Vocabulary
Terms and definitions on affordable and sustainable housing *
Grant-of-use cooperative housing
Area: Design, planning and building
Grant-of-use housing cooperatives represent a specific type of cooperative housing, which is a distinct category of community-led or collaborative housing (Czischke et al., 2020). Cooperative housing is a legal form where members collectively provide, own or manage the property. In the grant-of-use type, members rather than owning individual units outright, hold shares or memberships that grant them the right to occupy specific dwellings within the building or the complex. Since occupancy rights are tied to membership rather than ownership of physical property, the aim is the creation of non-speculative housing options (Sostre Civic, 2017), as residents cannot sell their units. By discouraging speculative behaviour, the model promotes long-term residency and stable housing conditions.
Such shared equity cooperatives have appeared under various names in different countries, such as:
- ‘Andelsbolig’ in Denmark
- ‘Cooperativas de vivienda por ayuda mutua’ in Uruguay
- ‘Cooperativas de cesión de uso’ in Spain
- 'Wohnbau Genossenschaft’ in Germany
At its core, a grant-of-use housing cooperative operates on principles of democratic governance and collective decision-making. Members typically have equal voting rights regardless of the size of their dwelling or the number of shares they hold, fostering a sense of community and shared responsibility. Decisions regarding maintenance, renovations, financial matters, and communal living are made through democratic processes such as general assemblies and commissions (Girbés-Peco et al., 2020).
In some cases, the grant-of-use model is publicly supported by local administrations. For example, in Catalonia, grant-of-use cooperative housing falls under the agenda of social housing. This legal framework imposes certain restrictions and guidelines on the one hand and access to resources on the other, to ensure affordability and equitable access. Budget constraints, floor area limits, eligibility criteria based on income thresholds, as well as long-term public ownership contribute to maintaining the cooperative’s mission (Avilla-Royo et al., 2021).
The financial structure of grant-of-use cooperatives can vary depending on factors such as location, size, and public support or subsidies. In some cooperatives, members may pay monthly charges, similar to a rent, to cover operating expenses, property taxes, and mortgage payments if applicable. These charges are typically determined based on the cooperative's budget and may be adjusted periodically through democratic decision-making processes. Additionally, members may be required to make an initial contribution in the form of share purchases or membership fees, which contribute to the cooperative's capital reserves and may be refundable upon leaving the cooperative.
One of the primary advantages of grant-of-use cooperatives is their potential to provide affordable and stable housing for its members. By pooling resources and sharing expenses, cooperatives can offer housing options at lower costs than traditional homeownership or rental markets. Moreover, the democratic governance structure of cooperatives empowers members to have a say and prioritize the needs of the community, fostering a sense of ownership and belonging. Grant-of-use cooperatives can also promote sustainable and community-oriented living. Shared spaces and services, such as communal spaces, or shared amenities, reduce the environmental impact and enhancing social connections within the cooperative. Additionally, the emphasis on democratic decision-making and collective ownership fosters a sense of accountability and mutual support among members, contributing to a stronger sense of community and social cohesion.
However, grant-of-use cooperatives also face challenges and limitations. The success of a cooperative depends heavily on the active participation and cooperation of its members, and conflicts or disagreements can arise. As these processes are usually long, effective communication, conflict resolution mechanisms, and ongoing member engagement are essential. Furthermore, grant-of-use cooperatives may encounter obstacles related to legal and regulatory frameworks, financing options, and access to land. Grant-of-use housing cooperatives challenge conventional notions of property ownership, housing provision and individualistic ways of living. By combining collective ownership with individual usage rights, they offer an alternative path toward sustainable, community-oriented housing. As cities grapple with housing affordability, grant-of-use cooperatives provide one -among others- promising solutions that prioritizes people over profit.
Created on 14-10-2024
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* This vocabulary consists of definitions of key terms related to the combined research conducted by the 15 early-stage researchers. Each term has multiple definitions, each connected to one of the three main research areas: Design, Construction and Planning; Community Involvement; and Policy and Funding.
The joint construction of this vocabulary allows the researchers' projects to be interwoven. As such, the vocabulary is a tool for conducting transdisciplinary research on affordable and sustainable housing.
Entries are reviewed by RE-DWELL researchers and supervisors. The vocabulary is updated regularly.