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HOUSING
COOPERATIVES
UNITED

STATES

1949-1950

Joint p u b lication o f
Division o f H ou sin g
H O U S IN G

AND

Research

Housing

H O M E FIN AN CE A G E N C Y

Research
Bureau o f Labor Statistics
UNITED STATES DEPARTMENT OF LABOR

WASHINGTON 1951







Cooperative H ousing in the United States
1949 and 1950

Housing Research Paper No. 24
H O U S I N G

A N D

H O M E

F I N A N C E

A G E N C Y

Bulletin No. 1093
U N I T E D

S T A T E S

Office o f t h e A d m i n i s t r a t o r
Housing

Research

D E P A R T M E N T
Bureau

Division




For sale by the Superintendent of Documents, U . S. Government Printing: Office,
Washington 25, D. C.

Price 65 cents (paper)

O F

of L a b o r

L A B O R
Statistics




P re fa c e

A fte r the end o f W o r ld W a r I I the severe housing shortage in this country led to an increased
interest in cooperative housing as one m eans o f solvin g th e problem . T h is gave fu rth e r im petus
to a m ovem ent w hich began in the U n ited States about a third o f a century ago am ong people
who held th a t by jo in in g together in the purchase o f land and th e construction o f houses they
could obtain dw ellings o f good quality a t less cost than those being provided in other w ays. A s
th in gs have worked out, some h ou sin g cooperatives have been outstandingly successful and have
accomplished everything th eir sponsors hoped fo r. O thers, how ever, have proved to be disap­
pointing, either fa llin g b y the w ayside or fa ilin g to attain th e original objectives.
A lthou gh th is pattern o f success and fa ilu re in th e housing cooperative field in the U nited
States has long been know n in a general w ay, no com prehensive study has ever been m ade to
show the extent and n ature o f the m ovem ent.

There h as never been available a com prehensive

assem bly o f data which could be used to ascertain the causes o f success or failure am ong housing
cooperatives. The present study is aim ed a t d raw in g together statistical m aterial w hich m a y be
useful fo r such analyses. It should suggest also profitable avenues fo r fu rth er research in this
field.
In this connection, it should be pointed out th at the present study w a s undertaken to assem ble
in form ation which m ig h t help fu tu re consum er groups, planning to fo r m cooperative housing
associations, to avoid the p itfalls which have beset some o f their predecessors. Consequently it
would m inim ize the value o f the study fo r its intended purpose i f the findings also included the
experience o f housing associations which w ere originally organized b y builders or real estate
firms as a selling aid. T h eir exclusion fr o m the study w a s not m eant to im ply, how ever, th at such
endeavors have not in m an y cases been h igh ly successful fro m the standpoint o f individuals w ho
obtained housing in th is fash ion. In fa c t, the need fo r a companion study o f the latter type o f
housing associations is readily apparent.
The study is the w ork o f the Bureau o f L ab or Statistics o f th e U n ited States D epartm ent o f
Labor, financed in p art b y the D ivision o f H ou sin g Research, H o u sin g and H om e F inan ce A gen cy.
The survey w a s under the direction o f Florence E . P arker, the Bureau’s Specialist on Co­
operatives. She also participated in the field w ork, assisted b y Charles J. A p pleby, Donald J. D ow d,
Joseph C. F urey, R obert P . Lane, H erb ert H . M oede, and Jam es E . Zenith — all on the Prices
Staff o f the Bureau.
T he section on the legal and adm inistrative status o f cooperatives under the N ation al H ou sin g
A cts w as prepared b y C. F ran k lin D aniels, D eputy A s s is ta n t Com m issioner, Cooperative H ou sin g
Division, Federal H o u sin g A d m in istration . T h e corresponding section on m utual housing cor­
porations and the Public H ou sin g A d m in istration w a s prepared b y Donald L anday o f th at agency.




June 3, 1 9 5 2

h i




C on ten ts
Page
Preface

............................................................................................

C h a p t e r I.—

I n t r o d u c t i o n a n d s u m m a r y ....................................................

Definition of t e r m s
S c o p e of s t u d y
S u m m a r y

.............................................................................

2
3

Membership
Age

.................................................................................

Characteristics of h o u s i n g associations

Geographic

distribution

...................................

.........................................

.......................................................................

of incorporation

5
9
9

a n d i n c o m e ..................................................................

of associations

L a w

1
1

of f i n d i n g s ......................................................................

Conclusions
C h a p t e r II.—

.......................................................................

ill

....................................................................

10
10
11

S p o n s o r s h i p o f a s s o c i a t i o n s ..............................................................

11

S t a g e s at w h i c h

12

Membership

cooperation w a s

requirements

make-up

S o u r c e s of n e w

C h a p t e r III.—
Land

data

The

and

members

...........................................................

...................................................................

14
14
15
16
18

....................................................

18
19

p a r t i c i p a t i o n i n p l a n n i n g ................................................

20

Size of proj e c t

characteristics

13
13

..........................................................................

planning

Membership

...............................................................

..........................................................................

projects

purchase

Project

.........................................................

.................................................................................

Membership

Family

................................................

.................................................................................

Membership
Voting

used

.............................................................................

Size of d w e l l i n g s

20

..........................................................................

26

C o n t r a c t i n g b y a s s o c i a t i o n ...............................................................

26

C h a p t e r IV.—

C o s t a n d finances

..............................................................

27

C o s t to a s s o c i a t i o n ........................................................................

27

C o s t o f l a n d a n d its d e v e l o p m e n t .................................................

27

C o s t o f project, b y i t e m o f e x p e n s e ...............................................

28

T o t a l i n v e s t m e n t i n p r o j e c t ........................................................

29

C o n t r a c t provisions

30

..................................................................

Self-help b y m e m b e r s

...............................................................

O t h e r s o u r c e s of s a v i n g s
F i n a n c i n g of p r o j e c t s
Sources

of f u n d s

....................................................................

33
33

Mortgage

indebtedness
insurance

F i n a n c i a l status

30
33

....................................................................

Mortgage

C o s t to m e m b e r

...........................................................

.............................................................

35

................................................................

37

......................................................................

...........................................................................

38
39

E n t r a n c e c h a r g e s ....................................................................

39

P r i c e o f u n i t ..........................................................................

40

Member’ down
s

...........................................................

40

C a r r y i n g c o s t t o m e m b e r ...........................................................

41

Additional

payment

assessments

............................................................

43

M e t h o d a n d p e r i o d o f a m o r t i z a t i o n ..............................................

44

W h a t




the m e m b e r

Land

space

Construction

g e t s f o r h i s m o n e y ................................................

44

...........................................................................

44

.......................................................

45

C o s t o f u n i t i n r e l a t i o n t o s i z e ....................................................

51

Maintenance

characteristics

and

repairs

...........................................................

E v i d e n c e o f o w n e r s h i p , a n d p e r i o d o f l e a s e ...................................

V

51
53

Contents — Continued
Page
Chapter

V.—

Internal

arrangements

.......................................................

54

E x c h a n g e o f e q u i t y .......................................................................

54

Withdrawal

54

Protective

measures

Community
C h a p t e r VI.—

procedures

............................................................... . .

......................................................................

56

.......................................................................

aspects

57

Relations w i t h

C h a p t e r VII.—

s u r r o u n d i n g c o m m u n i t y ..................................

Cooperatives a n d the Federal

Cooperatives u n d e r

National

Housing

Government

.............................

A c t ..........................................

M u t u a l s a n d p u b l i c h o u s i n g p r o j e c t s ...................................................

61
64
64
65

S a l e s p r o c e d u r e s ......................................................................

65

Types

................................................

66

of w a r

housing purchasers

Disposal

policies f o r w a r

Disposal

of “ g r e e n t o w n ” p r o jects

Bylaw

and

...............................................

66

................................................

68

P r o b l e m s o f c o o p e r a t i v e s ...................................................

C h a p t e r VIII.—

69

legal

Acquisition

problems

of l a n d

housing

..............................................................

.......................................................................

B u i l d i n g codes a n d z o n i n g regulations

69
69

................................................

70

I n s t a l l a t i o n o f u t i l i t i e s ....................................... ............................

70

R e l a t i o n s w i t h architects a n d

71

contractors

................

R e l a t i o n s w i t h l a b o r ......................................................................

72

S e l f - h e l p a s a d i s a d v a n t a g e ..............................................................

72

P r o b l e m s o f f i n a n c e .......................................................................

73

Experience

...........................................................

73

E x p e r i e n c e w i t h i n s u r e r s ...........................................................

74

Problem

with

lenders

of t i m e l a g

......................................................................

75

P r o b l e m o f r i s i n g c o s t s ...................................................................

75

Membership

problems

Operating problems

...................................................................

76

.......................................................................

78

S p e c i a l p r o b l e m s o f m u t u a l s ............................................................

80

Other

...........................................................................

81

R e a s o n s f o r f a i l u r e .......................................................................

81

problems

Appendixes

......................................................................................

83

T A B L E S

1.

A c tiv e
hy

2.

cooperative

type

Number,

and

housing

associations

location, J u l y

membership,

and

31, 1 9 5 0

business

and d isso lv ed a s so cia tio n s r e p o r te d ,

................................................
of

cooperative

housing

associ a t i o n s ,

10

by

s t a t u s a n d t y p e .........................................................................

10

3.

P e r i o d i n w h i c h h o u s i n g a s s o c i a t i o n s w e r e e s t a b l i s h e d .............................

11

4.

Laws

11

5.

E x t e n t o f c o o p e r a t i o n in h o u s i n g a s s o c i a t i o n s ......................................

12

6.

I n c o m e a n d size, in 1 9 4 9 , o f f a m i l y m e m b e r s

16

u n d e r w h i c h h o u s i n g associations i n c o r p o r a t e d

...........................

o f h o u s i n g a s s o c i a t i o n s ..........

7.

A g e o f h e a d o f f a m i l i e s i n h o u s i n g a s s o c i a t i o n s .....................................

8.

Total

9.

A c t i v e h o u s i n g a s s o c i a t i o n s h o l d i n g classified a c r e a g e

acreage

munity

held

purposes

by

housing

a ssociations,

and

amount

allocated f o r

.......................................................................

rooms

planned an d

.............................

10.

D w e l l i n g units a n d

11.

Number

c o m p l e t e d b y h o u s i n g associations. . .

12.

Size of d w e l l i n g units c o m p l e t e d o r u n d e r con s t r u c t i o n b y h o u s i n g associations

13.

C o s t of land, b e f o r e a n d

14.

Number

of d w e l l i n g units c o m p l e t e d or u n d e r construction, b y

after dev e l o p m e n t , held b y

h o u s i n g a s s o c i a t i o n s ....

specified l a n d c o s t p e r

22

23
26
27

acre before a n d

a f t e r d e v e l o p m e n t ......................................................................


VI


19
19

size o f p r o j e c t

a n d t y p e o f d w e l l i n g ...................................................................

of h o u s i n g associations w i t h

16

com­

28

T A B L E S — C on tin u ed

Page
15.

Cost o f housing projects, by i t e m ......................................................................................

29

16. N um ber o f housing p rojects w ith specified total c o s t ...............................................

29

17.

SO

T otal and average cost o f housing p r o j e c t s ...................................................................

18.

Sources o f fu n ds f o r purchase o f land, construction, and down paym ent . . . .

34

19.

M ortgage indebtedness o f active housing a s s o c ia t io n s ...............................................

36

20.

In terest rate, and y ear and period o f m ortgage in housing a s s o c ia t io n s ...........

36

21.

A m ounts o f original m ortgage indebtedness financed at specified in terest rates

37

22.

A ssets and net w orth o f housing associations ............................................................

39

23.

Cost o f join in g housing associations, b y am ount r e q u i r e d ......................................

40

24. A verage down paym ent required, by amount and percent o f total cost o f u n it. .

41

25.

M onthly cost o f dw elling u nit per member, in all-the-w ay cooperatives, b y
cost item and y ear ...............................................................................................................

42

26.

M onthly rentals in m utual associations, by size o f dw elling u n i t .........................

43

27.

N um ber o f associations building houses, by size o f l o t ...............................................

45

28.

N um ber o f housing projects w ith specified density o f dw elling u n i t s ................

45

29.

Construction characteristics o f dwellings in housing p rojects .............................

50

30.

P rice p er unit, and am ount and cost o f liv in g space, in dw ellings o f h ousing
associations ............................................................................................................................

52

31.

N um ber o f housing p rojects, by type o f com m unity fa cilities p r o v i d e d ...........

59

32.

N um ber o f perm anent fa m ily-typ e dw elling units sold by P H A , b y typ e o f
purchaser and program under which built, end o f 1950 ......................................

66

33.

Standard financial term s fo r sale o f perm anent w a r housing to m u tu a ls...........

63

34.

Interval betw een form ation o f association and com pletion o f first unit, and
between first and last u n i t s ...............................................................................................

75

35.

M em bership fluctuations in housing associations .......................................................

77

A P P E N D IX E S
A ppen dix A .— H ousing associations covered in study ...........................................................

83

A pp en d ix B.— Documents and form s used by housing cooperatives ...............................

88

A ll-th e-w ay cooperatives ........................................................................................................
Bylaw s ...................................................................................................................................
Lease agreem ent ..............................................................................................................

88
88
95

Co-ventures ..................................................................................................................................
A rticles o f incorporation ...............................................................................................
B ylaw s ..................................................................................................................................
M em bership a g r e e m e n t ...................................................................................................
M em bership application and purchase a g r e e m e n t ................................................
R ealty sale and building c o n t r a c t ................................................................................
O ption a g r e e m e n t...............................................................................................................

99
99
100
108
109
Ill
113

M utuals .........................................................................................................................................
A rticles o f association ...................................................................................................
B ylaw s ..................................................................................................................................
M utual ownership c o n t r a c t ...........................................................................................
F in an cial questionnaire .................................................................................................
B ylaw s o f com m unity council ......................................................................................

115
115
116
122
125
127

A ppen dix C.— In form ation fo r new g r o u p s ............................................................................. 130
Suggestions f o r startin g a housing c o o p e r a t iv e ............................................................ 130
R egulations and procedures under Section 213 o f N ational H ousing A c t o f 1950 130
A ppen dix D.— E xperiences o f a m u t u a l ...............................................................................




V II

133




Cooperative Housing in the United States,
C h a p t e r

C o o p e r a tiv e
U n ite d

h o u s in g

S ta te s

1 91 6 . It
ca n ce

h a s

in

d e n tia l

s in c e

n o t th u s

r e la tio n

to ta l

fa r

a tta in e d

th e

h a v e

in

g r e a t

p re s e n t

s tu d y

e x c lu d e

su ch

s ig n ifi­

th o se

r e s i­

W o r ld

o f

W a r

sh o rta g e .

s tim u la te d

S o m e

s u lte d , in

o f

T o

c lu d e d

U n ite d

d e ta ile d

h o u s in g

fin a n c e d

H o u s in g

in

A g e n c y .

o f

b y

th e

T h e

a

o n

o f

th e

in v o lv e d ,

co ­

D iv is io n

a re

a n d

sta g e s
th e

S ta ­
o f

u n le s s

e t c .)

re p o rt.

th e

Definition o f Terms
In

th is

su rv e y , th e

re g a rd e d
t iv e
to

fo r

b e

a s

c o o p e r a tiv e

(2 )

e n te r p r is e , th e
c h it e c t ,

o n ly

if

co n tr a c to r,

o f

th e

w a s

(3 )

th e

a n d

o f

fr o m

th e

n o t

th o s e

“ c o o p e r a tiv e s ”

g in a lly

b e g in n in g .

o r g a n iz e d

b y

fir m s .

In

su ch

m e n ts

to

in d iv id u a l

m a y
th e

la te r

m a y
In

in to

a

p r o v id e

p r o je c t s

n o t fr o m
th e

fu n c t io n

b u ild in g

v e lo p

ca ses

a s

(a n d
tru e

a n

m a y

c o o p e r a tiv e ),

th is

o r
s e ll

a s s o c ia tio n

m a n a g e m e n t
o f

th e

k in d ,

fo r
th e

a

(a r ­

h is

s u rv e y
w e r e

to

o r

th e

in it ia t iv e

s e llin g




re a l

e sta te .

o r g a n iz a tio n
h e

od s

r ig h t

d e­

o f
is

In

r e a lto r

s o m e

u p

u s u a lly

m a y
little

com es,

b e
a s

T h e

th e

its

fo r

th a t

p u r ­

a s s o c ia tio n s ,

th e

t it le

to

99

to

b e

h o ld s
th e

In

o r

th e

th e

t it le

is

o f

a

th e
u n it

to

th e
p e r i­

g iv e n

th e

ca se

th is

in h e r ita b le .

th o se

b u ild in g s —
en d

b y

in

fo r

la tte r

a n d

n o ta b ly

a p a rtm e n t

o w n e d

s to ck

le a s e h o ld

y e a rs,

u s e .”

e n tir e
fa c ili­

p a r tic u la r

r e c e iv e s
a

th e

c o m m u n ity

o w n in g
th e

p e r io d

le a s e
o f

as

y e a rs.

te rm s

“ c o -v e n tu r e s ”

1

o f

r e c e iv e

a t

b y
th e

fa c ilitie s ,

fe e -s im p le

tr a n s fe r a b le

r e n e w a b le

2 1 /2

fo r m e d

a n y

v a lu e

to

ca se

c o n tin u e s

th e se

c o o p e r a tiv e ,

a n d

a s s o c ia tio n s —

o p e r a tin g

la tte r

th e

a rea ,

co m m o n

c o m p le te d .

n e v e r

“ p e rp e tu a l

a n d

fe e .

In

c o n tin u e s

d oes

v a r y in g

r ig h t

in

m e m b e r

th e

(w a te r -

p la y g r o u n d

T h e

b u t

H e

fa c ilitie s

o r

b e—

to

o c c u p ie s ,

d w e llin g .

o p e ra te

W h e n

m a y

th e re

a s s o c ia tio n .

h o u s e s ),

o f b u s in e s s

ow n ed

is

is

d w e llin g s

d id
o r i­

th e p r o s p e c tiv e h o m e o w n e r s , b u t fr o m

b u s in e s s m a n

it

th e

sev era l

th e

o u t

m a n a g e

a ll-t h e -w a y

th e

g o e s

r e c e iv e s

tie s

a p a rt­

s tip u la te d

th e

o n ce

a ll-th e -w a y

d e v e lo p in g

c o -v e n tu r e

m e m b e r

d w e llin g

o r

a s s o c ia tio n

o r g a n iz a tio n
to

th e

w e re

c o o p e r a tio n

a n d

p ro p e rty

o f

stu d y

o f

o r

p a rk

c o o p e r a tiv e
a ll

th e

p u rch a se rs

e v e n tu a lly

In

In

r e a l-e s ta te
th e

n e w

th is

on e

c o m m u n ity

p ro p e r ty —

o r g a n iz a ­
b y

a

in

c o n s tr u c tin g

o rd e r

in ­

b u y in g

a s

h o u s in g

w a s

p e c u n ia r y

a t

m e m b e r s h ip .

in

in d iv id u a l

n o n p r o fit

w e re

T h e se

th e re b y

o r

p ose.

th e ir

T h e

la tte r

b u y e rs.

in it ia ­

e ith e r

w h ic h

b u ild e r s
th e

a

c o n tr o lle d

m e m b e rs
c o v e r

e n tir e

e x is te n c e

th e g ro u p

d on a ted

o r

p o lic ie s

d e t e r m in e d

th e

w e re

o f w h ic h

e t c .)

a s s o c ia tio n

w e r e

(1 )

w ith in

p r o je c t

a n d

s e r v ic e s ,
t io n

a s s o c ia tio n s

t e c h n ic a l a d v is e r s

a tto rn e y ,

e m p lo y e e s

th e

o th e r

a

b e
h a d

a c t iv itie s .

d e g re e

a s s o c ia tio n

a re

m a k e

c o -v e n tu r e

sy ste m ,

c o o p e r a tiv e

h o u s in g

th e p r o je c t ca m e fr o m

h ou sed ,

th e

to

co v e re d

p r o je c t

to

to

c o v e r o n ly

g r o u p

c o -v e n tu r e s

th e

ev en

th e re

o r

o f th e

(s u c h

d is tr ib u tio n

in

s to o d

c o lle c tiv e ly

o r

w h e re u p o n

H o m e

p re se n te d

In

o n ly

th e

in c lu d e d

e ith e r

a ct

la n d ,

b y

d e s ig n e d
to

a s s o c ia tio n s

a s s o c ia tio n ’s

te rm s

a s

m e m b e rs

stu d y

L a b o r

H o u s in g

r e s u lts

th e

s p e c ia l

B u re a u

p a rt

R e se a rch

F in a n c e
th is

th e

th e

w a s
a n d

sp o n so re d

c o o p e r a tiv e s

c o o p e r a tiv e s .

in fo r m a tio n

th e
n o

it

a s th e se

s p o n so r

c la s s ifie d , in

S ta te s.

m o v e m e n t,

b y

h a s

fr o m

p la n n e d ,

in it ia t e d
o f

b u t

if th e

T h e

th e

th e

a c tiv ity

g a in

h o u s in g
re ­

u n d e rta k e n

t is t ic s ,

se v e re

a ls o

p r o v id e

o p e r a t iv e
w a s

le g is la t iv e

th e

S ta te le g is la t u r e s a s w e ll a s in

th e

C o n g re ss

b y

w a s

S o m e

1950

a r y

p r o je c ts

“ s p o n s o r s ,”

co o p e ra ­

m

p r o je c ts

h ou sed .

t iv e a c t iv it ie s in t h is fie ld a n d w id e s p r e a d p u b lic
in te r e s t, b o th

S u m

as

o f

in c r e a s e d

a n d

th e

b a c k

v o lu m e

en d

b een

I n t r o d u c t i o n

k n o w n

a s

fa r

S in c e

II, h o w e v e r, th e re

b een

le a s t

th e

to

b u ild in g .

h a s

a t

I .—

and

1949

“ a ll-t h e -w a y

c o o p e r a tiv e s ”

a re th o s e r e c o g n iz e d

a n d

a n d in u s e in

2

C O O P E R A T IV E

th e

c o o p e r a tiv e

H o u s in g
tw o

c la s s e s

a re

o p e r a t iv e s ,
T h e

m o v e m e n t. U n d e r

A ct, th e

b y

h o u se s,

(2 )

o r

on

e re d

th e

in

w a y

th e

co ­

(3 )

to

s u r v e y

o f

b e lie f

c o o p e r a tiv e

a d o p te d
o f

a n

th e

d ep en d ­

c o -v e n tu re s .

to

c o ­

th e

c o v ­

A ll

th e

g r o u p .

In

a lly

u sed

b u y

w a r

th e

d iffic u lty

a p a rtm e n t,

g e n u in e ly

to

o r

o f
b e ­

c o o p e r a tiv e

a ls o

s o -c a lle d

s io n

a

th e

b y

s m a ll

w o r d

n o t

fo r m e d

to

b u y

tu re s

b e ca u se

ra th e r

th a n

S o m e

o f

on

th e

so m e

o n e

in

th e

ste p

p r o v id e d

J u ly

1 95 0 .

in

p ro ce s s
F r o m

th e y

d e p re s ­
h o u s in g
R ic o .

a s s o c ia tio n s

th e ir

h e re

th a t

P u e r to

o f

n a m e

c la s s ifie d

o p e ra te

a s

A

a ls o

b u t

w e re

h o u s in g ;
as

th e

ty p e s

o f

“ s e lf-h e lp ,”

p r e p a r a tio n
d w e llin g ,

ca se s

on

m e m b e rs

h o m e s ;

in

o th e rs

a s

w e ll

(th e

as

th e

i.e .,

c o -v e n ­

c o -v e n tu re s

in v o lv e d

w o r k

s it e , o n

th e

in s id e

w o r k e d

th e y

la tte r

h a v e

o f th e

o r

o f

z a tio n

o n ly

a s s is te d

p ro ce d u re

“ e x c h a n g e -o f-la b o r ”

b y

p r o fe s s io n a l

la n d ,
a n d

th e

m e m ­

to

th e

T h e

fo r m a tio n

a b o u t
s iz e ,

th e

a n d

a n d

th e

o f

fie ld

n a ry

a g e
te st

o f

stu d y

E v e r y

L a b o r

to

o n

in

th e

w h o
th e

p o in ts

th e

in v e s tig a to r

d e s ig n a te d

“ p o o le d -la b o r ”

p r o je c t

a te ,

t io n

m e th o d ).

v is its

F e d e ra l

m e m b e rs

its e lf
w e r e

a ls o

o f

a n d

b e fo r e

s a m p le

in

to

it

M a n y
in

re c o r d s

m a n y

th e

A d m in is tr a tio n ,

o f

d e ta ile d

lis te d .

th e

w e r e

ca ses,

W h e re

a n d

w a s

B u re a u

in t e r v ie w e d

v is ite d .

C o r p o r a tio n ,

p r e lim i­

m a d e

fr o m

a s s o c ia tio n

m a d e

A

th e

a b o v e

w e r e

w a s

H o u s in g

F in a n c e

in c o m e

s e le c te d

o b ta in e d

to

th e

in ­

in fo r m a tio n

w a s

op e n e d

o w n

th e

b eg u n .

stu d y ,

m e m b e rs

a n d
fa m ily

s c h e d u le

th e

th e ir

o f

o r g a n iz a t io n ,

th e

o f

on

p r o ­

m o r tg a g e ;

h ea d .

co u rse

a n d

th e

r e p r e s e n ta tiv e

in fo r m a tio n

s p a ce

o b ta in e d

w a s

S ta tis tic s ,

to ta l

d w e llin g

p h a ses

fu r th e r

a s

th e

o f fin a n c in g th e

fa m ily

a s s o c ia tio n
a

liv in g

a ll

o f

a n d

u t ilit ie s ,

p e r

lo n g -te r m

fin is h in g .

In

o f

s o u rce s

su ch

th e

ro o m s

co n s tru c­

in to

s a le s p r ic e

s p o n so rs,

th e

its e lf

b y

la n d ,
fe e s ,

e n te r in g

h is to r y

o f

o f

c h a r a c te r is tic s

o f

fin a n c in g

a n d

m e m b e rs,

a n d

to

o r g a n i­

c o n s tr u c tio n ,

a n d

r e la te d

th e

d e s ig n e d

s iz e

co s t

a n d

d is ­

lo c a tio n .

a ctu a l

in v e s tig a to r s

on

a n d

o f

a m o u n t

m e th o d s

w a s

fo r

v a r io u s

m e th o d

u n d e r

ite m s

th e

a n d

p r o je c t ; th e

fo r m a tio n

w e r e

ch o se n

a c t iv e

d w e llin g s

th e

s e r v ic e ,

p r o b le m s

p r o je c t.

its

o r

c o n s tr u c tio n ,
th e

s e le c te d

w a s

g e o g r a p h ic

m a te r ia ls

o th e r

r e la tio n

in

a d d it io n a l

th e

o f

d w e llin g s ;

a n d

41

c a r e fu lly

s c h e d u le
o n

n u m b e r

c o n s tr u c tio n

o f th e

th e

o r

(b o th
a n d

p la n n e d

c o m p le te d

co s t

on

d is s o lv e d

a

o ffic e r s

h e re

o r

th e

in

t io n ,

w e re

o p e r a tio n

r e p r e s e n tin g

s iz e

th e

th ese

le a s t

c o n s tr u c tio n

o th e r

is

v a r y in g

b o th

p r o je c t ;

o f

a t

lis ts

in fo r m a tio n

u n it s

a c t iv e

b een

a s s o c ia tio n s

a n d

in fo r m a tio n

c o o p e r a tiv e s

fie ld -in te r v ie w

p r o v id e

lis t

p r e lim in a r y

d is s o lu t io n .

98

b y

th e

in

t im e

e ith e r

o n
T h is

b a s ic

in t e r v ie w ,

s o lv e d ),
T h e

m a il.

a b o v e

o f

v is ite d

p r o je c ts

o f

in te n s iv e

th a t

h a d

th e

s a m p le

b y

c e r ta in

B y

v id e d ; th e

b u ilt

a s s o c ia tio n s

a s s o c ia tio n s

a s s o c ia tio n s

in

th e

th e

h o u s in g

c la s s i­

b u y in g

G o v e r n m e n t-b u ilt

a re

o f

in

p r o je c t

d u r in g

to

G o v e rn ­

m u tu a ls .

o f

a m o u n ts

fo r m e d

o r g a n iz a t io n

co -v e n tu r e

a s s o c ia tio n s

g e n e r­

“ m u tu a l”

h o u s in g

a n d

“ m u tu a l”

is

F e d e ra l

o n e

G o v e rn m e n t
o f

te rm

s p e c ia l

a s s o c ia tio n s

G o v e rn m e n t

1 9 3 0 ’s,

th e

th e

b e rs

th e

tw o

s u b s is te n c e

n u m b e r

h a d

su ch

b y

in c lu d e s

F e d e ra l

o f

b u ilt

th is

a

o r g a n iz a t io n s

b u ilt

“ g r e e n t o w n s ,”

b o u g h t
th e

fo r m

th e p re s e n t r e p o r t th e

fic a tio n

b y

S ta te s

d e s ig n a te

h o u s in g

m en t. In

h a d

a s s o c ia tio n s

U n ite d

a ll

S TA TE S

c ir c u la r iz e d

th e
“ m u tu a l”

U N IT E D

s tu d y
fir s t

th e

a ll-th e -

m e th o d .
T h e

T H E

A

a

a s s o c ia tio n s

b e ca u se

in

e ith e r

th e

th e

h a d

title

o p e r a t in g

c o o p e r a tiv e ,

w e r e

e ith e r

in d iv id u a l

b e

w h ic h

M o s t

th is

“ m u t u a ls .”

m a y

a ll-t h e -w a y

in

b u ild in g

a n d /o r

a n d

a s s o c ia tio n s

o f

th ese

“ s a le s ”

c la s s ifie d

b u ild in g

e x te n t

m e th o d ,

ca u se

N a tio n a l

a s s o c ia tio n s

a s s o c ia tio n

u sed .

a p a rtm e n t

g iv in g

a n d

a ls o

(1 )

th o se

a n

is

th e

d e s ig n a te

IN

1 55

w e r e

a s

b u ild in g s ,

h o u s e -b u ild in g

m e th o d

to

“ m a n a g e m e n t”

ty p e ,

a p a rtm e n t

v e n tu re

u sed

r e s p e c t iv e ly .

c o o p e r a tiv e s

stu d y ,

in g

te rm s

H O U S IN G

a n d

a p p r o p r i­

o ffic e s

o f

th e

R e co n s tr u c­

p r iv a te

le n d in g

a g e n c ie s .

Scope of Study
In
o v e r
tic s
a n d

th e

co u rse

m a n y
h a d

A lto g e th e r ,
o f

y e a rs,

c o m p ile d

d is s o lv e d

its

th e
a

B u re a u

o f
o f

c o m p r e h e n s iv e

h o u s in g




s tu d y

c o o p e r a tiv e s
L a b o r

S ta tis ­

lis t o f a c t iv e

c o o p e r a tiv e s .

In

th is

s o c ia tio n s .
v is ite d .
w e r e
th e ir

O f

O f

d a ta

w e re

133

a c tiv e

th e

v is ite d .
p r o je c t

32

th e

fr o m

a s s o c ia tio n s ,

d is s o lv e d

E ig h t o f
b e fo r e

o b ta in e d

1 65
6 8

a s s o c ia tio n s ,

la tte r

d is s o lv in g ;

h a d
2 4

a s­

w e r e
3 0

c o m p le te d
h a d

b een

IN T R O D U C T IO N

fo r c e d

o u t o f e x is te n c e

a fte r

c o m p le tin g

r e a c h in g
T h e

th e

th e

p a st

e m p h a s is

d e ca d e .

h a s

A

m u ch

b y

y e a rs

b e e n

a n d

th e

th e

re ce n t

t iv e s

o f

A ll

in

a s s o c ia tio n s
E a s t

o f

th e

w e r e

o f

th e

A lto g e th e r , 2 9
P u e r to

w e r e

C ity )

w ith

N e w

h a v in g

b y

c o -v e n tu r e s

a n d

th ro u g h o u t th e
A s

g a g e

H o u s in g
tiv e s
a

p r io r

A c t,

w e re

p e r io d

su ra n ce

to
to

(G r e a te r
g r e a te s t

A tla n tic

N e w

Y o r k

n u m b e r.

w e re

th e

th e

T h e

sca tte re d

th e

stu d y

7

p r o g r a m

co v e re d

a u th o r iz a tio n

in c lu d e d

a d o p te d

m o st

h a d
in g

a

a s s o c ia tio n s

to ta l

o f

1 0 ,3 9 7

o f

th e

o f

2 8 ,3 3 1

e ss

o f

a c t iv e

fr o m

$ 1 5 2

o f th e

d w e llin g

s o lv e d
fo r e

9 69

a t

2 0 ,5 2 5 .

In

w ith

w a s

o f

d w e llin g s

fo r c e d

to

h a d

o f h o u s in g

fo r

in




th e

a n d

su rv e y

w e re

o r

o f
th e

a n d

4 3 6

a
in

a n

a cre

a b o u t

7

to ta l

fr o m
T h e
th e

4 0

r e la tiv e

e c ts v a r ie d
ca ses
b y

d is s o lv e d

h a d
b y

o th e r

d w e llin g s

d is ­
b e ­

th e

$ 1 ,0 0 0

h a d

la r g e s t

in c o r p o r a te d

th e

a n d

le s s

p e rce n t

o f

o r

th e

o ff­
th a n

th e

$ 2 ,9 9 9

$ 3 ,0 0 0

a sso ­

n e a r ly

r e p o r tin g .

(s ite

w a s

a n d

a n d

o f

p r o je c ts

$ 2 5 ,0 0 0

to

a n

a s­
a cre

m o re

s tu d ie d

m o re th a n
o f

in v o lv e d

v o lu n te e r

m a d e

th e

p e r

fo r

p e rce n t.

in

e x p e n d it u r e s

in

th e

a nd

la n d
A ll

w o r k

v a r io u s

ra n g e d

$ 5 ,0 0 0 ,0 0 0 .

h o u s in g

o f

in

m a n y

m e m b e rs

w a y s.

S om e

fo r

p r o j­

a n d

g ro u p s

o f s p e c ia l ta le n ts c o n tr ib u t e d

o r

n in e -te n th s

on

4 0

th e
fo r

g r e a tly . C o s ts w e r e r e d u c e d

th e

th a n

g r e a te r

to

a cre

co sts

$ 1 ,0 0 0

d is tr ib u tio n

c o n s tr u c tio n .
m e n t

la n d

a n

co s t

2 0

m e m b e rs

o f

th e

p e rce n t,

ite m s

F in a n c in g
n is h e d

m u ch

a s s o c ia tio n s

a b o u t

th e a d v a n ta g e
th e

ch a se
T h e

b y

s a v in g s

h a d

b u ilt

co sts

v a r io u s

p r o c ­

fo r

a p a rtm e n t

th e tra ct.
o f

th e

b e tw e e n

le s s t h a n

stu d y

th e
8

h o ld ­

p r o je c ts

q u it.

c o o p e r a tiv e s

th e

$ 1 ,0 0 0

C h a r a cte r istic s o f a s s o c ia tio n s :
g r o u p

o f

la w , a n d

p r o je c ts

b u ilt

c o s t ly

th a t

tim e

p la n n e d ,

a cre

w e r e

s o c ia tio n s ,

c o n v e n ie n tly

le s s

s ite )

in ­

a cre .
sew er,

p e r

co o p e ra ­

n e w

p e r

w h e re

g e n e r a lly

on

in c lu d e d ,

th e

c o s t lie r

co s t

th a n

co o p ­

th e

b eca u se

le s s

th e

b y

a ll

p la n n e d

a d d itio n ,

u sed

m u ch

d w e llin g s

w a s

b y

w e r e

la n d

d e v e lo p m e n t

o c c u p ie d

th e

c itie s

o th e rs, b u t

u n it

u n im p r o v e d ,

$ 1 ,6 0 0

in

o f

c o n te m p la te d

c o m p le te d

a s s o c ia tio n s

b e in g

m e m b e rs

th o se

n e a r ly
a ll

o u t­

in c r e a s e d

u t ilit ie s

c ity

a c q u is itio n

T o ta l

a s s o c ia tio n s

to

w e r e

o th e r

T h e

w a s

e x p e n se s

th e

in e x p e n s iv e

d e v e lo p e d

a ll

th e

a s s o c ia tio n s

o f

la n d

a s s o c ia tio n s

in

e a r n in g

in to

th e

a fte r

1 95 0 .

T h e

a d v a n ta g e

E v e n

in

th e

w e n t

a n d

a n d

$ 4 ,0 0 0

to ta l w e re

ca ses

a v a ila b le .

la r g e ­

to

w e r e

s u b d iv id e d

b y

c ia tio n

th e

o f

tw o -th ir d s

in c lu d e d

la n d .

c o m p le tio n

a s s o c ia tio n s
o f

o f

d w e llin g s ;

n u m b e re d

9 6 5

2 4 ,2 5 3

a cre s

M o s t

th e

a p a rtm e n ts

d e n s ity

$ 2 ,0 0 0

fifth

h o u se s

D e v e lo p m e n t

w a te r,

o f

a

o r ­

y e a r.

o b ta in

e r a t iv e .

Summary o f Findings
165

th a n

p e r

a p p r o x im a te ly

T h e

tw o -th ir d s

th e

b o d ie s .

c o n s is te d

o f

N a tio n a l

u n d e r

in

m o r t­

in c o m e s

fe w

v e te ra n s ’

r e lig io u s

a fte r

p e r io d

m o n th s

o f

th e
c o r ­

s p o n s o r s h ip

th e se

u n io n s ,
o r

th e

in

a b o u t

e ith e r

r e g u la r

fo r m a l

m e m b e r s h ip

in d iv id u a l

In

th a t

th e

F o r

la b o r

L e ss

o v e r

to

T h e

2 -y e a r

a b o u t

o r

w a s

T h e

C o lu m b ia ,

N e a r ly

b u ild in g

co s t

S ta te ;

u n d e r

o r

a n y

r a c ia l

w ith

b ra ck e t.

a n d

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b o th .

T h e

u n d e r

la n d
ty p e s

w e re

a

c o n s id e r e d

a n d

w h ile

w h ile

w h ile

b e in g

(3 )

(4 )

th e

c o u ld
th e

a g e n c ie s

fin a n c in g ,

la b o r ,

w e re

th e

n e ig h b o r h o o d

fo r

o r

cu rre d

w h ile

m e m b e rs

o v e rco m e

th e

so u g h t,

F H A

b o u g h t,

w h ile

to

ca n v a sse d
b e in g

d e la y

w h ile

w h ile

in s u r a n c e

a n d

o f

in v e s tig a te d ,

tr y in g

t io n ,

p e r io d s

so u g h t

h o u s in g

w e r e

to

M

c ia tio n .

T h e

b e in g

a

U

o th e r

w e r e :

in s u r a n c e .

a t

S

in

P ro b lem s
fa ce d

as

D

b e

red eem ed .

b y

N

a rea ,

to rs.

o f

A

o f

fu r th e r

u n u su a l

n a rro w e d

m e m b e rs

c o u ld

b e

ex p e cte d .
A m o n g
g ro u p s

th e

a p p ro a ch

n o ta b le

to

r e a liz a tio n
a ffo r d .

a s s o c ia tio n s

w e r e

th e ir

s tu d ie d , th e

fo r

th e ir

p r o b le m s

o f

w h a t

th e y

T h e re

w e re

n o

la b o r .

le m a tic a l

s a v in g s

p r o je c t s .

P e rs o n s

a n d

c o u ld

th e ir

a n d

fa ilu r e s

s o b e r

c o u ld

n o t

a m o n g

th ese

fo r

th e

p r o b ­

in

la r g e

a s s o c ia tio n s .

Conclusions

s e lf-h e lp

d o w n -to -e a r th

M a n y

O n

th e

stu d y ,

1.
in

b a s is

th e

a d d it io n

w h ile
th e

a ll

to
in

th e

B e fo r e

fa c ts

th e

h o ld in g

th e




fo r

th e

b y

r e a c h e d :

h o u s in g ,

b e in g

th e

m e m b e rs,

m e m b e r s h ip

a re

c o m m u n ity
a

w e re

a m o n g

n eed

p r o b le m s

s ta r tin g

d is c lo s e d

c o n c lu s io n s

in te r e s ts

co n d u ct o f th e

2.

th e

fo llo w in g

C o m m o n

a d v a n ta g e

o f

a re

a n

to g e th e r

s o lv e d

a n d

in

a fte r w a r d s .

p r o je c t ,

th e

a s s o c ia tio n

a s s o c ia tio n s

in d u s tr y ,
n o t
4.

In

s h o u ld

b e

g iv e n

r e g u la tio n s
o th e r
lo w

a n d

o r ig in a l

la n d ,
to

th e

d e v e lo p m e n t
co s t

a s

p o in t

in h e r e n t
th e

o u t

th a t
s iz e

a d v a n ce

su ch
co s t

b e

b u ild in g

s a v in g s
o f

c o n s id e r a t io n

m a tte rs

A

a s

ro a d s,

r e a s o n a b le

m o re

d o

p r o je c t.

u tilitie s ,

o f

ite m s .
m a y

in

w ith

in c r e a s e

a c q u ir in g

s tr iv e n

e x p e r ie n c e d

h o w e v e r,

n e c e s s a r ily

h a v e

c la im e d

th a n

z o n in g

o r

a n d
even

o ffs e t

b y

6

C O O P E R A T I V E

th e

co s t

tio n s
tiv e

to

5.
in

o f

im p r o v e m e n ts ;

m a y

m a k e

c a r r y

T h e re

th e

o u t

th e

ty p e s

a n d

to

b e

a n d

a s
o f

in

th e

little

T h e

to

o r

In

b u ild e r
It
is

a n y
b e

ca se,

fin a n c ia lly

h o w

th e y

h ou se
o r

n o t,

a b le

n o

in

w a s

s a v in g s

a n d

r a is e

in d iv id u a l

w a s

co m p a ra ­
o n ce

th e

a

4‘ s t e e r i n g

th e

e n te r p r is e

p la n s ,

a n d

p la n s

r e q u ir e m e n ts

ch a n g e s
th e

in

th a t

su ch

o r

h ou se

co n tr a c t

n o t

p la n s

w ith

to

so,

if

to

th e

b u ild

m e m b e rs
p e o p le

w h e n

a n d

on e

ca n

tw o
see

v is u a liz e

c o u ld

b u y in g

o r

th e n

c o u ld

fr o m

ta k e
a

r e g u la r

b u ild e r .

