial assistance.  When and if the member’s finances recover, the housing charges will be reviewed.  Until such a rate reduction has been granted, the

 

member is still responsible for payment of the housing charges on the due date.

 

The solution is to avoid a situation where everybody in the Co-op does not have enough money to standard housing costs.  In using the rule of percentage of the gross income for housing charge, the Co-op has to pick and choose its members so that the right income mix is always maintained.  The guidelines are clear:  15% of the Co-op members must be subsidized, and yet enough revenue must come in each month to pay the mortgage.  Even a Co-op can be foreclosed!

 

THE LEASE

In addition to a mortgage on the building, the Co-op also holds a lease with the City of Vancouver for the land.  The lease extends for the period of sixty years.

 

SHARES

As well as the money brought into the Co-op by federal financing, funds are raised by issuing $10 shares.  These are only available to bona fide members who live in the Co-op.  the number of shares issued to you, and the price you pay for them is based on the size of dwelling you need.  A list of Regular Occupancy rates (ROR) is as follows:-



UNIT SIZE DEPOSIT SHARES ROR*
1B Apt (685 sq ft) $1300 4,740 $580.00
2B Apt (837 sq ft $1600 5,774 $706.00
2B-H Apt (837 sq ft) $1600 5,774 $706.00
2B TH (900 sq ft) $2000 6,222 $866.00
3B TH (1045 sq ft) $2300 7,333 $946.00
4B TH (1160 sq ft) $2600 8,148 $1,132.00
*Regular Occupancy Rate for Year 2012

 

 

For income tested members, subsidy is based on 25% of gross household income.

 

These shares are bought by the Master Member of each unit.  Other persons in the same unit can become Associate Members by purchasing one share at $10.

 

The share deposits must be paid before move-in.  Shares are never issued jointly to two or more persons.  The Co-op’s constitution forbids using the shares as collateral for a loan.  Also, your Shares may be used by the Co-op for payment of any debts you owe it.

You do not own a specific unit, but rather take part in the ownerships of the Co-op as a whole.  The Co-operative is “private property”, owned, managed and controlled entirely by its members.

 

CO-OP’S BUDGET

The Board of Directors, with the advice of the Finance

Committee, ensures that enough revenue comes in each month to pay the mortgage and related expenses.

 

Monthly housing charges increase over the years by only as much as is necessary to meet increased costs.  Other costs that must be allowed for are the maintenance of units and property.  To finance these expenses, the Co-op may ask for an extra payment on the member’s shares.

 

ADDITIONAL REVENUE

If the Co-op’s Board of Directors feels it necessary, they can ask members to pay a special levy over and above their housing charges.  They can ask the members to pay more of a deposit on the value of their shares.  All such requests for funds are applied evenly to each unit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Matheson Heights Housing Co-operative

 

 

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