WHAT IS A COOPERATIVE?

Many have asked, "What is a cooperative?" According to the Michigan Association of Housing Cooperatives (MAHC), a cooperative is a business controlled by the people who use it. It is a democratic organization whose earnings and assets belong to its members. By patronizing and becoming an active member of a co-op, you invest yourself with the power to shape that business. You control the politics and economics of what is truly your organization.

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BENEFITS OF COOPERATIVE LIVING

Part 1:

Control and Security

ELIMINATION OF OUTSIDE LANDLORD
Co-ops offer control of one's living environment and a security of tenure not available in rental housing.

- Community Control
As mutual owners, member residents participate at various levels in the decision-making process. This is not true of tenants, who usually do not have the opportunity to exercise responsibility. Members own the cooperative together and have the security of being able to remain in their homes for as long as they wish, provided they meet their monthly obligations and abide by the co-op bylaws, rules, and regulations.

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Part 2:

Inclusivity and Community Building

- Cultural Diversity 
Many co-op members indicate that the possibility for interaction with people from different backgrounds, cultures, and income levels is a positive factor in their decision to become a member.

- Building Communities
Co-ops are communities within larger communities. Members share common goals and a sense of identity and pride from working together. Co-ops make good neighbors and can revitalize decaying neighborhoods.

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Part 3:

Shared Responsibilities and Security

- Shared Maintenance Responsibilities
Co-op members usually have limited direct maintenance responsibilities. The cooperative association is responsible for major repairs, insurance, replacement of worn-out equipment, and upkeep of common grounds and facilities.

- Vandalism and Security
 Co-op members vigorously protect their association's property. An important benefit of co-op ownership over rental properties is the reduction in vandalism and abuse of property, along with shared security arrangements.

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Part 4:

Flexibility and Quality Housing

- Freedom and Mobility
The co-op member owns a share in the housing development, not a particular dwelling unit. A co-op membership can usually be more readily sold than real estate, as it costs less and involves a simpler transaction.

- Good Quality, Modest Housing
Co-ops seek to provide the highest quality housing possible within cost guidelines, both in initial construction and through continuing maintenance.