6.
m a y

fa c e

c in g .
o f

s p e c ia l

T h e se

le n d e r s

in

I f

o r

r e s u lt

d e a lin g
re c o rd s

o th e r

r e c o g n iz e

d iffic u ltie s

m a y

s a tis fa c to r y
tiv e s ,

s h o u ld

w ith
o f

in

fr o m

o b ta in in g
th e

th em ,

o th e r

th a t

th e y
fin a n ­

in e x p e r ie n c e
fr o m

h o u s in g

th e

u n ­

co o p e ra ­

fa c to r s .

c o o p e r a tiv e s

th e m s e lv e s

to

b e

o b ta in in g

H o w e v e r,
b e r

o f

in

fu n d s
v ie w

o f

c o o p e r a tiv e s




w ill
th e
in

g r a d u a lly
e x tr e m e ly

r e la tio n

to

d is a p p e a r .
s m a ll
o th e r

th e ir

o f

th e

a n d

S om e

in

fa c t

w ith

th e

th e

th e ir

n eed

e s ti­

lo w

a n d

r e p a ir s ,

re ­

p r a c tic a l a s s is t­
a n d

a n d

th e ir

in

th e ir

s p e c ia liz e d

h a v e

S om e

o f

a ls o

b e e n

a ro se

a ll

ra n

in to

fr o m

th e

th e

m e m b e rs

o f

so

a d v a n ce
o f

in v o lv e s

th e

w e re

m a d e

g ro u p s

M a n y

a n d

H o u s in g

g r o u p s

o f th em

in s u ffic ie n t

p la n n in g .

ta le n ts ,

b y

n o t p r a c t ic a l. O n

c o u ld

o ffic e r s

fie ld .

p ro p o s e d

th a t som e

r e v is io n .

m is t a k e s

o f

c o m p le x

o v e r

m is t a k e

to o

fo r

p r o je c t s

w e r e

o r

b e ca u se

v e s t ig a tio n

r ie n c e

m a k e

o r

co m m o n

ch a r g e s

p r o je c ts

su rv e y

little

d iffic u ltie s

e r a t iv e s '

in

s u ffic ie n t

m o r tg a g e

A

u s u a lly

p r a c tic a l

a

s h o u ld

p r o v is io n

o th e r h a n d , it a p p e a r e d
in

n u m b e r—

p r o b le m s .
o f

s tu d ie d

to

k in d

re se rv e s.

p la n n in g

t e c h n ic a l

th e ir

b e

th e ir

m o n th ly

C o o p e r a tiv e s
in

o f th e

C o r p o r a tio n

w ill

e x is te n c e .

in s u ffic ie n t

p la c e m e n ts ,

8.

o f

c o o p e r a tiv e s

p e r io d

s e ttin g

a n ce

o n e

re s o u rce s

p r o je c t

in

r e q u ir e d

a

in ­

c o o p ­

in e x p e ­

in

a

m o st

n u m b e r

o f

ca n n o t

w h ic h

b e

e x p e c te d to b e a v a ila b le a m o n g th e m e m b e r s h ip .
N u m e ro u s
s tu d y

e rr o rs

c o u ld

som e

ce n tra l

T h e

som e
h a d

th e

H S B ,

c o u ld

p r o v id e

te c h n ic a l,
ic e s .
c o u ld

It

in

o n

o b ta in ,

o p e r a t iv e s ,

co v e re d

a n d

p e r s o n n e l.

h o u s in g
a ls o
a n d

on

m a k e

b e

th e

a n d
stu d y

a

a s

o f

a s s is ta n c e
w a y s .1

c o s t-p lu s
a n d

o th e r

a v a ila b le

su ch

to
a n d
a n

It

b a s is )
s e rv ­

co n tr a c to r.

b u ild in g ,

E v e n tu a lly ,

s im ila r

a s s o c ia tio n ,

o th e r

le g a l,

b o n d

s u p e r v is o r y ,

in

o r g a n iz a t io n ,

th is

a r c h it e c t u r a l,

A c t

m a tte rs,

it.

c o u ld

m a k e

th e

b een

in a u g u r a te d

th ese

b y

(p o s s ib ly

c o u ld

o f

th e re

N a tio n a l H o u s in g

c o o p e r a tiv e

S w ed en ,

co u rse

h a d

p ro g ra m

th e

c o o p e r a tiv e

c o o p e r a tiv e s

th e

g u id a n c e .

a s s o c ia tio n s

ce n tra l
in

o f

b e n e fite d

ce n tra l

th e

o f

a s s is ta n c e

a lr e a d y

A
to

2 1 8

in

a v o id e d

in s u r a n c e

S e c tio n

o f

b e e n

so u rce

n e w

a u th o r iz e s

d is c lo s e d

h a v e

lo c a l

It
c o ­

m a n a g e ­
o r g a n iz a ­

r e li­

a b le m o r t g a g o r s , s o m e o f t h e ir p r e s e n t d iffic u lty
in

lie s

m e n t

p ro v e

b y

b e

C it y .

c o m p le te

m a k in g

m ig h t

r e p u t a t io n

H o u s in g

A ll-th e -w a y
th a t

m a ted

to

C o o p e r a tiv e s

e n jo y e d

Y o r k

a

th e m

y e a rs

w id e s p r e a d

N e w

th e

c o o p e r a tiv e

m a n y

a n y

A m a lg a m a te d

u n d er

d o

(fe w

u p

d e s e r v e d ly

d em a n d

p a r t ic u la r ly

a cce p t

d e s ir a b le ,

T h e

a s

p la n s

p la n s

th e

th a t

g e n e ra l

b lu e p r in ts ),

ju s t

in

c lo s e d .

lo o k e d

fr o m

to

v a r ia tio n s

s h o u ld

o n ce

b e

h ou ses.

h ou se

b e e n

g r o u p

m e m b e r s h ip

a ls o

b u ild e r s ,

S T A T E S

th e

p r a c tic a l

a d o p te d . S e v e r a l le a d e r s

th e

b e e n

m ig h t

s a m p le

o n

a llo w e d

h a s

o f

b u ild in g

fo r

sev era l

a

m e th o d s,

h a d

o f

m e m b e rs

d e fe a t

c o n c lu s io n

m e m b e rs

o f th e

s h o u ld

T h is

in itia l

d e c id e

p a rt

jo in .

th e

th e

p r o s p e c t iv e

a s

b e ­

U N I T E D

b u ild

7.

r e s u lt

a cce p te d

to

b een

a

te n d e n cy

fr o m

o p p o r tu n ity

co m e

o f

E

su re

g e n u in e

th e

a p a rtm e n ts, th e re

g e n e r a l p la n s h a d

H

a n d

in t e r v ie w e d

A s

th a t
o f

a s s o c ia tio n s

th e

T

d w e llin g

p r o je c t

h o w e v e r,

c o o p e r a tiv e

tru e

a s

m e m b e rs '

o f

b e

m o d ific a t io n

p a r tia lly

th e

h o u s e s ; in

to

m e th o d s.

c o n c lu s io n

c o n s id e r a b ly .

s h o u ld

to ta l

p e rso n s

p a r tic ip a tio n

co sts

g r o u p "

th e

v a r ia tio n s

g r e a t

h a d

th e

o f

v a r ia t io n

seem ed

lim ite d .

in d iv id u a l

t iv e ly

e x te n t

e x p e r ie n c e ,

th e

th e

p u rp o s e

p la n n e d .

u n d e r s ta n d in g ,

I N

th e

p r o je c ts

s e le c tio n

s h o u ld

a n d

d e m o c r a t ic

co m e

so

p la n n in g

h o u s in g

m e a su re

co o p e ra ­

p r o je c t

o f

th e

r e g u la ­

th e

d e fin ite

to

e x c e p tio n

in

th e ir

th e

a s

a

z o n in g

fo r

fe a tu r e s .

h o u s in g

lie v e r s

h a d

in

ty p e

b e

s e le c tio n

W ith o u t
in

th e

b e g in n in g ,

a n d

im p o s s ib le

s h o u ld

p a r tic ip a tio n
in

it

H O U S I N G

n u m ­
ty p e s

1 The National Association of Housing Cooperatives was formed
in Washington, D. C., in 1950. Only time will tell whether this
association can develop along the lines suggested above. A regional
association was recently formed in New York City and has already
given sponsorship to a new project.

I N T R O D U C T I O N

t io n

m ig h t

a lth o u g h

it

co u n try
b e

u n d e rta k e

m ig h t

th e

d on e

ev e n

s iz e

b e

q u e s tio n e d

o f th e

e ffic ie n tly

c o n s tr u c tio n ,

U n ite d

on

w h e th e r

S ta te s

m o re

th a n

in

th is
a

a

c o u ld

r e g io n a l

b a s is .
id e a

p o se d

o f

o f

o n e

o r

m o re

te c h n ic ia n s

b e e n

z a tio n

a d v a n ce d .

to

o f

k n o w n

9.

th e

h o u s in g

le a s t

n e v e r

o f

th u s

ca se

o n e

(а )

h a s

fu n d s

I n it ia l

se a rch

fa r

fu n c t io n e d

fo r

(б )

th e

o r

in

in

w a te r

sy ste m

d)

M a n y

re s o rt

to

w ith

th e

o fte n
to o

u t ilitie s .

T h is

m e th o d ,

b e

in s ta lle d .

a t th is
a id

b e

th e

w e re

h o w e v e r,

a

lo n g

b y

is

fin d

fin a n c in g
th en
o f

n e x t
a n y

o f

e)

la r g e r -s c a le
fo r

o p e r a tio n ,

a n y

s u b s t a n t ia l

L o n g -te r m
w e re

fin a n c in g .
e x p e r ie n c e d

d iffic u lt t o

se cu re

a

V a r y in g
a s

to

th is .

lo n g -te r m

d e g re e s
It

w a s

m o rtg a g e




m o rtg a g e

b e ­

co v e ra g e

le n d in g

p r a c t ic a lly
so u rce s

la b o r

lo a n s ,

(3 )

co n n e cte d

so u rce

m ig h t

b e

(1 )

d e p o s ite d

o r g a n iz a t io n ,

in

m o v e m e n t,

a g e n ­

o n ly

u n io n s ,

r e g io n a l

th o se

th e

(4 )

(2 )

S ta te s

lo a n s fr o m

w ith

o r

fe w

S om e

a s s o c ia tio n s
m o n e y

b y

im p r o v in g

ca ses

in

w e re

w h ic h

p e r­

in s u r ­

co n su m e rs '

g o v e rn m e n ta l

T h e

in

a n d

p r ic e

a n

th e

in

o f

v is ite d

T h e

a ll-t h e -w a y
co sts

b y

th e

m e m b e rs '

in g

e c o n o m ie s

h om e

o w n e r,

m in im u m .
th a t

ite m .

h e lp

in

ta in e d

fo r

T h e

c o m m u n ity

som e

to

as

c o o p e r a tiv e

sa m e
in

w e re

o f

c o u ld

o f

k e p t

fo r

c a ll

a

co s t
u p o n

a n d

a d v a n ta g e s

c o -v e n tu r e s

th e
to

th e

p a r t ie s

in

a n d

o p e ra t­

p r id e

a c c o m p lis h m e n t s

in
a ll

lo a n -

a g e n cy

w e re

o w n e d

in

sp a ce.

re d u ce d

re d u ce d

w o r k

T h e

sp a ce

v ir tu e

c o o p e r a tiv e s

a d ­

N e a r ly

s to ra g e

c o lle c tio n

co sts

a n

s a v in g

la n d

a n d

in s u r a n c e

fa c ilit ie s

co o p e ra ­

h a v e

th e

w e ll-k n o w n

e x te n t

n e ig h b o r ­

o f

ra th e r th a n

a m p le

c lo s e t

v o lu n te e r

fa v o r a b ly

th e

to

c o o p e r a tiv e s

e m e r g e n c ie s .
to

h a d

th e

lo ts

s u b s ta n tia l

s e lf-h e lp .

m a in te n a n c e

B la n k e t

in

a s

p a y m e n t s .3 B y
a n d

n e a rb y

a

q u a lity

b y

a c tin g

m o st

b u ilt h o u s e s th a t w e r e

d o u b t

o f

In

h u n d re d s

in

b u ilt

u n u su a l a m o u n t

s e r v ic e

o f

n o

la n d

it.

b e e n

a p p e a re d

a n d

ra w

o f

th ose

th e

fo r m e r

th o se

d w e llin g s

w ith

th e ir

o f

co m p a re d

p r iv a te ly

w a s

sa v ed

tra ct

p r ic e s

h a d

o f

d e s ig n

T h e re

ca se

on

c e r ta in

c r e d it.

s u b d iv id in g

th e re

b a s is

th e ir

a

a p a rtm e n ts

th e

e x a m in e d ,

to

h a v e

u n d o u b te d ly

d a ta

q u a lit y

s tu d ie d , t h o u g h

n u m b e r,

t a k in g

a n d

a v a ila b le ,

s a v in g .

p r ic e .

in

a c c o m p lis h m e n t s

m e m b e rs

T h e

2
But a producers* cooperative to b ild houses has been in exist­
u ,
ence for several years in Seattle and has completed several groups
of dwellings.

m e m b e rs,

T h e h o u s in g c o o p e r a tiv e s

m e m b e rs

d iffic u lty

n o t to o

c o m p a n ie s

10.

to

g ro u p .

c o n s id e r a b ly

th e

u n io n s

r e a l-e s ta te

c o m p a r a tiv e ly

th e

s a v in g s

in s u r ­

co o p e ra ­

lo a n s .

lo n g ­

a

o r

c r e d it

c o o p e r a tiv e

th e

o r

a n d

p o s s ib le

ce n tra l

fr o m

v a n ta g e

r e s u lts .
(

som e

p r o b ­

on e

su ch
th e

o r

b y

in s u r a n c e

o f
o f

c o n v e n tio n a l

fr o m

b u ilt a n d

m o r tg a g in g

th e

O th e r

a m o u n ts

t iv e ly

h a d

L a ck

s a c r ific e

p e rce n t

th e

O n

c o n s tr u c tio n
S om e

F H A

o p e r a tio n

m a jo r

h ood .

a p p e a re d ,

o b ta in e d

to

o f

o r

th e y

th e

p a y m e n ts

a ss o ­

fe w

d iffic u lt

fo r fe its

p e r io d

o f

co s t

b eca u se

d iffic u lty .

a n d

ca re

s e w e r

A

T h is

th a t

o f

m e m ­

d e v e lo p m e n t.

m o st

a b le

g r e a t

m a d e

p o in t

fo r

fin a n c in g .

c o n s tr u c tio n

b e

r e q u ir e s

th e

S u p p le m e n t a r y

to

th e m s e lv e s

th e

ta k e
m u ch

in d e p e n d e n t

e x p e d ie n t

fo r

a n d

in

fr o m

a n

to

e a s ily

c o u ld

ca n

a s s o c ia tio n s

h ou ses

d iffic u lty

in

s ta lle d

th ese

th a t

little

a n

o b ta in e d .

d e fin ite

fo u n d .

n o t

fin a n c ia l

ca ses,

o n ly

a n d

o n ce

o b ta in e d .

6 0 -8 0

th e

m it t in g

th e

la n d ,

if

h a s

g e t

lo a n s

o f

if

C o n s tr u c tio n

m o n e y

is

(in c lu d in g

p u b lic ity ,

la n d . M o n e y

lo a n s

n eed ed

w e re

m a n y

le m .

b e

a n d

o f

p u t t in g

a re

n o t

it

e x p en ses

su rv e y e d .

fu n d s

c o u ld

th e y

w a s
e ith e r

o n ly

fu n d s .

to

th a t

ca ses,

d o w n

s m a ll

o f la n d . T h is , h o w e v e r , s e e m e d

p r iv a te

c ia tio n s

in c o r p o r a tio n

w h e n

d e v e lo p m e n t

in v o lv e d

in c lu d e

in v e s tig a tio n

D e v e lo p m e n t

la n d

T h e se

c o m p a r a tiv e ly

c o o p e r a tiv e s

fe w

m o st

a re

In

r e c o g n iz e

s ta t io n e r y ,

a n d

P u rch a se

(c )

c ie s
o f

7

Y

p re se n t,

co m e

p la n

R

m e th o d

a n ce

a n d

o p t io n

p re se n t

te rm

t iv e

II.

W a r

A

m e a n t

A t

w a s

M

c o m m it m e n t
a n ce

c o u ld

s e r v ic e s

W o r ld

s h o u ld

e x p e n ses.

fe e s ),

fo r

m o n e y

in

M

in

h a s

fo r —

o r g a n iz a t io n

a t t o r n e y 's

(

lo a n

o r g a n i­

fie ld

su ch

a c t u a lly

o u tb re a k

C o o p e r a tiv e s

b e rs

U

lo a n s

w ill n e e d

to

S

ca u se

fr u it io n .2

o f

D

co m ­

c o o p e r a tiv e s

p r o fe s s io n a l

b u t

th e

in
A t

p r o v id e

in c o r p o r a te d ,
b e ca u se
n o

N

h ig h e r

T h e

a ls o

A

fo r
o b ­

w h e re

com m o n .
w e re

n o ­

3 This was true of all these associations, mutuals and apartments,
as well as those that built detached houses.

8

ta b le

C O O P E R A T I V E

p a r tic u la r ly

a lm o s t

e x p e r ie n c e
re p re s e n t
th a t

in
a

h o u s in g ;

h a s

y e t

in

m o s t

w h a t

th e y

to

g r e a te r

b e

d o n e
th a n




(2 )

o f

th e

le a d e r s

w ith

th ese

little

n o

te c h n iq u e

s u c c e s s fu l

th e

w e re
o r

I N

T

c o u n tr y ;

w a s

a c h ie v e d

th o se

fa c e d

in
b y

H

E

U N I T E D

b u ild e r s
c ia lly

fo r

le m s

to

o n

a n y

to

(3 )

n a t io n a lly .

o f

r e g u la r

m a d e

w h o m

F H A

c o o p e r a tiv e s

s o lv e

a n d
s p ite

th e

S T A T E S

in s u r a n c e

w a s

e sp e­

m a n y

p r o b ­

d e s ig n e d .

H o u s in g

o r g a n iz a t io n s

little -k n o w n

p ro v e d

p a rts

h a v e

(1 )

a m a te u rs

r e la tiv e ly

s c a le

o d d s

b e ca u se

in v a r ia b ly

H O U S I N G

h o u s in g

a

t ia litie s .

b e fo r e

s it u a t io n

H o w e v e r,

c r e d ita b le

s till

th is

it

s ta rt

ca n
is

h a v e

m e th o d

o f

b e co m e
fe lt

a n d

th a t

h a v e

a p p ro a ch
s ig n ific a n t
th e y

g o o d

h a v e
p o te n ­

Chapter II.— Characteristics of Housing Associations

In
t io n

m o st
o f

p e ra te

ca ses,

th e

th e

m o tiv a tio n

h o u s in g

p o s tw a r

e s p e c ia lly

fo r

a s s o c ia tio n

n eed

fo r

b y

r e tu r n in g

th e

m u tu a ls ,

th e

w a s

h o u s in g ,

e x is te n c e

d es­

n eed

a

v e te ra n s

fo r m a ­

th e

fe lt

w ith

fo r

w a s

s h e lte r
som e

th e

ca ses,

a d v e r tis e d

a

to

v e r y

th e

s a le

h o w e v e r,

r e t a in

y e a rs,
o f

th e

o fte n

a c tin g

p r o je c t

a s

w h ile

a g e n t
it

w a s

ow n e d .

n ew

b y

F

igure




in

m o d e r a te ly

h o u s in g

w h e n
th e

a c tiv a tin g

r e s id e n ts

to w a rd

o n ly

th e

c h ie f

o f

t ig h t

m o v e

sta rte d
fo r

th e

d e s ir e

p r o je c ts
in

c o o p e r a tiv e

fe w ,

som e

Geographic Distribution

A m o n g

h o u s in g

fo r

o p e r a t io n

fe d e r a lly

fa m ilie s .

fa c to r

th e

th e

p r ic e d

m a rk e t.

fo r m a tio n

o f

p r o je c t

G o v e rn m e n t;

m u tu a ls

h a d

B y

b een

J u ly

o p e r a t io n

w a r

1 9 5 0
in

c o n c e n t r a t io n

In

N o rth

th e

w e re

ra th e r

w e re

q u ite

in

a

C en tra l

in

m en t

w a s

C en tra l

w a s

h o u s in g

n e a r ly
in

th e

r e g io n s

e v e n ly
la r g e ly

S ta te s,

S ta te .

in

in

th e

o f

G re a te r

1.— Geographic distribution of housing cooperatives covered in study.

9

T h e

th e

fo u r -fifth s

w e r e

in

g re a te s t

A tla n tic

1 ).

sca tte re d ,

w e re

T h e

M id d le

(ta b le

fo u n d

a n d

a s s o c ia tio n s

c o o p e r a tiv e s

e v e ry

a n d

m u tu a ls

c o -v e n tu r e s
E a s t

N o rth

th e

a p a rt­

N e w

Y o r k .

1 0

T

a

C O O P E R A T I V E

H O U S I N G

I N

b
l— Ae. ctive cooperative housing associations and dissolved
1
associations, reported by typ e and location, J u ly 3 1 , 1 9 5 0

T H E

U N I T E D

194 9 ,

in

S T A T E S

p a y m e n ts

on

p r in c ip a l,

in te r e s t,

a n d

m a in te n a n c e .

D
issolved
a cia n
sso tio s
w —
ith

A
ctive a cia n 1
sso tio s
N m er re o g
u b p rtin
G o ra h
e g p ic
d isio
iv n

T
otal
ko n
nw

N E glan _______
ew n d
M d A tic______
id le tlan
E N
ast orth C tral___
en
W N
est orth C tral---en
S th A
ou tlantic______
E S th C tral. _
ast ou en
W S u C tral
est o th en
M tain__________
oun
P cific____________
a
Pe R
u rto ico________

4
55
3
2

8

3

36
4
3

2

1
1
2
7
8
1
3
2

1

15 13
5
3

6

7

6
8
1
2
3
2
1
3

2

3
3

45

3
4
1
8

1
1

3

(ta b le

3

5
4
9

5

1
8

2
4

a p p r o x im a te ly
h o u s in g

1 9 2 0 ,s
to

s u rv e y , n e a r ly
(ta b le
4 ,8 0 0

2 ).

1 2 ,0 0 0

m illio n

a ll

w e re

A p a r tm e n t

m e m b e rs.

n e a r ly

o f

w a s

T h e

th e

a

A n
b y

th e

th a t

ly

e

th is

h a d

a lm o s t

a cco u n te d
o f

th e

fo r

o v e r

th e

th is

H o u s in g
w a s

th e

is

o f

h a s

a

th e

32
23

ch a se

b y

in

ca ses

th e

th e

to ta l

o f

m u tu a ls
w e re

b u ilt u n d e r

th e

r e s id e n ts
th a t

th e

s im ila r
in

h o u s in g
a

s tr ic t­

B u re a u

g r o u p —

a n d

o f

F in ­

B r o o k ly n ,

e re cte d

tw o

a p a rtm e n ts.

r e p o r tin g
in

a s

th e

to

y e a r

p o s tw a r

in c lu d e s th e 8 F e d e r a l
L a n h a m

o f

on

th e

fo r m e d

th e

t im e

g r o u p

30

fr o m

in te r e s t

“ A lk u ,”

1 91 6

II
b y

a s s o c ia tio n

e a r lie s t

T h is

a re

fr o m

w a s

o ld e s t

re co rd .

p e r io d . T h e m u tu a l g r o u p

a t

o r

p re s e n t

w h ic h

in

W a r

d a tin g

I

s it u a t io n

A s s o c ia tio n ,

w ith

e a rm a rk ed ,

W a r

co u n try , fo r m e d

fo r m e d

fo r m a tio n ,

p r o je c t s

o f th em

T h e

b a s is ,

S ta tis tic s

Y .—

fo r

su rv e y

in

c o o p e r a tiv e

$4

a s s o c ia tio n s

h o u s in g

h o u s in g

W o r ld

a s s o c ia tio n s

W o r ld

h o u s in g .

in

A m o n g
o f

a fte r

r e s p o n s ib le

co v e re d

1 95 0

in

m u tu a l g ro u p

in c o m e

th ese

— N. um ber,

l2

b

in

c o o p e r a tiv e s

rest.

in

r e p o r tin g

c o -v e n tu r e s

r e c e iv e d

T

m e m b e rs

ju s t

w h e n

b u ild in g s

2 4 ,0 0 0

a fte r

a p a rtm e n t

o r

N .

a s s o c ia tio n s

c o o p e r a tiv e

sta rte d

o ld e s t g r o u p , m a n y

L a b o r

Membership and Income
th e

T h e

o r g a n iz a t io n

49

e x is tin g

w e r e

d u r in g

n is h

O f

3 ).

c o o p e r a tiv e

1Includes associations inpreconstruction stage.

in

th e

fa r th e

1
6
8
1

1
2
3
2

o f

o r g a n iz a t io n s

P j­
ro
e
ct
nt
o
co ­
m
p te
le d

j­
C Pct
o- ro
v ­ co ­
en em
p
art­ M
re le d
Hu
o ses Aen tuu­ tu s p te
m ts a
ls

3
50
30
7

1
3
4
1
3
9
1
4
3

U ited S
n
tates_
_

M o st

A e-wa c o e ■ tiv s
ll-th : y o p r a e
T
otal

Age o f Associations

A c t

th a t w e r e

c o n s tr u c tio n ,
a fte r

la te r

th e

w a r.

fo r m e d

th e

fo r

p u r­

In

tw o

m u tu a l

m em bership, and business o f cooperative housing associations, by status and type

T
otal
ko n
nw
a cia
sso ­
tio s
n

S tu a d ty e of a cia n
ta s n p
sso tio

M b ip 1950
em ersh ,

T a cia n
otal sso tio s
re o g
p rtin
A cia
sso ­
N b
u
n
N m er of pm er retio s g
u b
ro cts p rtin
je
o

T
otal
m b rs
em e

B sin ss d n , 1 49 1
u e oe 9
A era e
v g
m b
em er­
sh
ip

A cia
sso ­
tio s
n
re o g
p rtin

A ou t
m n

A
ctive
A e-w co p ra e
ll-th ay o e tiv s:
A cia n b ild g h u
sso tio s u in o ses:
C n ctio sta e rea ed
o stru n g
ch ____ ____
In p co stru n stage_____ _
re n ctio
A a en a cia n
p rtm t sso tio s:
... _
_
B ild g co p
u in s m letedo in co stru n
r
n ctio ___
In p c n ctio stage_____ ___________
re o stru n
_
__ _
M tu
u als:
W p rc a con ct_____ _ ___
ith u h se tra
_
_ ______
W ou p rc a contract,, ________ __ _
ith t u h se
_
C -ven res:
o tu
B ild g h u s, co stru n sta e re ch d
u in o se n ctio
g a e:
W com u ity fa
ith
mn
cilitie
s____ ____
.
__
H u c n cte b association
o ses o stru d y
..
____
..
H u n co stru d b a cia n _ .. ...
o ses ot n cte y sso tio
l
W ou com u ity fa
ith t
mn
cilities________ ..
H u co stru d b association...
o ses n cte y
|
J
H u n co stru d b a c tio
o ses ot n cte y sso ia n
In p co stru n sta e o ly _____
re n ctio
g n
_ ..
T
otal...... ..... ................ ........

5

5

20
0
6
0

40
6
0

3

$47,20£

4
4

3
9

50

38

2

4,605
11
9

11
2

3
4

1

1,533,711
18,450

2
6

2
5

2
5

2
5

8

8,799
3,103

352
388

1
3

1,932,105

3
9

1
2
1
3

1
3
1
4

1
3

1
2

1,422
6
85

19
1
5
3

4
7

239,887
149,669

5
3
1
6

5
3
1
6

5
3
1
6

270
4
9
1,165

5
4
1
6
7
3

2

114,330

2
2

4

130,932

15
5

.

5

13
3

146

128

20,549

11
6

6
8

4,166,289

8

.

6
1

8

8

6

8
28

16
3

/
3 l
3

7
1
7

7
1
7

7
1
7

21,682
21,194

240
70

2

12,515

4
1

32

32

30

3,704

13
2

2

12,515

6

1
1

1
6

8

1

6

8

1

96

D
issolved
C -ven res, p ject com
o tu
ro
pleted______
C -ven res, p je n co p :
o tu
ro ct ot m leted
S m co stru nacco p ed
o e n ctio
m lish ____
N c n ctio a co p e
o o stru n c m lish d

...

. _
_

\
/

T
otal___________ ______ _______________________
A m o u n t received in p a y m e n t s on principal, interest, a n d maintenance.




2A t end of association’ existence.
s

C H A R A C T E R IS T IC S

a s s o c ia tio n

w a s

G o v e rn m e n t
b o th

o f

c ia l

th e se ,

s u p p o rt

tiv e .
th e

S ix

it

in

b e

S ev en

in

g a v e

th e

c a r r ie d

o f

o r

th e

p r o je c ts

a lm o s t

a s

to

en d
th e

a d v ic e

a ll

in

o f

th e ir

N e w

lim it e d -d iv id e n d
b eca u se

o f

la w y e r .

Y o r k ,

th e

u n d e r it, f o r

u n d e r

e v e n tu a l

a

le a s e

p u rch a se

a g re e m e n t

b y

th e

th a t

ta x

fir s t 2 0

a s s o c ia tio n s ,
u n d e r

S ta te ,

e x e m p tio n

y e a rs

th e

p r im a r ily
a v a ila b le

o f o p e r a t io n .

o f

T a b l e 4 . — L aw s under which housing associations incorporated *

th e

N u m b e r u n d e r s p e c ifie d l a w

p r o v id in g

t io n s
rep ort­

fo r

a fte r

1

A s s o cia ­

G o v e rn ­

a s s o c ia tio n ,

o f

p a r t ia l

th e

S ev en

in c o r p o r a te d

la w

S t a tu s a n d t y p e o f a s s o c ia t io n

m e n t

11

A S S O C IA T IO N S

soon

p u rch a se

th e
fo r

fin a n ­

p r io r

th o u g h

u n til

th e

In

co o p e ra ­

e ith e r

o r

ev en

o u t

o p e ra te d

m o ra l

sta rte d

p r o je c t

p r o je c t.

H O U S IN G

th e

in d u c in g

h o u s in g

fo r m a tio n

w e re

c o m p le te d ,

n o t

w a r.

th e

o f

th e

u n io n s

m u tu a ls

w a s

c o u ld

b u ild

C IO

b u ild in g

a s

in s tr u m e n ta l

to

O F

L im ite d

corp o­

dend

N on ­

R e g u la r

d iv i­

C oop­
e r a tiv e

in g

r a t io n

p r o fit

th e

w a r.

O th er

A c tiv e

T h e re
n in g

w e re

h ou ses

h a d

n o t

29

a n d

y e t

6

2

o f

as

D a ta

a s s o c ia tio n s

p la n n in g

re a ch e d

a lth o u g h
194 6 .

a c t iv e

th e m
on

th e

h a d

fiv e

(2 3

p la n ­

a p a rtm e n ts )

c o n s tr u c tio n

b een

w e re

sta rte d
n ot

A U -th e -w a y c o o p e r a t iv e s :
A s s o c ia t io n s b u ild in g h o u s e s .

th a t

a s

e a r ly

*
2

A p a r t m e n t a s s o c i a t i o n s ----------M u t u a l s . . ................................................

sta g e ,

C o -v e n tu r e s b u ild in g h o u s e s , c o n ­
28

48

s t r u c t i o n s t a g e r e a c h e d ----------------

re p o rte d .

T o t a l ______________________________

T a b l e 3 . — P eriod in which housing associations were established 1

30

57

28

D is s o lv e d
C o -v e n t u r e s , p r o je c t c o m p le t e d . __
C o -v e n tu r e s ,

p r o je c t

not

com ­

p le te d :
S o m e c o n s t r u c t i o n -----------------------N o c o n s t r u c t i o n ___________________
30

T o t a l ________________________________

* F iv e d id n o t r e p o r t o n th is s u b je c t .

1

I n c l u d e s a s s o c i a t i o n s in p r e c o n s t r u c t i o n

sta g e.

* I n c lu d e s 1 a s s o c ia tio n o p e r a tin g u n d e r a tr u s t a g r e e m e n t a n d

1

u n d e r th e r e d e v e lo p ­

m e n t la w .
* I n c lu d e s 5 n o t in c o r p o r a t e d a n d 1 o p e r a t in g u n d e r a t r u s t a g r e e m e n t .

4

N o t in c o r p o r a te d .

Sponsorship o f Associations
C o m p a r a t iv e ly
h a d

b een

fe w

sta rte d

a s s o c ia tio n s

u n d e r

fo r m a l

o f

a n y

ty p e

s p o n s o r s h ip .

T h e la r g e s t in c id e n c e o f s p o n s o r s h ip w a s a m o n g
th e

1
2

a s s o c ia tio n s

h a d

I n c lu d e s a s s o c ia t io n s in p r e c o n s t r u c t i o n s t a g e .

b een

b u ild in g

sp o n so re d

h ou ses.

b y

lo c a l

O f

th ese,

p o sts

o f

5

th e

F iv e d id n o t r e p o r t d a te .

A m e r ic a n

Law o f Incorporation
O f
as

th e

a s s o c ia tio n s

g e n u in e

est

o r

n u m b e r

n o n p r o fit
th e

re a so n s

a n d

lo w

e tc.

T e n

th e

T h e

h a d

S ta te

w e re

th e ir

g r o u p

fo r m e d

T w e lv e

a s

la w ,

so

o f

o f

u s u a lly

th e

o p e r a t io n
o ffe r e d ,
u n d e r

e ith e r

c o o p e r a tiv e

la w

b e ­
o r

re co m m e n d e d .

a p a rtm e n t
th e

co o p e ra to rs




la r g ­

A m o n g

in c o r p o r a te d

S ta te

u n d e r

b e ca m e

e ith e r

u n d er
4 ).

a d v a n ta g e s

h a d

a tto rn e y

la r g e s t
w a s

ta x

c o r p o r a tio n
n o

(ta b le

s im p lic ity

e n ta ile d ,

w a s

h ou ses

c o o p e r a tiv e s , th e

in c o r p o r a te d

th e ir

a s s o c ia tio n s

la w , b e c a u s e
la w .

o f

c ite d

th e re

b e ca u se

(1 5 )

(3 0 )

co s t

r e g u la r

ca u se

b u ild in g

c o -v e n tu r e

a ct

S e r v ic e

S ta te

th e y

r e g u la r

c o o p e r a tiv e

c o r p o r a tio n s

e ra n s

a

th is
on

lo c a l

a

“ p a re n t”

C IO

a n d

v e te ra n s '

b e fo r e
la te r

A u to
o f

c ity ,

A F L

th e

p a r is h ,

A n o th e r

s p o n s o r s h ip

sta rte d

fr o m

m e m b e rs

a n d

1

V e t­

U n ite d

C a th o lic

c o o p e r a tiv e .

g e ttin g

a n d

A m e r ic a n

p ost,
a

fo rm a l

u n io n

F r ie n d s
(C o m m u ­

W o r k e r s ),

th e

A m v e t

th e

n o

in

u n io n s

th e

h a d
lo c a l

sev era l

g ro u p s.

o f

th e

1 92 5

a p a rtm e n t

h a d

p r o je c ts ,

tr a d e -u n io n s .
C lo t h in g

a n

A m e r ic a n

C IO

h o u s in g

w ith

a s s is ta n c e

th e

b y

a n d

C o u n c il o f

c o o p e r a tiv e
h a d

b y
2

ch a p te r

C o m m itte e ,

V e te ra n s
a n d

2

W o r k e r s

b y

N o n e

a s s o c ia tio n s

p re fe r r e d

n ic a tio n s
ea ch

L e g io n ,

C o m m itte e ,

h a d

a

sev era l

T h u s,

W o rk e rs

o f

in

c o o p e r a tiv e s
sp o n so r.

th e

A m e r ic a

th e

s p o n so re d

w e re

1 9 2 7

fo r m e d

A m o n g

b y

A m a lg a m a te d

(C IO )

a cted

as

12

C O O P E R A T IV E

g u a r a n to r
13

fo r

p r o je c ts

u n io n

a

s p o n so rs

B ro th e rh o o d
(jo in t ly
lo c a ls

o f

O n e

th e

o r g a n iz a t io n s

O n ly
so r.

o f

o n e

a

o f

th e

w e r e

re c e n t
th e

p r o je c t

to o k

th e

le a d

in

th e

a n d

e a r ly

fin a n c ia l

C IO

u n io n s —

a n d

a

U n io n

lo c a l

o f

(C IO )

in

a n o th e r

on e

o f

th e

C IO

a

an d

a fte r

o f

a ll-t h e -w a y
th e

p o st

in

fr o m
in

fo r ­

A m o n g

tw o

la n d . F iv e
to

d e s ig n e d
fo r
in g ,

th e

s ite

p la n

c o n s tr u c tio n
b u ilt

th e

m e m b e rs.
ch a se d

b u t

o f

S h ip b u ild e r s

e ra to rs ,

o f

in s id e

2

th e

g a s

a s s o c ia tio n s

m o v a b le

ra n g e s,

th em

e t c .),

h a d

e q u ip m e n t
b u t

tw o

h a d

m o st
fo r

n o t

th e
in

p a rt.

p e rm a ­

re p o rt

c o o p e r a tiv e

o f

r e p o r tin g

d ir e c tly
5

th e

on

lo o k e d

m a in te n a n c e

a n d

a p a r tm e n t a s s o c ia tio n s

a n y

h a d

3 3

th e

o f

o f th e

b o u g h t

b u ild in g
th e

m a te r i­

in s id e

c o -v e n tu r e s ,

s it e

a n d

u n d er

a

e q u ip ­

title

p u r­

to

p u rch a se d

th e

T h e

(r e fr ig ­

p r o je c t

b o u g h t

h ou ses

a n d

v e n tu re s.

g o n e

A ll

8

o f

th a t

o u t

h a d

o f

p la n s .
o f

a n d

th e

15

o f

m a te r ia ls .

fo r

som e

c o -v e n tu r e s

a n d

d e s ig n

e q u ip m e n t

r e s p o n s ib le

b u ilt b y

a s s o c ia tio n s

th e

h ou se

b u ild in g

in s id e

w e re

th e

th e

w e n t on

u t ilit ie s ,

fo r

co n tra ct,

c o n s tr u c tio n

th e

b o u g h t

c o n s tr u c tio n

o w n

fa c ilit ie s . A ll o f th e

th e

a n d

fo r

m a ste r

F o u r te e n
o r

a rra n g e d

la y -o u t

th e ir

ch a se

in s ta ll th e

a ls o

a rra n g e d

b o u g h t

a ll

a t th a t p o in t, b u t 2 8

th ese

s e lv e s .

fin a n c ­
to

th e

d id

th e

d e­

th e m ;

a rra n g e m e n ts
4

w h ic h

la n d ,

co n stru cte d

fo r

o th e r

ite m s

c o m m u n ity

S ix te e n

ro a d s,

a rra n g e d

p e rm a n e n t
le a s e d

th ese

h ou ses

a n d

b u ild in g s ,

a n d
a n d

th ese

fo r

u t ilit ie s

a n d

lo a n s

h ou ses,

N o n e

th e

in

b u ild in g s

ca ses

sto p p e d

p re p a re

a ll

ca se

o th e r.

p u t

fr o m

b o u g h t

m en t.

th e

lo c a l

on e

th e
th e

a ll

H o w e v e r,

E ig h t e e n

c o o p e r a tiv e s

la n d ,

o f th e

a ls .

sp o n ­

m a n u ­

stru ctu re s.

h a d

a

th e

e re cte d

1 9 2 0 ’s,

m a jo r
th e

b o u g h t

h ou ses

T h e

In

th e

N o n e

Stages at Which Cooperation Was Used
b o u g h t

m a d e

p o in t.

r e p a ir

th e

th e

15

a n d

b o u g h t

o f

h a d

s u p p o rt

M a r in e

h a d

fa m ilie s .

a s s o c ia tio n ’s

C o u n c il

30

fr o m

a s s o c ia tio n s

o b ta in e d ,

b u ild in g s ,

fin a n c in g ;

th is

b y

fo r

th e

d ir e c tly

5 ).

w a s

d eca d e

n en t

e a r ly

sp o n so re d

m a te r ia ls

a p a rtm e n t

F o r ty -o n e

co ­

b y

a s s o c ia tio n s ,

m o ra l

th e

lo c a l

A llia n c e . V a r io u s

th e

o r

th e

a

A m v e ts

c ity

th e

b y

m u tu a ls

in s ta n c e ,

r e c e iv e d

o th e r

c o lo r e d

th a t

A m o n g

a n d

r e s p o n s ib le

fo r

45

s ig n e d

w a s

In

m a tio n .

O f

S TA TE S

(ta b le

in fo r m a tio n

(A F L )
a n d

th ir d —

p r o je c t

b u ild in g

th e

N a tio n a l W o r k e r s

U N IT E D

fa ctu re rs

in d u s tr y )

th e

o r g a n iz a t io n s —

fo r m a tio n

th e

ou t

O th er

M e a tcu tte rs

in

a s s o c ia tio n ,
A

T H E

I n te r n a tio n a l

W o rk e rs

sp o n so re d

o r g a n iz a t io n .

J e w is h

N e g r o

o f th e

c a r r ie d
1 95 0 .

IN

(A F L ).

w a s

sto re

a p a rtm e n t

a n d

A m a lg a m a te d

p r o je c t

ch u rch

lo c a ls

e m p lo y e r s

th a t

y e a r

E le c tr ic a l

W o rk m e n

o p e r a t iv e

th e

th a t

w e r e

o f

w ith

B u tch e r

c o o p e r a tiv e

b e tw e e n

H O U S IN G

th e m ­

th e

p u r­

c o m m u n ity

g a v e

fe e -s im p le

th em .
h a d

c o m p le te d

b u s in e s s

b o u g h t

a n d

w e re

th e ir
a ll

im p r o v e d

c o ­

la n d ,

T a b l e 5. — Extent o f cooperation in housing associations
N u m b e r o f a s s o c ia t io n s w it h c o o p le r a tio n a t s p e c ifie d s t a g e

A c t iv e a s s o c ia t io n s
S t a g e a t w h ic h

c o o p e r a t io n w a s u s e d

D is s o lv e d a s s o c ia tio n s

T o ta l
A ll-th e -w a y a s s o c ia tio n s
C o -v e n tu r e

H ou ses

a s s o c ia ­

A p a rt­

P r o je c t n o t c o m p le te d
P r o je c t
com ­
p le te d

N o con ­
s t r u c t io n

S i t e s e l e c t i o n _____________________________ __________________ _________________

8
6

4

15

O p t i o n o n l a n d _________________________

80

4

15

33

76

4

15

33

67

4

13

28

63

4

15

26

8
8
8
8
6

15

4

3

18

P u r c h a s e o f la n d

_______________________ ________

________________ _______

__

S ite p r e p a r a t io n a n d in s t a lla t io n o f u t ilit ie s , _
D e s i g n o f b u i l d i n g s a n d s i t e . ...................................... ...
P u r c h a s e o f b u i l d i n g m a t e r i a l s . ..............................
C o n s tr u c tio n

....................

25

_

o f d w e l l i n g s __________________ ________.

2

45

4

C o n s t r u c t i o n f i n a n c i n g - . ______

43

4

15

P e r m a n e n t f i n a n c i n g . .............................

75

4

41

P u r c h a s e o f i n s i d e e q u i p m e n t ________________

30

2

tio n s

Som e con ­
s tr u c tio n

M u t u a ls

m en ts

P u r c h a s e o f G o v e r n m e n t h o u s i n g ______________

_
30

87

P u r c h a s e o r c o n s t r u c t io n o f c o m m u n it y fa c ilitie s

15

N o t in c lu d in g
N o t in c lu d in g

10
8

in w h ic h G o v e r n m e n t a g e n c y t o o k m o r t g a g e .

w h ic h h a d n o t y e t o b t a in e d a p u r c h a s e c o n t r a c t .




5

25

P u r c h a s e o f o t h e r e x is tin g h o u s in g o r s t r u c t u r e s .
M a i n t e n a n c e a n d r e p a i r s _________ ____________ __________________

1
2

15

3

33

2

33

C o m m u n it y fa c ilitie s o n ly ; m e m b e r s m a in ta in

7

7

6

6

4

5

4

16

4

4

30
45

13
9

4

25

32
1

17

7

11

13
*9

7

7
14

th e d w e llin g s t h e y o c c u p y .

4

5
1
l

1
1

C H A R A C T E R IS T IC S

a n d

h a d

in s ta lle d

u tilitie s .

S ix

a n d

a n d

a rra n g e d

b u ild in g s
s tr u c tio n

th e

b o u g h t

A m o n g
t io n s

fa r

th e

b u t

a s

th e y

a

b e e n

b u ilt

o f

b o th

e q u ip m e n t

th e

fo r

a s s o c ia tio n s

ta in e d ,

a ll

O f

re a ch e d

v a r io u s
13

th e ir

a s s o c ia tio n s
c h o ic e ,

ch a se,

a n d

fu n d s

fo r

p la n n e d
fo r

th e

2

w e n t

th ese

d e v e lo p in g

th e

c o n s tr u c tio n
b u t

ev en

m a te r ia ls

lo a n

c o u ld

S ix

n o

la n d
its

to

o f

p u r­

o b ta in

a s s o c ia tio n s

a n d

a rra n g e d

re a ch e d
a n d

(w h ic h

g e t

fa r t h e r .1

on

w ith

la y -o u t

p la n s . O n e

b u ild in g

o b ­

th e

2.

i g u r e

c o u ld

p e rm a n e n t

h ou se

— Meeting of board of directors at Kirkm ere
Home Owners, Youngstown, Ohio.

fo r

n e v e r

fin a n c in g .

h a d

s ty le ).
o n ly

to

b e

C e r ta in

v e te ra n s

e ren ce to
lie s f r o m

o f

g r o u p s

g r o u p s

t io n

M e m b e r sh ip R e q u ire m e n ts

c ia tio n s ,

In

a d m it t in g

n e w

m e m b e rs

a ll-th e -w a y

th e

w a s

in

ra ce

e m p h a s is

w a s

on

to

e n a b le

th e

n e w

fa m ily

to

s e ttle

in to

th e

g r o u p

a n d

A m o n g

th ese

w e re

a n

fo r w a r d

in te r e s t

its

in

n o t

d e v e lo p in g

n e ig h b o r lin e s s ,

o r

fo r

c o m m u n ity

A m o n g

a b ility

b u ild in g

a

to

m eet

h o u se —

n u m b e r

( 1 4 ) ,

fin a n c ia l

m e m b e r

a

s p e c u la tiv e

th e

w a s

b u t

o b lig a tio n s
stre sse d

on e

s h o u ld

p r o fit

14

o f

b y

a

co m m o n
s o c ia l

a s s o c ia tio n

h a v e

n o

a

b y

o th e r

th e

d e s ir e

s a le

m e m b e rs

r e q u ir e m e n t.

a ttr ib u te s
w ith

In

tw o

to

b u ild

n o t

a s

th e

o f
o r

to

h is

to

w ith in
2

h a d

a ss o ­
h a d

to

H o w e v e r

th a t

m e m b e r

e n a b le

ea ch

5

y e a rs,

b in d

su ch

th e

S u ­

co v e n a n ts

h im

s h o u ld
to

h a v e

fin a n c e

s u ffi­

th e

y e a rs

(in

1 See discussion of reasons for failure, p. 81.

a s s o c ia tio n

p u r­

th a t

s u ffic ie n tly

la r g e

th e

to

in s u r e

25

p e rce n t

p a y m e n ts

o f

on

it

th e

b e

w o u ld

n eed ed

h ou se.

A m o n g

s e ttin g

th e

lo w e r

lim its ,

th e

o n ly

w a s

$ 2 ,4 0 0

“ ta k e

h o m e ”

p a y ,

$ 2 ,5 0 0 ,

$ 3 ,4 0 0 , r e s p e c t iv e ly .

O n ly

on e

a ss o ­

b o a rd
set b o th

lo w e r

a n d

u p p e r lim its —

$ 2 ,5 0 0

in c lu d e d
$ 5 ,0 0 0 .

a n d

a p a r tm e n t

d w e lle r s

liv e

so

c lo s e ly

in te r r a c ia l

m e m b e r

on e

on e

h ou se.

th e

O th ers

a n d

a n d

b e

o r g a n iz a t io n s

h a d

in

tw o

o f

on e

o f

th e

fir s t

r e q u ir e m e n ts

im p o s e d

to
u s u a lly

th e

a c c e p ta b ility

o f

th e

in c o m in g

a sso ­

th e se

to

th e

oth ers.

S ix

a s s o c ia tio n s

m a d e

th e
th is




a s s o c ia tio n

th em .

fe w

m a k e

n e ig h b o r lin e s s ,

a s s o c ia tio n ’s

g ro u p s

w ith in

th e

to

o v e r

cu rre n t

m e m b e r
c ia tio n s

a

co v e n a n ts

a d d ed

w a s
a g re e

In

e n fo r c e a b le .

s h o u ld

to g e th e r,
p o lic y .

th e

d e c id e d

h ou se

B eca u se
a g re e m e n t

m a tte r.

r e s tr ic tiv e

la r g ­

a n d
su ch

b a r

e n ta ile d
th e

c ia tio n
w a s

th is

to

h a s

s a id

$ 2 ,7 0 0 , a n d
to

o f

le g a lly

m in im u m
A c c e p ta b ility

a

s ta b ilit y —

4
th a t th e

a s

m o st ca ses, h o w e v e r, n o m e n ­

c o n fo r m

in c o m e

ch a se

fo r
e st

p r o v is io n

a ct

a

th a t
in

th e

s h o u ld

th e

o th e r

a s s o c ia tio n s s e t a n y s p e c ific in c o m e lim it,

in c o m e
i.e ., t h e

w ith

T w o

b y la w s

a s

e t c .).

life .

c o -v e n tu r e s ,

th e

(s u c h

d e­
c ie n t

s ir e

g ro u p

fa m i­

a im s .
th o u g h

c o m m u n ity ,

p r e f­

to

e m p lo y e e s ,

p o lic y .

cre e d

w ith

C o u rt

F e w
c o o p e r a tiv e

p r e fe r e n c e

co m ­
a re

fo r ta b ly

a cce p te d
g a v e

q u a litie s
p re m e

t h a t w o u ld

m a d e
la n d

o r

c o n fo r m a n c e

th e ir
n o r

p u rch a se d , a n d

its e lf
c h ie f

II

c o lle g e

r e q u ir e d

c a r r ie d

n e ith e r

Membership

o r

in te r r a c ia l

to m e m b e r s h ip . In

a s s o c ia tio n s ’

W a r

g a v e

a r c h it e c t u r a l

e ith e r

th e g e n e r a l s p o n s o r in g

T h re e

b een

“ m o d e rn ”

W o r ld

u n iv e r s it y

a s s o c ia tio n ’s

th a t

in

a s s o c ia tio n s

th em . O th ers

m in e r s ,

p o in t

a r r a n g in g

it

F

s e le c tio n .

u n a b le

tra ct.

d is ­

w e re

o p t io n

w e re

in s id e
17

n o

th ro u g h

c o m m u n ity

h ou se

u t iliz e ),

to o k

a t

th ese

a n d

la n d

g e t

la n d

a n d

o th e r

o f

as

b u ild

d a ta

c o u ld

th a t
9

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th e

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a

o n ly

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th e ir
g o t

th e

to

m a te r ia ls

p o in t

4

a ll

p la n n e d ,

w h ic h

th e

re a so n s

fo u r

a s s o c ia ­

o n

a b le

A m o n g
fo r

co n ­

b u ild ­

c o m p le te

u tilitie s

w e re

b u ild in g

th em .

to

13

A S S O C IA T IO N S

e q u ip m e n t.

h ou ses,

h ou ses

s o lv e d

F o r

o f

F o u r

th e

fo r
th e

d is s o lv e d

a b le

som e

in s ta lla tio n
b o u g h t.

fe w

b o u g h t

r e p o r tin g

h a d

th e

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le a s t

7

m o v a b le

H O U S IN G

d e s ig n e d

th e m s e lv e s , a n d

in s id e

n o t

h a d

co n stru cte d

m a te r ia ls

a ll t h e

h a d

th a t

p r o je c t

h a d

fin a n c in g . F o u r

in g s , b u y in g
a ls o

s it e ,

O F

g e n e ra l s tip u la tio n ; se v e ra l o th e rs

fa v o r a b le

v o te

b y

a

m a jo r it y ,

b y

6 6 %

r e q u ir e d
p e rce n t,

14

C O O P E R A T IV E

o r

b y

th e

75

p e rce n t

b o a r d

o f

o f

th e

m e m b e rs.

d ir e c to r s

H O U S IN G

A p p r o v a l

a d m itte d

th e

o f

IN

T H E

3

a s s o c ia tio n s

(b u t

in

on e

th e ir

a p p lic a n t

v o te

h a d

a ll

th e

u n a n im o u s )

;

in

on e

a s s o c ia tio n

th e

d e c id e d

b y

a

m e m b e r s h ip

b o th

tit le

c o o p e r a tiv e s

a n d

p ro p e rty

in th e h a n d s o f th e a s s o c ia tio n . P r a c t ic a lly

c o m m itte e .
a ll t h e s e a s s o c ia t io n s a d h e r e d

N in e

a s s o c ia tio n s

r e q u ir e d

th e

m e m b e r

c a p ita l

s to ck

a n d

liv e

in

th e

d w e llin g

s e lf. N in e

s p e c ifie d

th e

fin a n c ia l a b ilit y

to

o f

o w n e r s h ip .

A m o n g

o th e r

o f

w e r e

g o o d

on e

ch a r a c te r

o r

r e p u t a t io n

to

co o p e ra te

w ith

th e

d ir e c to r s

g a v e

p re fe re n ce

to

g ro u p .

g ro u p s,

a n d

sev en

c e r ta in

p r e fe re n ce

tw o

a s s o c ia tio n s

m e m b e rs

o f

to

th e

th e

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fa m ily

h a d

v o tin g

tw o

fr o m

th ese

g a v e

h a d

se co n d

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s p lit

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to

th e

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p r in c ip le

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a ll

In

N e w

Y o r k

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p r o x ie s

a s s o c ia tio n s

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m o n th ly

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it

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S ta te .

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to

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S ta te s.

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th e

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r e s id e n ts

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m e m b e rs,

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In

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th e

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w a s
in to

p la n ­
a p a r t­

in te n d e d

T w o

d o

a p a r t­

to

a s s o c ia tio n s

p u r c h a s in g

F e d e ra l

p r o je c ts .

th re e

o th e r

a c t iv e

a s s o c ia tio n s

in ­

c lu d e d r e p r e s e n t a tiv e s o f m in o r it y r a c ia l g r o u p s .
T h e
o f

m e m b e r s h ip

a n o th e r,

th a t

o f

a

o f

on e

M e x ic a n

th ir d ,

in c lu d e d

a n d

in

in

th e ir

b y la w s ,

m e m b e r s h ip .
w e re

o ffic e r s
a n d

o f

fe lt,

o th e r

in g

th a t

O n e

a n d

a n

o f

N e g r o e s ;

th a t

fa m ilie s ;

a n d

N e g ro e s.

th e

h a d

o n ly

d is s o lv e d

m e m b e r s h ip —

h a d

S e v e ra l

in te r r a c ia l p o lic y

a c t u a lly

fe w

a d d ed

to

a

a s s o c ia ­

fa c t,

th e ir

set

w h it e s

th e ir

fin a n c ia l

tr o u b le s .

and

m e m b e r s h ip

h o u se s

fie ld s .

A

m ix e d

O ccu pa tion a l
o r ig in a l

N e g r o

O r ie n ta ls

fo r th

p r o j­

a re a

a n o th e r

w e re

h ou ses

in te n d e d

g r o u p

s lu m

12

w e r e

o p e r a tin g

b u ild in g .

o th e r a s s o c ia tio n s , w ith

w a s

w e re

a

in c lu d e d
w h ic h

b u ild in g

a d d it io n a l

N e g ro e s,

m u tu a ls

w e re

a n d

a p a rtm e n t

h o u s in g

o f

a s s o c ia tio n s

r e n o v a tio n

a n

w e re

th ese

b o u g h t

b u ild in g s .

m en ts

m e m b e rs

it

h o u s in g

th a n

o f

a d d it io n a l

th e

w a r

th e

U n ite d

th e

in c o m e

a c c e p t n o m e m b e r s w ith

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w e r e

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w e r e

a ll

T w o

tw o

so.

tio n s
o n ly

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R a cia l c o m p o s itio n :

r e q u ir e d ,

p r o je c t

fa m ily ,

b e

ects.
In

a

M a k e -U p

a s s o c ia tio n s

b u ild

p r o v is io n s

c itiz e n

p r e fe r e n c e

v e te ra n s

th e

w a s

r e q u ir e m e n ts

o th e r
a

o f

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8

p a y ­

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s p e c ific

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a c c e p ta b le

ch a ra cte r,

O n ly

p a y m e n ts

r e s id e n t

o r

c h ild r e n

lo w e r

a n d

th e

7

m o n th ly

m e m b e r s h ip

O th e r , le s s

b e

set

lim it

th a t

to
a

o f

th e

th e

o n ly

in

th a t th e m e m ­

d w e llin g .

$ 3 ,6 0 0

w e r e

a b le

h e

o f

fo r

o p e r a tin g

ex ce e d

n u m b e r

th ese

co m m o n

fin a n c ia lly
a n d

h is

tw o

in c o m e lim it a ­

n o t

a s s o c ia tio n s

m u tu a ls

o f th e

th e

on

on e

a m o u n ts

m a y

a m o u n t

r e q u ir e d

a m o u n ts.

to

in

la b o r

in c o r p o r a te d

th a t la w , n a m e ly
in c o m e

b e ­

o f

M e m b e r s h ip

b e r 's

o f

u n d er th e

v e te ra n s.

th e ir r e q u ir e m e n ts th e m a x im u m
t io n

d e v ia ­

ty p e s

s p o n s o r in g

in g
u n d e r

b e ­

o th e rs

v e te ra n s.

ch a n ce ;

p re fe re n ce

c o u ld
a n d

a s s o c ia tio n s , h o w e v e r , p r o x ie s h a d to b e
u n io n is ts ,

a

v o te s.

c o o p e r a tiv e

ca u se

o r g a n iz a t io n s

a n d

m e m b e r s h ip .

n a tio n ­

r e g u la r
la b o r

fa m ily ,

th e

v o te

w ife ,

c o n s titu te d

a s s o c ia tio n s . M o s t
In

b y

S ev en
t io n

a lity

p e r

e le c te d

c o -v e n tu r e ,
h u sb a n d

P r o x y
a s s o c ia tio n s

v o te

a n d
ea ch

w illin g n e s s

s in g le

r e q u ir e ­
tw e e n

m e n ts

a

ca rr y
In

co s t

o f

h im ­
b o a r d

th e

to th e c o o p e r a tiv e

to
p r in c ip le s

b u y

b u ild in g

m a n a g e m e n t

m a tte r
w e re

w a s

a ll-t h e -w a y

to
h ou ses,

b e

S TA TES

V o tin g
In

in

U N IT E D

h a d
o r

co m e
m o re

o th e r
o f

th e

fr o m
o f

th e

c o m p o s itio n :
a s s o c ia tio n s
a

w id e

b u ild ­

v a r ie ty

fo llo w in g

T h e

o f

o ccu p a -

C H A R A C T E R IS T IC S
t io n a l

g ro u p s

g in a lly

w e re

in c lu d e d

in

fo r

r e s p o n s ib le

fo r m a tio n

th e

th e

O F

g r o u p

o r i­

o f

th e

H O U S IN G

s io n a l a n d
a n d

O c c u p a tio n a l g r o u p

N u m ber of

w e re

in

tw o

m o n

o f

b o n d .

je c to r s
T w o

a

a n d

w a r

w e re

g ro u p s,

c la s s

in

w h o

h a d

w h o se

m u m

(3 )

w e re

on e

in

A

a llo w a b le

R e c r u itin g

n e c e s s a r ily
a lly

w id e r

b ro u g h t

19
8
4
4
2
2

o r

a

in

B e ca u se

co v e re d

in

m a tio n

o n

o f

o b ­

ca ses.

a n d
on e

b y

h o u s in g
a b o v e

o f

p u p ils
p e r­

p r o je c t

th e

m a x i­

c o n s id e r a b le

in

lo s s

m e m b e rs,

m a n y

o f

o f

fr o m

ca ses,

a

e v e n tu ­

ch a n g e

n u m e ro u s

a n d

th e

b e r s h ip

a n d

o f

o f

o r

p e r­

in

in

th e

a s s o c ia ­

th e ir

co m p o se d
w e re

s it y

to o k
o n ly

b y

th e

to
te n ­

p u rch a se

b u y

th e

th e

th e

u n its

w e r e
a

w id e

p la c e ;

th e y

g e n e r a lly

s m a lle s t

v a r ie ty
p r o je c ts

th e

v e te ra n s,

p r o je c t

n o te d

h o u s in g

a n d

a ll

th e

T h e

o r ig in a l

o f th e

th e

c r e d it

m e m b e rs

o f

o f

h a d

th e

b een

e m p lo y e e s

u n io n s ;

th e

h a d

ch a n g e

life

m e m b e r s h ip

fo llo w in g : C it y
o f

th a t

a lm o s t n o

d u r in g

ru b b e r

lo c a l u n io n s ; te x t ile

w h o

w h ite -c o lla r
w o r k e rs '

w o r k e r s ; a n d

a n d

u n iv e r ­

e m p lo y e e s .

N in e
little

c o o p e r a tiv e s

ch a n g e

n o te d

th a t

in

o th e rs

th a t

h a d

fa ile d

m e m b e r s h ip

th e

h ig h e r -in c o m e
th e

o f

d o w n

a d d it io n a l r e m o v a ls

p la c e s

m a k e -u p

m e m b e rs

w o rk e rs ,

to

d isso lv e d a sso cia tio n s

m e m b e r s h ip

a s s o c ia tio n .

c lo s e d

m o v e .

th e

c o m p le te d

on e

tu r n -o v e r

o f

in

th e

co n v e rte d

D e c is io n

r e p r e s e n tin g

In

to

h a d

b een

to

T h e ir

a cce p te d

h a d

F iv e

u ses.

w a n tin g

fa m ilie s

c o m p le te

o r

a m o n g

w a r , p a r tic u ­

fin a l
le v e l

h a d

n o te d

th re e

m e m b e r s h ip

th a n

b een

b u t

th e

fo r c e d

w a s

o r ig in a l

o u t

b y

o f

n e w

v e r y

oth e rs
o f

a

g r o u p ;

th e

r is in g

th e

II.

In

S ta te s

M id ­

p r o fe s ­

G o v e rn m e n t
w o rk e rs .
d re w

fr o m
m em ­

m ilita r y

em ­

G o v e rn m e n t.

m a in ly

o f

A

te a ch e rs

a n y

s h ift




fr o m

T h e
in

s ig n ific a n t c h a n g e
O f tw o

p e rso n s
r e s id e n ts
T h e
r e c r u it
on e

co m m o n
o f

o f

so u rce s

a s s o c ia tio n s ,

a lr e a d y

lo c a lit y ,
o f

a d d it io n a l

a p a rtm e n t

h o u s e -b u ild in g

a

p r e s id e n t

h a d

on e

a lw a y s

h a d

s ir a b le

la n d

h a d
a

to

m e m b e rs,
fr ie n d s

a n d
h a d

g ro u p s.

“ p r o m o te r "

w e re

u sed

on e
a

o n ly

m u tu a l.

p u b lic ity

s o lic it
lis t

n e w
fo r

m a n )

th ir d

O n e
co m ­
th e

h a d

d i­

a s s o c ia tio n

m e m b e rs,
p lo ts

to
b y

a n o th e r a s s o c ia tio n

c a m p a ig n . A

o f

c o o p e r a tiv e ,

v e te ra n s '

p u b lic -r e la tio n s

w a itin g

tra ct.

in

th e

th e

p r o fe s s io n a l

c o o p e r a tiv e

a p u b lic ity

n e v e r

a n d

a s s o c ia tio n

(a

to

m e m b e rs

m it t e e o f its o w n , a n d
v ic e

w e re

b e lo n g in g

th e

s e r v ic e s

p r o fe s ­

oth e rs,

b u s in e s s ,

m o st

a ll t y p e s

re cte d

w o rk e rs .
h a d

S o u rces o f N ew M e m b e r s

in fo r ­

a th ir d , th e
a n d

w e re

O n e

fr o m

a s s o c ia tio n

c o m p o s itio n .

g ra d u a l

ca m e

g ro u p s,

co m p o se d

o f th ese h a d

m e m b e r s h ip

s tu d y , little

c iv ilia n

U n ite d

w a s

w h ite -c o lla r

a

W a r

fo r m e d )

w h ite -c o lla r

o f a n o th e r

fr o m

a p a r tm e n t

th e

a v a ila b le .

m e m b e rs

W o r ld

g ro u p

N o n e

fie ld

o th e r

o f

n e w ly

w a s

s k ille d -w o r k e r

ca m e

p lo y e e s
fo u r th

in

B u r e a u 's

m e m b e r s h ip

p r o je c ts

v e te ra n s

fe w

(e x c e p t th o se

e m p lo y e e s ,

n o te d

b y

p la n ts

r e s u lte d

n o t

o c c u p a tio n s .

th e

c o o p e r a tiv e

u s u a lly

te n a n ts

co m ­

a

o cc u rre d

a fte r

o p e r a t io n

fo r m

c o o p e r a tiv e

m e m b e rs

a n d

s u b s t a n t ia l

c o m p a r a tiv e ly

a s s o c i a t i o n 's

s io n a l

a n d

m u tu a ls

e m p lo y e e s

c o s t o f h o u s in g .

a s s o c ia tio n s

B o th

o r

e a rn e rs

d ir e c tio n .

o f m o st o f th e

tu r n -o v e r

o c c u p y in g .

ta k en

t io n s .

w e st

o p p o s ite

F o rc e s.

e m p lo y in g

fa m ilie s

w e re

o th e r

n e w

c o m p o s itio n

th e

p r o je c ts

p e a c e tim e

to

p ro p e rty
b y

o th e r

b y

th e

o n ly

th e

in

if

c u r ta ile d

a n ts

2
1
1
1

A rm e d

o f th ese

d iffe r e n t

a m o n g th e lo w e r -in c o m e

o f

in

w o r k e rs

s u b s t a n t ia l

la r ly

th ere.

fie ld

a b o u t

o c c u p a tio n a l

r is e n

r e s u lte d

tre n d

w a r

th e

ca ses, a n d

te a ch e r

p u b lic

h a d

7

o f

ten a n ts

c o n s c ie n tio u s

d e s ig n ,
a

m e m b e r s h ip , e s p e c ia lly
fa m ilie s .

o r

th e

in d u s tr ia l

co sts

w a s

sta rte d

b y

liv e d

in

o r ig in a t o r s

in c o m e s

lim it

R is in g

s e r v ic e

th e

a s s o c ia tio n s

so n s

o r ig in a t o r s

Q u a k e rs

(2 )

ch u rch
in

th e se

th e

a

o r ig in a l r e s id e n ts
e ith e r

son n el

a
w e re

w h ite -c o lla r w o r k e r s to w a g e

o th e r

associations

Professional people (teachers, ministers, uni­
versity and college faculty, research chem­
ists, social workers, architects, musicians,
and “ professional” unspecified) ....................
Federal, State, or municipal em ployees...........
White-collar workers ..............................................
Skilled or semiskilled workers .............................
Coal miners ................................................................
Employees in specified businesses ....................
Employees (and members) of cooperative store
association ..............................................................
Businessmen ................................................................
Communications w o rk ers........................................
Shop workers ..............................................................
V e te ra n s

th e

T h e

c o o p e r a tiv e s :

15

A S S O C IA T IO N S

in

M u tu a l a s s o c ia tio n s

a s

its
h a d

it
d e­

h a d

16

C O O P E R A T IV E

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

T a b l e 6. — In com e and size , in 1 9 4 9 , o f fa m ily members o f housing associations
F a m ilie s w it h a n n u a l in c o m e o f —
N um ber

T ota l

o f asso­
S t a tu s a n d t y p e o f a s s o c ia t io n

fa m ilie s

c ia t io n s

r e p o r tin g

r e p o r t in g

$

U nder
$

1,000

1,000

$

2,000

$ 3 ,0 0 0

$

$ 4 ,0 0 0

5,000

$

$ 7 ,5 0 0

10,000

to

to

to

to

to

to

and

$ 1 ,9 9 9

$ 2 ,9 9 9

$ 3 ,9 9 9

$ 4 ,9 9 9

$ 7 ,9 9 9

$ 9 ,9 9 9

over

A c tiv e
A ll-th e -w a y c o o p e r a t iv e s :

M u t u a ls

l

1

4

/

p e rs o n s -_
fa m ilie s

\

4

/

1

14

1

1 ,5 7 1

/

6 ,6 5 3

l

3 .7

1

18
8

..f a m ilie s

A s s o c ia t io n s b u ild in g h o u s e s

A p a r tm e n t a s s o c ia tio n s

p erson s _ _ /

2

______

_ _ _ _ _

_

.fa m ilie s

_

p e r s o n s ._ /
C o -v e n t u r e s b u ild in g h o u s e s :
C o n s tr u c tio n sta g e r e a c h e d

fa m ilie s
p e r s o n s ..
fa m ilie s

l

p r e c o n s tr u c tio n

sta g e

T o t a l , . .............................................. ......

_

_

.fa m ilie s

0

/

5

2 .9

4 .2

3 .4

514

397

5

0

35

0

)

( !)

)

0

(!)

)

2 ,9 4 7

890

374

90

34

3 .4

326

3 .9

4 .0

3 .7

3 .8

3 .1

2

7

303

146

740

159

37

2 .7

3 -5

3 .5

3 .3

4 .0

4 .4

30

1 ,3 9 4

318

92

44

3 .7

3 .8

3 .5

2 ,1 0 5

4 ,1 6 i

1 ,6 7 7

1 ,6 0 5

268

76

3 .4

3 .9

4 .0

3 .4

3 .9

3 .8

484
3 .6

4 .0

3 .5

2.0

/

43

/

14

3 .6

571

1 ,9 8 9

25

3
3 .0

1 0 ,2 3 1

13

326

l

l

p e r s o n s ..

8

)

l
/

p e r s o n s ._ )

50

3 .3

76

3

(i)

l

/

In

2
2

4 .8

129
3 .7

\

3 .7

3 .4

2 .5

D is s o lv e d
C o -v e n tu r e s , p r o je c t c o m p le te d

.f a m ilie s

/

person s. .

______________

0

tr o u b le

r e c o g n iz e d
u e

a fte r

in

\
p e rs o n s -_ /

3 .4

3 .5

3 .4

/

1 ,4 6 7

771

310

3 .4

3 .5

3 .4

o b ta in in g

m e m b e rs, b u t

s it u a t io n

lo c a l

s u p p ly

sev era l

m ig h t n o t c o n tin ­

o f

h o u s in g

b e ca m e

T h e
t io n

c o -v e n tu r e s

tr ib u tio n

F a m ily D ata

g ro u p s

to

o th e r

stu d y ,

43

g a r d in g
(ta b le

a c t iv e

w e re
th e

to

1 94 9

in c o m e s

b u ild in g

a s s o c ia tio n s

a b le

th e

w e re

h o u s e s ; in

m e m b e rs

w e re

fu r n is h

in c o m e s

6 ) .2 A m o n g

h ig h e s t

6

14
2 .5

2 .5

o f

fo u n d

th e ir

in

th e

in

th e

in fo r m a tio n

a ll-t h e -w a y

th ese

th o se

co v e re d

th e

m e m b e rs

c o o p e r a tiv e s
a s s o c ia tio n s

la r g e s t

e a r n in g

r e ­

g ro u p s

$ 4 ,0 0 0

to

o f

th e ir

th e

th e

o f

a s s o c ia tio n s

le s s

c lo s e ly

a p a rtm e n t

d is s o lv e d

in

in

co n s tru c­

in c o m e

a s s o c ia tio n s

p e rce n t

th a n

th o se

in

th e

O n

u n a b le

th e

to

o f

$ 4 ,0 0 0

a s s o c ia tio n s , th e

in

w e re

b ra ck e ts.

th a n *75

d w e llin g s

m e m b e rs

p r o je c ts

in c o m e

o f

w ith

d is ­

th a n

to

g ro u p s.

A m o n g

133

105
4 .0

261

2.8

2
2 .5

2 .5

4 .0

m o re

co rre sp o n d e d

th e

th e

2.8

4
C1)

)

75

P r o je c t s w it h p u r c h a s e c o n t r a c t s o n l y .

a d e q u a te .

O f

(i)

257

310

2

th a t th is

th e

(i)
771

12
0 2

30

4

1 ,4 1 7

x N o in fo r m a t io n a v a ila b le .

little

50

)

)

l

7

.fa m ilie s

___________

/

l

\
/

p e r s o n s ..

T ota l

1
6

\

.fa m ilie s

C o -v e n tu r e s , p r o je c t n o t c o m p le te d

th e

to

h a n d ,

th e ir

la r g e s t

c o m p le te d

$ 5 ,0 0 0

o th e r

fin is h

a

th a t

$ 7 ,4 9 9
in

th e

p r o je c t , m o r e

m e m b e rs

h a d

in c o m e s

y e a r.

T a b l e 7. — A g e o f head o f fa m ilies in housing associations

$ 7 ,4 9 9

i
N u m b e r o f fa m ilie s

p e r

y e a r.

T h e

m a jo r

in c o m e

g r o u p s

in

th e

N um ber
S ta tu s a n d ty p e o f

a p a rtm e n t

a s s o c ia tio n s

e a rn ed

b e tw e e n

a n d

a

in c o m e s

o f asso­

a s s o c ia t io n

c ia tio n s

$ 3 ,0 0 0

rep ort­

$ 4 ,9 9 9

y e a r.

T h e

o f

m e m b e rs

o f

fa m ilie s
rep ort­
in g

U nder

34

to

O ver

w e re

a s s o c ia tio n s .
b e rs

fo r

a b le

th e

s m a lle s t o f

M o re

w h o m

e a rn e d

th a n

a

th e

th ir d

a n n u a l-in c o m e

th ree

ty p e s

th a n

$ 3 ,0 0 0

o f

th e ir

m e m ­

th e

o th e r

g r o u p s

w e re

a s

in

th is

in c o m e b r a c k e t. T h e

w e re

a v a il­

A ll-th e -w a y c o o p e r a t iv e s :

in

1 94 9 .

In

n on e

m a n y

a s

5

_.
_

1

.

a s s o c ia tio n s

la r g e s t g r o u p

in

th e

C o n s tr u c tio n sta g e r e a c h e d

c o n s is te d

o f

fa m ilie s

ce n t

e a rn e d

to

$ 3 ,9 9 9

$ 7 ,5 0 0

a

o r

y e a r.

F e w e r

th a n

. .

_________

______________

2

p e r­

_________________________

623

81

6 ,8 6 7

3 ,4 9 4

2 ,9 6 5

408

__

2
1

1 ,3 3 2

484

738

3

2 0 112
0

77

110
11

______

._

o v e r.
C o -v e n tu r e s , p r o je c t n o t c o m p l e t e d ...

T o t a l _________

a Most o f the associations secured some information of this kind
at their beginning but had not kept it up to date.

48

9 ,3 4 1

4 ,2 2 7

4 ,4 9 4

620

D is s o lv e d
C o - v e n t u r e s , p r o j e c t c o m p l e t e d _____




91

109

m a k ­
T o ta l.

$ 3 ,0 0 0

28

813

p e rce n t

I n p r e c o n s tr u c tio n s t a g e .

in g

10

129

4

..
_

4

16

. _

A p a r t m e n t a s s o c i a t i o n s _____ ___

C o -v e n t u r e s b u ild in g h o u s e s :

m u tu a l

50
years

A c tiv e

d a ta

M u t u a l s ___________________________ ___

o f

50
years

o f

A s s o c ia t io n s b u ild in g h o u s e s .. _

le s s

34
years

m u tu a ls

in g

w it h h e a d —

T ota l

1

_______ _________ _

I n c lu d e s a s s o c ia tio n s b o t h

. .
_

..
_.

2
1
1
13

365

79

267

19

2 ,1 0 6

1 ,6 8 9

359

58

2 ,4 7 1

1 ,7 6 8

626

77

w it h a n d w it h o u t p u r c h a s e c o n t r a c t s .

C H A R A C T E R IS T IC S

O F

Th ere seem ed to b e little o r no re la tio n sh ip
b etw een size o f fa m i ly a n d in com e. T h e m e m ­

H O U S IN G

w h o se

17

A S S O C IA T IO N S

in c o m es

fe ll

in

th e

$ 2 ,0 0 0

to

$ 2 ,9 9 9

b ra ck e t.

a sso c ia tio n s b u ild in g

T h e m a jo r it y o f th e h e a d s o f fa m ilie s in th e

h ou ses a n d o f th e m u tu a ls h a d s lig h tly la r g e r

m u tu a ls a n d p r e c o n str u c tio n c o -v e n tu r e s w e r e

b ers

o f th e

a ll-th e -w a y

fa m ilie s th a n th e o th e r s, w ith an a v e r a g e o f 3 .7

u n d er 3 4 y e a r s o f a g e. In a ll th e o th er ty p e s

p erso n s p er fa m ily . T h e la r g e s t fa m ilie s o f all

of

( 4 .8 p e r s o n s )

w e re in th e m id d le a g e g ro u p — 3 4 to 5 0 y e a r s

th e

w e re th o s e o f th e m e m b e r s o f

a ll-th e -w a y

a sso c ia tio n s b u ild in g




h ou ses,

a ctiv e

(ta b le 7 ) .

a sso c ia tio n s

th e

la r g e s t

n u m bers

Chapter III.— The Projects
Land

P u rch ase

and

A lth o u g h th e a p a r tm e n t a sso cia tio n s ow n ed

C h a r a c t e r is t i c s

a to ta l o f s lig h tly m o re th an
The

93

a ctiv e

a sso c ia tio n s

fo r

w h ich

land

110 a cres, n on e

rep o rte d a n y a crea g e reserv ed fo r co m m u n ity

of

fa c ilitie s. S u ch fa c ilitie s a re u su a lly p ro v id ed

In a d d ition , th e lan d o f

fo r in th e b u ild in g s, n o t se p a ra te fr o m th em . I t

8 d issolved a sso c ia tio n s w ith co m p leted p r o je c ts

is k n ow n , h o w ev er, th a t sev era l a sso c ia tio n s h ad

to ta led

p la y g ro u n d space.

a re a

w as

rep o rte d

held

8 ,1 5 4 .6 a cres (ta b le 8 ) .
6 6 7 .2

a co m b in ed

a cres, m a k in g an

tota l

a g g r e g a te

of

T h e la r g e s t a v e r a g e h o ld in g s w e re th ose o f

8 ,8 2 1 .8 a cres in co o p era tiv e h o u sin g p r o je c ts.
T h e 16 r e p o r tin g u n su c cessfu l a sso c ia tio n s h ad

th e

a

w h ich h ad se t a sid e space f o r co m m u n ity p u r ­

to ta l

of

1 ,5 7 5

a cres,

b u t th ese

no

lon g er

m u tu a ls

and

th e

co -v e n tu re a sso c ia tio n s

cou n ted as co o p era tiv es becau se th e ir p r o je c ts

poses. T h e a cre a g e o f th e a p a r tm e n t a sso c ia ­

w e re lost.

tio n s w a s sm a lle st o f all. A s ta b le 9 in d ica tes,
38

th e lan d a re a v a rie d fr o m less th a n 1 a cre (1 1

a c tiv e a sso c ia tio n s to ta le d 5 7 6 .6 a cres. In tw o

a p a r tm e n t a sso c ia tio n s an d 1 a ll-th e -w a y a p a r t ­

d issolv ed c o -v e n tu r e s w ith co m p leted p r o je c ts,

m e n t a sso c ia tio n in th e p re co n stru c tio n s ta g e )

1 3 .5 a cre s w e r e held f o r c o m m u n ity p u rp o ses

to tr a c ts o v e r 8 0 0 a cres ( 2 m u tu a ls and 1 co­

b y a se p a ra te a sso c ia tio n o rg a n ized to do so.

v e n tu re a s s o c ia t io n ).

Land

held

fo r

c o m m u n ity

p u rp oses

by

F igure 3.— Aerial view of site o f Mile High Housing Association’s all-the-way project, Denver, Colo.
[Site of project indicated by heavy black line ]




18

T H E

T able 8.— Total acreage held by housing associations, and

amount allocated for community purposes

A cia
sso ­
tio s
n
re o g
p rtin

T
otal
a re
c s

a ge, w ood ed , h ig h e le v a tio n , e t c .) , a n d a v a il­
a b ility o f co n ven ien ces fo r sh o p p in g , tr a n s p o r ­
ta tio n , a n d u tilities.

L n h ld
ad e

S s an ty e of
tatu d p
a cia n
sso tio

19

P R O JE C TS

A
llocated fo
r
co m n
m u ity
p rp
u oses1
A cia
sso ­
A
cres
tio s
n
re o g
p rtin

P r o je c t

P la n n in g

P la n n in g w a s requ ired fo r m o st p r o je c ts , and
definite a tte m p ts w e re m a d e to la y out a ttr a c ­
tiv e

c o m m u n ities.

H ow ever,

serv ic e s

of

site

p la n n ers w e re less fr e q u e n tly u tilized th a n w e re

A
ctive

th o se o f a rc h itec ts.

A e-w co p ra e
ll-th ay o e tiv s:

4
2
2
2
4
3
s2
5
6
‘9

C
o-ven res:
tu
H u p je
o se ro cts—
W com u ity fa
ith
mn
cilitie
s__

52,818.5
105.9
<531.3

20

360.0

4

20.8

9
3

M tu w p rc a contracts___
u als ith u h se
A cia n in p c n ctio sta e- sso tio s
re o stru n g

312.4
110.3
4,171.8
104.4

4

8,154.6

38

T h e h o u se -b u ild in g co o p era tiv es th a t had site

576.6

(>
)
1
0

67.8
(»
)
128.0

p la n n e rs p a id a w id e r a n g e o f fe e s .

F la t fe e s ,

in th e a sso c ia tio n s r e p o r tin g , w e re $ 3 0 0 , $ 1 ,1 5 0 ,
$ 1 ,3 5 0 , $ 1 ,8 0 0 , $ 2 ,0 0 0 , $ 6 ,0 0 0 , a n d $ 1 0 ,0 0 0 . O n e

A cia n inp co stru nsta e- sso tio s
re n ctio
g

site p la n n er

ch a rg ed

at th e

ra te

of

$70

p er

house*

D
issolved
8

667.2

52

513.5

7
9

950.0
625.0

66

e63.0

2
4

P ject n co p
ro
ot m leted
:

2,242.2

8

76.5

1N in d g stre ts o sid w lk
ot clu in
e r e a s.
*In a a en a cia n th com u ity fa ilitie a u a in e th b ild g
p rtm t sso tio s, e
mn
c s re su lly sid e u in s
an d n t ta e u la dsp c .
d o o k p n ae
*N in d g 1a cia n o n g 1 city b ck ex ct a a n re o d
ot clu jn sso tio w in
lo , a re ot p rte .
‘ N in d g 2 a cia n h ld g o tio o 11 a re
ot clu in sso tio s o in p n n 8 c s.
1C m n fa ilitie o e te b se a te a cia n o a ize fo th p rp se.
om u ity c s p ra d y p ra sso tio s, rg n d r e u o
*A in n e ino in l p n
s te d d rig a la .
A ll

but

seven

o f th e

a sso c ia tio n s

building-

h ou ses h ad b o u g h t r a w land. A m o n g th e ex cep ­
tio n s w e re tw o th a t p u rch ased lan d form erlyused f o r fa r m in g , one th a t too k o ver a g o lf
co u rse, a n d th re e th a t b o u g h t im p ro v e d lan d

F igure 4.— Hilly terrain of Mutual Housing Associa­

tion’s co-venture pi'oject, Los Angeles, Calif.

in th e city .
M a in re a so n s f o r b u y in g w e re th e rea son a b le
price, g oo d n a tu ra l ch a ra c te ristic s (v ie w , d r a in T

a

b

l

— Active housing associations holding
9
.
classified acreage
e

A s h ld
cre e
Hu
o ses

A art­
p
ments

1.0- 4.9----------




( f o r a panel o f “ m o d e r n ” a r c h it e c ts ).

In te r m s

in g ) o f $ 6 ,6 5 0 .
F o r all th e a p a r tm e n t p r o je c ts f o r w h ich in ­
fo r m a tio n is a v a ila b le th e a rc h ite c t serv ed also
as site

p lan n er.

In

tw o

ca ses he

received

a

fla t su m o f $ 2 8 ,5 0 0 and in a n o th er $ 5 0 ,0 0 0 a
b u ild in g .

5.0-9.9_____
10.0-24.9___
25.0-49.9___
50.0-74.9___
75.0- 99.9___
100.0149.9--.
150.0-199.9--200.0-249.9_-250.0-499.9_-800.0 an over,
d
Total.

th e su p e rv isio n o f c o n str u c tio n ) to 12 p erce n t

$ 2 3 ,0 0 0 , w ith an a v e r a g e (a m o n g th ose r e p o r t­
C -v tu
o en res

o stru
In p - C n e In p ­
re
re
n c­
M tu ls co stru tio sta e co stru
u a
n g n c­
tio sta e re c e tio sta e
n g
ahd
n g

L ss th n 1.0-e a

3

o f m o n ey cost, th ese fe e s r a n g e d fr o m $ 6 0 0 to

N m er of a
u b
ctive a cia n
sso tio s
A e-w co p ra e
ll-th ay o e tiv s

T h e fe e s paid to a rc h ite c ts r a n g e d fr o m

p erce n t o f th e to ta l co n stru c tio n c o st (in c lu d in g

T h e m u tu a l a sso c ia tio n s h ad no p r o je c t p la n ­
n in g to do, h a v in g b o u g h t com p leted p r o jec ts*
O f 1 2 d issolv ed a sso c ia tio n s r e p o r tin g , 5 h a d
h ired both site p la n n er a n d a rc h itec t.
2
4

S ix h a d

h ired an a rc h itec t w h o , in tu r n , w a s resp o n sib le
fo r th e h ir in g and p a y m e n t o f th e site p lan n er.

20

C O O P E R A T IV E

F

i

g

u

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

—5 Part of golf-course site of Bannockburn Cooperators’ co-venture project, Glen Echo, Md.
.
r

e

In one a sso c ia tio n , th e firm do in g th e co n stru c­

In m o st a sso c ia tio n s m e m b e r s p a rticip a te d at

tio n w o rk also did the site p la n n in g and p r o ­

all sta g e s.

vided th e h ou se p lan s.

fr o m

m e m b ers

w is e )

g en era l in fo r m a tio n as to size and ty p e

T h e r e p o r tin g a sso c ia ­

tio n s p a id fe e s o f $ 3 ,5 0 0 , $ 5 ,0 0 0 , a n d $ 2 1 ,5 4 7
fo r

site

p la n n in g .

A r c h ite c ts ’

fe e s

reported

T h e u sual pro ced u re w a s to req u ire
(o n

a q u estio n n a ire o r o th e r ­

o f d w e llin g d esired . T h e a r c h ite c t’ s p r e lim in a r y

w e re 2, 3, 5 (2 a s s o c ia t io n s ), and 6 y 2 percent.

plan s

A s s o c ia tio n s

m e m b e rsh ip m e e tin g fo r e x a m in a tio n and d is­

r e p o r tin g

actu al

a m o u n ts

paid

w ou ld

th en

be

p resen ted

to

a

gen eral

$ 7 4 1 , $ 1 0 ,0 0 0 , an d $ 1 7 ,6 9 5 (th is la st figu re also

cu ssion .

in clu d ed co st o f site p l a n n i n g ) .

or sizes w o u ld th en fo r m th e m selv es into g ro u p s

P e r so n s in terested in p a r tic u la r ty p e s

fo r fu r t h e r d iscu ssio n — a n d p ro b a b ly m o d ifica ­
M e m b e r s h ip

P a r tic ip a tio n

in

P la n n in g

tio n s— w ith th e a rch itect.

A m o n g the a sso c ia tio n s b u ild in g h o u s e s , m e m ­

In the p la n n in g o f a p a r tm e n t b u ild in g s th e

b ers p a rticip a te d in th e p la n n in g o f b o th d w ell­

g en era l m e m b e r sh ip p a r tic ip a te d in o n ly one in ­

in g s and co m m u n ity fa c ilitie s (w h e re su ch w e re

stan ce.

a fe a tu r e o f th e p r o je c t) in all but a fe w cases.

fo r u m w ith th e m e m b e r s, at the in itia l s ta g e s.

T h e ex cep tio n s w e re g e n e r a lly s tr a ig h t c o -v e n ­

T h ese m e e tin g s serv ed to a rr iv e at a c o m p ro ­

tu r e

m ise

p r o je c ts in

w h ich

co o p eration

had

been

In th a t case th e a rch itect held an open

decision

betw een

w hat

the

used o n ly in a cq u irin g , im p r o v in g , and su b d i­

w a n ted

v id in g la n d , b u t in w h ich th e h ouse p la n n in g

m em bers

a m o u n t th e y w e re p rep a red to p a y.

and

w hat

could

be

p ro vid ed

fo r

th e

an d co n stru c tio n w e re done b y the in d ivid u al
m e m b e r s. In th ese th e re w a s no g ro u p p la n n in g
o f d w e llin g s, a lth o u g h

a fe w

q u ired th a t h ou se p lan s be

a sso cia tio n s r e ­
su b m itted

to

the

b o a rd o f d ire ctors o r an a rc h itec tu ra l c o m m it­

S iz e

of

P r o je c t

E x c lu d in g the m u tu a ls (w h ic h did n o t u n d er­
ta k e

any

c o n s tr u c tio n ),

tee, to in su re th a t all d w e llin g s w ou ld h a rm o n ize

in g a sso c ia tio n s

in style.

o f 1 2 ,3 0 6 p lan n ed .




7 ,1 5 8

d w e llin g s

h ad

been co n stru cted b y o r f o r 91 c o o p e r a tiv e h o u s­
as

o f J u ly

1950,

of

a to ta l

T w e n ty -o n e a d d itio n a l a sso -

T H E

P R O JE C TS

BUREAU OF LABOR STATISTICS

F

igure




6.— Lay-out

of Hilltop Community , co-venture project at Seattle, Wash.

21

22

C O O P E R A T IV E

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

F igure 7.— Community plan o f Golden Valley Cooperative Association’s co-venture project, Omaha, Nebr.

T

a b l e

10.— Dwelling units and rooms planned and completed byjiousing associations
R s co p
oom m letedo
r
u d rc n c n
n e o stru tio

N m er of d e g u its
u b
w llin n
S tu an ty e of a cia n
ta s d p
sso tio

N m er
u b
of a ­
sso
c tio s
ia n
re o g
p rtin

T
otal
u its
n
p ne
la n d

U its
n
co p
m leted
o u dr
r ne
co stru ­
n c
tio
n

U its
n
p ne
la n d
fo n t
r ex
1
2
mn s
o th

N m er
u b
N m er of u its in
u b
n
of a ­
sso
re o g
p rtin
c tio s
ia n
a cia
sso ­
re o g
p rtin
tio s
n

N m er
u b
of ro m
o s

Active

A e-w co p ra e
ll-th ay o e tiv s:
A cia n b ild g h u
sso tio s u in o ses___ _______
A a en a cia n
p rtm t sso tio s______________
M tu w p rc a con ct_______
u als ith u h se tra
M tu w o t p rc a con ct______
u als ith u u h se tra
In p c n ctio sta
re o stru n ge...... ...................
C -ven res:
o tu
B ild g h u s, co stru n sta e re ch d
u in o se n ctio g a e :
W co m n fa
ith m u ity cilitie
s:
C n ctio b a cia n
o stru n y sso tio _____
N co stru n b a cia n _
o n ctio y sso tio _
W ou com u ity fa
ith t
mn
cilitie
s:
C n ctio by a cia n ___
o stru n
sso tio
N co stru n b a cia n _
o n ctio y sso tio _
A cia n inp c n ctio stage. ____
sso tio s re o stru n
T
otal_____ _________________

5
38
25
8
7

234
5,262
9,627
5,141
3,215

95
4,412
9,627
5,141

1
2
1
3

1,948
1,140

604
389

5
3
1
4

270
213
49
44
1,445 ________

10
3

28,331

20,525

5
35
2
3
5

9
5
4,017
8,701
3,771

556
15,827
35,502
16,304

274
7
3

1
2
8

41
7
242

2,442
1,256

54
3
370

4
3

203
44

980
152

2,199

95

17,544

73,019

2
7
850
548

D
issolved
C -ven res, p ject co p
o tu
ro
m leted
___
C -ven res, p ject n co p :
o tu
ro
ot m leted
S m co stru n
o e n ctio ...... .........
N co stru n
o n ctio ...................
Total.______ ________




8

9
69

965

6

828

4,251

7
1
5

2,434
3,530

436

6

31
4

1,586

30

6,933

1,401

1
2

1,169

5,837

23

TH E PROJECTS

ACTIVE

T O SA D O U IT
HU NS F N S

All-the-Woy Cooperatives

0

5

10

15

H
ouse-building associations

Apartm associations
ent

M
utual associations

Co-Venture Associations
DISSOLVED

F ig u r e 8 .— M em bership

m eeting o f K irk m ere
Y oungstow n, Ohio.

O w ners,

Co-Venture Associations

H om e

UNITED STATES DEPARTMENT OF LABOR
BUREAU Of LABOR STATISTICS________________ ___________________________ ________________

siations that had not reached the construction
stage

had

dwellings.

planned

projects

involving

4,6 6 0

A b o u t 2 ,2 0 0 units were expected to

F

9 . — D w elling units com pleted or u nder con­
stru ction b y housing cooperatives, July 1 9 5 0 .

ig u r e

be erected within the next 12 months (table 1 0 ).
The average size o f project planned and com ­

The m ost extrem e variation in the size o f

pleted or under construction, by type o f asso­

the individual projects w as am ong the apart­

ciation, is shown b elow :

m ent associations, where the range w as fro m
A v e r a g e n u m b e r o f u n its—

P la n n e d

C o m p le ted
or under
co n stru c tio n

H o u ses
M u t u a ls
C o -v e n tu re s

.................................. ..........

47

19

....................... ..........

138

116

............................... ..........

447

447

.................................. ..........

97

38

c o m p le t e d )

T able

............. ..........

form ed

prior to

1930

owned

small

each.

A ll but one o f these early associations

have completed their projects and now exist
only to operate the building.

The exception is

an outstanding association th at has been build­

D is s o lv e d a s s o c ia t io n s
(p ro je c t

ciations

buildings containing fro m 16 to 60 apartm ents

A ll- t h e - w a y c o o p e r a t iv e s :
A p a rtm e n ts

4 to 1,650 units. M ost o f the apartm ent asso­

121

120

ing alm ost continuously since its form ation in

1 1 .— N u m ber o f dwelling units completed or under construction, by size o f project and typ e o f dwelling

Number of units completed or under construction by—
Active associations
Size of project and type of dwellings

All-the-way associations
Houses

Size of project:

Dissolved associations

Apartments

2
3

16
14

1

3

1

Co-venture
associations

Mutuals

1
1
2

3
7
7

17

8
2

3
3

Project
completed

1
1
1

3

2

Project not
completed,
some
construction
I
4

1
1

3

Type of dwelling:




33

33

8

7

10,288
2,938

132
,2

1,249

915
50

'386

4,412

214,548

1,251

965

>386

95

95
1No data for 1 association with 50 units.

38

4,412

5

1
2

2

2Type of dwellings not reported for 1 association with 220 units.

24

COOPERATIVE HOUSING IN TH E UNITED STATES

*1

*2

UNITEO STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS

F

ig u r e

1 0 .—




Two o f the five basic house plans used in M ile H igh p r o je c t , D en v er , Colo ,

TH E PROJECTS

2

U N ITE D S T A T E S D E P A R T M E N T OF LA BO R
BUREAU OF L A B O R S TA TIS TIC S

F

ig u r e

1 1 .—

Two o f the basic house plans used in E dison P a rk co-ven tu re p r o je c t, South Bend, Ind.




25

26

COOPERATIVE HOUSING IN TH E UNITED STATES

1927.
This organization, the A m algam ated
H ousing Corp., is the bridge between the early,

in the m utual projects, how ever, were of either
the row-house or 2-sto ry duplex type (table 1 1 ) .

quiescent group, and the associations form ed in
the past fe w years, m ost o f which had not yet
reached ground-breaking stage when visited.

S iz e

(num ber o f room s) provided in each type o f
housing association is show n in table 12.

Only one association had built

any semi-detached units. M ost o f the dwellings
T

ab le

1 2 .—

D w e llin g s

The num ber o f dwellings of specified size

The house-building associations favored de­
tached houses.

o f

S ize o f dwelling u n its 1 completed or under construction by housing associations

Number of dwellings with—
Number
of asso­
ciations
reporting

Status and type of association

8

1

2
4
6
7
3
5
rooms
rooms rooms rooms rooms rooms rooms and
over

room

Total
dwellings

Total
number
of rooms
in these
dwellings

Active

All-the-way cooperatives:
Associations building houses
Apartment associations____ . . ______ _ _________
Mutuals with purchase agreements.__ ______
Mutuals without purchase agreements _ _____________________
Co-venture associations building houses, construction stage reached ___ __
Total___ ___________________________ ____________

5
35
23
5
27
95

6

1,350
1,277
197
44

1,571
5,979
1,291

49
797
1,349
1,309
394

35
156
56
460
233

3
14

84

124
40
370
19

60
56

94

553

288
,6

9,041

3,898

940

133

159
198

399
64

357

463

4

20
0

8
1
8

95
4,017
8,701
3,771
960

556
15,827
35,502
16,304
4,830

17

17,544

73,019

270
79

828
341

4,251
1,586

349

1,169

5,837

Dissolved

Co-venture associations:
Project completed __
Project not completed, some construction ..
Total__________________ _________

..... ..............
___ ___ ______

6
6
1
2

1In this table, kitchen (plus dining alcove) and living room are each counted as one
room, as are also the bedrooms; the bathroom is not counted (some of the associations,
however, count the dining alcove as half a room). A dwelling shown in the table as
C o n tr a c tin g

b y

A s s o c ia tio n

F ew o f the cooperatives studied had done
their own contracting.

having 5 rooms would therefore consist of living room, kitchen (with dining alcove,)
and three bedrooms,

construction o f a specified number o f units.
In one case, the contract w as on a lum p-sum

T w o o f the all-the-w ay associations building

basis, in 8 cases on a fixed-fee basis, and in 4
cases on a cost-plus basis (but in one o f these
a m axim um lim it w as s e t).

houses acted as their own contractor fo r in­
stalling utilities, cutting and paving the ingress

A m o n g the apartm ent associations, only the
A m algam ated H ousing Corp. (and its two re­

roads and streets, and arran gin g fo r other con­

lated organizations,1 each w ith one p roject) has

struction work.
tracted.

acted as contractor on all its projects.

A ll these jobs were subcon­

Tw o co-venture associations acted as general

None o f the dissolved associations that fin­
ished their p roject had acted as contractor.

contractor fo r the building of the h o u se s; these

H ow ever, tw o had negotiated a m aster contract,

were both small self-help groups in which m ost

under the term s o f which all their houses were

o f the construction w as done by the m em bers.

built. Three associations that built some houses

One other association (not self-help) explored

before dissolving had acted as general contrac­

the possibilities o f doing its own contracting

tor. One o f these sublet contracts fo r construc­

but found it would have to post a completion

tion o f the sewers and roads as well as the

bond and raise about $ 2 5 0 ,0 0 0 — a task beyond

h ou se s; the second subcontracted fo r roads, in­

its powers.

A n other association acted as co­

side equipment, and construction o f the dwell­

contractor w ith the b u ild er; subcontracts were

in g s ; and the third subcontracted the utility

let fo r pouring the foundations, building the

excavations, m asonry w ork, and painting.

basem ents, and plastering.

fourth organization acted as contractor fo r the

Thirteen associations confined them selves to
the negotiation o f a m aster contract fo r the



A

utilities (w ater and sew er) and gradin g only.
1

Amalgamated Dwellings, Inc., and Hillman Housing Corp.

Chapter IV.— Cost and Finances
C ost

to

Unlike the associations building houses, the

A s s o c ia tio n

apartm ent associations were all in cities, w here
land is expensive, and cost per acre and per

Cost o f Land and Its Developm ent
M any o f the associations covered in the study
had bought, at very reasonable rates, tracts of

square foot was therefore very high. In term s
o f land cost per dwelling, the apartm en t costs

land which were frequently some distance fro m
sewer, water, and power lines. The final land

fell below those o f associations building houses.

cost w as directly affected by the am ount of

lowest original cost was $19 per acre fo r one

w ork necessary to bring in these utilities. Sev­

association th at bought a parcel o f tax-delin­

eral associations had bought rolling or hilly

quent land and had 20 acres donated to it. The

land that was expensive to develop, although

highest w as $ 2 ,893 (the equivalent cost per acre
fo r a large city l o t ) .

A m o n g the associations building houses the

it was scenic and lent itself to interesting treat­
ment.

T h ree-fou rth s o f these associations (both all-

The wide range o f land cost per acre is shown
in table 13. In term s o f cost per square foot

th e-w ay and co-venture) had paid an acquisi­
tion cost o f less than $ 1 ,0 0 0 per acre (table 1 4 ) .

o f raw land, there were differences o f only a

Site and offsite im provem ents brought the cost

fe w cents, except fo r apartm ent associations.1

to $ 2 ,9 9 9 fo r 2 associations and up to alm ost

H ow ever, the final cost per square foot to the

$ 1 0 ,0 0 0 fo r still another association.

associations w ith com m unity facilities w as 2

In one extrem e case, the final cost o f $5,0 0 0

to 4 tim es as much as th at fo r associations that

an acre (5 tim es the cost of the raw land) re­

had built projects w ithout such facilities.
1

sulted fro m the great distance between the p ro j­
ect site and the nearest utility and sewer con­

Cost of land was available for only 5 new apartment projects.

T a b l e 13.— Cost o f land, before and after development, held by housing associations
Average cost per acre

Status and type of association

Number
of
associa­
tions
reporting

Raw
land
cost

Average cost per square foot

Development
cost
On
project

Off
project

Total
cost

Raw
land
cost

$0.01
.78

Development
cost
On
project

Off
project

$0.02
.27

$0.10

Total
cost

Average
total
land cost
per unit
after
develop­
ment

Active

All-the-way cooperatives:
Associations building houses._ ________________________ __ _
Apartment associations_________ _______
__________
Co-ventures:
Building houses, construction stage reached:
With community facilities:
Houses constructed by association _______________ ____
Houses not constructed by association
Without community facilities:
Houses constructed by association.._______
________
Houses not constructed by association____________
In preliminary stages only___________________ . . .
_ -

2
5

4

$189
34,020

$583
15,887

$56

$828
49,907

7

620
277

1,052
249

39
31

1,711
557

4

3

588
825
767

1,593
(3
)
69

5

‘270

152

7
7

540
1,334

429
5
92

1
1
2

(3
)

2,181
825
836

.1
0
(
0
.1
0
.2
0
.2
0

(
0

$0.03
1.15

$1,426
1,109

.1
0

0)
0)

.04

1,285
439

.03
(3
)

.04
(3
)

711
1,179

.05

746

.03

(
0

.1
0
.2
0
.2
0

Dissolved

Co-ventures, project completed__________ _______
_
..... ........
Co-ventures, project not completed:
Some construction accomplished____ _________________ ______
No construction.-

1Less than $0,005.
2All these projects are in Greater New York, but land was bought at various times,

from 1927 to 1950.
3No data.




27

422
52
(6
)

1 01
,2
1,426

(l)

.1
0
.03

4One association had its land donated.
5Includes off-project costs,
8Not reported separately.

05

.1
0

(!)

.2
0
.03

28

COOPERATIVE HOUSING IN TH E UNITED STATES

nections. A n other association put in a sewer
system and laid an 8-inch w ater pipe fo r a dis­

T a b l e 1 4 .— N u m ber o f housing associations with specified land

tance o f 2 m iles (how ever, the latter cost was

Raw land

shared with another housing developm ent).

cost per acre before and after development
Developed land

A

third had to bring its w ater supply across two

All-the-way
cooperatives

Cost per acre

adjoining properties ; it also installed (a t a cost
Houses

o f $ 1 3 ,0 0 0 ) steam -heated pipes under the very
steep road leading to the project, to keep it
free o f ice in w inter. A fou rth association was
required by the county to put in a wide ingress
road costing $1 9 ,0 0 0 . Still another had to cut
a lead-in road, put in a w ater-distribution sys­
tem w ith pump house and tow er— im prove­
m ents th at raised the land cost by $ 1 ,3 0 0 per
lot. In other cases, site and offsite expenditures
raised the land cost by as m uch as $ 1 ,100 to
$ 1 ,6 0 0 an acre. One veterans' association w as
fortunate in th at the city installed all o f the

Under $100__ _______
$100-8199____________
$200-$299____________
$300-$399____________
$400-8499____________
$500-8749___________
$750-8999-.
$1,000-81,499_________
$1,500-81,999_________
$2,000-82,399_________
$2,500-82,999_________
$5,000-89,999_________
$10,000-814,999_______
$20,000-829,999_______
$30,000-839,999_______
$50,000-859,999_______
$200,000-8299,999_____
Total_____

___

Apart­
m
ents

Co­
ventures

Houses

2
2
2
1

1
2

4

Coventures

1
1

2
2
1
1

1
1
1
2
5

Apart­
ments

1

4
3

1

4

All-the-way
cooperatives

2
1
1
2
5
4
4
3

2

1
1
1
1
2

24

4

5

24

utilities free.
A ctual m oney cost o f developing the land (in ­
cluding such item s as the installation o f utilities
and the grading, cutting, and su rfacin g o f roads
and streets) ranged in these associations fro m
$ 4 ,500 for a project o f 126 units to $ 1 ,3 0 0 ,0 0 0
fo r an organization developing high rolling land
fo r 500 units.

Cost o f Project, by Item o f Expense

The costs o f the various item s in a housing

In some cases the cost was sub­

project, and the proportion o f total cost spent

stantially reduced by voluntary self-help work

fo r each item, are shown fo r 45 associations in

o f the m em bers.

table 15. These projects involved expenditures
totaling $ 4 8 ,1 3 1 ,0 4 5 .

T he distribution o f these associations by
amount spent in the development o f the land
was as fo llo w s :
N um ber of
a ss o c ia tio n s

$5,000 or under ......................................................

2

$ 5 ,0 0 1 -$ 1 0 ,0 0 0

.........................................................................

6

......................................................................

6

$ 1 0 ,0 0 1 -$ 2 5 ,0 0 0
$ 2 5 ,0 0 1 -$ 5 0 ,0 0 0

......................................................................

8

$ 5 0 ,0 0 1 -$ 7 5 ,0 0 0

......................................................................

2

$ 1 0 0 ,0 0 1 -$ 1 5 0 ,0 0 0

.................................................................

2

$ 2 5 0 ,0 0 1 -$ 3 0 0 ,0 0 0

.................................................................

1

$1,000,000 and over.................................................

1

N otable differences in relative costs are re­
vealed. T hus, land costs absorbed a much higher
proportion o f the total (1 7 .9 percent) in the co­
ventures th at bought enough land to provide
space fo r recreation and other com m unity ac­
tivities. M etropolitan apartm ent associations
were next, w ith 10.0 percent o f the total de­
voted to land.
M ost o f the active co-venture or all-the-w ay
associations that built houses took a piece o f
raw land, thereby involving them selves in the

N ea rly all the apartm ent projects were in

extra expense o f its development. F or them the

G reater N e w Y o rk , and their land cost per acre

site and offsite development costs amounted to

was fa r above th at o f m ost o f the other types

27.8 and 19.1 percent, respectively.

o f associations which had bought tracts at some

venture associations the provision o f com m unity

distance fro m the nearest city, in order to save

facilities raised the cost to 33.2 percent o f the

money.

to ta l; these associations also had the highest

H ow ever, the m argin between the ac­

quisition cost and the cost after development
was less fo r the apartm ent houses than the
others, largely because o f easy availability o f
utilities.




relative expenditures
percent.

fo r

architect

In the co-

fees— 7.0

Site and offsite costs were quite low
percent) fo r the apartm ent associations.

(4 .5

COST A N D
T

a

b

l

1

29

F IN A N C E S

— Cost of housing 'projects, by item
5
.
e

Active associations

Dissolved associations

A ll-the-w ay cooperatives

Co-ventures

Item
Houses

W ith com­
m unity facilities

Apartm ents

Per­
cent

Project not com p leted 1
Project
completed

W ith ou t com ­
m unity facilities

Per­
cent

Per­
cent

Per­
cent

Cost

$ 9 3 ,2 5 0
2 0 6 ,4 0 0

8 .6 $ 3 ,2 5 0 ,6 8 9
1 9 .1 1 ,4 7 0 ,1 7 8

1 0 .0 $1,057,542
4 .5 1 ,9 5 7 ,9 5 7

1 7 .9
3 3 .2

$ 4 6 ,4 0 0
1 3 4 ,5 0 0

2 .8 $1,103,942
8 .2 2 ,0 9 2 ,4 5 7

6 9 9 ,0 0 0
5 ,6 0 0
2 8 ,5 0 0
1 5 ,9 0 0
5 .5 0 0
3 .5 0 0

L an d______________ __________________ ______
Site a n i offsite costs____________
Construction:
Residential and nonresidential _
M o v a b le equipm ent
Finance costs____________________ _
Architect and engineering
Broker f e e _ _ ____
Closing fee _
Miscellaneous____
______
Self-help....................

Per­
cent

6 4 .7 2 4 ,9 0 0 ,7 5 2
6 6 8 ,9 9 3
.5
7 7 6 ,5 7 2
2 .6
9 7 5 ,9 4 6
1 .5
2 4 1 ,0 9 1
.5
6 7 ,0 6 2
.3

7 7 .0 1 ,9 7 6 ,9 8 9
2 .1
4 ,5 0 0
1 0 2 ,4 5 2
2 .4
3 .0
4 1 6 ,3 9 7
.7
2 ,6 8 5
.2
277
1 ,2 8 4
3 8 0 ,7 5 0

3 3 .6 1 ,2 4 3 .0 0 0
4 1 ,6 0 0
.1
1 .7
1 8 ,3 2 5
7 .0

7 6 .2 3 ,2 1 9 ,9 8 9
2 .6
4 6 ,1 0 0
1 .1
1 2 0 ,7 7 7
4 1 6 ,3 9 7
2 ,6 8 5
277
1 ,2 8 4
9 .0
5 2 7 ,7 5 0

Cost

2 .0

2 2 ,0 0 0

Cost

Cost

(3)
(3)
(3)
6 .4

1 4 7 ,0 0 0

Cost

Cost

1 4 .7
2 7 .8

2 $ 2 5 ,0 0 0
3 3 6 ,1 1 7

Per­
cent

Per­
cent

C ost

8 1 .2 1 ,4 2 7 ,9 0 3
1 2 ,2 9 8
.3
1 4 7 ,5 5 8
6 .7
2 8 8 ,8 3 5
.5
(4)
1 .3
4 9 ,3 8 3
509

4

_

3

17

5

1 ,6 5 7
2 5 ,0 0 0

.2
4 .0

1 .7

1 4 ,1 9 4

2 .3

(3)

T o ta l In v estm en t in P r o je c t

o th e r en d
—

fa c to r s

in flu e n c in g

to ta l

p r o je c t

ea ch

w e re

th e

r e la tiv e

o u tla y

fo r

o f

la n d

a n d

its

c o m m u n ity

b y

m e m b e rs,

th e

s iz e

o f

th e

p r o je c t,

th e

a n d

co sts

a t

th e

tim e

th e

on ,

th e

a m o u n t

a n d

co st

a s id e

fo r

c o m m u n ity

o f

fa c ilit ie s ,

su ch

a n d

fa c ilit ie s .

la n d

th e

M o st

th e

ra n g e

th e

o f

a p a rtm e n ts,

en d

o f

W o r ld

in

s te a d ily ,

a n d

W a r

h ou se

II.

A fte r

c o n s tr u c tio n

th e

la p s e

o f

1 945

ro se

ev en

1

w e re

a g o
o ld e r

th e

in c r e a s e

in

th e

to ta l

o f

th e

o ld

p u rch a se d

w h en

co sts

u p

1 9 5 0 )

to
is

th e

o f m o n e y
in c lu d e d
th e

o f

b een

o f

a ll e x p e n s e s
o f

p r o je c ts
a

h a d

n o t
to

o f

y e t

p r o je c ts

a

th e

a

b

l

1

o r

th e

s m a ll
co s t

m u ch

2 5

o r

lo w e r .

m o re

th e

a v e ra g e

to ta l

co s t

F o r
w a s

e

T h e

th e

p r o j­
Active associations

ta b le

p r o je c t

g iv e s

a n

in

A ll-th e-w ay associations

sh ow n

Houses

th a n

c o m p le te d .

re a ch e d
th e

It

d w e llin g s

g ro u p

w a s

d is tr ib u tio n

S om e

c o m p le tio n ;

p la n n e d

a n o th e r

b eg u n .

b u ild in g

in v o lv in g
$ 2 5 ,0 0 0




Apart­
m ents

M utuals

C om ­
pleted

N ot
com ­
pleted 1

o f d e v e lo p m e n t, r e g a r d le s s

a s s o c ia tio n s

p r o je c ts

le s s

C o­
ventures

term s

costs

Diss<lived
associ ations

T o ta l cost

co n s tru c­

th e r e fo r e

b y

in
h a d

p e r -u n it

im ­

Under $ 2 5 ,0 0 0 __________
_
$ 2 5 ,0 0 0 -$ 4 9 ,9 9 9 ___________
$ 5 0 ,0 0 0 -$ 7 4 ,9 9 9 ___
$ 7 5 ,0 0 0 -$ 9 9 ,9 9 9 ___
_
$ 1 0 0 ,0 0 0 -$ 2 4 9 ,9 9 9 _________
$ 2 5 0 ,0 0 0 -$ 4 9 9 ,9 9 9 _________
$ 5 0 0 ,0 0 0 -$ 7 4 9 ,9 9 9 _____
$ 7 5 0 ,0 0 0 -$ 9 9 9 ,9 9 9 _________
$ 1 ,0 0 0 ,0 0 0 -1 1 ,9 9 9 ,9 9 9 ...
$2 , 0 0 0 ,0 0 0 -$ 4 ,9 9 9 ,9 9 9 ___
$ 5 ,0 0 0 ,0 0 0 an d over_______

h ou ses,

c o n s id e r a b le

ea ch

(ta b le

tw o

A t

2
4
3
3
3

21
22

2
4
1

4
4
8
2
1

3

2
1
2
29

25

22

1

]
2

21
32
32
34
1
1

1

4

v e r y

s e lf-h e lp

1 6 ).

1
1
2

2
4
1
11
4
2

cost.
T o ta l reporting-------------

O f

e re cte d

—Number of housing projects with specified total cost
6
.

( J u ly -O c to b e r

m o st ca ses th e

s till

a

in d iv id u a l

su rv e y

16.

o f

h a d

in

sh o w

th e

d w e llin g s

p a rt o f

b u ilt ; a n d

t io n

ta b le

In

o f

th e

s iz e

n eed ed .

o n ly

p o s s ib le

co s t
o f

in

th e

n u m b e r

th e

o th e rs

b y

t im e

sh o w n

in d ic a tio n

o f

th e

w h o se

N um ber of projects of—

d is tr ib u tio n

ects

a s s o c ia tio n s

w e re

p r o je c t.
A

th e

o f

a n d

m ea n t

co s t

w ith in

b eca u se

costs

T

s u b s ta n tia l

fe ll

a fte r

r a p id ly

y e a r

h a lf

$ 1 0 0 ,0 0 0 -$ 5 0 0 ,0 0 0

o f

th ese

s o c ia t io n s b u ild in g h o u s e s w e r e e s ta b lis h e d

in v o lv e d

c o s t in g

a s­
y e a rs

th e

a v e ra g e —

set

co s t

o f

a b o v e

w a s

b u ild in g s
o f

h ig h

e n g in e e r in g

d o lla r s .

p re p o n d e ra n ce
c o n s tr u c tio n

ra th e r

a n d

le v e l

p r o je c t

co st
c a r r ie d

d w e llin g s

m illio n

A m o n g
h o u s in g

fa c ilit ie s ,

a r c h it e c t u r a l

th e
o v e r a

o f

fo r

d e­

w o r k

v o lu n te e r

7

co s t
s e r v ic e s ,

ex te n t

6 2 1 ,0 1 3 1 0 0 .0

7

o f t h e s c a le w e r e 2 la r g e d e v e lo p m e n t s

w ith

e x p e n d it u r e
v e lo p m e n t, th e

2

3 Less than 0 .05 percent.
4 One association paid a 1 percent broker fee, bu t the am ount was not reported.

1 Am ounts given cover expenditures as far as project was carried b y association.
2One association o n ly ; land was donated to the other.

M a jo r

20

8 7 .4
6 .0

4 8 .9
.5
5 .1
9 .9

T o ta l________________________________ 1 ,0 7 9 ,6 5 0 1 0 0 .0 3 2 ,3 5 1 ,2 8 3 1 0 0 .0 5 ,9 0 0 ,8 3 3 1 0 0 .0 1 ,6 3 0 ,8 2 5 1 0 0 .0 7 ,5 3 1 ,6 5 8 1 0 0 .0 3 ,6 3 0 ,4 3 8 1 0 0 .0 2 ,9 1 7 ,0 0 3 1 0 0 .0
N um ber o f associations r e p o r tin g ...

Per­
cent

Cost

1 8 .3 $ 5 4 2 ,8 6 2
3 7 ,3 0 0
1 5 .7

$ 5 3 2 ,8 2 0
4 5 7 ,6 9 7

0 .7
9 .3

4 2 .8 2 ,9 4 9 ,0 9 6
1 2 ,0 0 0
.6
2 4 0 ,3 8 0
1 .6
1 7 ,6 9 5
5 .5
(3)
5 0 ,1 5 0
(3)
(3)
7 .0

No
construction

Some
construction

T o ta l

th e

1 Figures represent cost as far as project was carried by association.
2 Preconstruction stages only.
3 Including 1 association which did not reach construction stage.

2

14

30

COO PE R A TIV E

$ 2 0 0 ,2 0 9 ,
w a s

w h e re a s

T h e

to ta l

n e w

a s s o c ia t io n s 2 it

co s t

a p p r a is e d

a b o v e

o f
to

m u tu a l
th e

v a lu e

T h e

p r o je c ts

c o o p e r a tiv e

a t

s a le s

$ 1 ,0 0 0 ,0 0 0

th e

t im e

p r ic e

a n d

ra n

o f

as

(i.

o f

a ll

s a le

o f

h ig h

e .,

th e

d ep en d ed
to

a n d

w a s

$ 5 ,0 0 0 ,0 0 0

U N IT E D

r e v ie w

96

a c t iv e

th e

a n d

a g g re g a te

e x ce e d e d

s u b co n tra cts —

co n tra cts

o th e r
n o t

th e

o f

T h e

in

th e

a p a rtm e n t

fe e .

In

tw o

82

m illio n

d is s o lv e d

a s s o c ia tio n s

to ta l

o f

co s t

d o lla r s

th e

(ta b le

in s p e c t th e

A ll

s a v in g s

th e

o f

Average
cost per
association

T o ta l
cost

T h re e

s a v in g s ,

A ll

b u t

Ativ
c e
$ 1 ,0 7 9 ,6 5 0
3 7 ,5 5 5 ,0 5 4
2 9 ,4 0 3 ,6 4 0
2 7 ,5 8 2 ,5 5 8

o f

$ 2 6 9 ,9 1 2
1 1 ,2 9 5 ,0 0 2
1 ,1 7 6 ,1 4 6
2 3 4 4 ,6 6 2

g a v e

a ll

fiv e

th e
th e

b o o k s.
in

2

3 ,6 3 0 ,4 3 8

th e

3 2 ,9 1 6 ,9 8 5
3 6 2 1 ,0 1 3

96

8 2 ,7 8 9 ,3 3 8

8 6 2 ,3 8 9

th e

h a d

co n tr a c to r

a s s o c ia tio n

ra n g e m e n t

th a t

p ro v e d

its

fa ilu r e ,

so

fa r

fo r

a b o v e

a n

to

th e

th e

in

h a d
b e

fin a l

h a d

ca se

a

fix e d -

“ e s c a la t o r ”
o f p r ic e

c o s t-p lu s

o n e

o f

co s t

a r ­

th e
th e

o f

ca u ses
h ou ses

m e m b e rs ’ m ea n s

th a t th e y

3 4 1 6 ,7 1 2
3 8 8 ,7 1 6

T o ta l__________________________________________

p r o te c tin g

a s s o c ia tio n s

c o n s tr u c tio n

a ls o

s h a r in g
co n tr a c­

su b co n tra cts.

d is s o lv e d

w ith

O n e

fo r
th e

o f

su rv e y

fix e d -fe e

1 ,8 1 5 ,2 1 9

7
7

p ro ce e d e d

o f

r e v ie w

O n e

w a s
C o-ventures, project com pleted___________ ________
Co-ventures, project not com pleted:
-—
Some construction_______________ _
N o construction___________ ______
-

fo r

a

fo r

p r o v id e d

o th e r

re ­

fo r

a s s o c ia tio n

th e

in s p e c t io n

tw o
th e

a n ­

a lth o u g h

p r o v id e d

a s s o c ia tio n s

in c r e a s e s .

fo r

D s lvd
iso e

o f

in

in

p r o v id e d

c o n tr a c to r ’s

fo r

co n tra cts .

c la u s e
4
29
25
22

a n d

th em ,

a ls o

co n tra cts

tw o

on e

th a t h a d
fe e

A ll-th e-w ay cooperatives:
Associations building houses____ ____________
Apartm ent associations. _ _
__________ _____
M u tu a l associations________
----------- C o-ventures_________________________________ ______ __

it

a n d

d is s o lv e d

t o r ’ s' b o o k s , a n d
Num ber
of asso­
ciations
reporting

Status, and type of
association

to

co n tr a c t

ca ses

o f

in c lu d e d

th a t c o m p le te d th e ir p r o je c t s h a d h a d a

17.— Total and average cost of housing 'projects

able

a g re e d

a s s o c ia tio n s

r ig h t to

p r o j­

1 7 ).

w e re

a s s o c ia tio n s ,

a g re e m e n t.

c o n s tr u c tio n

p o r tin g
fix e d

fo u r

co n tr a c to r

in c lu d e d

co n tra ct.

T

o f

ST A T E S

s h a r in g

th e

r e p o r tin g ,
ects

TH E

th e

th ese

a s

on

m ore.
F o r

IN

th e

p r ic e )

a s s o c ia tio n .

o r

th e

$ 5 ,4 9 1 ,7 1 0 .

p u rch a se
th e

fo r

H O U S IN G

c o u ld

n o t

a ssu m e

to o tho g as c tio
r ruh soia n

in

T h e

co n tra cts

b u ild in g

w e re

fix e d -fe e

O n e

in g s to b e s h a re d
tra cto r.

T h e

a ll-t h e -w a y

p r o v id e d

b a s is .

o f

th ese

th e r ig h t to r e v ie w

th e

c o n tr a c to r ’s

a n d
on e

th e

r e v ie w

on

s a v in g s

o f

v id e d
to

fo r

in s p e c t

a b o v e —

co sts

o f

o r

th ree

r e v ie w
th e

w e re
oth e rs

p r o v id e d

fo r

co n tr a c to r
th e

sa v ­

a n d

th e c o n ­

th e

a s s o c ia ­

o f

T w o

th e

la tte r

w a te r

in s p e c t

o f

s a v in g s

in s id e

a

s a v in g s ,

s p e c ifie d
e ith e r

in

set

s h a r in g

o f

a s s o c ia tio n .
o n ly

th e

a n d

b o o k s.

th e

A ll

in s p e c t io n

in g

w a te r

r ig h t

a n d

a ll

la n d ,

in g s .
b e rs

h a d

r ig h t

th a t

3 ,0 0 0

o f

th e

In
h is

2
M ainly those form ed since 1930 but including the A m algam ated
H ousing C orporation w hich has been b uildin g new p rojects almost
continuously, except during W orld W a r II.

o w n

w o r k

in c lu d e d

re p o rte d

th e

p u m p

a n d

m a k in g

b u ild in g

ro a d s ,

tre n ch e s,

a n d

h ou se,

a

in te r io r

la n d s c a p in g

a ll

co n ­

in s ta ll­

th e

b r id g e

in d i­

o v e r

d e c o r a tio n ,

th e

on e

th e

p ro ce sse s,

o f

w o rk e d
d a y s

o f th ese

d w e llin g

th e

th e se
a
h a d

o f

b een

a

h a lf

o f

th a t

9 ,7 5 0

sp en t

a s s o c ia tio n s

w a s

h e lp in g

c o m p le tio n

to ta l

a

th e

p la n t­

y a rd s.

fr o m

e s tim a te d

b y

fo llo w in g :

la n d , g r a d in g f o r
d ig g in g

in

a s s o c ia tio n s

h o u s e s th e m s e lv e s , d o in g

a n d

th ro u g h

O n e

p r o ­

o f b o o k s,

b e h a lf

th e ir

a n u m b e r o f a s s o c ia tio n s , th e m e m b e r s

fo rm e d
th e

th e

sy ste m

fin is h in g

trees,

In

a

in

s e lf-h e lp

lin e

in v o lv e d
m e m b e rs

u tilit ie s ,

c o n n e c tio n s ,

th e a s s o c ia tio n




T h e

s tr u c tin g

w a s

c o n s tr u c tio n ,

co -v e n tu r e

o r g a n iz a t io n s

fo r

th e

s e lf-h e lp

a c t iv e

e x c a v a tin g

in g

n o

a n d

S u r v e y in g , c le a r in g

a n d

a g re e m e n ts

s u b co n tra cts

c o n t r a c t o r ’s
o f

m o re

a ll-t h e -w a y

v id u a l

th e

a n d

a s s o c ia tio n

s u b co n tra cts.

s h a r in g

fo r

a

o r

m u tu a l

d itc h , b u ild in g th e
s h a r in g

s u b co n tra cts

b e tw e e n

r e v ie w

g a v e

on

b o ok s.

O n e co n tr a c t g a v e
to

p r o v id e d

su b co n tra cts

c o -v e n tu r e s ,

c o n tr a c t; th o se

c e ilin g

c o o p e r a tiv e s

c o n s tr u c tio n

co n tra ct

t io n

A m o n g

fo r

b y th e c o o p e r a tiv e

o th e r

m u ch

o r

b u ild in g h o u s e s .

o f tw o

h ou ses

little

a p a rtm e n t

th e

C on tract P ro v isio n s

b u rd en .

S e lf-H e lp b y M e m b e r s 3
A lt h o u g h

1 Average for prewar projects was $ 2 0 0 ,2 0 9 ; for postwar projects $ 5 ,4 9 1 ,7 1 0 .
2 Figures represent cost
o n ly; costs of houses built under
individual contract not included.
3 Figures represent cost o f project as far as project was carried b y association.

th e

ea ch

on

d w e ll­

25

ea ch

p e r­
c le a r

th e

its

d a y s,

m em ­

a n o th e r
h ou se.

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to

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3 See also p. 72 fo r disadvantages o f self-help.

in ­

COST A N D
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65

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2 ,7 5 0

mere Home Owners, Youngstown, Ohio.

to ­

e q u ita b le

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lo c a l

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sy ste m

a n

F igure 12.— “ Burma Drive clearing detail” at K irk-

e ffo r t.

w o rk e d

re co rd s

e s tim a te d
o f

b y

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la b o r ;

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in

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31

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F IN A N C E S

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a ccu ra te

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th is

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F igure 13.— House built by member’s own labor, H er­

mits Glen co-venture project, Los Angeles, Calif.

32

C O OPERATIVE

H O U S IN G

IN

THE

c ie n t

U N IT E D

6 x1 2

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(w ith

FIGURE 14.— U pper: House built by exchange-of-labor

method in prewar co-venture project at Penn-Craft,
Pa. (stone quarried on site).
L ow er: House built by member’s own labor in post­
war co-venture project at Penn-Craft, Pa. ( cinder
blocks made by m em bers).

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1 8 ).
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23

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p lie d

fin a n c in g ,

d is c o u r a g e m e n t

th e ir

h o u s e s ; a

m e m b e r
to

m e m b e rs

fin a n c in g .

fo r

se a rch

fiv e

th e

p a y ­

p e rce n t.

o b ta in e d

th e

p a r t ie s
—

fir s t

to

o il,

Financing of Projects
th e

th e

s it u a ­

d o w n

(ta b le

s u p p ly

m em b ers

o p e r a t iv e , a n d

In

o f

th e

h o w e v e r,

e ith e r

th e

d ir e c tly

th e

co m m o n

su ch

th e
fa il­

a b o u t th r e e -fo u r th s

fo r

s tu d ie d ,

p a y a b le

seed,

(th ro u g h

m o to r

lo a n

fo r

b o u g h t

m e m b e rs

h a d

b y

a m ou n t

o u tla y

h a v in g

th e

t iv e ; in

o f

fr o m
lo c a l

in

a n d

so u rce s w e re

fu r n itu r e ,

m e m b e rs )

g a s o lin e ,

th e y

la n d

s u p p lie d

e q u ip m e n t,

p u rch a se

c r e d it

m a k e -u p

c o n s tr u c tio n ,

w h o

g ra ss

a n d

h a v e fig u r e d

F o r

o f

w a s

p u rch a se s

a n d

d e p a rt

la r g e ly

m em b ers.

a n d

to

th e m s e lv e s .

la r g e

c o lle c tiv e

m ilk ,

b y

w h o le ­

con seq u en t

M o n e y

on

a m o n g

th e

b y

th e ir
(w ith

h ou ses.

b e n e ­

w h ic h

m a te r ia ls

d is c o u n ts

th e

p r o ­

c o m m o d it ie s

g a s )

to

o r

d on a ted

s a v in g s

p u rch a se s

a cco u n t­

w e re

m o re

(a r c h i­

fr e e

a s s is ta n c e

m a d e

a t

w h o le s a le

s a v in g s )

o f

o f

r e c e iv in g

m e m b e rs

a s w a te r , e le c tr ic ity , a n d

O th er

b le

fe w

b y

c o n tr ib u t e d

ra tes.

A

p u rch a se s

th en

e ith e r

p r o fe s s io n a l

n o n m e m b e rs.

(s u ch

b u ild e r s ,

o th e rs )
re d u ce d

fic ia r ie s

s a le

p r o fe s s io n a l

a tto rn e y s,

a n ts, a n d

a s s is te d

a

in s ta n c e s .

m o n e y

c o o p e r a tiv e s

w e re

m e th o d ,

as

S ou rces o f F u n d s

w h ic h

la w .

a s s o c ia tio n s

co m ­

p r o je c t th ro u g h

fin a n c in g ,

C o n str u c tio n f u n d s :

S om e

th e

in te r r a c ia l

a ll s e e m

th e

p ro p e rty

c o o p e r a tiv e

to c a r r y

p a tte rn

b e lo w

c o o p e r a tiv e

L a ck

d e s ig n s ,

d e p r e c ia te

th e

in

d e c is io n .

b u ild in g

fa ll

th u s

c o m p le tio n , u n w illin g n e s s

u re

a

a n d

p e rce n t

r e d e v e lo p m e n t la w s )

s a v in g s ,

s a v in g s

u n d e r

m a d e

s in g le

u n d e r c e r ta in

o th e r

o p e r a tiv e

a

p r o je c t

ig n o r a n c e

T h e

b y

fo r

o f p ro p o s e d

c o n fid e n c e

e s ta b lis h e d

d w e llin g .

ra te s

th e

o r in

fe e s

in d e fin ite ly

sta n d a rd

r is k

a rra n g e m e n t,

n e a r ly

th a t

m u n ity

o f

s a v in g ,

o f h ou se

$ 500

fe a r

la c k

c o n s tr u c tio n .

to

w a itin g

o f lo c a l a c c e p ta n c e

a t

th e ir
a

k ep t

b o th

fr o m

m ea n t

o f

M id ­

h ou ses

red u ce d

in

co st

th e

$ 4 0 0 ,0 0 0
O n e

its

r e d u c tio n

T h is

in

s a v in g s

fo u r th

a

to

$ 51 0

a ll

p a rt

w h e n

a b ou t

s e c t io n .

w h o

p e rce n t.

p e r fa m ily , o f $ 2 1 0
a n d

fir s t

o f

b u ild in g

co n tr a c to r
7

O n ly

c o m p le te d

s a v in g s

7y2

a b o v e

c o o p e r a tiv e .

b een

b u t

w e st

c o n t r a c t o r ; a ll

th e

33

F IN A N C E S

th e

O n e

fir s t

3

34

C O O PERATIVE
T

a

l1

b

H O U S IN G

IN

TH E

STATES

—Sources of funds for purchase of land, construction, and down payment
8
.
e

M on ey for land

Am ou nt from—

Num ­
ber of
associa­
tions
report­
ing

Status and type o f association

U N IT E D

M em ­
bers

Construction funds

Percent from—

Other
sources

M em ­
bers

$ 6 0 ,7 5 0 $ 3 2 ,5 0 0
4
3 2 ,5 6 4 ,8 3 2

A m ou nt from—

Num ­
ber of
associa­
tions
Other report­
sources
ing

6 5 .1
1 0 0 .0

M em ­
bers

M on e y for down paym ent

Percent
from—

Num ­
ber of
associa­
tions
M e m ­ Other report­
ing
bers sources

Other
sources

Percent
from—

Am ou nt from—

M em ­
bers

M e m ­ Other
bers sources.

Other
sources

Ativ
c e
A ll-th e-w ay cooperatives:
Associations building houses____________
Apartm ent a s s o c ia tio n s_______________
M u tu als with purchase agreem ents.
Associations in preconstruction s t a g e ...
C o-ventures building houses:
Construction stage reached____ __
In preconstruction stage
T o ta l. _ _

8 2 8 ,7 9 2 3 9 3 ,8 5 0
9 5 ,7 4 3

6 7 .8
1 0 0 .0

1 9 .3
2 3 .4

8 0 .7
7 6 .6

4 6 2 ,0 2 7 1 ,7 4 1 ,8 8 4

2 0 .9

7 9 .1

18 3 ,3 8 6 ,5 2 7 11,413,459

2 2 .9

7 7 .1

3 2 .2

38 3 ,5 9 7 ,5 8 8 4 2 6 ,3 5 0

8 9 .4

1 0 .6

27
3

___________

2
$ 9 1 ,0 0 0 $ 3 8 0 ,5 0 0
10 2 ,8 3 3 ,5 0 0 9 ,2 9 1 ,0 7 5

7 i.

r

2 $ 2 1 0 ,0 0 0 $ 5 3 1 ,9 0 0
7 6 ,2 9 2 ,4 4 8
23 2 ,3 3 8 ,2 8 4

2 8 .3
1 0 0 .0
1 0 0 .0

2 6 8 ,3 2 7

2 2 8 ,3 8 4

5 3 .9

4 6 .1

38 9 ,1 0 9 ,0 5 9

7 6 0 ,2 8 4

7 9 .6

2 0 .4

0)

0

1 0 0 .0

4 7 ,4 7 1

1

3 4 .8

6

6

D s lvd
iso e
3

2 1 0 ,0 0 0 5 ,1 7 0 ,0 0 0

3 .9

9 6 .1

7
6

4 3 7 ,5 9 5 1 5 0 ,6 0 0
8 4 ,4 6 2 4 2 3 ,4 0 0

7 4 .4
1 6 .6

2 5 .6
8 3 .4

3

1 6 4 ,5 9 0

6 0 8 ,2 3 2

2 1 .3

7 8 .7

1

1 5 1 ,8 3 0

1 0 0 .0

16

5 5 4 ,6 5 7 5 7 4 ,0 0 0

4 9 .1

5 0 .9

6

3 7 4 ,5 9 0 5 ,7 7 8 ,2 3 2

6 .1

9 3 .9

1

1 5 1 ,8 3 0

1 0 0 .0

C o-ventures, projects com pleted________ _
Co-ventures, projects not com pleted:
Some construction________
_
____
N o construction _

3 2 ,6 0 0

3

T o ta l

1 0 0 .0

(0

(1)

1 N o d ata.

h o u se s ;
fu n d s

th e

fo r

a s s o c ia tio n

th e

re s t

b y

in d iv id u a l m e m b e r s .
u p

a

r e v o lv in g

tr ib u te d
th e

on

$ 1 ,0 0 0 ;

b u ild in g

in g

fu n d

o f

in d iv id u a l

F r ie n d s
t io n

on

In

n e n t

th is

tru s te e , w ith

b o th

w e re
ca se

in g ,

e x p e cte d
b a n k s

In

th ir d

its fir s t f e w

th e

fin a n c e

to

g e t

w h e n

w e re

p e rm a n e n t

e ffo r t

d id

w e re

b e ­

r a is e d

In

on e

p a y m e n t
p e rce n t

p r o je c t,
o f

m a d e

$ 6 0 0 ;

fr o m

a

h e

lo c a l




m e m b e r

th en

w h ic h

to

w a s
th e

on

th e

a

p e rce n t,

a n d

p e rm a ­

lo a n s

le n d in g

m a d e

fo r

w e re

lo c a l

b u ild in g

a n ce

co m p a n y ,

a n o th e r
w a s

fin a n c ­
fr o m

In
a ll

a ll

o f

b ers.
la w ,

7

th e

u n d er

a

c o ­

m o st

o f

3 3 %

p e rce n t

th e ir

fin a n c in g

r e q u ir e d

h a d

d ow n

lo a n

a t

a n d

4

a s­

d o w n
th e

P u rch a se

co m ­

a

b y

v a r ie d
b y

o f

fr o m

o f

so u rces,

p a id

th e

in s u r ­

r e p o r tin g ,

b y

th e

m e m ­

lim it e d -d iv id e n d
n e w e r

th e

a p a rtm e n t

a

d o w n

p r o je c t

6 6 %

w a s

b a n k s,

u n io n .

r e q u ir e d

o f

b a n k s

an

p r o je c ts

e x ce e d

p a y m e n t

1 94 9

c o s t;

p e rce n t.

red u ced

to

20

p a y ­
th e
T h e
p e r­

le g is la tu r e .

a rra n g e m e n ts

w id e ly .

th e

m en t

n ot

th e

c o -v e n tu r e s ,

v a r ie ty

Y o r k

m en t

c o u ld

rest

p a y ­

r a is e d

c o m m e r c ia l

w a s

o p e r a t in g ,

o f

a

a p a rtm e n t

p a y m e n t

w h ic h

lo a n

o f

h ou ses

th e

c r e d it

w e re

m o rtg a g e

a

th e

a

d o w n

a s s o c ia tio n s ,

U n til 1 9 4 9 th e N e w

co n stru c­

co m p a n y

lo a n

p r o je c ts

w h ic h

m a d e

o f

th e

fr o m

a n d

d o w n

a p a rtm e n t

m e m b e rs

b u ild in g

b a n k s,

a n d

th e

m e e t th e

A m o n g

o b ta in e d

th e

th e

th a t

T o

b o rro w e d

s a v in g s

T h e

to

h is
th e

c o n s tr u c tio n

th ro u g h

co st, th e

sou rces.

in c lu d in g

as

fo r

c o o p e r a tiv e .

lo n g -te r m

o th e r

on

fo r

r a is e d

P e r m a n e n t fin a n c in g :
m en t

a cted

o b ta in e d

d a ta

o b ta in a b le

th en

w h ic h

o b ta in e d

tru s t

in

th is

d ir e c tly

a n d

on

to

c o -v e n tu r e
ea ch

w e re

a s s o c ia tio n s ,

cen t

d is s o lv e d

its

fin a n c in g

w h ic h

w a s

v a lu e .

ca ses

28

a sso ­

u n d er

in d iv id u a lly .

p le te d

a ll fiv e

on e

fin a n c in g

s ta g e , th e m e m b e r s o b ta in e d

a p p r a is e d

In

c o o p e r a tiv e ,
g u a ra n ty

c o o p e r a tiv e s

c o m p le te d .

ex ten d

th e

V A

a ll-t h e -w a y

p r iv a te

a s s o c ia tio n s
n o t

fu ll

to

co n s tru c­

o f

c o n s tr u c tio n

th e y

A

on e

b y

w ith

it

a g en t.

s im ila r

o p e r a t in g

a s s o c ia tio n ,
h ou ses

co -v e n tu r e

o p e r a t iv e
t io n

A

s ig n e d

co n ­

a ll t h e m e m b e r s a s c o - s ig n e r s .

a s s o c ia tio n .

lo c a l

p r o je c ts

set

A m e r ic a n

fin a n c e d

lo a n s

th e

fu n d

A

th e

c o n s tr u c tio n

th e

to

m o n e y

b y

fu r n is h e d

c o n tr a c to r fin a n c e d th e

b u ild in g

u sed

t im e , t h e

g ro u p ,

fo r

m e m b e r

c o m p le te d .

s e lf-h e lp

p la n ,

a g e n c y ; in

a

C o m m itte e

s m a ll

fin a n c in g

a g e n t

a s s o c ia tio n

m o rtg a g e
as

c o n s tr u c tio n

ea ch

w a s

a t

s u p p lie d

o th e r
on e

tr u s te e s h ip

fu n d

h ou ses

fu n d

tw o

w h ic h

fr o m

S e r v ic e

c ia tio n .

to

as

s e lf-h e lp

h ou ses

r e p le n is h e d

r e v o lv in g

a c tin g

A

th is

3

o b ta in e d

In

14

G o v e rn m e n t
p u rch a se.

In

a m o n g

ca ses,
w a s
5

o f

th e

m o rtg a g e

p a rt

o f

th ese

th e

th e

m u tu a ls
fin a n c in g
a rra n g e ­

a s s o c ia tio n

35

COST AND FINANCES
h a d

m a d e

no

however,

d o w n

w e r e

payment.

credited

with

accumulated

while

G o v e r n m e n t

ownership.

duced
t w o

the m o r t g a g e

b y

other
the
5

1.6

a n d

in

mortgage,

mutual

m a d e

h a d
of

bought

projects
no

b e g u n

d o w n

agency

w h e r e b y

one

M o s t

of

percent

tively,

12,

T h e
d o w n

d o w n

9

held

p a y m e n t

T h e

of

remaining

m i d - 1 9 3 0 ’s.

just

as

mor t g a g e

paid

10

u p

mutuals

d o w n

the

It h a d

study

with

its

a

w Ta s

lending

indebtedness

w h i c h

p a y m e n t s

1 3 y 2 , 14,

depending

coverage

a

the

(6 associations)

paid

O f

to

i n full.

the

financing m a d e

re­

of the subsis t e n c e - h o m e ­

in

a

it

under

this

G o v e r n m e n t

percent.

p a y m e n t ;

the G o v e r n m e n t

case

respectively.

the

m a d e

it n e g o t i a t e d

5,

8.4 p e r c e n t ; in t h e o t h e r

10

built

the

surplus4

w e r e

one

percent,

4

of

small

projects
In

w h i c h

4

a n d

h a d

steads

by

0.6

projects

percent

h a d

their

Three
the

on

; the
a n d

the

had

private

a m o u n t i n g to 10

other

15

associations

percent,

liberality

of

respec­

m o rtgag e

negotiated.

average

for

p a y m e n t

the

w a s

18

just

mutuals

under

that

10

m a d e

percent.

a

T h e

F
m e m b e r s
of

h a d

lending

214

over

raised

all o f t h i s

institutions

million

and

altogether,

on

the m e t h o d

of

one

a n

all-the-way

cooperative

the other a co-venture.

T h e

for

$33,000,

contributed
year

on

a

first

terest, a n d
rate.

T h e

an

on
fig.

b a n k

loan h a d

putting
p u m p

in

This

been

m e m b e r s

$3,500

bearing

5

for

percent

1

in­

at the s a m e

r e d u c e d to

s a m e

sewer

out

t w o

tract

of

systems

involved sinking a

p u m p i n g

the

the

this

machinery,

land
h a d

(see
to

be

3 5 0 - f o o t well,

a n d

building

a

turned

over

organized

latter

receiving

bonds

paying

preferred

F o r

stock

in

b y

the

to

a

separate

the

return

sewer

subscribed

coopera­

30-year

5 p e r c e n t interest.

stock

h a d

been

as­

M o s t

retired

by

1946.

$2,500

projects

also issued.
preferred

w a s

district

sessment
of

in

m e m b e r s

sanitary
tive,

w e r e

$11,000

Extension

O f

this

the

percent,

$25,000

$7,000

w a s

a n d

oth e r sources.

been

paid

an

c o o p e r a t i v e ’s

outlay

w a s

(at

of

$69,000.

supplied

borr o w e d

$37,000

f r o m

b y

utilities t o t h e

involved

a m o u n t

m e m b e r s ,
4

of

project

4

f r o m

a

b y
b a n k

percent)

the
at

c a m e

All of this i n d e b t e d n e s s h a d

mid-1950.

h o u s e ;also b u i l d i n g a m ile-long co n n e c t i o n

to t h e city s e w e r
within
tem,

lent

carried

the

a n d

system,

second

h a d

of

W a t e r

installed.

the

water

1950.

sections

15).

wh i c h

b a n k

m o r t g a g e

co-venture

t w o

A

installed a

in d i v i d u a l lent $ 8 , 5 0 0

m i d - s u m m e r
T h e

towa r d

$21,000.

totaling $7,0 0 0

by

all-the-way cooperative

system

b y

Da t a

1 5 . — P rew a r
{low er) and postw ar {u p p er)
dwellings at C restw ood, co-ven tu re p r o je ct o f W is­
consin C ooperative H ousing A ssociation, M adison,
W is.

ig u r e

aid

utilities a r e a v a i l a b l e f o r o n l y t w o

associations —
a n d

paid,

the

dollars.

F in a n c in g o f u tilitie s :
financing the

without

the

each

shares

system

project.

T o

m e m b e r

w a s

of preferred

4

a n d

laying

finance

the

required

stock, at $ 5 0

a

sewer

pipes

water
to

b u y

sys­
six

s h a r e ; bonds

I. e., the difference between the tenants’ total paym ents and the
actual operatin g costs. This arrangem ent was part o f the agreem ent
under the so-called W estbrook plan (applicable to 8 p rojects built
under the Lanham A c t) at the tim e the p rojects were built.




Mortgage Indebtedness
Information
m o r t g a g e
tive

on

the

indebtedness

associations

(table

original
w a s

a n d

available

19),

a nd

the

present5
for

32

ac­

s u m s

in­

5 “ P resent” indebtedness, fo r purposes o f the survey, was that in­
debtedness represented by the association’s latest financial statement
(i.e ., fo r the period ending Dec. 31, 1949, or any later date up to
July 30, 1950).

36

COOPERATIVE HOUSING IN TH E UNITED STATES

volved

reflect t h e

n ew n e s s

of

m o s t

of the

hous­

T a b l e 20 .— Interest rate, and year ana period o f mortgage i n
housing associations

ing

cooperatives.

repaid
the

m u c h

of

co-venture

T h e

only

group

it s l o n g - t e r m
associations,

debt

that

h a d

consisted

w h i c h

h a d

paid

All-the-way cooperatives

of

Co-ventures

off

Houses
over

half

w e r e

the

t w o

of

their

mortgages.

a p a r t m e n t

big n e w

projects.

h a d

cent.

reduced

T h e

the

mutuals

as

too

a

gr o u p

m u c h

of their indebtedness—

contract
than

a

years

w a s

year

h a d

m o r e

years

D a t a

previously,

for

of the

total

of

$1,000

to
of

quired

b y

h a d

concluded

h a v e

repaid

in

received

8

cases

in o n l y

8

it

less

still p a y i n g

in

per

since

the

in

are

than
2

2
or

principal

in

A m o n g

f r o m

h a d

been

associations

interest

than

in

the
ac­

w e r e

amortiza­

completed

p a y m e n t

of

the

1948.

the

mutuals

none

w a s

either interest o r principal a s

in

of July

arrears

on

1950.

T a b l e 19.— M ortgage indebtedness o f active housing associations
Mortgage indebtedness

Associa­
tions
reporting

Type of associations

Original
amount

Present
amount

1

$367,900
27,020,155
23,474,036
230,384

9
19
3

Total_______ __ __ .

32

51,092,475

$367,900
20,845,279
23,147,180
99,000
44,459,359

2.
28

of

interest
the

paid,

finance

in

relation

to

a r r a n g e m e n t

a n d

the

period

of

mortgage,

are

houses

T h e

type

of association

interest

rates

current

m e n t

w a s

rates
at

the

concluded;

record,

the

of

association.

the

standing,




25

3

31
41
2

3

s e e m
the

in table

paid

generally

time

the

they
and
T h e

the

also

4
5

7

1

5
1

24

1

3

1

I

in t h e
at 3

to

all o f t h e

study

These

higher

the

s a m e

terms—

agreement

the

13.0

M a y

terms

they

A m o n g

m o r t g a g e

the

is h e l d

3y2

agreed

w e r e

b y

45

the

w a s

those

in

signed.

at

time

m a n d a t o r y

projects

P H A ,

years

of the y e a r

u p o n

m a d e

other

than

A m o n g

projects6 covered

purchase

w e r e

rates

mutuals.

regardless

construction;
1950.

or

interest—

1.4
57.0

y2

paid

W e s t b r o o k

received

percent
the

the

have

on

of
in

w h i c h

concluded

p e r c e n t interest; t h o s e in 1949,

percent;7 a n d

those

in

1950,

4

percent.

All

w a s
the

mutuals

obtaining

private

financing

in

s h o w n
paid
did

one-half

of

1

percent

m o r e

interest

20.
reflect

m o r t g a g e

m a y

1
1
9
2

2
1

apartments

than

each

1
1

projects (i.eMbuilt under the Lanham Act, that were earmarked for
postwar mutual purchase at the time that they were built).
2
Puerto Rican project.
*Second mortgage.
4 Originally; now 5 years.
5 Mortgage carries no time limit.

1948
for

6

1

1 Westbrook

of
m a d e

1
3

4
5

1
1

\

m

9

3

Total___

4
w h i c h

1

1
]

4

5

l

3H \____
4
3

4

1

in 1 9 4 8 b o r e
rates

1

4

3

3K
4
3H /
\

2
1

\

0 1

3

2

Less than 15
years
15 years______
2 vears
0
25 years_
_
30 years _
Over 30, but
under 35 years
40 years __ __
45 years .

the

in

5 /

3V2

Period of
m
ortgage

mutuals,

Per­
cent
paid

1
2
4

1

3
3 \____
3)/2 )

3

Total___

wh i c h

All-the-way cooperatives:
Associations building houses. _
Apartment associations_____
Mutuals with purchase contracts.
Co-ventures_____ ____ _ _

T h e

4H
5

1
1

5 \

1
1

1950

either

year

/

1

1949_________

in

paid

Despite

buildings
3

h a d

ranging

1
x2
1

1

available

These

association.

the

in

1924

4Yl
5
/
l

1948

Percent

Percent

Percent

1
2

1920
1929
1939___
1947

association that started w i t h a $60,000

m o r t g a g e

Percent

O f

amortization

a m o u n t s

cooperative,

m o r e

Year of m
ortgage

less

cases h a d

associations

$31,870,
$6,649

Num­
Num­
Num­
Num­
ber of Interest ber of Interest ber of Interest ber of Interest
rate associa­ rate
associa­ rate associa­ rate associa­
tions
tions
tions
tions

1951_________
in

older associations.

time

O n e

per­

only 1 percent.

paid

apartment

length

tion.

a n d

a m o u n t s

b y

a

22.8

elapsed.

on

1949
9

8

Item

to

t h e d a t e o f t h e final s a l e s

obtained,

elapsed,

b y

to

M
utuals

Apartments

apartment

h a d

recently

the m u t u a l s for w h i c h

not b e g u n

principal

purchases

order

including

the whole

their

in

E v e n

associations that h a d

a m o r t i z e their m o r t g a g e s ,
g r o u p

N e x t

agree­

reflect

bargaining

cooperatives

those

with

P H A

mortgages

concluded

the

the

p o w e r

building

6 Those built under the Lanham A ct, that were earm arked fo r p ost­
w ar purchase by mutuals, when they were built.
7 This was during the “ cash only” period in which P H A rates were
deliberately made the same as those o f F H A , including the insurance
prem ium s.

37

COST AND FINANCES
in t h a t y e a r ; t h e situation w a s
In

1950,

of

the s a m e

those

privately

reversed

financed,

in 1949.
one

paid

P H A ,

a n d

one

paid one-

Seven

a

mutuals

h a d

been

financed

f r o m

vari­

sources, including a r e g u l a r l e n d i n g a g e ncy,

savings

bank,

trust

c o m p a n y ,

m e n t

a

life

public

a

one

each
point

with

of original

specified rat e s
types

of interest

of

financed

is s h o w n ,

association,

in

for the

table

at

dif­

h a d

N o

the

three

the

their

survey

m o s t

associations
not

associations

reporting,

amortization

paying

t h e co-

arrangements).

p a y m e n t s
T h e

o n this basis b u t

w a s

on

associations

the l e v e l - p a y m e n t plan.

originally p a i d

a n d

available

co-venture
(in

T w o

month,

w e r e

m o r t g a g e

apartment

on

basis.8

each

individual m e m b e r s ,

m a d e

the

data

mortgages

m a d e

four

monthly,

of

21.

for

blanket

O f

level-payment
p a y m e n t s

quarter.

operative,

e m p l o y e e s ’ retire­

m o r t g a g e

the

their

o f this t y p e t h e

three

a m o u n t

ferent

a

company,

fund.

T h e

a n d

insurance

on

m a k i n g

this

rate as u n d e r

h a l f p e r c e n t less.

ous

indebtedness
w e r e

fourth

at the t i m e

quarterly

on

the

de­

c l i n i n g - p a y m e n t plan.

T

2 1 .— A m o u n ts o f original mortgage indebtedness financed
at specified interest rates

able

Co­
ventures

Total
Apartments

Mutuals

$24,674,472

$9,972,191
4,491,917
10,465,320
1,044,000

Houses

the

jects

All-the-way cooperatives

Interest
rate

O f

reporting

purchase

mutual

contracts,

w e r e

all b u t

m a k i n g

associations

the

monthly

with

W e s t b r o o k

p a y m e n t s

pro­

on

the

l e v e l - p a y m e n t plan.

Mortgage Insurance
3 percent ____ $9,972,191
3H percent___ 29,166,389
4 percent. ___ 11,758,220
3,633,388
4M percent___
5 percent____
1,773,929
4,000
6percent__

$367,900
11,650

2,589,388
11,608,895

Total------- 56,308,117

*379,550

*29,724,755

8200
5,0

L eg a l situ a tio n :

$73,000
153,384
4,000

4
25,973,428

*230,384

1 Includes mortgage for one association recently refinanced at 3% percent interest.
A
*3 associations reporting.
*9 associations reporting.
4 23 associations reporting; does not include 1 Puerto Rican project, with noninterest­
bearing mortgage of $541,800.

tion

of

existed
w a s

prior

operative

to

the

1948

either

to

of

a b a n d o n
U n d e r

being
their

against

venture

both

a

the

associations.

fi r s t a n d

second

b y

a

O n e

labor
these

organization
mortgages

that

sponsored

carried

collective

co-venture

a n d

percent but h a d

no

time

limit.

interest

O n e

a n d

to o b t a i n

insurance,

in

1948

for

25

years

at

5

small

for

N o n e

5 years
of

a n d

the

an

a n d

the

co-venture

A c t

in

specifically

the

absence

quainted

mortgages

h a d

h a d

T w o
been

of

the

apartment-house

refinanced

at

a

lower

included

O n e

m u t u a l —

a

h a d

refinanced

the

units,

its

mortgage,

agency.

abled

p a y

the

to

obtained

transaction

rate f r o m

T h e

off t h e

3 to 4

b y

mortgages

f r o m

three

building

a

on

with

w e r e




T h e

F H A

associations

procedures,

w e r e

re­

a n d

una c ­

in

the

w a y s

F H A
of

w a s

cooper­

F e w

associations,
could

get

lacking

financing

an

insurance

f r o m

w a s

thus

mortgage,

m e m b e r s ’
reduced

all-the-way
paying

Those

that

w e r e

recog­

successful

h a d

take

mortgages

so that the m e m b e r s '

of

m u c h

d o w n

smaller

p a y m e n t s

coverage,
ranged

up

percent.

en­
but

interest

the period

cooperatives

their

lenders.

regular

4 0 y e a r s to 25.

reporting

houses

the

percent a n d

of amortization f r o m
T h e

association

G o v e r n m e n t

raised

an d

f e w

replac­

to 4 0
lending

m a c h inery

cooperatives,

subsistence-homestead

blanket m o r t g a g e

individual

cooperatives

of

to
ing the P H A

so.

m o r t ­

rate

nized
project—

did

National

i n s u r a n c e . 101 H o w ­

special

with

inexperienced

co m m i t m e n t ,
interest.

to t h e

been
atives.

gages

of

deal

insurance.

equally
refinanced.

majority

a m e n d m e n t

sec­

at 4 y 2 percent.

the

w a s

m o r t ­

one
ceived

o n d

it

individual

apart­

mortgages,

percent

co-ven­

5

r e g u l a t i o n s 11 t o
running

or

the
at

ever,
t w o

co­

cooperatives

b e c o m e

organization

a m o n g t h o s e eligible f o r F H A

m e n t - h o u s e pro j e c t also h a d

a

starting w i t h

all-the-way
plan

for

financing

co­

H o u s i n g
project;

m u t u a l s 9 ). I t

mortgage,
Early

held

for

impossible

w e r e
gages

h a d

authoriza­

cooperatives

Associations

possible for m e m b e r s
outstanding

legal
for

(except

practically

get

intention

specific

insurance

collective i n s u r a n c e .

tures.
c a s e s o n l y first m o r t g a g e s

to

therefore

h a d

I n all b u t t w o

N o

m o r t g a g e

m o r t g a g e

8 U nder this plan the total periodic paym ent remains unchanged.
H owever, as tim e goes on, an increasing share goes to paym ent o f
p rincip al and less to paym ent o f interest.
9 Public w ar housing, sold by P H A to mutuals, could be insured by
F H A under Section 610 o f the N ational H ousing A ct, approved A ug.
5, 1947.
10 In Section 207 ( f ) .
1 The F H A regulations covered Section 207 as a whole, but not
1
paragraph ( f ) — cooperatives— specifically.

38

COOPERATIVE HOUSING IN TH E UNITED STATES
of t h e c o o p e r a t i v e s c o v e r e d in t h e s t u d y

a n d

F H A

T h r e e

ordinarily

received
w e r e
a n d

insurance

mutuals.

In

a co-venture

In
ing

1950
A c t

a n

in

1949

a

mutual

218)

to th e

created

a

missioner
assist

the
of

offic e

the

of

F H A

cooperatives

technical

a

with

problems.

a n d

use

F H A

a

of

“ kit”

i n s u r a n c e . 12

a n d

processing

rangement.
the

f r o m

acting

the

(see

to t h e

F H A ,
f r o m

nucleus

a

a

1).

“the

to

statement

the

issued, t h e

a g e m e n t

a n d

group.”

m e t h o d

critical

struction

are

T h e

expert

stages.”

the recognized

receipt

the

for

F H A

the
w a s

with

insurance.

the

carried

on

association,

These

O n e

of

in

wh i c h

3

guaranties

h a d

a

these

dwellings
tion h a d

or
a

Three

h a d

F H A

$768,000.

a n d

con­

reversal

F H A

V A

guaranty

A s s o ­

lenders
h a d

also

guaranty,

the

7

not

a

V A

on

91

insurance
in

a

individual

no

out

figures.

of

units,
a

that

existence

aggregating
V A

guaranty

the

a m o u n t

association

units,,

a m o u n t

association

the

associa­

associations

(matching

22

fifth

report

third

gave

A n o t h e r

on

315
a nd

not

also h a d

$175,000

with

A

going

on

c o m ­

a total o f $2, 4 9 9 , did

but

before

of these

h a d

insurance.

insurance

F H A

dissolved

insurance
O n e

that

F H A

insured.

insurance).

obtained

but

cooperative

percent

association

houses

a n d

R F C

individual notes

h a d

veterans'

units for

ported,

f r o m

mortgages

$50,000

t w o

a m o u n t

of

built s o m e

in a n

T h e

M o r t g a g e

associations

100

other

F H A

in

a

h a d

T h e

mortgages

insured,

m o r t g a g e

for

projects,

90-percent V A

000.

of

this

re­

insur­

m e m b e r .

these,

coop­

the

h a d

not

re­

m e m b e r s

commitments.

of

Financial Status

houses,

under

(whose

National

of

dissolved

their

dwellings,

O f

5

t w ro

allh a d

O f

the

ating

all-the-way

deficits.

house

con­

erty,

master

con­

expenditures

F H A

covered

over-all
24,

126,

the

13
A description o f the new program , the help available, and the
steps to be taken by cooperatives in order to obtain insurance is
given on pp. 64 and 130.

a n d

In

in

the

it w a s

In

w e r e

nonprofit

b y

w e r e
the

3

caused

fa r m h o u s e

second

(these

deficits

the

associations,

one

for the

investment).

annual
sure




per

rentals c h a r g e d

co-ventures

5

the

insurance

the

the

insurance.

A m o n g

O f

18

that

the

$3,207,100.

Federal

O n e

on

planning,

building

the

F H A

pleted

a

the

w a s

total a m o u n t

units w e r e

of

cases.

t w o

only

1,280

a m o u n t

bought

m a n ­

cooperative procedure.

cooperatives

struction
tract

the

c o m m i t ­

In s u r a n c e sta tu s a t tim e o f s u r v e y :
the-way

of

k n o w - h o w

it is a

in

mutuals,

h a d

then

b y

in a

proj­

r e g u l a r l e n d i n g i n s t i t u t i o n s 13) h a d

insurance;

(through

cooper­

cooperative.

believes

H o w e v e r ,

it

application

insurance

skill a n d

the

ciation)

not

the

a s s u m e d

organization,

do

the

projects),

dwellings,

(5

neither

a m o u n t

of $1,200

through

to

one,

g u a r a n t y for $60,000 b a c k e d b y

has

U p o n

In

total

(4

the

coverage.

co­

according

a n

1,758

3

cases,

not

associations

the

other

g u a r a n ­

m o s t

m e m b e r ,

or­

“cooper­

advertises

F H A

of

organizes

(issued

the

f r o m

project

a n d

with

sponsor

“provides

the

F H A

A m o n g

ar­

the

of

p r o j e c t is b u i l t , a n d

erative

n e w

officers

w h o

covered

nor

V A

In

$15,801,700.

w e r e held b y

prohibited

the

group

eligibility.

control

of

crystallized

cases,

builder

is o b t a i n e d ,

the

F H A

cases

for

n e c e s s a r y to c o m p l e t e

m o r t g a g e

m e n t

of

In

ance

the

insurance.

ported.

or

individual

a p a r t m e n t

units

aggregate

benefiting

or

the
F H A

veterans’ groups

of the two.

received

of

for

the

that

T h e

insurance

the

n u m b e r

for

w e r e

such

o f eligibility

group),

m e m b e r s

the

a

of

h a d

apply

cooperatives

cooperative

F o u r
ects)

issued

to

definition

initiative

sponsor

plans

w a s

m a n y

as

In

a nd

to deal w i t h

under

w a y

in

a

statement

ative

A

p.

u p

others

a

of

submits

u p

accepted

to

a m e n d m e n t

w e r e

incorporators

accepted

to

ative”

c o m e

Procedures

H o w e v e r ,

ganizations
c o n f o r m

this

planning

or

directed

F H A

it w a s

association,

of

c o m ­

h a d

ties o r a c o m b i n a t i o n

for cooperatives w a s

pecuniary

as

operatives.

w a s

d r a w n

speeded

in a

p r o g r a m

assistant

materials

Builders

project

for

of

associations

H o u s ­

organizational

U n d e r

7 3 units, respectively.

however,

cooperatives a n d

n e w

definite i n s u r a n c e p r o g r a m

the

these

National

w h i c h

started, regulations w e r e
them,

of

association

n e w

insured m o r t g a g e s for h o u s i n g
established

t w o

received insurance.

a m e n d m e n t

(Sec.

1948;

the

on

of

low

the p r o p ­

as

part

association,

deliberate;
aspect

oper­

the

preconstruction

capitalized
third

h a d
b y

in

the

order

to

of
the
in­

organization,

1 Such sources could be drawn upon only with the assurance tha>t
3
F H A insurance or V A guaranty would be forthcom ing.

39

COST AND FINANCES
the

budget

w a s

deficit w a s

set

as

low

incorporated

as

possible

in the

a n d

the

f o l l o w i n g y e a r ’s

terns o r

budget.
In

T h e

one

w e r e

co-venture,

constructed

association h a d
h a d

been

study

a n d

voted

u p o n

individual

paid

b y

its

for

at

association

disposition
the

tion of t h e s a m e
all

dwellings

i n s t a l l e d all t h e

the

T h e

paid

for

entirely

bank.

the

h a d

a n d

h a d

a

expenditures),

a m o n g

the

planned

to

a

natural

h a d

a

m e m b e r s .
use

on

lake

surplus

improving

its

the

bills,

for various
A m o n g
kind

of

the

of

$600

2-acre

association h a d
a ll

$600

$3,000

w h i c h

the

park

area.

A

b a n k

be

another
used

F a r

in

W e s t

after p a y i n g

e a r m a r k e d

to

be

only

property,

as

with
utility

s o m e
sys-

a

N e g r o
T h e

ab le

2 2 .—

net

Type of association

Total
assets

Amount

ported

All-the-way cooperatives:
Apartments—
Association No. 1 _____
Association No. 2 ___
Association No. 3 _ ___ _
Association No. 4__
Association No. 5 _
Association No. 6 _
Association No. 7 _ ...
Association No. 8____
Mutuals—
Association No. 1 ________
Association No. 2_ _ _
Association No. 3___
Association No. 4___
Association No. 5__
Association No. 6 . __
_
___
Co-ventures—
Association No. 1_______
Association No. 2_____________
Association No. 3________ ____ _

F r o m

half

f r o m

$1

S o m e

the

723,450
795,808
5,055,728
1,063,226
817,735
1,084,458

178,298
47,824
582,012
16,175
143,391
92,388

1,147,885
25,966
128,679

2
4,312

41.0
23.2

to

14,580
6,880
656,671

*Deficit.

a

been

w a s

paying

on

N o n e

re­

time.

but

one

said

deficit w h e n

in

but

both

that

its

deprecia­

is

M o s t

of

m o n thly

of

no

In

a m o u n t

the

dues

is

cost

apartment

.
6

T h e

22.7
65.4
93.2
81.7

total

prepared
ing

$1

ranged

at

to

$3,040.

lot

in

associations,

f r o m the m e m b e r
about

a m o u n t

the
the

in

m e m b e r s h i p

est-priced
the

p a y

m e m b e r s h i p

charges,

$20

a m o u n t

to

both

charged

T h e

on

cost

of

associa­
$1,

asso­

usually

price

re­

of

the

associations,

procedure,

a

fee

the
T h e

fee

the

the

the

$25,

n o w
n e w e r

(if

latter

a n d

any)

$500.

of

the

a n d

other

included

of the

nearly

a m o u n t

did not exceed $5 0

be

includ­

associations

a m o u n t

In

one

m u s t

joining,

the cost

initial

a n d

m e m b e r
of

reporting

project.

twelfth

exceeded

n e w
time

one

the

or

cents,

A m o n g

$10,

be

a n d

on

plus

of 2 5

r o o m

the

fee.

to

a p a r tment

original

m e m b e r s h i p
one

applied

co-venture

per

old

their

charges

price,

the

on

associations.

organization

the

asso­

varied

charges.

are

land

this

association,

a n d

of

applied

of

regardless

levy

part
the

respectively.

housing

fee;

the

in

Three

f lat

do

fee

m o s t

share

a

the

reporting

joining

also require

charge

the

fee,

the

a n d

of

m e m b e r s h i p

shares

associations,

19.4

statement of latest business year—usually 1949 or early 1950.




of

$2,

quired

In
1 From financial

for

development.

a

22,291
7,378
803,668

7)

c o m p a r a t i v e l y little

two-thirds

impose

11.5
1.5
17.5
8.5

31,600
2
22,818

(No.

to

T h e

1923.

short

a

order

off.

of

m e m b e r ’s

f r o m

138,919
87,172

in

h a d

a

in

h a d

$200.

60
.

Dissolved

Project not completed, some construction:
Association No. 1----------------- __
Association No. 2 __ __
Project not completed, no construction:
Association No. 1____
_ __ . . .
Association No. 2 ___ __
__ _
Association No. 3________________

built u p

t w o

h a d

mortgage.

sho w i n g

deficits,

no

time

24.6

5,040
727

the

started

s h o w

$370

impose
at

unit.

27.6
37.9
81.0
32.5

to

charge

ciations

$45,016
17,787
2
10,405
230,639
20,348
36,480
31,632
1,458,839

m e m b e r s

they

are

asso­

organizations,

on

best

only

charged

associations

statement

Cost to M em ber

a n d

$110,031
76,538
27,328
31,186
73,760
96,287
39,034
4,494,991

h a d

m i g h t

22

Entrance Charges

tions

Active

the

operating

tion w a s

old

of the

because

statement

purchase

Percent
of
assets

one

properties

“charges”

Net worth

continu­

serious plight; o n e

cooperative,

worth,

others

A ssets and net worth o f housing associations 1

a n y

of t he a p a r t m e n t

w e r e

with

of

financial

p a y m e n t

mutuals

their

paid
T

1949

w o r t h

M o s t

in a

f r o m

its

ciations

those

such

w e r e

association

used

purposes.

co-ventures

c o m m o n

St i l l
to

in the

divided

developing

w a s

m a k e

$6,500

cooperative

for

property.

w a s

c o m m u n i t y

third

w h i c h

associa­

net

latest

included

to b o r r o w

(to a l l o w f o r a n y

surplus

ciations

the
be

a n d

their

in table 22.

in

of

be

s h o w n

in

of w h i c h

w o u l d

surplus

assets

given

the

its p r o j e c t ,

w o u l d

A

its

These

$7,000
s u m

the

as

of

time

A n o t h e r

whi c h , after a reasonable t i m e
unforeseen

utilit i e s .
the

completed

h a d

wh i c h

m e m b e r s ,

this

m e m b e r s .

type

bills,

of

of

r e c r e a t i o n a l facilities, h a d

i n g assets or net w o r t h .

high­

half

of

required

(table 23).

associations

the

40

COOPERATIVE HOUSING IN TH E UNITED STATES
T a b le 23.— Cost o f jo in in g housing associations

T h e

effect o f r i s i n g p r i c e s i n t h e p a s t

10 years

hy amount required
is g r a p h i c a l l y

ects.

P o e t not
rjc
completed

A l t e w ya s c a i n
l - h - a soitos
Co­ r j c
oet
venture Pcom­
asca pee
soi­ ltd
Apart­ Mu­ t o s
Houses ments t a s
in
ul

Amount r q i e
eurd
o new
f
members 1

T h e

before

Number o a s c a i n c a g n s<c f e suea
f s o i t o s h r i g pe i i d s

1
2
1
1

2
2
4
2
1

1
3
6
3
6
2
3
2

1

1
3
2
3
3
3
3

2
4
2
2
1
1
2
2
2

2
2
2
1

1

1
8

5

Total______

1
1
1

after

a n d

1
2

2
1

2 /____
\
2

l
)

8

7

1
4

1 Includes membership fee and other requirements.
1 And must accumulate $3,000 (to cover cost of land and its development) before
becoming a full member.
3 Includes 1 association charging monthly dues of $1 and 1 association charging
monthly dues of $2.
4 In 1 of these the membership charge is $10 per room and the member must also
.subscribe for stock to the total amount of the price of his unit.
sOne association also required payment amounting to 2 percent of the estimated
total cost of dwelling.
6 Including 1 association charging monthly dues of 25 cents.

3

w h i c h
war,

built

the

$7,500;
w a s

Price o f Unit
A n

extremely

type

of

$7,000

building

( m i n i m u m

$18j000

N o n e

of

these

co-ventures,

help

for

r o o m

range

range

to

range

$30,000

a

range

w a s

3-bedroom

h a d

built

f r o m

house

co­

f r o m

2-bedroom

bedrooms.

w a s

s a m e

all-the-way

house
house.

dwellings

A m o n g

$4,500

built

( m a x i m u m )

b y

for

a

the

( m i n ­
a

for

one

occurred
for

a

of

f r o m

$2,800.

self-

4-bed­

$750
of
in

associations the c h a r g e
$250

B y
for

3

unit

of

vided.)




price

to
50
to

one

of

the

T h e

the

unit

to

smallest

associations—

$3,955
a n d

old

dwelling,

1-bedroom

mutual

( S e e also pp.

relation

a

of

bedrooms.

the

1-bedroom

(in

size

51

living

for
for

one

of

discus­

space

the

pro­

1950

of

cost

the

figure

houses

p r e w a r
the

end

postwar

w a r

one

en­

$ 2 , 7 5 0 14;
self-

co-venture

a n d

after

3-bedroom
a

about

postwar

In

of

cost

almost

cost

the

before

cost

size

w a r

averaged

$6,000.

both

the

built

for

cost of a

built

s a m e

house

4-bedroom

the
w a s

house

M em ber’ s Down Payment
Three

T h e y

of

40

the

four

houses

percent,

all-the-way

reported

liy 2

required

on

percent,

respectively,

This

f r o m

$1, 8 0 0 to a m a x i m u m

p a y m e n t

m e a n t

could

an

be

paid

the 3 associations—
a n d

within

3

3

years

in

years

1

in

in

the

the

in

m e m b e r s

had

could

second,

a n y

T h e

It

to

a n d

m eet

in

2

h a d

of

case
to

be

association,
before

N o n e

a r r a n g e m e n t

b o r r o w

of

d o w n

in o n e

one

start of c o n s t r u c t i o n in t h e third.
associations

m e m b e r

m o n t h s
other.

a n d

dwelling

installments
3

year

the

total

of $8,000.

within

within

for

payments.

percent,

the

outlay

cooperatives

d o w n
3 3 %

of

cost.

the

the

of these
w h e r e b y

d o w n

p a y ­

ment.
T w o

self-help

ported
three
25,

that n o
other

a n d

house,

cause

or f r o m

the a m o u n t
varied

ported

a n y

b o r r o w

to

required
ing

in

$2,000.

a

the
In

a n d

provision
m e e t

his
of

b y

flat a m o u n t

a

f e w

of

T h e

of the

d o w n

be­
p a y ­

m o r t g a g e
re­

could

payment.

d o w n

older

associations

payment,

associations
the

remaining

m e m b e r

a partment
as

the

organizations
a

In
20,

of

information,

w h i c h

d o w n

w a s

price

i n d i v i d u a l ’s
these

the

reporting

p a y m e n t

percent

of

re­

required.

total

supply

the

N o n e

majority

the

w a s

to $9,600.

not

with

the

of

$2,000

could

associations

p a y m e n t

percent

agreement.

A

co-venture

d o w n

associations

3 3 %

associations

m e n t

f r o m

bedrooms.

sion

2

1-bedroom

ranged

w a s

$14,000

3

than

the a p a r t m e n t

buildings)

$932

to

the

for a
for

prices

house.

A m o n g
per

the
a

group

r o o m

houses

price)

dwelling

units of the

the

associations

f e w e r

of

the

A m o n g

( m a x i m u m )

containing

i m u m )

range

a m o n g

association.

operatives

to

w ide

for

$18,000.

within

r e sealed, e v e n

the

the

bedroom-house

associations w a s

completed

w a s

figures

dwelling

$3,750;

self-help b e f o r e

building

33

27

1
1
2
1
1
2
2
1

the

A

corresponding

help

1
1

the

2-be d r o o m

just

tirely b y

53

a
w a s

$6,050;

the

of

w a r

built

house

No
Some
con­
con­
srcin srcin
tuto tuto

cost

the

$10,000.

_
No charge._ __
$ ________ .
1
$5____ ________
$0
1 _________ .
$11—$20_________
$25_______
$50______
$51-$100______ .
$101-$149_______
1150________
$151-$200_______
$201-$300___ .
$301-$400___
$401-$500________
$501-$750_____
$751—$1,000______
$1,001-$1,500______
$1,501 and over. _ _

b y

dissolved associations that c o m p l e t e d their p r o j ­

Dis o v d a s c a i n
s l e soitos

A t v ascain
c i e soitos

illustrated

f r o m

r a n g ­

$100

to

associations

as

14 This cost represented m ainly the cost o f m aterials and plastering.
Practically all construction was done by the members and even the
building m aterial (native stone) was quarried by them from a
deposit on the site.

41

COST AND FINANCES
well

as

de n d

those

law,

n u m b e r

operating

the

of

d o w n

rooms,

required.

In

are

the

data,

$200
the
40

percent.

f lat

In

per

case

w a s

be

a n y

a r r a n g e m e n t

ment.

to

the

f r o m

cussed above.

T h e

ranged

$2,500.

12

the

to

d o w n
before

drawn.

for

to

In

no

p a y m e n t

in

Y o r k

h a d

m e m b e r s

m a k e

the

though

considerably

u p

to

cost,

the

O n e

to b e

w a s

it

transferred.

b y

h a d

a n y

r o w

In

each

a

terms

w h e n

of the

source f r o m

total

the

dis­

$500, but

20

house

percent.

d o w n

the

p a y ­

m o r t g a g e

w a s

w h e n

dissolved

w h i c h

the d o w n

houses,

to

house
a n d

the

group

of

the time

the

f e w

w a s

10

required
b y

b y

completing

in t h e

w a s

completed,
N o n e

to m e e t

than

lowest a m o u n t

completed

w a s

in

building

p a y m e n t

approved,

w h e n

required

succeed

higher

association

m e n t

d o w n

a n y

sponsored

N e w

w h i c h

t h e m

not

their

f r o m

projects,

p a y m e n t

did

w a s

c o n s t r u c t i o n started,

projects

through

enable

d o w n

that

there

respectively,

in

T h e

ranged

lease w a s

g roup

point.

associations

being

ranged

provision

On l y

A m a l g a m a t e d

borrow,

of

this

r o o m

associations

made,

deed

there

installments.
the

the

w h i c h

per
for

r o o m

p a y m e n t

In three n e w

the

with

r e l a t i o n t o t o t a l d w e l l i n g cost,

d o w n

m u s t

before

limited-divi­

varied

rate

c o n s t r u c t i o n started, w h e n
a n d

the

associations

a m o u n t

to $ 6 7 5 .

required

p a y m e n t

a

the

under

p a y m e n t

started,
ti t l e

w a s

associations

m e m b e r s

could b or­

payment.

could

d o w n

p a y ­

T

a b l e J 2 4 .—

Average down payment required, by amount and
percent of total cost of unit

I n t h e s e projects, l o a n s c o u l d b e a r r a n g e d

f r o m

the A m a l g a m a t e d

Bank,

or f r o m

the

Active associations

asso­

ciation's “ h o u s i n g f u n d . ”
In

the

mutuals,

f r o m

the

m e m b e r

f r o m

5

1 0 p e r c e n t . 15

in

to 2 0
F o r

AU-the-wav associations

d o w n

the

p a y m e n t

reporting

percent,

but

required

associations

w a s

c o m m o n l y

the associations for w h i c h

Required
down
payment

Apartments
Houses

the

»=
9
» <
3
S2

varied

the

Dissolved
associations

Per
room

$925

$390

'

Flat
amount

Co­
Project
venture
not
associa­ Project com­
com­
tions pleted pleted,
sem con­
e
struction

a m o u n t
w a s

of d o w n

f r o m

nothing

associations).
a

d o w n

case

paid

T h e

average

w a s

it

mutual

he

the

b y

m o v e d

b y

a

w h i c h

In

quired
the

b y

he

in
for

time
O n e

joined
he

in

others
the

signed

provisions
could

could

p a y

b o r r o w

the

w e r e
in

to

contract
sale

reported

varied

p a y m e n t

associations

project,
f r o m
h a d

$300

to b e

in a n o t h e r

remaining

the

to

m a d e

his

p a y ­

w h e n

associations

h a d

In

one

the

t h e sale w a s
did

c o m ­

p a y m e n t s

w h e n

not

re­
case,

m e m b e r
closed;

report

on

2
1
2
2
2

3

1

4
4
3

1
1
1

Percent of total
cost of unit:
None
5.0-9.9-— --10.0-14.9
15.0-24.9___
25.0-34.9—
35.0-39.9- 40.0 and over—

3

2
2

1
1

2
1
1

1

2

3

2
2
1
1

1
1
1

1
7
1

1

2
1

3

1
2

Carrying Cost to Member
houses
w h a t

the

w o uld
only

one
h a d

m u c h

m e m b e r ' s

tion

A m o n g

those

survey,

all-the-way
progressed

be.

as

on

ventures,

to

cooperative
the

m o n thly
the

a

of

these

year's

data

this

on

because

w e r e

only

three

carrying
w a s

in t h e m

costs.

the

charges

associations
visited
h a d

Fifteen

available

building

of k n o w i n g

carrying

operation.

point

point

apartment

actively building

a n d

furnished
1
5 T h e associations’ mortgages never required t h e m to p-ay to the
Government m o r e than 10 percent down; in most cases either no
p a y m e n t wa s required or the a m o u n t w a s set at 5 percent.




1
1
2

of the m e m ­

that

$650.

$1,380

2

3

None
- ___
Under $100
$100-$199.__ ____
$200-1299________
$300-$399________
$400-$499 __ ___
$500-$999 .
___
$1,000-$1,499 ____
$1,500-$l,999_____
$2,000-$2,999_____
$3,000-$3,999_____
$5,000 and over____

Only

d o w n

$469

installments

m a k e

reported that s o m e

$251 $3,640

Number of associations with specified requirement

required

association,

the date the association took
N o

dissolved

their

joined a n d
the

but

average

n e g o t i a t e d p r i v a t e loans.

the

pleted

the

of his dwelling, b e f o r e t h e

m e m b e r

ment, but a f e w
bers h a d

cases

the

in, w h e n

project.

wh i c h

or

varied

Average amount
required___ _ ___ $3,500

requiring

required,
the

(2

p a y m e n t to b e m a d e .

m e m b e r

closed, a n d
the

$455

m o s t

raised

associations

for the p u r c h a s e
w a s

those

f o r it “ i m m e d i a t e l y , ” a n d

w h e n

to

In

a m o u n t

p a y m e n t s

the ran g e

to $294.

w h e n

over

k n o w n ,

for

$251.

required for the d o w n
asked

w a s

associations)

only the

extra

the g r o u p

(3

T h e

p a y m e n t

m e m b e r s
one

p a y m e n t

N o
for

in

the

h a d

as

mutuals
informa­
the

individual

co­

m e m ­

42

COOPERATIVE HOUSING IN TH E UNITED STATES

bers

m a d e

of w h i c h
T h e
w a s

their

the

o w n

average

m o n t h l y

t h e result of a

iables,

such

the period
the

rate

as

utilities

a n d

m o n t h l y

“ rental”

In

the

m o n t h l y
than

erate

above

In
age

12

(table

that

mutuals,

purchase

the

(if

association

the

price

in

the

of

mutuals,

15

their

p a y m e n t s

a n d

the

m o n t h

in

the

the 20-year tax

the

the

w a s

the

m o r e

mutual.

very

the

m o d ­

average

the

w e r e

built

organizations.
m e m b e r s ’ aver­

less

than

$45

a

month.

these

taxes.
m e n t

able

2 5 . — Monthly

In

n e w

the

variation

bers.

These
b y

terms

also

the

a n d

Houses—
Associa­
tion
No. 1:
19501

Amortization of principal
Interest
Real-estate taxes and insurance
Utilities and services __
Management
Maintenance and repairs
Vacancy allowance
Other reserves.
Other expenses
Total
Year mortgage obtained

Asso­ Asso­
ciation ciation
No. 1: No. 2:
1949
1949

$13.00 $10.67
35.00 19.73
13.00
4.26
218.00 *8.44

$9.00
23.00

20 32
.0 .0
5 0 9.15
.0

1
J

per

the
to

cost

of
l aw

raise

of

average

the
p a y ­

there

the

costs
quite

w a s
to

largely

purchase

the

a n

the

ex­

m e m ­
deter­

agre e m e n t

efficiency, b u t o t h e r
total.

a m o u n t

of

A m o n g

these

services

a n d

cost of dwelling unit per member, in all-the-way cooperatives, by cost item and year
Mutual associations

Apartment associations
Item

w e r e
of

influenced

kind

H o u s ­

per month.

and, of course, m a n a g e m e n t
factors

b y

h a d

the

the

m o n t h l y

charges

the

cover

in

expiration

association
to

Divi­

r o o m

conferred

mutuals

in

per

the

buildings

is $ 1 5

a m o n g

treme

m i n e d

the

$11.95

H o u s i n g

apartments

$11

U p o n

the

rentals

A m a l g a m a t e d

for

exemption

to

its

State

proj­

(under

m a x i m u m

City,

the

recently.

per r o o m

E v e n

of

rented

buildings,

a m o u n t

w e r e

T

until

the

Y o r k

buildings

ap a r t m e n t

w h e r e

the

b y

N e w

Corporation

m e m b e r

o w n

fixed

in

older

in t h e a p a r t m e n t s

b y

are

E v e n

ing

houses,

units,

r o o m

Y o r k

law)

the

lowest-cost

the

per
sion.

reporting

N e w

paid,

included

of

of the

in

limited-dividend

on

per

one

w e r e

real-estate

of

be

25).

because
of

of v a r ­

carried,

any)

a n d

dwelling,

m u s t

providing

lower than

the

widely

the

level

m e m b e r s

m o n t h l y

of

of i n s u r a n c e

services

rentals w e r e
for

the

carrying charge

$60

A m o n g

cost

the m o r t g a g e

interest,

a m o u n t

ects

record.

cost varied

total

All b u t

arrangements,

no

considerable n u m b e r

the

in w h i c h
of

taxes, t h e

financing

association h a d

35.00

f ___
4.00 i .......
1 1.49

90.00

56.94

1949

1948

Association No. 3
1948

1949

$10.04
5.95
3.17
38.15
3.35

$10.15
5.80
5.73
3
5.84
3.84
9.83

88
.6

Association No. 1
1947-48 1948-49 1949-50
$12.27 $12.77 $13.29
9.92
9.42
8.90

822.03

«22.03 «22.03

Association No. 2
1948

1949

$16.35 $20.38
1 . 0 9.49
12
7.69
8.09
48.90 48.18
2.72
2.96
4.20
4.35
.92
.95
18
. 8 .73
1.42
2.03

Asso­
ciation
No. 3:
1949

Association No. 4
1947

1948

1949

$9.65
6.76

$8.38
7.36
2.13

$8.38

$8.38

8.33

8.17

615.00

6.34
6.80

4.08
6.80

4.63
6.80

4.40

4.40

4.40

71
.2

68
.6

Asso­
ciation
No. 5:
1949
$6.52
8.95
5.20
5.48
2.71
5.25
13.91

41.19

44.22

44.22

44.22

56.32

56.12

31.41

35.41

39.11

39.24

43.02

1948 1939-46 1939-46

1948

1948

1948

1948

1948

1949

1947

1947

1947

1948

Asso­
ciation
No. 12:
1949

Asso­
ciation
No. 13:
1949

Asso­
ciation
No. 14:
1949

Asso­
ciation
No. 15:
1949

67.00

39.52

Mutual associations—Continued
Association No. 6
1948

Amortization of principal
Interest._ . .. _
Real-estate taxes and insurance
Utilities and services........
Management
Maintenance and repairs
Vacancy allowance
Other reserves
Other expenses
Total
Year mortgage obtained
1Estimated on basis of i rst 6 months.
2 Electricity, gas, and water.
3Heat, electricity, and water.
4Heat, electricity, gas, and water.

1949

Association No. 7
1947

$7.98 $8.27
15.03 14.74
9.59
9.70
719.49 719.11
5.27
5.27
60 6.77
.1
2.78
2.78
3.90
3.90
70.05
1948

1949

$5.64
7.36
4.36
*3.37
3.30
5.37

$5.64
7.19
4.54
*3.32
2.87
9.64

$5.64
6.89
5.13
5
2.75
2.57
8.69

u .82

H1.14

ui.17

70.54 H30.22 n34.34 “ 32.84
1948

*W
ater, and garbage, trash, and sewage disposal.
*Ineludes heat, gas, water, and garbage and trash disposal.




1948

1947

1947

1947

Asso­ Asso­
ciation ciation
No. 8: No. 9:
1949-50 1949
$6.92

$8.12

Association No.10 Association No. 1
1

61 66
.0 .6

6.76
6.54
4.39 414.59
2.57
3.25
4.01
6.29
2.35
7.82
.36

1948

1949

$7.10
6.28
7.61

$7.10
6.28
7.61

2.54
5.71
3.57
2.18

2.54
5.71
3.57
2.18

1948

1949

$7.02

$7.02

7.58
84.78
2.34

7.58
84.78
2.34

3.47
2.08

3.47
2.08

62
.1

62
.1

62 }
.1

62
.1

/
$8.83 $13.28 $14.42 \ $5.78
11.98
8.53
61
.1
3.75
0
9
3.25 16.99 10 9.20
1.96
1.99
1.75
4.50
.87
1.97 22.53
.62
8 0 1.95 1.83
.0
1.30
.79
.81

38.57

48.16

34.99

34.99

39.69

' 39.69

32.00

34.37

36.33

40.29

1948

1948

1948

1848

1948

1948

1947

1949

1949

1949

7
Heat, electricity, gas, water, and trash and sewage disposal.
8Electricity and water.
9Water and sewage disposal.
1Gas, water, and sewage disposal.
0
1Includes charge of 25 cents for community-activities fund.
1

43

COST AND FINANCES
T

2 6 .—

a b l e

Monthly rentals in mutual associations, by size of
dwelling unit

In

7

mutual

included

Monthly rental charged for dwelling with—
Association1

1bedroom

5

of

a n

these

allowance

2bedrooms

associations

allowance
the

to

vacancy

for

cost

of

the

m o n t h l y

cover

charge

v a c a n c i e s 18; in

allowance

included

collections.

In

t w o

an

asso­

3 bedrooms
ciations, 5 p e r c e n t o f t h e m e m b e r s ’ m o n t h l y p a y ­

Association No. 1 2
_____________
Association No. 4 3
_____________
Association No. 76
-.....................
Association No. 9 9
.___ __ _____
Association No. 10 3
_.....................
Association No. 15 1 ___________
1
Association No. 16 1 .......... ..........
2
Association No. 17 1 ................ .
2

$49.25
46.00

$43.75
441.00 |
543.00
735.75 j
837.75
731.00
833.75
37.00
40.00
38.00
40.25

$38.25
39.00 /
1
33.25 /
\
30.00 /
\
30.25
37.00
35.00
37.75

m e n t s
in

3

w a s

41.50
43.00
40.50
44.40

tion set a s i d e 2 0
In t w o

f o r m e d

ing

f r o m

Real-estate

$3.75

to

$9.70

1949.

not

only

of

the

in

the

years

the

m u t u a l , 16

nance

b y

the

a n d

immediately
a n d

associations

the

fund

f r o m

of

such

preceding

the

adequacy

for

entailed

in

insurance.

di f f i c u l t

to

meeting

purchase

of

mainte­

W h e n

m e e t

cases

require­

these requirements

(as,

for

instance,

extensive r e p l a c e m e n t of p l u m b i n g to m e e t
code

requirements),

P H A

itself

Seven

these

m o n t h l y

indicate

ings

w e r e

m a n a g e r
sional
s o m e
$90

a m o u n t s

that

paying

of

one

hearing
rental

very

project
in

1949,

property

a m o n t h

s h o w n

m e m b e r s

in

financed

as

the

not nearly as g o o d as m u t u a l
paying

$42

a m o n t h

for. A n d

t h a t t h e ------ m e m b e r s
a n d

will h a v e

t h e m

a n d

3 -bedroom

are

paid

a

a n d

dwell­

rates.

at

follows:

myself

rent for a

mutual

moderate
testified

T h e

congres­

“I

I a m

control

losses

Various

fun d

buying

for within

is

i n ------ a r e

it s h o u l d b e

noted

their h o m e s
15

y e a r s . ” 17

1 S o m e of the associations claimed that maintenance w a s seri­
6
ously neglected and only minor repairs made.
1 Hearings before House Committee on B a n k i n g and Currency
7
(81st Cong.,

1st sess.), on

1949, p. 177.




H.R.

5631, July 25-29 and

w a s

income.

to c e a s e w h e n

the m o n t h l y

seventh

year

collection

association w a s

until

m a d e

f r o m
that

reserves

Three

f r o m

a n d

repair

difference

to

the

fund

no

charge

vacancies,

it

w a s

to

reached

to

but

cover

one

considering

m e n t

w h i c h

a n d

the

of

taking

taxes

a n d

met;

w a s

a n d

a

losses

fund

u p

a

also,

association,
replace­

a f und

to c o v e r

in

collection

during

intention

being

to a b o u t

in

up,

for the

the

employment,

the

placed
set

O n e

fund

o f p h y s i c a l assets, s t a r t e d

possible

another

maintenance

usually

insurance.

to these

re­

maintenance

in

outlay

w e r e

w e r e

contingency

budgeted

actual

F u n d s

a

extra

w e r e
the

purposes
h a d

certain

expenses

fund.

cover

for other

associations

between

in a d d i t i o n

times
to

of

u n ­

build

this

$40,000.

Additional Assessments
T h e

Aug.

1-9,

mon t h l y

a m o u n t

arise

that

c a r r y i n g c o s t s r e p r e s e n t t h e full

the

no r m a l

m e m b e r

involving

bers.
for

additional

be

Generally,

such

to
If

budget

however,

outlays

the

a n d

to

the

asso­

the m e m ­

by-laws

the

for,

circumstances

be provided b y

contingencies

provide

procedures

to

followed.
Thus,

a m o n g

the

building houses,
in

has

circumstances.

ciation, t h e f u n d s m u s t

getting

house that

o w n e r s

a n d

associa­

o u t i n s u r a n c e to c o v e r t h i s risk.

local

in tables 2 5

the

a

associations

reported

under

T h e

reserve,

sixth

the

s ale.

26

T h e

$25,000

possible

unit.

services

F H A

A

$250,000.

special

depended

6 times

residents.

set a s i d e

expenses

as 5.27 p e r

repairs

vacancy

percent of the m o n t h l y

equaled

costs

t h e cooperative, b u t also in s o m e

costs

m e n t s
w e r e

insur­

m a n a g e m e n t

thoroughness

b y

o n

the

as h i g h

maintenance

on

in

M o n t h l y

r a n as l o w as $1.75 a n d
cost

a n d

a n o t h e r w i d e l y v a r i a b l e cost, r a n g ­

reporting for

T h e

taxes

a

percent.

o f t h e s e this p a y m e n t

ported.

ance

for

10

38.25

7
33.75
136.50
0

1 Associations Nos. 1, 4, 7, 9, 10, and 15 correspond to associations of sam number
e
shown in table 24.
2 Prices include heat, gas, water, and garbage and trash disposal.
3 No utilities included; bills for these are paid by the individual m
embers.
4 Attached dwelling.
sDetached dwelling.
•Prices include water, and garbage, trash, and sewage disposal.
7 Center unit.
8 End unit.
9 Prices include heat, electricity, gas, and water.
10 Duplex unit.
11 No data as to what, if any, utilities are furnished.
12 Prices include water and garbage disposal.

utilities p r o v i d e d .

set a s i d e

associations

one

eral
vote

case

u p o n

m e m b e r s h i p
of

a m o u n t

a

the

m a y

two-thirds

meeting,

three-fourths
of

all-the-way

assessments

of

assessment

vote

a n d

the

cooperatives
be

in

imposed—
at

m e m b e r s
m a y

a n y

another

not

g e n ­
b y

(but
exceed

a

the
10

1
8
However, not one of the associations reported any vacancies
lasting a s long as 1 month. Because of the housing situation, m a n y
of the associations had waiting lists and none had any difficulty in
filling vacancies. Several, however, were anticipating such a con­
tingency, if the housing supply be c a m e adequate.

COOPERATIVE HOUSING IN TH E UNITED STATES

44
percent of the a n n u a l
gage

a m o u n t

indebtedness).

sessments

m a y

In

be

administrative,

a

paid

third

levied

to

on

the m o r t ­

association,

cover

maintenance,

a n d

as­

insurance,

development

In

b y

the
be

co-ventures,

imposed

the

road

in

m e m b e r s ,

ited to $ 1 0 0

per

ciations,

a n d

limited

to

but

m e n t s

m a y

basis

of the
b y

In

one
per

m a y

additional
purpose

porated

of

of a

the

1

year,

year.

one
b y

Seven
assess­

association
the

board,

m e m b e r s h i p

is

a n y

on

the

certificates

after

made.

In

b y

m o s t

m a y

the

additional

be

m e m b e r s ,

s p e c i a l flat s u m ,
m o n t h l y

of

the

m a d e
a n d

or

as­

others

for

w h i c h

w e r e

a

continuing

expense.

take

be

incor­

if t h e y

In

25

to 3 2
In

of

the

necessity

on

the

w a s

w a s

to

left

be

to

the

explained

board,

to

the

s a m e

put

the

matter

to

one
for

but

vote

t w o

cases

a n

assessment

h a d

to

obtain

amortization
periods

mutuals

as

of

on

the

running f r o m

m e m b e r s

plan.

m o r t g a g e

that of the

w e r e

Their

w a s

paying

period

of

c o m m o n l y

association.

the

I n five a s s o c i a ­

tions, h o w e v e r , t h e m e m b e r s ’ p e r i o d w a s s h o r t e r
b y

5

years

(two

associations),
another,

w a s

40

their

associations),

a n d

25

in w h i c h

years,

the

years
the

paid

15

(one

period

m e m b e r s

indebtedness

(two

of amortization

w e r e

off i n

years

association).

trying

to

get

25.

What the M em ber Gets fo r His M oney

Land Space

case,
the

the

if

have

m a y

for

land,

primarily

out

into outlying sec­

because

of

lower

cost,

assess­
also to o b t a i n

adequate

space

for individual

situation
w h i c h

desired.

be

g one

the

dwellings.

I n this, m o s t o f t h e p r o j e c t s h a d
Generous

plots

of

land

been

w e r e

pro­

In
vided for m o s t

other

the

in t h e

repre­

membership,

a

their

level-payment

successful.
could

m e m b e r

basis, o v e r

amortization

but
m e n t

b y

years.

all b u t

tions
determination

the

paying

Cooperatives
sent

supplied

a n y

m a y

m a y

payment,

fund

i n t h e first p r o j e c t ;

financing.

level-payment

In
no

revolving
years

I n t h e r e p o r t i n g a p a r t m e n t associations, m e m ­
bers

asso­

a m o u n t

additional

associations

be

in t h e

t w o

for

m e m b e r s .

assessments

voted

the f o r m

In

voted

in

per

no

is l i m ­

assessments

these

that

n u m b e r

a m o u n t

levied

m e m b e r

be

m u t u a l

sessments

be

levied.

m a y

the

Onl y

of

reported

individual

six

one

m a y

in

be

assessments

in

if v o t e d

a

in 2 0

second, the “ interim” financing carried for only

assessments

associations,

m e m b e r .

$30

associations

additional

three

maintenance

held

(into

sponsor)

private

costs.

m a y

payable

levied

for

association),

o f t h e h o u s e s b u ilt b y t h e all-the-

for

w a y
necessary

anything

purpose”

voted

b y

the

(1

m e m b e r s

(7

a n d co-venture associations building houses.

T h e

“a n y

smallest

lot

the largest w a s
tions),

for

a n y

unusual

maintenance

or

(1

association),

or

purposes

only

(1

feet, 7 0 x 1 5 0 ,

132x169,

Method and Period of Amortization
period
In

of

one

all-the-way

m o r t g a g e
could

r e p a y m e n t

be

w a s
paid

the

m o r t g a g e

but

could be

F e w

a

be

as

m e m b e r ’s

for not

sooner,

could

available

association

to r u n
u p

w a s
of

amortized

e x t e n d e d to 2 0

m e m b e r s ’

30

if d e s i r e d .

the

mortgage.

the

over

to

of

years,
In

in

but

another
10

years

feet)

been

tracts. I n 3
m o s t

cases,

plan.
out

financed

under

25

years,

individual

on

the

sup­

separate




projects,

the

con­

ran,

in

level-payment

I n a self-help a s sociation t h a t h a d

t w o

75

to 80x600,

132x225

co-ventures

V i e w e d
seen

behind
lot.

giving

length

the

the

E a c h

onto

f r o m

is

feet

a n d

80x87,

lOOx

feet.

a

other,

h a d

driveway

w a s

a

large

city

turned
o w n

sidewise

plot

driveway

(80x87
running

s i d e o f t h e 4 3 2 - f o o t lot.

street
a n d

terms

sidewalk,
the

lot size, w h e r e

k n o w n ,

of

is s h o w n

T h e

a c r e s 19 a n d

density

of

building

dwelling units per acre)

side

all
of

that
the

is

first

g r o u n d
b y

type

space
of

covered

association

w a s
in
(i.

c o n v e r t e d into
table
e.,

27.

n u m b e r

of

a n d t h e p e r c e n t o f total
b y

the

(table

carried

m o r t g a g e

its

20-foot

of o ne

the

bought

it b u i l t f o u r d e t a c h e d

house.
T h e

associations s u c h m o r t g a g e s
for

the

the w h o l e

years.

of the co-venture associations could

h a d

the

one

across

p l y i n f o r m a t i o n o n this point, b e c a u s e t h e d w e l l ­
ings

a n d

lot 1 0 0 x 4 3 2 feet, o n w h i c h
houses,

information

60x100

association).
O n e

Little

w a s

I n o t h e r c a s e s lots w e r e

for m a i n ­
150,

tenance

4 acres.

con­
70x1 4 5

struction e x p e n s e

reported

associa­

1 O n e acre equals 43,560 square feet.
9

buildings
28).

varied

A p a r t m e n t

45

COST AND FINANCES
T a b l e 2 7 . — N u m ber o f associations building houses, by size o f lot
Active
associations
Size of lot

All-theway
coopera­
tives

Dissolved
associations
Project not
Project completed,
completed some con­
struction

Co-ven­
tures

3
4

4

3

17

i

5

3

1

1
4
1
1
1
1
1

2
Lots vary from—

3

F

1 6 . — Side view o f B ay A re a H ousing Group's
co-ven tu re p roject, show ing dw ellings one behind
the oth er on same lot, and fen ced serv ice yardd,
C u lver C ity, Calif.

ig u r e

associations included a considerably larger n u m ­
b e r of dwelling units p e r acre t h a n

did the other
different

types

of

cooperatives.

E v e n

a m o n g

the

ing:
ments,

however,

the

density

of

dwelling

c e m e n t

a

w i d e

range—

f r o m

20

to

400

per

depending

to

a

large

extent

u p o n

the

buildings.

In

the

associations

buildings

ranged

f r o m

2

to

12

b a t h r o o m

wainscot­

composition,

a l u m i n u m

wood.

A

large

proportion

of this

group

i n s u l a t i o n i n w a l l s , floors, o r c e i l ings, o r i n

three.

reporting,
T h e

the

the

height
all

of the

for

plaster,

acre
used

—

or

units
tile, o r

s h o w e d

material

apart­

items

usually

included

in

the

dwelling

stories.
p r i c e w e r e floor a n d w a l l c a b i n e t s in t h e k i t c h e n ,

T

2 8 .— N u m ber o f housing projects with specified density
o f dwelling units

able

hot-water
street

n u m b e r s

All-the-way associations

heater,

pavement.
of

Houses
Number of dwelling units per acre:

Apart­ Mutuals Active Dissolved,
project
m
ents
completed

2

3

1

10 but under 15___ _____

10but under 200________
0
Ground space covered:
Less than 25 percent_______
25 but under 50 percent____
50 but under 75 percent____
75 percent and over...........
1 Information

1
1
1
1

1

2

2

C)

()
>

1

4
1

()
>
()
‘
()
■
()
*

5

1
0
7
1

5
7
5

2
2
1
1
1
1

()
>
()
>
()
*

()
*
()
'

w e r e

one

9
5

3
1

C)
1

not available.

Construction Characteristics
T h e

great

majority

s t o r y in h e i g h t a n d
tion

or

of

A m o n g
jority

of

finish

for

a n d
over

ceiling

one b a t h r o o m
t he tub.

veneer

all-the-way

houses

the

houses

either of all-frame c o n s t r u c ­

m a s o n r y
the

of

h a d

a n d

frame.

cooperatives,

concrete

a n d

w o o d

walls,

floors,




the m a ­
dry-wall

w o o d - f r a m e

w i t h a s p h a l t floor a n d

E v e r y

association

utility
Other

units,

w e r e

room,

fireplace,

features,
a n

in

electric

a n d

varying

range,

re­

Co-ventures
frigerator,

Density of units in project

a

roof,

s h o w e r

reporting

used

ers.

F o r

equally

F

ig u r e

w a s h i n g

heating,
popular.

machine,

hot

air

( O n e

a n d

a n d

storage

hot

project

water

used

lock­
w ye r e

radiant

1 7 . — D w ellings o f Y o rk C en ter (III.)
m unity C ooperative, all-the-w ay p roject.

Com­

46

COOPERATIVE HOUSING IN TH E UNITED STATES
heat.)

Oil

wh i c h

used

dwelling

w a s

h a d

atively

f e w

but
build

Those

or

a

built

or

pise

m a d e

did

them,

cinder

the

put

one

on

houses,
r o o m ;

tu re

D w e llin g s

at

p r o je c t,

S a lt

F

i g u r e




H o m e le ss
Lake

19. —

V e ter a n s

C ity ,

U ta h .

L iv in g room

c o -v e n ­

asphalt w a s

scoting w a s
or

only,

glazed

others,
m o s t

clay

used

o w n

either

veneer

a n d

to

labor.
dwell­

contract

of

native

use

stone

a n d

but

or

stucco.

of h a r d w o o d

cooperatives

roofs.

about

porches,

us­

f r a m e
wood.

in d e s c e n d i n g orde r ,

earth),

all-the-way

In

or

w h o s e

master

were,

each

C o m p a r ­

expected

their

houses

m o r e

b a t h r o o m

b y

a

block,

w o o d e n

in the

garages

m e m b e r s

m a s o n r y

( r a m m e d

1 1 /2 b a t h r o o m s .

F igure 18.—

of

association,

unit.

associations

their

considerably

than

h a d

the

materials used

veneer,

one

associations,

heating

under

combination

cement

the

perhaps

constructed

Other

h a d

cases

co-venture

w e r e

ually

o w n

later,

all b u t

all

dwellings

t h e m

ings

in

In

its

s o m e

in

used

gas.

M o s t

stone
T h e y
floors

but,

like

of the houses

about

half of the

a

sixth

h a d

co-venture

a s flooring in t h e b a t h ­

linoleum.

c o m m o n l y

B a t h r o o m

w a i n ­

either c o m p o s i t i o n

tile.

o f h o u se a t C o o p e r a t i v e C o m m u n i t y , G l e n v i e w , III.

COST

A N D

47

F IN A N C E S

In n e a rly all d w e llin g s b u ilt b y th e r e p o r tin g
co -v e n tu re a sso c ia tio n s, floor and w all ca b in ets
in the kitch en , h o t-w a te r h ea te r, and street p a v ­
in g w e re

included

in the price.

O th er

ite m s

included, in d escen d in g o rd er o f fr e q u e n c y , w e re
u tility room , fireplace, la n d sc a p in g , g a s ra n g e ,
r e fr ig e r a to r (7 or 9 cubic f e e t ) , V enetian b lin d s,
electric r a n g e, d ish w a sh e r, g a r b a g e u n it, b u iltin e x h a u st fa n in the k itch en , c a b in et sin k , lin o ­
leu m on k itch en floor, fe n c e s, and clotheslin e
and stre tch e rs.

F igure 20.— Dining area of house at Crest-wood Hills,

co-venture project of Mutual Housing Association,
Los Angeles, Calif.

F igure 21.— Houses under construction at Hilltop Com­

munity, Seattle,




Wash.

F igure 22.— Two of the styles of dwellings used by

Kirkmere Home Owners, Youngstown, Ohio.

E a ch

h ou se

h o t -a ir

ty p e

h a d

b e in g

its

o w n

fa v o r e d

h e a tin g

a ll o t h e r s ; n e x t

m o s t p o p u la r

a n d

in

h ot

ea ch

u sed

sp a ce
w a s

flo o r

u sed

som e

in

v ie w e d

w e re

b o a rd ,

g r e a t

u sed
b y

th e

a n d

o r

o r

o f

c o a l.

B u r e a u ’s fie ld
in

s to ra g e

a s s o c ia tio n
h e a ter,

m a n u fa c tu r e d

m a jo r ity

th e
sp a ce

th e

a b o v e

r a d ia n t h e a t

O n e

d u a l-w a ll

o il

o u ts ta n d in g

c lo s e t,

w e re

o rd e r.

N a tu ra l

th e

p r o je c t s

th a t

fu r n a c e s ,

h ea ters.

h ou ses
t iv e s

w a te r

p la n t,

c o n s id e r a b ly

ca ses,

M o st

o f

a n d
g a s
b u t
th e

re p re s e n ta ­

e x te n t

o f

p r o v id e d .

cu p ­

C O O P E R A T IV E

48

H O U S IN G

F igure 23.— “ Pilot” house of Mutual Housing Associcu-

tion, Los Angeles, Calif.
T h e re

w a s

little

c h a r a c te r is t ic s
w h ic h

th e

u n d er

in d iv id u a l

is tic s
n o

d a ta

flo o r

w e re

fo r

th e

fo r
a n d

a m o n g

fa m ilia r

w h ic h
w a ll

c o n s tr u c tio n

F igure 25.— Hillman Houses

( all-the-way project of
the Amalgamated group), in lower Manhattan, N. Y.

a to r,

h o t-w a te r

h ea te r,

fireplace,

and

str e e t

o f all the d w e llin g s. T h e m e m b e rs o f one o r th e

ch a ra cte r­

w ith

lo w in g i t e m s : electric ra n g e , V enetian b lin d s,

to

fu r ­

u tility roo m , a n d la n d sc a p in g .

th e

tw o

w ere u su ally o f eith er a sp h a lt o r lin o leu m , and

su p ­

h e a tin g p la n ts w e re u su a lly o f th e h o t-a ir or

a ll
In

c a b in e ts ,

o th er o f th e a sso c ia tio n s also received th e fo l­

u s u a lly

a n d

w a s

r e fr ig e r ­

F igure 24.— Houses of Bannockburn Cooperators, Glen




S TA TE S

th e m em b ers

T h e

in fo r m a tio n

Echo, Md.

U N IT E D

p a v e m e n t w e re in clu ded in th e p u rch a se p r ic e

p r o je c t .

k itc h e n

T H E

in

a s s o c ia tio n s

h om es

en ou g h

w h o le

on

b u ilt fo r

a rra n g e m e n t.

w id e ly

w a s

a s s o c ia tio n s
p lie d ,

co -v e n tu r e

d w e llin g s

v a r ie d

o ffic ia l

n is h

in fo r m a tio n

fo r

IN

B a th r o o m flo ors

h o t-w a te r ty p e s, b u r n in g oil.
F igure 26.— Apartm ent buildings in Bell Park Manor,

all-the-way project o f United Veterans'
Housing Corp., Bayside, L. I., N. Y.

Mutual

CO ST

T h e

h ou ses

lo w e d

o f

ra th e r

co -v e n tu r e
In

th e

d is s o lv e d

c lo s e ly

th e

a ll

a s s o c ia tio n s

c h a r a c te r is t ic s

o rd e r

to

on e

in s u r e

c o -v e n tu r e

b u ild in g

d ir e c to r s .

p la n s
T h is

a n y

ch a n g e s

a n y

d w e llin g

d w e llin g s

a r c h it e c t u r a l

b e

49

fo l­

o f

th e

w o u ld

o r

o th e r

m o re

a p p ro v a l

6

b o a rd

th e

th e

(b )

re n ta l

a n d

o f
(a )

a p p e a ra n ce

m on th s,

o f

th a t

b o a rd

p r o h ib ite d

b u ild in g ;

th a n

o f th e

r e q u ir e d

to

a ls o

a lte r

h a rm o n y ,

r e q u ir e m e n ts .

a s s o c ia tio n
a c c e p ta b le

a s s o c ia tio n

th a t

fo r

c e r ta in

r e m o v a l o f tr e e s , s to n e w a lls , o r
th e

F IN A N C E S

a s s o c ia tio n s .

s o m e a s s o c ia tio n s im p o s e d
T h u s,

A N D

(c )

o f
o f
th e

fe n c e s , w ith o u t

d ir e c to r s .

F igure 28.— Views

at mutual project o f
(Calif.) Mutual Homes Corp.

Alameda

F igure 29.— Views at V ictory Park, mutual project of

Mutual Housing Association of Compton, Calif.

F igure 27.— Dwellings

at Paul Lawrence Dunbar
(upper) and George Washington Carver (lower)
mutual housing projects fo r Negroes, Arlington, Va.

M o st
b r ic k

o f

th e

(3 1 ).

h a lf b r ic k
c ia tio n

a n d

ea ch

b ro w n sto n e ,
b u ild in g s

w e re

2

m a te r ia l

b r ic k

a n d
in

o p e ra te d
in

99

a n d

8

w e re

12

s to r ie s .




20

on e

2

a sso ­

b r ic k

a n d
T h e

to

w h ic h

w e re

o f

w e re

stu cco .

a n d

b u ild in g s ,

h e ig h t,

w e r e 4 s to r ie s , 8 w e r e

fo r

in

w o o d ,

h e ig h t fr o m

w e re

b u ild in g s

w h e re a s
w a s

cem en t,

a s s o c ia tio n s

s to r ie s

b u ild in g s

a s s o c ia tio n s ’

h a lf fr a m e ,

th e

ra n g e d

T w e n ty -fiv e
a v a ila b le

a p a rtm e n t

T w o

12

s to r ie s .

d a ta

w e re

o f

w h ic h

42

3

s to r ie s ,

15

5 s to r ie s , 6 w e r e

6 s to r ie s ,

50

C O O P E R A T IV E

C o n s tr u c tio n
fo r

o n ly

6

c h a r a c te r is t ic s

o f th e

p r o v id in g

n e w e r

w e re

a p a rtm e n t

a c c o m m o d a tio n s

H O U S IN G

fo r

a v a ila b le

IN

T H E
T

a b l e

U N IT E D

S TA TE S

29.— Construction characteristics of dwellings in housing

projects

a s s o c ia tio n s ,

4 ,2 7 1

fa m ilie s .
A c t iv e a s s o c ia t io n s

In c lu d e d

in

th e

co s t

o f

th e

a p a rtm e n t

in

5

o f

t h e s e w e r e w a ll a n d flo o r c a b in e t s in t h e k itc h e n ,
g a s

ra n g e

fo r

c o o k in g ,

a u to m a tic

A ll-th e -w a y c o o p e r a t iv e s
P r o je c t

r e fr ig e r a to r ,
Item

h o t

w a te r

a n d

h e a t

s u p p lie d

g a r b a g e -in c in e r a to r
d ry

fa c ilitie s ,

a n d

b y

ch u tes

th e

on

s to ra g e

D is s o lv e d

____________________________________________ a s s o c i a t i o n s

M u tu a ls w it h —

a s s o c ia tio n ,

ea ch

flo o r ,

lo c k e r s .

A ll

ven­

la u n ­
o f

H ou ses

A p a rt­

th e

P u r­

N o p u r­

chase

m en ts

b u ild in g s

a u to m a tic
h a v e

(e x c e p t

e le v a to r s ;

on e

o f

n on e

o f

2

s to r ie s )

th e

o ld

con ­

n ot
com ­

ect
com ­
p le t­

p le te d ,
som e
con ­

ed

s tru c­

con ­
tra ct

tio n

h a v e

b u ild in g s

T o t a l a s s o c i a t i o n s r e p o r t i n g ______
D w e llin g u n its r e p o r t e d f o r . .

_

4
78

6
4 ,2 7 1

15

4

18

4

4

6 ,5 5 7

3 ,8 8 9

889

451

166

e le v a to r s .
N u m b e r o f d w e llin g u n it s w it h

O f

th e

29

s tr u c tio n
w o o d
3

tu r e s

chase

tra ct

n e w

P r o j­

C o-

m u tu a ls

m a te r ia l

fr a m e

o f

w o o d

b r ic k ,
in g

fo r

w e re

w h ic h

a v a ila b le ,

c o n s tr u c tio n ,

a n d

b r ic k

b r ic k

v e n e e r,

la r g e

6

o f

a n d

on

16

a n d

stu cco.

In

in c lu d in g

co n ­

w e re

ce m e n t

c o m b in e d ,

p r o je c t,

d a ta

1

o f

b lo c k s ,
ea ch

th e

o f

r e m a in ­

b o th

a tta ch e d

a n d

a p a r tm e n t b u ild in g s , m a t e r ia ls

w o o d , b r ic k

v e n e e r, a n d

u sed

c e m e n t b lo c k s .

1 ,8 2 0

878

526

127

2 ,4 4 5

1 ,4 8 9

2 ,0 0 0

245

873

385

490

veneer an d

A ll fr a m e

_

_______

C e m e n t b l o c k _______
S t u c c o ____________

20

10

__

3 ,7 4 0

11

_

450

c o n s tr u c tio n

t e r io r w a lls

o f th e m u tu a ls

a s

th o se

b y

a ll-t h e -w a y

th e ir

u sed

th e

m o n ly

W h e re

tile

W a ll a n d
a n d

T h e re

h o u s in g

w a s
a n d

h a d

ce m e n t

fin is h

o r

w a s

b u ilt

w a s

d iffe r e n c e

h o u s in g

p la s te r

o r

co m ­
in

th e

h o w e v e r.

h a d

w a in s c o t in g ,

w o o d . N o w a r u n it r e p o r t in g h a d

fo r
a ls o

q u ite

e q u ip m e n t,

c o m p o s itio n

e x ­

sa m e

d w e llin g s

b ig

b u ilt

th e

a s s o c ia tio n s

c e ilin g

a

fo r

a b o u t th e

in s u la tio n

p r iv a te ly

o r

w e re

c o -v e n tu r e

fin is h in g s
th e

u sed

s in g le -fa m ily

a n d

sam e,

fo u n d .

in te r io r

c la y

in

m e m b e rs.

a b o u t

m a te r ia ls

g la z e d

th e

w a r

p a p e re d

p ly ­

m o re th a n

o n e

a n d

n o

b a th ro o m s

h a d

sh o w e r

as

w e ll

351

144

224

166

W o o d flo o r s :
F irs t flo o r . _

3

2 ,6 8 7

1 4 ,1 3 1

1 ,5 0 0

581

12

S e c o n d f l o o r _____________

2 ,5 2 6

2 ,1 0 1

950

253

T h i r d f l o o r _______ . . .
_.

876

69

34

50

876

____

C o n c r e t e flo o r s :

S e c o n d flo o r .

_

75

_.

1 ,4 3 9

1 ,2 8 1

231

4

227

747

O t h e r f l o o r s _________ _____ _

179

268

795
717

S te e l jo is t a n d

con crete

._

flo o r s :

F i r s t f l o o r __________________________
S econ d flo o r ...

_________

89

36

._

36

T h i r d f l o o r ____________ _

36

R o o fs :
W o o d f r a m e ____________ ________

76

2 ,3 9 7

C o n c r e t e _______ ________ _____

1
1

4 ,0 7 4

O t h e r ___________________ ___________ _

4

732

166

36

42

(3)
(?)

2 5 ,8 8 1

1 ,5 9 5

S te e l jo is t a n d c o n c r e t e .

401

16

i ,999

36

5 50

647

449
2

12

401

67

B a th ro o m s:
O n e.

_________ _____________________

8 5 ,9 5 0

3 ,8 8 9

5

128

155

T w o _________ _____________

15

137

S h ow er ov er tu b

57

3 ,3 2 6

481

5

69

154

4

O n e a n d o n e - h a l f ..._

. .

.

.

S ep a ra te sh o w e r s t a ll.. .
B a th ro o m

_

L in o le u m .

__

____ ___

_

.

_______

O t h e r . _______ _

10

_______

2 ,5 4 8

. . .

4 ,1 6 3

8 500

7 461

2 ,5 5 6

25
18

C e r a m i c . .................... .....
B a th ro o m

67

flo o r s :

A s p h a l t _____________

1 ,4 9 9

320

557

8 315

99
25

55

50

42

7 323

8 50

8 73

101 ,3 9 6

92 5

w a in s c o tin g :

G l a z e d c l a y t i l e . _________
C e m e n t o r p la s te r

4 ,1 4 5

. . . .

11

C o m p o s i t i o n _________ . . .

b a th ro o m

22

6

.

T h i r d f l o o r _______________________

T h e

100

w ood

f r a m e _________________ ____________

F i r s t f l o o r ______________ ____________

in c lu d e d

8

49

A l l m a s o n r y ___________ ___________
M ason ry

O th e r flo o r s .

h o u se s

s p e c ifie d fe a tu r e s

E x t e r io r w a lls :

_

O t h e r ________________________

11748

18

2 ,7 0 6

21

_

8 1 ,9 9 9

1 ,1 5 7

42
459

48
315

20

12 5 3

W a ll a n d c e ilin g fin is h :

as

tu b .

T h e

a m o u n t

o f

sto ra g e

sp a ce

in

c lo s e ts

P la s te r a n d la t h
D r y w a ll.

a n d

k itc h e n

c a b in e ts

w a s

s m a ll.

K itc h e n s

w e re

_.

______________

w ith

a

g a s

a n d

a

ra n g e ,

a

s m a ll-to -m e d iu m

6

h o t-w a te r

h e a ter.

U tility

w e r e

in fr e q u e n tly

fo u n d .

In

sh ort,

th e

301

100

118

1 ,9 9 6

8 1 ,9 9 9

442

345

48

12

I n s u l a t io n in —
64

F l o o r ___________

78

425

7 2 ,5 7 2

933

3 ,0 0 3

15

C e i l i n g ________________ . . .

ro o m s

2 3 ,6 5 4

36

. . .

W a l l s _________ __________________

r e fr ig e r a to r ,

15
57

_________

O t h e r _________ ___________

e q u ip p e d

3 ,4 3 4

857

.

C o n c r e t e _________ ___

B a s e m e n t ____________ _______

1 ,0 0 0

194

315

45

1 ,4 5 0

546

50

47

229

451

8 112

387

1 ,5 9 6

1

115

1 ,3 7 6

23

96

G a ra g e a n d p a r k in g :

d w e llin g s

w e re

d e s ig n e d

to

p r o v id e

th e

m in i­

G a r a g e ___________________________
C a r p o r t ____________ . . . .

m u m

n e ce ssa ry

r e q u ir e m e n ts

o n ly ,

p a r tly

b e ­

P a r k in g a r e a . .

24

. . .

13 8 8 0

8

_________________

24

14 5 4 6
748

86

44

195

1 ,4 5 0

500

183

151 ,1 0 0

75

391

315

20

S ittin g -o u t a r e a :

ca u se

o f

th e

n eed

to

co n se rv e

m a te r ia ls

d u r in g

P o r c h _____________________________

18

B a l c o n y ______. . . .............................

th e

w a r

e m e rg e n cy .

A ll

b u t

on e

o f

th ese

p r o j­

P r iv a te g a r d e n a r e a ..

e cts

w e re

b u ilt a s

“ p e rm a n e n t”

h o u s in g .

3

T e r r a c e ____________________________

on e

o f

th e

m u tu a ls

c o n ta in e d

78

...................

in g s

o v e r

tw o

s to r ie s

a p a rtm e n t

in

h e ig h t.

b u ild in g s

o f

It

a n y

b u ild ­

c o n s is te d

th re e

18 2 , 9 4 6

2 ,3 8 9

581

451

8 1 ,9 9 9

889

451

34

50

1 ,9 9 9

734

401

119

H e a t in g p la n t :
4 ,1 6 3

78

I n d i v i d u a l p l a n t s _____________

s to r ie s ,

17 7 4 8

108

4 ,2 3 3

T ype:
S t e a m ________________ ________

se v e ra l

5

75

45

C e n tr a l p la n t fo r p r o je c t . __

O n ly

103

86

o f

H o t w a t e r ____

in

R a d i a n t h e a t _______ . . .

. . .

H o t a i r ____________ . .

_
_

2 ,4 7 7
36

1 ,7 9 4

38

748
4 ,9 0 9

11

166

50

F u e l:

o n e

o f

th e

“ g re e n to w n s ” ; th a t

p r o je c t

a ls o

in ­

C o a l ___________________________

36

O i l ......................................................

c lu d e d

m a n y

a tta ch e d

s to r ie s .




(r o w )

d w e llin g s

o f

tw o

46

G as

32

_________ —

__

.

S ee footnotes at e n d of table.

4 ,2 3 5

500

3

788

499

240

3 ,9 0 3

1 ,0 0 0

574

1 ,9 6 6

365

86

70

96

COST
T

2 9 .—

a b le

A N D

51

F IN A N C E S

-Construction characteristics o f dwellings in housing
projects — Continued

T h e

co sts

o f th e

co -v e n tu r e s
th e
a s s o c ia tio n s

P r o je c t
M u t u a ls w it h —

P u r­

ect

chase

con ­

tra ct

tra ct

ed

con ­

4 ,2 3 5

2 4 ,9 8 1

is 7 2 0

« 1 ,9 9 9

166

451

11 3 , 9 7 6

4 ,2 3 5

( 3)

18 1 4

.

8 129
101

18 7 4

8 75

( 3)

. . -

25

d w e llin g s

_

237

15 4 0

( 3)

400

( 3)

____

2 ,3 4 8

1 ,7 4 8

( 3)

49 2 4

50

( 3)

105

.

c ubi c fe e t

.

6 c u b ic fe e t

_________

7 c u b ic fe e t

1 ,6 5 0

14

8 c u b ic fe e t
9 c u b ic fe e t

.

.

(218 4 6
)

_

( 3)
2o 5 0

77

14

G a r b a g e -d is p o s a l u n it o r

6390

166

a n d

A

la r g e

o th e r

u n d e rto o k

w a s

m o re

m en ts

a

244,127

2S 5 0 0

( 3)

8 34

22 2 , 4 7 7

1 ,0 0 0

6 1 ,9 9 9

8 14
841

28 4 , 2 3 4

797

8 32

4 .2 7 1

6 .5 5 7

8 46

4 .2 7 1

6 .5 5 7

_______

P a v e m e n t o f s t r e e t s ..

v en tu re s.
th e

su ch

p e r-

p r o p o r tio n

h a n d ,

p r o v id e d

n o

p r o v is io n

th a t

o f

ca ses th e

h is

c o o p e r a tiv e

p e r

sq u a re

s ix th

T h e

a

lo w e r

o n ly

o f

co st

h ou se.

h ou ses

fo o t

a p a rtm e n ts

is

a s s o c ia tio n s ,

th ir d

fig u r e

co st a b ou t

th a n

m o re
in

th e

a p a rt­

th a n

th e

in v a r ia b ly

r e fle c tin g

lim it e d -d iv id e n d

set

65
419

on

th e

b o th

in

a p a rtm e n ts

th e

ra n g e

th e

costs

50

2
2

61

3 .8 8 9

429

340

25

3 .8 8 9

720

390

67

as

1 D a t a a v a ila b le fo r 13 p r o je c t s o n ly .

co s t

3N o d ata.

b u t

5 S la te .

o f

th a t

th e se

2 D a t a a v a ila b le fo r 14 p r o je c t s o n ly .

4 A s p h a lt.

c o n s tr u c tio n

s a le s

p r o je c ts

ro o m s

co ­

sh o w n

co st

in

2 0 -2 5

u n d er

th e

th e

y e a rs

th e

N e w

le g a l m a x im u m s

w a s
o f

in

u n it s
o th e r

6

7 D a t a a v a ila b le fo r 8 p r o je c t s o n ly .

a n d

8 D a t a a v a ila b le fo r 2 p r o je c t s o n ly .
9 C on crete.
11 D a t a a v a i l a b l e f o r 1 2 p r o j e c t s o n l y .

s p a c e , in

t ile .

13 N o t i n c l u d i n g 1 p r o j e c t ( 1 , 4 3 4 u n i t s ) w i t h g a r a g e h a v i n g r e n t a l s p a c e f o r 3 0 0 c a r s .

p r o je c t s o n ly .

w ill

16 D a t a a v a i l a b l e f o r 7 p r o j e c t s o n l y .
17 N o t i n c l u d i n g 1 p r o j e c t ( 6 7 6 u n i t s ) i n w h i c h t h e r e i s a h e a t i n g p l a n t f o r e a c h b u i l d i n g
(c o n t a in in g s e v e r a l u n its ).
18 D a t a f o r c o o k i n g r a n g e a v a i l a b l e f o r 1 p r o j e c t o n l y .

in

19 N o t i n c l u d i n g 3 6 d w e l l i n g s , r e f r i g e r a t o r s f u r n i s h e d b u t s i z e n o t r e p o r t e d .
20 N o t i n c l u d i n g 3 6 d w e l l i n g s , r e f r i g e r a t o r s f u r n i s h e d b u t s i z e n o t r e p o r t e d ; d a t a a v a i l ­
a b le fo r 2 p r o je c t s o n ly .
21 H o t w a t e r i n c l u d e d i n m o n t h l y p a y m e n t .

b e

b u y in g

10

th ese

b ers

a

so,

m u ch

o f

b e d ­

H o w e v e r,

n e w

th ose

d w e llin g s

o f

b y

n e w

o th e r

m e m b e rs ;
w a s

a n d

a b o v e

b u y ”

as

n u m b e r

n o t

ty p e s

th e

le s s

o f

th a n

fo r

in

th e

m a n y

th e

o f

liv in g
th e

costs
o th e r

d w e llin g s

su g g e sts th a t th e
in

a n d

h ou ses

r e p la c e m e n t

th ose

in s p e c t io n

“ g o o d

m o n e y 's

to

s iz e s ,

m a in te n a n c e

m u tu a l p r o je c ts

h a v e

th e ir

22 A v a i l a b l e i n b u i l d i n g , b u t n o t s u p p l i e d t o i n d i v i d u a l d w e l l i n g s .

th e ir

h o u s in g

th ir d

o ld ; c o n s tr u c tio n

co n stru cte d

fo r

E v e n

m u tu a l
a

fa c ­

u n it .

a s s o c ia tio n s .

y e a rs

in fe r io r

m o n th ly

d w e llin g

sa m e

w e re
to

on

d e t e r m in in g

th e

o f

c o n s id e r a b ly

g ro u p s.

in

th e

a ll d w e llin g

o th e r s ; a n d

14 D a t a o n g a r a g e a n d p a r k i n g s p a c e a v a i l a b l e f o r 1 0 p r o j e c t s o n l y .

th e

ty p es

a p a rtm e n ts

c o o p e r a tiv e s

10 H a r d w o o d .

a n d

th e

a b o u t h a lf to

w ith

m e m b e rs

h o u s in g

o f

h o u s in g

o n ly

co s t

a re

p r ic e

e q u ip m e n t w e r e

6 D a t a a v a ila b le fo r 3 p r o je c t s o n ly .

12 I n c l u d i n g 2 1 u n i t s w i t h w a i n s c o t i n g o f p l y w o o d a n d 3 2 o f a l u m i n u m

b u ilt

la w ,

( “ r e n ta ls ” )

th e

T h e

315

401

15 D a t a o n s i t t i n g - o u t a r e a a v a i l a b l e f o r 6

to

F o r

tors

500

___

a n d

p a y m en ts

292

300

.

______

L a n d s c a p i n g _________ _

th e

fa c ilitie s . In

Y o r k

222 ,2 4 0

S t o r a g e l o c k e r s _____
F ir e p la c e

on

h a d

a v e ra g e

( 3)

889

« 1 ,4 9 9

114 , 1 3 3

23 1 , 5 4 2

.

m e m b e rs.

a g o.

43

b lin d s

.

c o o p e r a tiv e s

r a is in g

( 3)
( 3)

_

W a s h in g m a c h in e ._

in c in e r a t o r

b y

c o m m u n ity

( 3)

( 3)

.

U tility r o o m

o n ly ,

m e m b e r

o ld e r

1 ,3 9 6

H o t-w a te r h e a te r .

V e n e t ia n

( 3)

( 3)

I c e b o x o n ly

D is h w a s h e r

th e

fo r

R e fr ig e r a to r :
5

th e

T h e a ll-t h e -w a y

1 ,3 9 6

O p e n s h e lv e s o n l y .

4 c u b ic fe e t

to

g e n u in e

th e re b y

c o -v e n tu r e s ,

c o m m u n ity

tio n

C o o k in g ra n g e —
.

c o s tly

in
8 46

_

th e

tw o -th ir d s

k itc h e n

E le c t r ic ..

o f

a n d

in flu e n c e d

s tru c­

I n c l u d e d in p r i c e o f u n i t :

G as

A ll

co sts

th e

to

w a ll c a b in e t s

a b sen ce

fa c ilitie s ,

u n it
o f

N u m b e r o f d w e llin g u n its w it h s p e c ifie d fe a t u r e s

F lo o r a n d

o r

c o o p e r a tiv e s

w e r e

som e

p le t­

chase

con ­

m en ts

com ­
p le t e d ,

com ­

tu res

N o pu r­

not

P r o j­

C oven­

A p a rt­

fa c ilit ie s .
su ch

A ll-th e -w a y c o o p e r a t iv e s

H ouses

p re se n ce

h ou ses

D is s o lv e d

A c t iv e a s s o c ia tio n s

Item

a ll-t h e -w a y

b u ild in g

sen se

o f

m em ­

g e ttin g

w o rth .

23 N o t i n c l u d i n g 9 4 3 u n i t s s u p p l i e d w i t h o r d i n a r y r o l l e r s h a d e s .
24 I n d i v i d u a l d i s p o s a l u n i t s f o r

1 ,6 5 0 d w e llin g s ; in c in e r a t o r s a v a ila b le

in

b u ild in g

T h e

(b u t

u n u s u a lly

h ig h

co st

p e r

sq u a re

fo o t

fo r

n o t f o r e a c h in d iv id u a l d w e llin g ) f o r 2 ,4 7 7 d w e llin g s .
25 N o t

in c lu d in g

1

p r o je c t

of

500

u n its — in c in e r a to r s

a v a ila b le

on

p r o je c t;

on

th e

a s s o c ia tio n s

1 ,6 7 1

in g

th e ir

d ata

g a r b a g e d is p o s a l a v a ila b le f o r 2 p r o je c t s o n ly .
26 I n d i v i d u a l l o c k e r s

fo r

2 ,5 6 3

d w e llin g s ;

g en era l

lo c k e r

room

in

b u ild in g ,

fo r

th a t

p r o je c ts

d is s o lv e d

is

e v id e n t

b e fo re

in

ta b le

c o m p le t­
30.

d w e llin g s .

M a in ten an ce and R ep a irs

C ost o f U n it in R ela tio n to Size
T h e

in d iv id u a l

th e -w a y
m u ch

th e

co v e re d
a n d
o f

in

m o st
th e

u s u a lly

th e

h ou ses,

c o o p e r a tiv e s

s m a ll

w h e th e r
b y

e x p e n s iv e

stu d y ,

m o re

o r

h ou ses

c e p tio n s .




ty p e

in v o lv in g

liv in g

sp a ce

b u ilt

b y

b u ilt

b y

co -v e n tu r e s ,
o f

a ll-

w e re

d w e llin g

In

m o re

la n d

sp a ce

in g ,

3 0 ).

S om e

to

w e re

a ll-t h e -w a y

m e m b e rs

stru ctu ra l

(ta b le
s e lf-h e lp

b o th

tu res,

e x ­

a n d

th e ir

a re

r e p a ir s
o th e r

c o o p e r a tiv e s
to

d w e llin g ,

in te r io r

to

in s id e

c o -v e n ­

a tte n d

m a in te n a n c e ,

to

th e

d e co ra t­

as

w e ll

as

y a rd s.

I f th e r e a r e c o m m u n ity -o w n e d
as

a n d

e x p e cte d

u tilitie s

a n d

r e c r e a tio n a l

fa c ilit ie s

a n d

o th e r

(s u c h
a m en -

52

C O O P E R A T IV E

T

30.

a b l e

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

—Price per unit, and amount and cost of living space, in dwellings of housing associations
P r i c e p e r d w e llin g ; u n it
A p a rtm e n ts—
P r ic e p e r r o o m

T y p e o f a s s o c ia t io n

1 bedroom

2 bedroom s

R ange

R ange

R ange

3

4 bedroom s

bedroom s

R ange

R ange

A c tiv e
A ll-th e -w a y c o o p e r a tiv e s :
H o u s e s ____________________________________________________________________________________

-

___________

_______________

___________

$ 7 ,0 0 0 -$ 1 5 ,0 0 0

$ 8 ,0 0 0 -$ 1 8 ,0 0 0

1 1 ,0 0 0 -

1 2 ,6 0 0

il,2 5 0 -

1 4 ,0 0 0

3 ,2 5 5

1 ,6 1 9 -

3 ,6 5 5

1 ,5 5 3 -

3 ,9 5 5

2 4 ,5 0 0 - 1 0 ,6 0 0

2 5 ,0 0 0 -

1 6 ,0 0 0

1 $ 2 5 0 - $ 2 ,8 0 0
M u t u a l s w i t h p u r c h a s e c o n t r a c t s _________________________

3

C o -v e n tu r e

: C o n s tr u c tio n

s t a g e r e a c h e d - ________ _

__

____________________________

5 8 0 -

1 $ 7 5 0 -$ 9 ,8 0 0

1 ,6 7 2

93 2 -

____________

2

$ 8 ,0 0 0 -$ 3 0 ,0 0 0

2 6 , 0 0 0 - 2 5 ,0 0 0

D is s o lv e d
P r o j e c t c o m p l e t e d . . ______________________________________________________

____________________________

3 3 ,7 5 0 - 1 2 ,0 0 0

P r o j e c t n o t c o m p l e t e d , s o m e c o n s t r u c t i o n ________ ______ _________________________________________

_

7 ,9 0 0 - 1 1 ,5 0 0

4 2 ,7 5 0 -

9 ,5 0 0

1 0 ,0 0 0 -2 0 ,0 0 0

L iv in g s p a c e — n u m b e r o f s q u a r e fe e t

A c tiv e
A ll-th e -w a y c o o p e r a tiv e s :
H o u s e s ____________________________________________________________________________

________________

820

9 7 5 - 1 ,2 0 0

______________________________

6 4 0 -7 5 2

6 0 0 - 1 ,0 3 6

7 0 0 -1 ,3 4 4

M u t u a l s w i t h p u r c h a s e c o n t r a c t s _______ ______ ________________________________________________

3 8 1 -7 8 0

53 4 -

890

6 5 1 - 1 ,2 7 0

6 0 0 -9 8 3

5 9 6 -1 ,8 3 4

8 0 0 - 2 ,5 0 0

A p a r t m e n t s ______________________________________________________________
C o - v e n t u r e s : C o n s t r u c t i o n s t a g e r e a c h e d __________________

_

80 0-

_________________________________

1 ,0 8 0 ^ 2 ,7 9 0

D is s o lv e d
P r o j e c t c o m p l e t e d _______________________________________________________________________ ________ ____________

6 5 0 -1 ,1 2 5

P r o j e c t n o t c o m p l e t e d , s o m e c o n s t r u c t i o n ___________________________________________ _____________

6 6 2 -

784

7 8 2 -9 0 0

A v e r a g e c o s t p e r s q u a re fo o t o f liv in g s p a c e

A c tiv e
A ll-th e -w a y c o o p e r a t iv e s :
H ou ses.

_

_

_

.

_

$ 8 .5 4 - $ 1 3 .7 5

$ 7 . 2 7 —$ 1 3 . 1 3

1 2 .2 5 -

1 2 .4 0

1 2 .3 7 -

3 .5 3 -

7 .0 5

6 2 .4 1 -

5 .4 1

2 .8 4 -

5 .5 1

2 5 .8 8 -

1 0 .7 8

2 4 .5 5 -

1 3 .3 3

2 3 .3 3 -

1 7 .3 3

1 2 .8 0 -

1 5 .0 6

_________________________________________________________________________

A p a rtm e n ts

________________________________

i $ 2 .0 7 -1 1 3 .2 9

__________________________________________________

M u t u a ls w ith p u r c h a s e c o n t r a c t s .

9 .6 4 -

________________

i $ 2 .0 7 -1 1 2 .4 4

1 1 .5 2

C o - v e n t u r e s : C o n s t r u c t i o n s t a g e r e a c h e d __________________________________________________________

1 3 .2 9

2

$ 3 .6 4 - 1 7 .8 3

D is s o lv e d
P p n je e t r n m p le t .e d

i

L ow

__

_

___________________________________

• L ow

fig u r e a p p lie s t o p r e w a r h o u s e s , b u ilt b y s e lf-h e lp .

5 “ T e m p o r a r y ’ ' p r o je c t.

it ie s ), th e h o u s in g

p e r

u p k eep .
m e m b e r

b u d g e t

is

b e a r in g

h is

In

th e

a s s o c ia tio n

G e n e r a lly ,
is

to

u p

e a ch

p r o -r a ta

w ith

a

fe w

to

th e
o f

tu re s.

In

t io n

a p a rtm e n ts,

th e

co v e r

a

fla t

th is

y e a r,

co st,

e a ch

fo r

ch a rg e
o r

a

m e m b e r

ta k e

ca re

a s s o c ia tio n
h a lls ,

ca ses,

o f

a n d

th e

w e re

in te r io r

lo o k in g

g ro u n d s ,

h o w e v e r,

a ls o ,

a fte r
s tru c­

re d e co r a ­

w a s

th e

r e s p o n s ib ilit y

th e

c o o p e r a tiv e

to

p r o v id e
h is

m u tu a ls ,

on ce

ta k es

o r a t io n ,
p lo y e e s
v id e s

tu re ,

m a in te n a n c e ,
in

a d d it io n

e le c tr ic

to

w ir in g .




a n d
fo r

a n d
m a jo r
T h e

fa c ilitie s ,
r e p a ir s

r e p a ir s

m e m b e r

to
is

to

fo r

e x ­

s tru c­

p lu m b in g

u s u a lly

e x ­

if
a n

a

In

th e

m e m b e r

fo r

h is

t o o ls

la w n

fa ils

th a t

it

is

o r

to

fo r

p r o v id e
m a in ta in

b e co m e s

A

ra k es,
a

a

th e

e m ­
p r o ­

to

p a in t

fr e e

p a in t

fo r b id s
fe w
a n d

n o m in a l

c e r ta in
ch a rg e .

u n it, t o

d e tr im e n t

a n y

a s s o c ia ­

s p e c ific a lly
h is

if

d e c­

m u tu a l

w illin g

A n o th e r

m e m b e rs.

c o o p e r a tiv e s

m e m b e r

O n e

s h a ll r e c e iv e

m o w e rs ,

fr e e ,

in te r io r

a s s o c ia tio n ’s

w h o

t im e .

b y

th e

co st.

o f h is h o u s e

p a in tin g

e x te n t

o f

la w n ,

h o w e v e r,

m a in te n a n c e ;

ch a n g e

a t

p a in t f o r

d o o ry a rd ,

ca se,

a ll

a rra n g e

a s s o c ia tio n s

a m ou n t o f
o w n

o f

to

r e p a ir s ,

som e

o n e

ca re

s e r v ic e s

p r o v id e

S e v e ra l

h is

a v a ila b le
a n y

(b u t

c e r ta in

w is h e s

th e

c r e d it

e x te r io r

in te r io r

fo r

ta k es

a re

th a t

ca re

flo w e r s .

e x te r io r

g a rd e n

te r io r

a n d

th e

tio n s

sp a ces

y e a r a

r e s id e n t

o f

c o m m u n ity

ea ch

a s s o c ia tio n
th e

m in o r

d e c o r a tio n

u s e ), a n d

o v e r , it b e c o m e s r e s p o n s ib le f o r th e m a in te n a n c e
th e

m a k e

in te r io r

a n d

a s s o c ia tio n .
th e

p ected
fo r

sh ru b s,

sh a re.

e x p e cte d

m a in te n a n c e

In

r e s p o n s ib le

a p a r tm e n t a s s o c ia tio n s , m e m b e r s

d e c o r a tio n ,

o f

is

e ith e r

m a d e

m a d e

c o m m o n ly

a n d

1 4 .4 0

fig u r e o f r a n g e a p p lie s t o p r e w a r h o u s e s .

th e ir

o f

4 L ow

1 3 .3 8

1 3 .0 1 -

-

fig u r e o f r a n g e a p p l ie s t o a p a r t m e n t s in b u i l d i n g s e r e c t e d in 1 9 2 0 ’ s .

* H o u s e b u ilt b y s e lf-h e lp .

th e

3 6 .7 7 -

___________ __________ __________

P r o je c t n o t c o m p le te d , s o m e c o n s t r u c t io n

to

th a t
su ch
th e

COST AND FINANCES
project, the board o f directors has the right to
have the necessary w ork done and bill the
am ount to him.
Regulations vary as to changes the m utual
m em ber m ay make in his dwelling. Som e or­

53

alm ost alw ays have a perpetual or 99-year lease.
In the new er organizations, a definite short
period is usually set ( 2 y 2 or 3 y e a r s ), at the
end of which tim e an objectionable fa m ily m ay
be expelled by vote o f the m em bers. A m a jo rity

ganizations have issued elaborate regulations,

o f apartm ent associations are stock organiza­

setting forth w hat m em bers m ay or m ay not do.

tions, in which a m em ber subscribes fo r share

Usually, installation o f fences is perm itted, sub­

capital to the am ount o f the price o f his apart­

ject to approval by the board of directors as to

ment.

A s he pays up his equity, he is issued,

height and style in each case. In one association

fro m

tim e to tim e, share certificates to the

visited, some m em bers built them selves a small

am ount paid.20 T his is his evidence o f ow ner­
ship in 14 reporting associations. In 5 other

shed in the yard or against the house, to hold
garden hose, tools, ladder, etc. The m onotony
o f appearance general in w ar housing projects

cases, the m em ber receives only a m em bership
certificate, card, or book. In at least 3 o f the

had been overcome to some extent and variety
attained by flower beds, fences, shrubbery, etc.,

older associations, the m em ber has no evidence

put in by the m em bers.

the “ rent book” held by the association.

Evidence of Ownership, and Period of Lease
The all-the-w ay cooperatives building houses
give m em bers a 9 9-y ear lease.

o f equity other than the entry o f his nam e in
M ost m utual associations give the m em ber
the righ t o f “ perpetual use,” or a lifetim e or
9 9-y ear lease. H ow ever, this right is generally

In tw o associa­

hedged by the provision that a m em ber m ay be

tions m em bers also hold stock certificates issued

expelled fo r cause or if he so conducts him self

b y the organization as evidence o f ownership.

as to become obnoxious to the other residents o f
the project.

In co-venture associations the m em ber re­
ceives and holds fee-sim ple title to his house.
One such association, which never gives title to
the land on which m em bers build their houses,
gives them a 99-year lease on the lot selected.
M em bers o f the older apartm ent associations




Subleasing is strictly regulated in period and
conditions, and usually m a y be done only w ith
the consent o f the board o f directors.
30 But in all types of associations insured under the new insurance
program (Sec. 213), the member’s stock investment remains constant.

Chapter V.— Internal Arrangements
upon application to the association. Som e placed

Exchange of Equity

upon the m em ber desiring the change the re­
As

fam ilies

of

m em bers

grow

larger

or

sponsibility o f finding another w illing m em ber.

sm aller, an arrangem ent whereby a m em ber
m ay exchange his house fo r one o f m ore or

Other associations received applications and
m aintained a w aiting lis t; arrangem ents were

few er room s m ay be o f substantial benefit, espe­

then made, as opportunity occurred, b y the m an­

cially in a large association (such as a m utual

agem ent, the board, or a special committee.

or a big apartm ent p roject) havin g a consid­

One mutual reported that it charged a “ small

erable range in size o f dwelling. Such an ar­

tran sfer f e e " ; in another the fee w as $10.

rangem ent m ay not be feasible in a sm all project

Each m em ber involved w as held responsible

in which the houses are m ore or less o f a size.

fo r leaving his apartm ent in good condition and

M ost o f the all-the-w ay cooperatives were small

required to bear the cost o f any necessary re­

and had adopted no exchange procedure.

pairs and redecoration.

association, how ever,

provided

in its

One

bylaw s

A fa m ily m oving into the larger apartm ent

that an exchange o f dwellings could be made

m ust reim burse the fa m ily

by mutual agreem ent between m em bers, w ith

sm aller one by the am ount represented by the

the

difference in equity.

approval

of

the

association's

board

of

directors.
A m o n g the co-venture associations, a fter the

m oving

into

the

M onthly paym ents w ere

adjusted th ereafter to the size o f the dwelling
occupied by each.

m em ber receives title to his house, any further
arrangem ents are out o f the hands of the asso­
ciation.

Withdrawal Procedures
A ll o f the a ll-th e-w a y cooperatives provided

D ata on procedure fo r exchanges o f apart­

that, if a m em ber wished to w ithdraw fro m the

m ents between m em bers are available only for

association, the cooperative should have first
option on his dwelling. U sually, if the associa­

5 associations. In all o f these, such tran sfers
were made through either the house committee

tion

(because o f lack o f funds or otherw ise)

A d ju stm en ts were

failed to exercise its option, the member was

then made to take care o f differences in m onthly

free to dispose of his house to some person ac­
ceptable to the board and capable o f fulfilling
the other conditions o f mem bership.

or the board o f directors.

paym ents and in am ount o f equity already ac­
cumulated through m onthly paym ents.
his

The form ula fo r determ ining the redemption

apartm ent unoccupied, other m em bers needing
a dwelling of that size are given preference.

or sales value w as different in every association

W h en

a

m em ber

w ithdraw s,

leaving

covered.

In one case the m em ber w as to re­

One o f the advantages o f m utual associations

ceive (fr o m the association or fro m a new m em ­

is that generally the projects contain dwellings

ber approved by the board o f directors, re­

o f different size.

In the associations covered,

placing h im ) either the book or appraised value

the units ranged fro m 1-room efficiency units

of his equity, w hichever w as higher. In another,

to dwellings o f 7 room s.

the redem ption value to be paid by the associa­

Som e m utual associa­
of density of

tion was to be the “ going p r ic e ," as determined

persons per room and tried to m aintain the

by a disinterested a p p ra iser; how ever, the co­

standard in assigning new m em bers to dwell­

operative had no control over the price i f it did

tions fixed a definite standard

ings, or make shifts am ong residents to enable

not exercise its option and thereby forced the

the standard to be m aintained.

member to dispose o f his house elsewhere.

Practically all m utuals made some provision

In another, the dw elling w as to be valued on

fo r the exchange of quarters between m em bers,

its original cost, adjusted to the Consum ers'




54

55

IN TERN AL ARRANGEMENTS
Price Index o f the U nited States Bureau of
Labor Statistics. In a fou rth association, the
house was to be appraised by 3 persons (one
appointed by the cooperative, one by the m em ­
ber, and a third chosen by these tw o ).

tives had no control over sales o f dwellings by
the m em bers.
A m o n g the dissolved co-ventures th at had

In three associations it w as expressly pro­

completed their project, two had an option on
a w ithdraw ing m em ber's property only if the
proposed purchaser w as not acceptable to the

vided that in no case w as a m em ber leaving the

group. F our had no control over the sales price.

association to be allowed to make a profit on

In 5 o f the 6 new er apartm ent associations re­

the sale o f his equity.

porting, the cooperative had first option on the

In 15 o f the co-ven tu re associations, even

apartm ent o f a m em ber w ishing to leave the

though the m em ber owned his dw elling in fee

project.

sim ple, the organization retained the first option

the par value of the stock held

on it if he wished to w ithdraw .

the m em ber's equity) ; no consideration was
given to m arket value, whether lower or higher.

In tw o cases

the association's righ t o f option was effective

In three o f these, redemption w as at
(representing

fo r only a specified period— 1 year and 5 years,

In none o f these associations w as the m em ber

respectively— a fter

allowed to dispose o f his holdings at a profit.

completion

of

the

house.

Tw o reported that the association had no money

In

with which to purchase a d w elling; one ex­

agreed to redeem the equity at a fa ir m arket

plained that the purpose o f the option provi­

value, determined by the real-estate board in
the city.

sion was to enable the association to have the
deciding vote on the purchaser. In 7 associa­

the

sixth

case,

however,

the

association

In practically all o f the older associations,

tions there w as no righ t o f option and 3 associa­

the w ithdraw in g m em ber was held responsible

tions had no provision to cover this point.

fo r finding a replacement, and w as perm itted to

V ariou s procedures w ere used in determ in­

sell his stock holdings or leasehold fo r w h at­

In 3

ever he could get, subject only to the condition

associations the am ount w as to be the m arket
value as determined by disinterested a p p ra isa l;

th at the newcom er m ust be approved by either

in

approval by a three-fourths vote of the entire
m em b ersh ip ).

in g the redem ption value or sales price.

3, the original cost

(or the paym ent on

e q u ity ), plus value o f im provem ents, m inus de­

m em bership or board (one association required

preciation ; in one, the am ount actually paid in,

In nearly all m utuals, the bylaw s or the m em ­

plus value o f im p rovem en ts; and in 2 the origi­

ber's purchase agreem ent specified that if a

nal cost. A self-help association provided that
a m em ber leaving the organization voluntarily,

m em ber le ft the project, the association should
have the “ righ t but not the o b ligation " to re­
deem his equity in the organization. It should

or expelled because o f default on his w ork ob­
ligation, w as to be paid only the actual construc­
tion cost on his house.
F our cooperatives prohibited the sale o f dwell­
ings at a profit, but in one the prohibition was
fo r 1 year only, after which the association had
no control.

be borne in mind that in all but tw o o f these
m utuals, the m em ber has no actual physical
property to dispose o f ; w h at he has is a long­
term lease or right o f perpetual use.
In five projects the redemption value w as the

Tw o associations allowed sale at a

am ount paid in on principal, minus deprecia­

‘ ‘ reason able" p ro fit; and another perm itted such

tion (but in one o f these, the m arket value of

sale if the purchaser was

acceptable to the

the unit was to be p a id ). In 2 associations the

In 2 organizations a w ith ­

m em ber received what he had paid in on prin ­

board o f directors.

draw ing m em ber could sell fo r w hatever he

cipal (in one o f these, after 5 years o n ly ).

could get on the open m arket. F ive associations

two

had no provision to cover the situ a tio n ; one o f

m onthly am ount paid in on equity, multiplied

these believed th at the presence o f a m inority

by the number o f m onths o f paym ent, plus an

group in the project would tend to keep down

allowance fo r im provem ents m ade by the w ith­

the prices obtainable by sale.

draw ing m em ber. Three others set the amount




Seven coopera­

m utuals

the

redemption

value w as

In
the

56

COOPERATIVE HOUSING IN TH E UNITED STATES

at the m arket value o f the unit, m inus the un­
paid equity, m inus the cost of redecorating. In

the original price in another m utual was to be
effective until the expiration o f rent control,

two associations the unit w as to be valued by
two disinterested a p p ra isers; agreem ent was

and the new m em ber m ust be a citizen o f the

then

b y m em bers in disposing o f their leaseholds.

to be reached between association

m em ber on the basis o f their appraisal.
In practice, such provisions m ay be
"p a p e r ”
funds

and
only

provisions i f the association has no

fro m

which

to

redeem

the

m em ber’s

State. Six associations flatly forbade any profit

Protective Measures
In the all-the-w ay associations (apartm ents,
m utuals, or those building houses) the interests

equity. Actually, the situation has thus fa r been

o f the association and m em bers are bound up

very favorable am ong the m utuals, fo r with

together. The equity o f the m em bers as well as

housing at a prem ium and m onthly paym ents

of the association as a whole m ay be jeopardized

(ren tals) very moderate as compared w ith other

if a sufficient num ber o f residents default on

housing available in the locality, the coopera­

paym ents because o f such difficulties as long-

tives have had no difficulty in finding new m em ­

continued illness, or unem ploym ent.

bers. These, on com ing in, m ust pay the am ount

in g this, some m utuals have acted to provide

o f the w ithdraw in g m em ber’s equity, thus pro­

protective "cu sh ion s” o f various kinds.

Recogniz­

viding the association w ith redem ption funds.

F ew

Tw o associations reported that, thus fa r , all

provision

w ithdraw als had been m et prom ptly.

equity in circumstances preventing him from
keeping up his paym ents. One o f the fe w — an

An other

had established a contingency fund estim ated as

associations building houses had
fo r

the

protection

of

a

any

m em ber’ s

sufficient to redeem one unit a year.
Procedure is usually provided to cover situa­

all-the-w ay

tions in which the association does not exercise

excess rental paym ents, and a reserve composed
o f paym ents fo r services and utilities in excess

its right of redem ption. T w o m utuals reserved

cooperative — had

three

reserve

fu n d s : a general reserve, a reserve consisting o f

the sole right to dispose o f a unit vacated by a

o f the actual am ount needed.

m em ber.

In practically all the other cases, the

that these would be sufficient to take care o f

m em ber had the righ t to find a replacement,

any cases o f interrupted paym ents by m em bers

subject to approval b y the board o f directors.

that m ight arise. T his cooperative had also
desired a measure by which to release fro m

In one association, in which disposal o f the
leasehold was the p rim ary responsibility o f the
individual, the m em ber w as required to adver­
tise fo r 30 days to veterans only. I f that failed
to brin g a purchaser, the association would
have the righ t o f option.

D u rin g 1950 the re­

demption price was lim ited to not m ore than
the face value o f the m em ber’s e q u ity; after

It w as expected

the blanket m ortgage a m em ber who had paid
up his principal obligation in advance o f the
others, but the lending institution refused to
accede to it. A n oth er had a contingency reserve
fo r interrupted paym ents, and a third w as con­
sidering the form ation o f a voluntary fund. A
fourth cooperative provided th at a m em ber who

that there was to be no lim it, except that the

paid up his m ortgage in advance should receive

transaction would be subject to approval by

a first m ortgage on his dwelling.

the

Federal

N ational

M ortgage

Association,

which held the m ortgage.

One o f the co-venture associations had a re­
volving fund fro m which to meet the paym ents

One mutual perm itted the m em ber to sell at
any price approved by the board. In two others

of a m em ber in difficulties, and another w as
planning to establish such a fund.

the w ithdraw ing m em ber could sell at an in­

One

apartm ent

crease o f 2 percent a year, fo r the first 5 y e a r s ;

m onthly

carrying

a fter th at no lim it w as imposed. Sale at a profit

tingency” paym ent, to create a reserve fo r this

w as

prohibited

by

another

until

Septem ber

purpose.

1 9 5 1 ; after that, if the association failed to

fu n d ”

exercise its option, the m em ber m ight sell fo r

p roject
charges

included

in

its

a 5-percent "c o n ­

Tw o others had built up a "h o u sin g

m em bers.

w h at he could get. The requirem ent o f sale at




fro m

voluntary

contributions

of

the

A n other means o f protection w as through

57

IN TERN AL ARRANGEMENTS
differences in m ortgage periods, with the m em ­
bers paying off in a shorter period than the as­
sociation. None o f the all-the-w ay cooperatives
had such an arrangem ent, and in the few apart­
ment associations fo r which the period of m ort­

remained liable as long as he was a member
of the association.
Community Aspects

gage o f both the association and the mem bers

C om u n ity fa cilities: N one o f the all-the-w ay
cooperatives building houses had progressed to

was known, it w as the sam e fo r both.

the point o f providing social or recreational fa ­

In 6 m utuals, how ever, the association had a

cilities

(except two

children’ s p laygrou n d s),

longer period fo r paym ent o f principal than the

though all planned to have them.

m em ber.

The excess paym ents fro m the m em ­

o f the study com m unity-ow ned property con­

bers were used to prepay the association’s ob­

sisted alm ost entirely o f utilities— w ater, sew er,

ligations.

or other system s— or land earm arked fo r later

It was understood that, if a situa­

A t the tim e

tion arose in which the m em bers’ paym ents fell

com m unity

below the am ount required fro m the association,

planned to have,

the prepaym ent could be drawn upon to pre­

sw im m ing

serve the organization’ s good standing.

field, and nursery school; only fam ilies using

use.
pool,

One

all-the-w ay

eventually,
com m unity

cooperative

a tennis
garden,

court,
athletic

One m utual, w ith the same period o f am ortiza­

particular facilities would be assessed fo r their

tion as its m em bers, had the right o f prepay­

building and operation. In another association,

ment in its contract and had already paid in

however, all m em bers would be expected to give

some $ 2 5 2 ,0 0 0 in advance paym ents.
was

receiving

fro m

its

m em bers,

A nother
in

utility

financial support to w hatever com m unity fa cili­
ties w ere decided upon by vote o f the members.

charges, about $6 per unit per m onth m ore than

V ariou s com m unity facilities were provided

the actual cost to the association; this excess

by the co-venture associations. One had a m eet­

was being used to prepay the m ortgage.

ing hall, nursery school, and children’s play­

In two associations, a small surplus was be­

g ro u n d ; it planned to have a cooperative store

in g built up fro m the 0.5 percent difference be­

when the housing project w as completed.

tween w hat the m em ber paid and what the asso­

other association had a clubhouse and nursery

An­

ciation paid in interest on unpaid principal. A

school (fig. 3 0 ) . A third had a gam e room, a

third organization had a special reserve from

m eeting hall (w ith kitchen fa c ilitie s), a nursery

which to take care o f deficits in m onthly pay­

school,

ments fro m mem bers.

planned to have a cooperative store.

The association’ s contract, as well as th at o f
each m em ber, usually provided fo r the right
o f prepaym ent. (B u t, in at least two m utuals,

shared the follow ing com m unity fe a tu r e s : a hall
(w ith kitchen equipm ent), playground, basket­

prepaym ent by m em bers was prohibited.)

Such

prepaym ent o f course provided a credit fo r the
individual m em ber against which he could draw
if circumstances prevented his usual paym ents.
H ow ever, in case o f w idespread m em ber default
continuing long enough to exhaust the advance
paym ents, a prepaid m em ber would be no better
off b y reason o f his p repaym ents; he would

Tw o

playground,
projects

of

and
one

picnic

area;

self-help

it also

association

ball court, baseball field, library, cooperative
store, and cooperative cold-storage plant. O rigi­
nally the recreation facilities were owned and
operated by the housing coop erative; they w ere
later transferred to a recreation association,
organized fo r the purpose. The store and coldstorage plant were also operated by an inde­
pendent association.

sim ply have more to lose in case o f foreclosure

Children’ s playgrounds were operated by tw o

on the association’s m ortgage. The only m utuals

associations; in one case the association also

found to be providing fo r release o f a fu lly

had charge o f the maintenance o f a road pro­

paid m em ber fro m the collective liability were

vided w ith a heating apparatus to keep the road

the two in which the Governm ent contract of

clear o f ice and snow in the winter.

sale provided fo r givin g o f fee-sim ple title to

ciation had a sm all cooperative store, a m eeting

One asso­

members on completion o f their m ortgage pay­

hall, a tennis court, wooded picnic area, and a

ment.

com m unity-owned, tractor-draw n lawn m ow er.

In the others, the individual m em ber




58

F

COOPERATIVE HOUSING IN TH E UNITED STATES

3 0 . — Community building of Bannockburn Cooperators, Glen Echo, Md. ( the building houses cooperative
nursery school and other community activities.)

ig u r e

An other had a playground and com m unity g a r­

on a social and recreational program and over­

den and also owned and operated the w ater and

see the playground, com m unity

sewer system s.

baseball diamond.

In two organizations the only

facility owned in common w as the w ater system .
Two

rem aining

co-ventures

had

set

acreage fo r future com m unity facilities.

aside
The

garden,

and

Such com m unity facilities as existed in the
apartm ent
buildings.

projects

were

m ostly

inside

the

N one of the newer associations re­

land o f one association included a natural lake

ported setting aside any land fo r com m unity

which will be the nucleus o f a recreation area,
including children’s playground. A nother had

purposes. It is known, however, that in at least
four there is a children’ s playground. Seven­
teen of the 19 older associations fo r which data

plans fo r a hall with kitchen, a tennis court,
sw im m ing pool, and p laygrou nd; and a third,

are available had no com m unity fa c ilitie s ; they

fo r a hall, playground, tennis court, and co­

were strictly housing enterprises.

operative store.

exceptions, one had a roof garden and the other

E igh t co-venture associations had decided
that any additional features undertaken in the

a gym nasium , library, assem bly hall, and class­
rooms.

O f the two

future would be financed only by the fam ilies

M ost o f the mutual projects were large and

using them. In 4, any new facility voted by the

designed to provide fo r a certain am ount of

group would be com pulsory for all.

In another

com m unity activity. N early all had com m unity

association new facilities would require the fo l­

buildings, housing the office and related activi­

low ing : I f involving an expenditure o f not over

ties and usually providing space fo r m eetings.

$25 per m em ber, a 75-percent affirmative v o t e ;

A ll but one o f the mutuals covered in the study

if $ 2 5 -$ 5 0 , a 90-percent v o te ; and if over $50,

had some com m unity facilities.

a 100-percent vote.

F ew m utuals visited had any plans fo r acquir­

One dissolved co-venture that had completed

ing additional facilities, because m ost o f them

its project form ed a new organization to carry

were already fa irly well equipped. In m ost as-




IN T E R N A L

F

i

g

u

r

— Library in Amalgamated
3
1
.
Apartments, Bronx, N. Y.

59

A R R A N G EM EN TS

Cooperative

e

F

i

g

u

r

— Administration building at Victory Park,
3
e 2
.

Compton, Calif.
so cia tio n s, th e r e fo r e , th e qu estion o f procedu re
had n o t a rise n .

O n e a ssocia tio n rep o rte d th at

i f ad d ition a l fa c ilitie s w e re voted, all m e m b ers

S ix co -v e n tu re s h ad no g ro u p a c t iv itie s ; in

w o u ld be a ssessed fo r th em .

tw o o f th ese th e h ou ses w e re not y et co m p leted .
O th ers rep o rted a ctiv itie s w ith v a rio u s d eg rees

T

a b l e

31.

— Number of housing projects, by type of community
facilities provided
Co-ventures

All-the-way cooperatives
Community facility

Apart­ Mutuals
ments

Houses

Active

Inactive,
project
com­
pleted

Projects with specif ed facilities
Educational:

2
3
1

Sports:

8
4
1

3

3
1
1
3
2
1
15

1
1
1
1

1

6

2

4
3
4
1

Commercial:

1
2

1
2
2

4
1
1

3
1

6
5
3
1
2

1In one case the water system is owned jointly with others.

C o m m u n ity a c t i v i t i e s :
in

a ll-th e -w a y

C o m m u n ity a ctiv ities

a sso c ia tio n s

included -p icn ics,

c o m m u n ity fo r u m , a se w in g g ro u p , w o r k p a r ­
tie s,

socials,

lib r a r y ,

p la y

sch ool, and fo lk da n cin g .




g ro u p s,

1

Majority.

1

Operational:
Administration or maintenance
12
1

P ercen t o f
p a r tic ip a tio n

Nursery, car pool, baby sitters’ group, buy­
ing club, play school.....................................
100
Work parties, community center, clubroom,
teen-age recreation program .......................
80
Annual p ic n ic ......................................................
100
Mothers’ club, 4-H club, Boy Scouts, church
work ................................
(!)
Work parties, baby sitters’ pool, p icn ics.. . .
100
Bridge club, playground, picnics...................
75
Square dances, discussion group, summer
program fo r children, swimming parties,
work parties . : ...............................................
75
Gardening, picnics, Christmas parties.......... 75-80
Grocery-buying club, recreation events........
100

1

3
1
1
4
12

1

1

Other recreational or social:
Community building or clubhouse

o f p a rticip a tio n , as f o llo w s :

n u rse ry

F

i

— Community building at Naylor Gardens,
3
3
.
mutual project o f Veterans Cooperative Housing
Association, Washington, D. C.
g

u

r

e

60

C O O P E R A T IV E

S e v era l

sm a ll

a sso c ia tio n s

H O U S IN G

w ere

fo u n d

in

IN

T H E

U N IT E D

S TA TE S

cil, a co o p era tiv e b u y in g clu b, social clu bs, a

w h ich th e in ten t w a s to c a r r y g ro u p a ctiv itie s

cred it u n ion , and c h ild re n ’ s clu bs.

f a r b ey o n d th e p r o v isio n

tio n rep o rte d th a t all m e m b e r s w o u ld be a s ­

o f h ou sin g .

In

one

O n e a sso c ia ­

su ch g ro u p — w ith 4 fa m ilie s — each fa m ily m ade

sessed ,

r e g u la r p a y m e n ts in to a fo o d fu n d fr o m w h ich

A n o th e r p r o je c t rep o rte d th a t fa m ilie s p a r tic i­

g r o c e r ie s

w e re

o p e r a tiv e sto re.

bought

fr o m

the

ea ch fa m ily d rew w h a t it needed.
a lso

ow n ed

ch ick en s.

in

The

n e a re st

co­

F r o m th is su p p ly o f g ro c eries
co m m o n

a

h ou ses a re

cow

T h e g ro u p

an d

placed

flock

to w a r d

i f th e y voted to equip a g a m e

roo m .

p a tin g in a p ro p osed n u rse ry and h ob b y clu b
w ou ld be exp ected to c o n trib u te to th e ir cost.
C o m m u n ity a c tiv ity w a s co m m o n a m o n g th e

of

m u tu a ls. O n ly fo u r rep o rte d no co m m u n ity life .

the

S e v era l had a special c o m m itte e or cou n cil to

fr o n t o f th e lots, w h ich a re 6 0 0 fe e t in depth .

c a r r y on a recrea tio n o r le isu r e -tim e p r o g r a m

T h e en tire rea r section o f th ese lots w a s used

f o r resid e n ts o f th e d iffe r e n t a g e g ro u p s. F e w ,

f o r a c o m m o n fa r m .

h o w e v e r, could e stim a te th e e x te n t o f p a r tic ip a ­

It w a s plan n ed to develop

th e fa r m in g o p era tio n to th e p o in t o f p r o v id in g

tio n . O n e said it w a s sm a ll, a n d a n o th e r th a t

fu ll e m p lo y m e n t in o ff-se a so n s f o r tw o m e m b e rs

th e m a jo r it y o f re sid e n ts to o k p a r t. O n e e sti­

o f th e g ro u p em p lo y ed in sea son a l in d u stries.

m a te d th a t 2 5 p e rce n t o f th e m e m b e r s p a r tic i­

C o m m u n ity a c tiv itie s rep o rte d b y th e a p a r t­

th a t 7 5 p erce n t did so, and seven th a t all did

pated in one o r a n o th e r o f th e a c tiv itie s, one
m e n t a sso c ia tio n s included a co m m u n ity cou n ­

F

ig u r e

3 4 . — Community

enterprises operated cooperatively, by Greenbelt Consumer Services, at Greenbelt, Md.

[ Gasoline station (u pper) and
traveling store — “ pantry” (lower)']




so.

[Bus service (upper) and
movie theater (low er)]

Chapter V I— Relations W ith Surrounding Com m unity
C oo p era tiv e

V a r ie d ex p erien c es in n eig h b o rh o o d r e la tio n ­

fa ilu r e

to

in v e stig a te

z o n in g

re g u la tio n s in a d v a n ce cau sed so m e trou b le. In

sh ip s w e re rep o rte d .

one case, local o p p ositio n p rev en te d a c h a n g e

In so m e ca ses th ere w a s n o n oticea b le rea c­
S e v e ra l a sso c ia ­

in z o n in g so u g h t b y th e co o p era tiv e, th a t w o u ld

tio n s lau n ch ed th e ir e n te r p r ise in a n a re a w h ere

h av e p e r m itte d th e erectio n o f a p a r tm e n t h ou ses

tion f o r or a g a in s t th e p r o je c t.
th ere w e re

(a n d still a r e )

as w ell a s in d ivid u al d w e llin g s.

no n e a r n eig h b o rs.

T h e a sso c ia ­

O th e rs, in lo cation s w ith n o n eig h b o rs w h e n the

tio n th e r e fo r e h ad to confine its c o n stru c tio n

p r o je c t

to

th en .

sta r te d

Two

h ad w o n

g ood

o p in io n s since

s in g le -fa m ily

stu d y

a p a r tm e n t a sso c ia tio n s th a t w e n t

w as

d w e llin g s.

m ade

local

By

th e

o p p o sitio n

tim e

h ad

th e

d isa p ­

in to a slu m d istr ic t w e re g iv e n a fa v o r a b le r e ­

p ea red , h a sten ed to

cep tio n becau se o f th e p r o je c t ’ s effect to w a r d

th a t so m e o f th e m o re v o c ife r o u s o b je c to r s la te r
m o v e d a w a y , b u t z o n in g r e g u la tio n s still p re ­

r a is in g th e v alu e o f a d jo in in g p ro p e rtie s.

v en te d m u lt ip le -fa m ily h o u sin g .

T a x e s w e re a bon e o f co n ten tio n in one case.
The

c o o p era tiv e,

w h ose

p lan n ed

p r o je c t

so m e e x te n t b y th e fa c t

S everal

w as

o th er

co o p era tiv es

bought

site s

ju s t ou tsid e th e c ity lim its, fa v o r e d a n n ex a tio n

places w h e re m o st o f th e la n d w a s

in

to th e city in o rd er to o b tain c it y c o n v e n ie n c e s ;

esta te s.

th e r e st o f th e co m m u n ity w a s u n w illin g to p a y

p lan

the h ig h e r ta x e s in v o lv ed .

in

la r g e

a ro u sed o p p ositio n fr o m th e esta te o w n ers.

T h e a d v en t o f th e co o p e ra tiv e w ith its

fo r

m o d e r a te -c o st

h ou ses

im m e d ia te ly

A n tic ip a te d lo w e r in g o f p r o p e r ty v alu es w a s

In on e e x tre m e in sta n ce o f th is k in d , a v e t­

a fr e q u e n t cau se o f difficulty. H o w e v e r , a n u m ­

e r a n s ’ a sso c ia tio n h ad to m a k e a lo n g fig h t and

b e r o f p r o je c ts w e re able to d e m o n stra te th a t

even g o to co u rt in o rd er to w in th e r ig h t to

th e q u a lity o f th e co o p era tiv e d w e llin g s w a s as

p roceed . T h e fa c t s , a s b r o u g h t out in th e co u rt

good

p ro ceed in g s, sh ow ed th a t b e fo r e s t a r t in g w o r k

a s or b e tte r th a n

th ose

a lr e a d y

in

th e

lo c a lity .

on th e lan d , th e c o o p era tiv e h a d

a scerta in ed

T h r e e a sso c ia tio n s, w h o se p r o je c ts w e re op­

th a t th e ty p e o f h ou se it p lan n ed to bu ild co m ­

posed in th e b e g in n in g , w o n g o o d s ta n d in g b y

p lied w ith e x is tin g req u ire m e n ts. H o w e v e r , th e

b r in g in g in u tilitie s u sab le b y th e e n tire n e ig h ­

la n d o w n e rs

b orh ood . In one o f th ese, (a v e te r a n s’ o r g a n iz a ­

la w su its a g a in s t th e c o o p e r a tiv e ) succeeded in

tio n )

g e ttin g

a p etitio n w a s circu lated b y re a l-e sta te

(p r e v io u s ly

th e to w n sh ip

u n su c c e ssfu l

c o m m issio n e r s,

in

tw o

2 years

in te r e sts fe a r fu l o f th e erectio n o f ch eap h ou ses.

a ft e r th e a sso c ia tio n h ad sta r te d , to p a ss an

O p p o sitio n d isap p ea red w h en th e co o p era tiv e, in

a m e n d m e n t o u tla w in g in th a t d istr ic t th e size

th e cou rse o f d ev elo p in g its p r o je c t, b r o u g h t in

o f h ou se co n tem p la ted in th e p r o je c t.

u tilities n ot h ith erto a v a ila b le , r a is in g v alu es on

o p e ra tiv e , ta k in g th e m a tte r to th e c o u n ty co u rt,

all th e su r ro u n d in g la n d .

w o n a d ecision d ire c tin g th e c o m m issio n e r s to

A n o t h e r a sso c ia tio n

T h e co­

in sim ila r c ircu m sta n ce s rece iv ed h elp fr o m th e

issu e a b u ild in g p e r m it to th e a sso c ia tio n . T h is

n e ig h b o rs w h en th e y rea lized th e a d v a n ta g e s o f

p ro v e d to b e a P y r r h ic v ic to r y f o r th e co o p era ­

s h a r in g its w a te r sy ste m .

tiv e , h o w e v e r. T h e leg a l co sts, th e lo n g d e la y s

T h e ty p e o f d w e llin g o r s ty le o f a rc h ite c tu re

(w it h co n seq u en t lo ss o f m e m b e r s ) , etc., p ro ved

w a s th e b a s is o f a n u n fa v o r a b le n eig h b o rh o o d

to be too m u c h , a n d th e a sso c ia tio n w a s fin ally

rea ctio n in sev era l ca ses.

fo r c e d to liq u id a te, e a r ly in 1 9 5 1 .

M o d e r n a rc h itec tu re

w a s th e cau se in th re e co -v e n tu r e s.
fa m ilia r it y a n d so cial c o n ta c ts
n e g a tiv e a ttitu d e.

H ow ever,

F a ilu r e s

of

co o p e ra tiv e

h o u sin g

p r o je c ts

o v erc a m e th is

ca u sed so m e u n fa v o r a b le rea ctio n . A t le a st one

O n e a ll-th e -w a y co o p erative,

o rg a n iz a tio n h a d to live d o w n a n u n fa v o r a b le

a t first an o b je c t o f d erisio n in a r e g io n n ot a c­

a ttitu d e r e s u ltin g fr o m th e fa ilu r e o f a p rev io u s

cu sto m ed to th e m o d ern sty le , h a d n ot o n ly b e ­

h o u s in g c o o p e r a t iv e ; it w a s su cc e ssfu l, h o w e v e r ,

com e accepted b u t w a s a m a tte r o f local p ride.

and its r e la tio n s in th e c o m m u n ity a t th e tim e




61

62

C O O P E R A T IV E

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

R a cial c o n sid e ra tio n s p lay ed a p ro m in en t role
in sev eral in sta n ces.
sp on sored

O ne a ll-th e -w a y p r o je c t,

by a ch u rch g ro u p , cau sed

no n o­

ticea b le stir in th e lo c a lity u n til the presen ce o f
O r ie n ta ls and N e g r o e s in th e m e m b e r sh ip w a s
n o te d ; one N e g r o w a s an officer o f the a sso c ia ­
tion .

A

p etitio n

w as

circu la ted

in the

co m ­

m u n ity w ith the idea o f fo r c in g th e co o p erative
to ch a n ge its p olicy.

T h is ta c tic fa ile d b u t in

th e y e a r th a t elapsed a ft e r th is effo rt w a s m a d e,
th e

se c re ta r y

rep o rte d ,

pu blic

opin ion

had

ch a n ged a g a in “ and n ow th e co m m u n ity is in
co m p lete co o p eration w ith th e p r o je c t .”
F ig u r e

35.— Home of Mexican-born member (member

of board of directors) of Mountain View Homestead
Association, Tracy, Calif.

A n o th e r p r o je c t n ot only o vercam e th e in itial
h o stility

but

w as

in vited

to

(a n d

accep ted )

m e m b e rsh ip in th e civic a ssocia tio n o f the to w n ­
sh ip.

o f th e su r v e y w e re good .

A n o th e r

(com p o sed

o f v e te r a n s) rep o rted “ s tr o n g sales o p p o sitio n ”

In a th ird case th e co o p erative a dopted th e

a m o n g th e g ro u p s it w a s seek in g to en list as

policy o f in v itin g the n eig h b o rs to m e e tin g s at

m e m b ers.

T h is w a s a ttrib u ted b y th e a sso c ia ­

w h ich th e racia l p o licy w a s discu ssed fu lly and

tio n to the fa ilu r e o f a co -v e n tu re in an a d jo in ­

fr a n k ly .

in g city , and to

developed, o p p ositio n

o p p ositio n fr o m

local r e a lty

As

acq u a in tan ce

and

u n d e rsta n d in g

d isap p ea red .

T h is a sso ­

cia tio n m a k es no p a r tic u la r p o in t o f its in te r ­

in terests.
T h r e e co o p e ra tiv e s,

fo rced

out o f b u sin ess

racial ch a ra c te r.

W h e n a n ew fa m ily is con ­

o rig in a lly

sid ered jo in in g , it is called upon b y a c o m m ittee

received fa v o r a b le r e c e p tio n ; the fa ilu r e o f th e

c o n sistin g o f a N e g r o , a M e x ic a n , an d one o th er

w ith o u t

co m p le tin g

th e ir

p r o je c ts,

p r o je c t ch a n g ed th is to an u n fa v o r a b le a ttitu d e.
H o s tility to n ew c o m ers o f a n y kin d seem s to
h av e been th e u n d e r ly in g cau se o f op p osition
in one case.

m e m b e r . I f th e fa m ily

h a s a n y p r e ju d ic e o r

racia l fe e lin g , it d ro p s o u t a t t h is p o in t, and
p o ssib le fu tu r e c o n tr o v e r sy is th u s avo id ed .

T h e lan d ch osen w a s in a w ild ,

O n e d issolved co o p era tiv e had had a b y la w

o v e r g r o w n , m o u n ta in a re a in w h ich th e only

a g a in s t a n y racia l or o th er d iscrim in a tio n , and

h ou ses w e re m o d e r a te -c o st d w e llin g s occupied

sev eral J a p a n e se -A m e r ic a n

b y p erso n s w h o h ad gon e th ere to o btain p riv a cy

m itted to m e m b e rsh ip .

and a g r e a t deal o f roo m .

A s one o f th e co­

a sso c ia tio n ’s h isto r y w e re o f th e opin ion th a t

o p e r a tiv e ’ s first step s in b u ild in g , e x c a v a tio n s

the p resen ce o f th is m in o r ity g ro u p w a s r e sp o n ­

fa m ilie s

wrere a d ­

Officials r e v ie w in g th e

h ad to be m a d e in th e steep h illsid es to produce

sible fo r m a n y i f n ot m o st o f th e tr o u b les o f

level space sufficient fo r hou ses and y a r d s.

th e a sso c ia tio n . T h e co o p erative, h o w ev er, n e v e r

A

m e a su re w a s p a ssed by th e city cou n cil, at the

yielded in its n on d iscrim in a tio n a ttitu d e.

requ est o f th e r e sid en ts, ju s t a fte r th e co o p era ­

ported th a t co m m u n ity opposition m a n ife ste d

tiv e p r o je c t g o t u nder w a y .

It re­

It p ro vid ed th a t

its e lf in th e circu la tio n o f a p etitio n to p re v e n t

the m a te r ia l e x ca v a ted had to be h au led a w a y

the b u ild in g o f th e p r o je c t ; in offe rs o f m o n ey

in n ot to exceed 2 -to n loads.

A s one cubic y a rd

to co o p era tiv e officers i f th e y w ou ld use th e ir

o f th e decom posed g r a n ite o f w h ich the gro u n d

influence to in du ce the co o p erative to ch a n g e its

co n sisted w eig h ed

V/2 ton s, the effect o f th is

w a s to m a k e the co st o f ex ca v a tio n p r o h ib itiv e 1
and delay th e p r o je c t indefin itely.

p o lic y ; in th r e a ts o f p h ysica l violence a g a in st
th em w h en th a t m o v e f a i le d ; and in the in tim i­
d ation o f le n d in g a gen cies and at least one co n ­
tr a c to r w h o had in d ica ted a w illin g n e ss to deal

1 One of the cooperative’s officers stated that the job would require
the use o f a bulldozer and a loader at $11 an hour each, and at least
six 2-ton trucks at $6 an hour each.




w ith th e a sso c ia tio n , w ith th e resu lt th a t th ey
w ith d re w .

T h e a ssocia tio n w a s u n su ccessfu l in

R E L A T IO N S

W IT H

S U R R O U N D IN G

63

C O M M U N IT Y

o b ta in in g F H A in su r a n c e ,2 an d a ft e r 4 y e a r s o f

th e tim e th e m u tu a l a sso c ia tio n to o k o ver.

e ffo rt, sold its lan d an d dissolv ed .

one case, h o w e v e r— a p r o je c t b u ilt in a fa ir ly

A m o n g th e n ew er a p a r tm e n t a sso c ia tio n s, tw o
rep o rte d

no n eig h b o rh o o d

rea ctio n

w h en

th e

p r o je c t w a s s t a r t e d ; in b o th ca ses, th e lan d w a s

In

w e a lth y sectio n — d islik e o f th e p r o je c t w a s still
m a n ife s t in 1 9 5 0 .
O n e m u tu a l rep o rte d th a t th e n e ig h b o rs f a ­

in an un developed a re a . T w o p r o je c ts th a t w e n t

v ored

in to a slu m d istr ic t receiv ed a fa v o r a b le recep ­

w ou ld be m o re d esira b le th a n th e w o r k e r s fo r

it

becau se

tio n fr o m p r o p e r ty o w n ers th ere becau se o f th e

w h o m th e p r o je c t w a s b u ilt.

p r o je c t ’s u ltim a te effect o f r a is in g th e valu e o f

ex p erien ced co n sid e ra b le local o p p ositio n w h en

a d jo in in g p ro p erties.

th e y b eg a n n e g o tia tio n s to b u y th e p r o je c t.

th o u g h t

the

m e m b e rs

S e v e r a l, h o w ev er,

m ost

ca ses

b y th e G o v e r n m e n t to fill an u r g e n t n eed fo r

fr o m

sp e c ia l-in te r e st g ro u p s

q u a rte r s

a irp la n e

bid in th e p r o je c t ch ea p ly f o r r en ta l p u rp o ses.

w ork ers

in

sh ip y a rd s,

w a s rep o rte d

to

th at

have

In

T h e m u tu a l p r o je c ts w e re b u ilt in w a r tim e
fo r

th is

th e y

com e

d esired

to

A lth o u g h

O ne a sso c ia tio n , a lth o u g h o u tsid e th e c ity lim its

th e re m a y h a v e been o p p ositio n to th e location

w a s op p osed b y th e c it y ’ s m a y o r a n d re a l-e sta te

o f in d iv id u a l p r o je c ts in th e spot ch osen , such

m e n and w o u ld h a v e fa ile d h ad it n o t b een fo r

h o stility h ad u su a lly lo n g since d isap p ea red b y

a ssista n c e b y a p r o m in e n t firm o f la w y e rs.

p la n ts,

and

o th er

w ar

in d u stries.

T w o N e g r o a sso c ia tio n s h ad difficu lty becau se
2 The FH A ’s rejection, after 2 years’ consideration of the project,
was on the ground that “ neighborhood influences do not indicate
sufficient stability of this location for continuing residential use in
accordance with the requirements established by FH A .”




a n o th er g ro u p o f th e ir ow n race (m o s tly n o n ­
re sid e n ts o f th e p r o je c t ) trie d to b u y th e p r o j­
ects or, fa ilin g th a t, to co n trol th e ir po licies.

Chapter V II.— Cooperatives and the Federal Governm ent
Cooperatives Under National Housing Act1

cial p r o v isio n fo r F H A m o r tg a g e in su ra n c e on

In th e jo in t effo rt o f in d u str y a n d G o v e r n ­

p r o je c ts b u ilt b y n on p ro fit co o p era tiv e c o r p o ra ­

m e n t to find w a y s an d m e a n s to a ch iev e th e n a ­

tio n s o r tr u s ts to p ro v id e h o u sin g fo r m e m b e r s,

tio n al o b je c tiv e o f su ita b le liv in g a cco m m o d a ­

it a u th o riz es th e F e d e ra l H o u s in g A d m in is t r a ­

tio n s f o r e v e r y A m e r ic a n fa m ily , it becam e a p ­

tio n to fu r n is h tech n ica l a d vice and a ssista n c e

p a r e n t th a t co o p era tiv e e ffo rt b y g ro u p s o f peo ­

in th e p la n n in g , d ev elop m en t, co n stru ctio n , and

ple d e sir in g h o m es o r a p a r tm e n ts could in so m e

o p era tio n o f co o p e ra tiv e h o u sin g p r o je c ts.
U n d e r th e te r m s o f S ectio n 2 1 3 , th e C o o p era ­

m e a su r e m e et a p a r t o f th e reco g n ized n eed f o r

tiv e H o u s in g D iv is io n w a s esta b lish ed in the

m o d e r a te - a n d lo w e r-p ric e d u n its.

W a s h in g t o n office o f th e F e d e ra l H o u s in g A d ­

T h e first step ta k en to p ro v id e F e d e ra l a s s is ­
tan ce to p r iv a te ly financed n on p ro fit h o u sin g c o ­

m in istr a tio n .

o p e ra tiv e s w a s in th e fo r m o f a m e n d m e n ts to

p a red to a d v ise g ro u p s on o rg a n iz a tio n a l step s

S ectio n 2 0 7 o f th e H o u s in g A c t o f 1 9 4 8 .

an d F H A le g a l req u ire m e n ts.

U nder

I ts le g a l a d v iso r y sectio n is p re ­
A

tech n ica l a d ­

th is le g isla tio n th e F H A w a s a u th o riz ed to in ­

v iso r y section ren d ers a d vice and a ssista n c e on

su re lo n g -te r m h ig h -p e r c e n ta g e m o r tg a g e loa n s

lan d

to n on p rofit h o u sin g co o p era tiv es a t m o d era te

m a n a g e m e n t a d v iso r y sectio n w ill a s sist coop­

in te r e st r a te s.

e ra tiv e g ro u p s in a ll p h ases o f m a n a g e m e n t, in ­

b u rd en

upon

a

g ro u p

of

people

m a tte r s .

A

A p u blic in te r e st g ro u p , co n sistin g o f re p r e ­

C o o p e ra tiv e h o u sin g b y its v e r y n a tu re
a

a rc h ite c tu ra l

a c tiv itie s.

sid e r in g th e m a n y o b stacles th a t h ad to be o v e r ­
places

and

clu d in g a d m in istr a tio n , fiscal, a n d m a in te n a n c e

T h e p r o g r a m w a s r e la tiv e ly su cc e ssfu l co n ­
com e.

p la n n in g

se n ta tiv e s o f la b o r an d v e te r a n s ’ o rg a n iz a tio n s,

of

m o d est m e a n s, e n g a g ed in all ty p e s o f w o r k , w h o

c o m m u n ity

a re in ex p erien ced and u n in fo r m e d co n ce rn in g

tio n s, e tc., h a s been fo r m e d .

p r o b le m s o f rea l esta te a n d b u ild in g .

S ection

r e g u la r ly w ith th e C o o p e ra tiv e H o u s in g D iv i ­

con tain ed no p r o v isio n f o r fu r n is h in g

sion s ta ff fo r th e d iscu ssio n o f policies an d p r o ­

2 0 7 (f)

tech n ica l ad vice and a ssista n c e to su ch g ro u p s.

cedures

A n o t h e r o b stacle w a s th e h e sita n c y o f len d ers

a ctiv itie s.

to fin an ce co o p e ra tiv e s.

of

FHA

h a s fa c e d

th is

in te r e st

g ro u p s,

g o v e r n in g

FHA

h o u sin g

a sso c ia ­

T h is g ro u p m e ets

co o p era tiv e

h o u sin g

M e e tin g s h eld w ith re p re se n ta tiv e s

le n d in g

in stitu tio n s

have

c lea rly

d em o n ­

p ro b lem w ith v ir tu a lly e v e r y n e w m o r t g a g e -in ­

stra ted th a t m o r tg a g e fin a n cin g is a v a ila b le f o r

su ra n ce p r o g r a m an d fin ds it is reliev ed o n ly as

p r o je c ts

len d ers

u n d er S ectio n 2 1 3 .

g a in

ex p erien ce in th e n ew ty p es

of

co n stru cted

by

co o p era tiv e

g ro u p s

B u ild e r s h a v e ev id en ced an

en th u sia stic a ccep tan ce o f th is fo r m o f a c tiv ity .

fin an cin g. I n a d d itio n to th e la c k o f ex p erien ce
on th e p a r t o f c o o p era to rs and len d ers, th ere

A ll

p r o c e ssin g o f

a p p lica tio n s,

p r e lim in a r y

w a s also a lack o f ex p erien c e a n d u n d e r sta n d in g

a n a ly sis a n d u n d e r w r itin g a c tiv itie s o f th e F e d ­

on th e p a r t o f

era l

FHA

c o m p a r a tiv e ly n e w

in s u r in g

offices in th is

field o f in su red

m o r tg a g e

H o u s in g

A d m in is tr a tio n

th ro u g h th e v a r io u s S ta te and

fin an cin g.

a re

ca r r ie d

on

d istr ic t offices

w h e re fu ll in fo r m a tio n , g u id a n ce, a n d a ssista n c e
m a y be o b tain ed .

V a lu a b le ex p erien ce g a in ed in 2 y e a r s o f o p ­

P ro c e d u re s h a v e been e sta b ­

er a tio n led to th e p a ssa g e o f a n e w section in

lish ed w h ich in su r e p r o m p t co n sid e ra tio n and

th e H o u s in g A c t o f 1 9 5 0 .

T h is n e w S ectio n 2 1 3

a ctio n on req u ests f o r p r e lim in a r y a n a ly sis as

co o p e r a tiv e -h o u sin g m o r t­

w ell a s on a p p lica tio n s f o r m o r tg a g e in su ra n ce.

b ro a d en s th e F H A

g a g e -in su r a n c e p r o g r a m , f o r in a d d itio n to sp e­

An

h a s been p re p a re d b y th e F e d e ra l H o u s in g A d ­

1 This section was supplied by the office o f Warren J. Lockwood,
Assistant Commissioner, Federal Housing Administration.




in fo r m a tio n k it on co o p erative h o u sin g

m in is tr a tio n , w h ic h in clu d es a S u m m a r y o f I n -

64

C O O P E R A T IV E S

A N D

T H E

FED ER A L

65

G O V ER N M EN T

fo r m a tio n , a G u id e to C o o p era tiv e H o u s in g , a

th e r e fo r e ru led out flim sy c o n stru c tio n in p u rely

co p y o f th e A d m in is t r a t iv e R u les a n d R e g u la ­

w a r -b o r n places, w h ich w e re lik e ly to be a b a n ­

tio n s, a M o d el F o r m o f C ertifica te o f In c o r p o r a ­

doned a ft e r th e w a r . O n e “ g r e e n to w n ” G r e e n -

tio n , and a d esc rip tio n o f th e step s w h ich sh ou ld

h ills (n e a r C in c in n a ti, O h io ) w a s a lso so ld to a

be fo llo w e d in o rd er to b r in g a c o o p era tiv e h o u s­

m u tu a l, an d th e sale o f one o th er su ch p r o je c t

in g p r o je c t in to b e in g .

to a m u tu a l w a s u n d er co n sid e ra tio n w h en th e

T h is k it is a v a ila b le fo r

d istrib u tio n to in te re ste d g ro u p s and m a y be

d isp o sitio n

o b tain ed a t a n y S ta te o r d istr ic t office, o r b y

w a s su sp en d ed in A u g u s t 1 9 5 0 .3 O f th e 5 la r g e

o f all

G o v e r n m e n t-o w n e d

h o u sin g

a d d r e s s in g a r e q u e st to th e A s s is t a n t C o m m is ­

w a r h o u sin g p r o je c ts b u ilt fo r fa m ily use b y th e

sio n e r , C o o p era tiv e H o u s in g D iv isio n , F e d era l

D e fe n s e H o m e s C o rp o ra tio n , o n ly one, N a y lo r

H o u s in g A d m in is t r a t io n , W a s h in g t o n 2 5 , D . C.

G a rd e n s in W a s h in g to n , D . C ., w a s sold to a

F o r fu r th e r in fo r m a tio n on th e r e g u la tio n s
a n d p ro ced u res to be fo llo w e d in o b ta in in g m o r t ­
g a g e in su ra n c e u n d er S ectio n 2 1 8 , see A p p e n d ix

m u tu a l.
Sales P ro ced u res
T h e a cq u isitio n p ro ced u re in th e case o f th e

C , page 130.

W e s tb r o o k p r o je c ts w a s as f o llo w s : ( 1 ) F o r m a ­

Mutuals and Public Housing Projects2

tion o f a n on p rofit m u tu al h o m e o w n ersh ip c o r­
p o r a t io n ; ( 2 )

n e g o tia tio n o f a lease (w it h o p ­

F e d e r a l W o r k s A g e n c y , e ig h t p r o je c ts (th e so -

tio n to b u y )

w h en a sufficient p r o p o r tio n o f

ca lle d “ W e s tb r o o k p r o je c ts ” ) w e re d esign a ted

r e sid e n ts h ad jo in e d th e m u t u a l; ( 3 ) m a n a g e ­

U n d e r th e d efen se h o u sin g p r o g r a m o f the

f o r ev en tu a l sale to n on p rofit h o u sin g c o r p o ra ­

m e n t o f th e p r o p e r ty b y th e m u tu a l

tio n s fo r m e d b y th e te n a n ts.

D u r in g th e w a r ,

the period o f th e le a s e ; ( 4 ) ex ercise o f th e r ig h t

h o w e v e r, th e d w e llin g s w e re placed on a ren tal

o f o p tio n , b e fo r e th e e x p ir a tio n o f th e l e a s e ; and

b a sis, m a n a g e d u n d e r th e d ire ctio n o f th e P u b ­

(5 )

lic H o u s in g A d m in is t r a t io n , in o rd er to in su re

m u tu a ls in th e o th er p r o je c ts w e re o rg a n ized

th e ir

in

b e in g

a v a ila b le

fo r

w ar

w o r k e r s.

The

n e g o tia tio n

d u r in g

th e sa m e

o f a p u rch a se c o n tra c t.

w ay

b u t,

The

u n lik e th e W e s tb r o o k

m u tu a ls, th e y w e re n o t g iv e n a “ te stin g t im e ”

eight, p r o je c ts w e re th e f o llo w in g :
N u m b e r o f d w e llin g s

Greenmont Village, Dayton, Ohio....................
Walnut Grove, South Bend, Ind........................
Avion Village, Grand Prairie, Tex.................
Dallas Park, Dallas, Tex.....................................
Winfield Park, Linden, N. J..............................
Audubon Park, Audubon, N. J..........................
Bellmawr Park, Bellmawr, N. J......................
Pennypack Woods, Philadelphia, Pa...............

500
250
300
300
700
500
500
1,000

T o t a l ..............................................................

4,050

(a s in

(2 )

an d

(3 )

above)

in w h ich to lea rn

h o w to m a n a g e th e p r o je c t w h ile o p e r a tin g it
u n d er a lease.

T h e y did, h o w e v e r , receiv e con ­

sid era b le a d vice fr o m P H A d u r in g th e o r g a n i­
z ation a l p eriod and im m e d ia te ly a fte r w a r d s .

T erm s o f s a le :
q u ired fr o m

N o dow n p aym ent w as re­

th e W e s tb r o o k

p r o je c ts.

tim e o f sa le the m u tu a l co rp o ra tio n

A t th e
received

title to th e p r o p e r ty , b u t g a v e th e G o v e r n m e n t

B y J a n u a r y 1 9 5 1 , th e first five h ad su ccess­
f u lly n eg o tia ted a p u rch a se co n tra c t, th e s ix th
w a s o p e r a tin g th e p r o je c t u n d er a lease, and
th e la st tw o w e re still u n der P H A m a n a g e m e n t.
A f t e r th e end o f th e w a r , 2 0 o th er w a r h o u s­
in g p r o je c ts

(w ith 6 ,3 3 5 d w e llin g s)

w e re sold

to m u tu a ls. T h e se included, h o w e v e r, o n ly th ose
o f p e rm a n e n t co n stru c tio n , b u ilt to h ou se w o r k ­
e r s em p lo y ed in p la n ts r e g a r d e d as “ defin itely
esta b lish ed p a r ts o f th e in d u str ia l life o f th e
c o m m u n ity

in w h ich th e y a re lo c a ted .”

T h is

a m o r tg a g e fo r th e en tire p u rch a se p rice and
a p r o m is s o r y n ote fo r w h ich th e m o r tg a g e w a s
se c u rity .

T h e se o b lig ated th e m u tu a l to m a k e,

over a period o f 4 5 y e a r s, m o n th ly p a y m e n ts
to ta lin g a b ou t one fo r t y -fifth o f th e p u rch a se
p rice p er y e a r , plu s 3 p erce n t in te r e st on th e
u n p aid ba lan ce.
The

o th er m u tu a ls

fa v o r a b le
financed
u n d er

te r m s.
(w ith

S ectio n

received

T h irte e n

m o r tg a g e s
610

of

th e

so m e w h a t less
w e re

in su red
N a tio n a l

p r iv a te ly
by

FHA

H o u s in g

A c t ) , on th e fo llo w in g t e r m s : A m in im u m dow n
p a y m e n t o f 10 p ercen t, a m o r tg a g e te r m o f u p

2 This section was supplied by the Division of Economics and
Statistics of the Public Housing Administration.




3 Negotiations for this project were resumed in May 1951.

C O O P E R A T IV E

66

H O U S IN G

to 2 5 y e a r s, and in te re st (e x c lu siv e o f o n e -h a lf
of

1

p erce n t

m iu m )

FHA

m o r tg a g e -in s u r a n c e

o f 4 p ercen t.

T H E

T

a

U N IT E D

S TA TE S

b
l 3 —e Number of permanent family-type dwelling units
2
.
sold by P H A , by type of purchaser and program under which
built, end of 1950 1

F iv e p r o je c ts w e re sold

on th e fo llo w in g te r m s b y P H A :
dow n, 25

pre­

IN

N m er of d e g so to
u b
w llin s ld —

F iv e p erce n t

y e a r s ’ a m o r tiz a tio n , a n d S y2

or 40

p e rce n t in te r e st on th e u n p aid balan ce.

Two

P g mu d r w ic
ro ra n e h h
u its wre b ilt
n e u

M tu
u al
o n r­
we
sh
ip
co o ­
rp ra
tio s
n

o th er p r o je c ts w e re sold b y P H A w ith a 1 0 -p e r cen t dow n p a y m e n t, 2 5 y e a r s ’ a m o r tiza tio n , and

G ern
ov ­
m t
en
In i­
d
In
­
e rs g n s otal
v u l v sto a e cie T
id a
d oo n r- (n n an n n
we
opo t
r fi
o ­
ccu
o ­
ccu
a ts) rg n ­
pn
a ts p n o a iza
tion
s2

in te r e st o f 4 y 2 p erce n t in one case and 4 p ercen t
in th e oth er.

T h e se p r o je c ts, in tu rn , h ad to

req u ire o f th e ir m e m b e r s a dow n p a y m e n t o f
a t le a st th e sa m e p erce n ta g e as th e a ssocia tio n
w a s req u ired to a d va n ce, plu s th e m e m b e r ’ s p ro ­
r a ta

sh a re

co sts.

o f th e

o r g a n iz a tio n a l and

clo sin g

S o m e w e re n o t a ble to a m o r tize th eir

m e m b e r s ’ o b lig a tio n s fa s t e r th a n th e ir ow n ( 1 )
becau se th e ir ow n m o r tg a g e te r m w a s so sh o rt
an d th e m e m b e r s could n o t be exp ected to finish

P b wrh u g
u lic a o sin ____________ 38,385 11,474
D fen H es C rp ___ _____
e se om o
7 7 3,054
5
S b n h m d a d green
u siste ce o estea s n
680 3,123
to n
w s________________ ___
0
U ited S tes H u g A 4 ____
n
ta
o sin ct _.
6
9
Total. ______ ______ _ 9,822
I

17,720

3,405
4,599

1,328
86

24,592
8,496

0
0

2
1
692

3,824
71
6

8,004

2,127

37,673

1E clu es u its so fo u o th site.
x d n
ld r se ff e
2E clu es m tu l o n rsh co o tio s.
x d u a w e ip rp ra n
3In d s 4,050 u its in p je o in lly d sig a d fo m tu l h u g
clu e
n
ro cts rig a e n te r u a o sin .
4E clu es lim -d id dco o tio p
x d
ited iv en rp ra n rojects.
D isp o sa l P olicies f o r W a r H o u s in g 5

be­

In th e sale o f p e r m a n e n t w a r h o u sin g , m u tu a l

ca u se fo r all F H A -in s u r e d m o r tg a g e s and fo r

o w n e rsh ip c o r p o ra tio n s, like o th er u ltim a te co n ­

so m e P H A m o r tg a g e s , th e m o n th ly p a y m e n t fo r

su m e rs, h av e b een g iv e n

in te r e st

p a y in g in an even sh o r te r te r m , an d

and

p rin c ip a l

co m b in ed

(2 )

ce rta in

p r e fe re n c e s

is

u n ifo r m

o ver p r iv a te in v e sto rs. S u ch p r e fe re n c e s h av e

th ro u g h o u t th e life o f th e m o r tg a g e

(i. e., is

been co n tain ed in all d isp o sitio n p o licy sta te ­

on th e “ level p a y m e n t” b a s i s ) , an d th e m e m ­

m e n ts issu ed b y th e

b e r ’ s p a y m e n t f o r d eb t serv ic e th e r e fo r e does

n an ce

n ot decline over th e y e a r s as th e co st o f r e p a irs,

H o u s in g A g e n c y , and, since A p r il 2 0 , 1 9 5 0 , b y

m a in ten a n ce, and rep la c em e n ts in crea ses.

th e L a n h a m

A gency

and

H o u s in g a n d H o m e F i ­

its

A c t its e lf.

p red ec esso r,
The

m o re

N a tio n a l
im p o rta n t

p refe re n c es co n sist o f th e sequ en ce in w h ich
T y p e s o f W a r H o u sin g P u rch asers

p e r m a n e n t w a r h o u sin g h a s been o ffered to d i f­

T h e n u m b er o f p e r m a n e n t h o u sin g u n its sold

fe r e n t ty p es o f p u rch a se rs (i. e., p r io r it ie s ), th e

b y P H A to fo u r ty p es o f p u rch a se rs, f o r u se on

price set b y th e G o v e r n m e n t, an d th e te r m s o f

th e site w h ere th e h o u sin g w a s situ a ted at th e

p a y m e n t accep tab le to th e G o v e rn m e n t.

(S a le s o f

P r i o r i t i e s a c c o r d e d to m u tu a ls : T h e G o v e r n ­

te m p o r a r y a n d p e r m a n e n t u n its to be rem o v ed

m e n t’ s d isp o sitio n p o licy h a s a lw a y s req u ired

fr o m th e site b y th e p u r c h a se r a re n o t included,

th a t u n less o th e rw ise disp osed o f (e . g ., tr a n s ­

as th e y h ad no in te r e s t fo r m u tu a ls .)

fe r r e d to th e D e p a r tm e n t o f D e fe n se or to a

tim e o f sale, is sh ow n in ta b le 3 2 .

the

d w e llin g s

sold

to

in d iv id u a l

N o t all

o w n e r-o c cu ­

p a n ts a re a c tu a lly occupied b y th e o w n ers, b e­

local h o u sin g a u th o rity f o r lo w -r e n t u se)

per­

m a n e n t w a r h o u sin g w a s to be sold fo r p r iv a te

cau se m a n y 2 -, 3 -, and 4 -u n it b u ild in g s w e re

resid en tial use.

sold w ith th e u n d e r sta n d in g th a t th e p u rch a se r

p r io r ity to c o n su m ers (i. e., o ccu p a n ts an d p r o s­

w o u ld occu py one u n it and r e n t or

rare

pective o c c u p a n ts ), in c lu d in g g ro u p s o rg a n iz e d

d w e llin g s

into m u tu a l o w n e rsh ip o r co o p era tiv e o r g a n iz a ­

c a se s)
b u ilt

sell th e
u n d er

o th ers.

th e

Am ong

th e

(in

su b siste n c e -h o m e ste a d s

and

I t h a s also a lw a y s g iv e n to p

5 This summary covers policies affecting the sale to mutuals of
permanent housing developed under the Lanham Act, the Temporary
Shelter Acts, and Public Law 781 (76th Cong.), but does not cover
w e re m a d e a v a ila b le to m u tu a ls .4 T h e oth ers
those applied to the projects initially designated as mutual housing
w e re d esign ed fo r in d iv id u a l h om e o w n ersh ip .
communities (i. e., the “ Westbrook projects” ). It is based on the
following policy statements: NHA Regulation 60-13 (as amended by
4
The subsistence homesteads built for “ families not deriving their 60-13A and B) effective January 15, 1945; HHFA Public Regulation
principal income from operating or working on a farm ” were trans­
No. 1, effective August 27, 1947; and Title V I of the Lanham Act,
ferred to PHA in 1942. Previously, some projects were sold to non­
enacted April 20, 1950. All relevant FPH A and PHA manual re­
profit homestead associations, which resold the units to the indi­
leases have also been examined, but reference is made to them only
vidual occupants on long-term purchase contracts.
where they clarify or supplement the basic policy statements.

g r e e n to w n s p r o g r a m s , o n ly th o se in th e la tte r




C O O P E R A T IV E S

tio n s.

A N D

T H E

FED ER A L

P u b lic R e g u la tio n

F o r p r o je c ts o r p o rtio n s o f p r o je c ts th a t

could n ot be su b d ivid ed

so as to m a k e th em

67

G O V ER N M EN T

No.

1 also ten ded to in ­

crea se th e n u m b e r o f u n its fo r

sale to in d i­

“ su ita b le fo r in d iv id u a l o w n e r s h ip /’ g ro u p s o f

v id u a ls b y re q u ir in g th a t “ p r o je c ts * * * sh all

co n su m ers

a lw a y s

be su b d ivid ed in to th e sm a lle st fe a sib le u n its o f

been g iv en p r e fe re n c e o v er all o th er p u rch a se rs.

sale c o n siste n t w ith a p ra ctic a b le plan fo r th e ir

(in c lu d in g

m u tu a ls )

h av e

U n d e r N H A d isp o sitio n p o licy (J a n u a r y 1 9 4 5

d isp o sitio n .”
en co u ra g e

T h is p o licy w a s a d op ted “ in o rd er

th ro u g h m i d -1 9 4 7 ) m u tu a ls w e re also accorded

to

th e sa m e p r io r ity as in d iv id u a l co n su m ers in

p a r ticip a tio n

h om e

th e sa le o f p r o je c ts su ita b le f o r in d iv id u a l o w n ­

sm a ll in v e s to r s .”

in

o w n ersh ip ,

th e

and

d isp o sitio n

fa c ilita te

p rogram

by

T itle V I o f th e L a n h a m A c t is

T h e d ecision as to w h eth er th e u n its

silen t on th is p o in t, b u t th e r e q u ir e m e n t th a t

sh ou ld be sold to a m u tu a l m e e tin g ce rta in m e m ­

p r o je c ts be su b d ivid ed in to th e sm a lle st fe a sib le

b e r sh ip and fin a n cin g sta n d a r d s or to in d ivid u al

u n its r e a p p e a r s in th e P H A

o ccu p a n ts and p ro sp ectiv e o ccu p an ts h in g ed on

issued p u r su a n t to th a t T itle .8

ersh ip .

V a lu a tio n o f p r o j e c t s :

“ th e b e st in te r e st o f th e G o v e r n m e n t ta k in g into
a cco u n t the p r o b a b ility o f th e u ltim a te collection

p o licy sta te m e n t

A ll sta te m e n ts o f d is­

p o sition p o licy p ro v id e th a t sales to co n su m ers

o f p rin c ip a l an d th e p o ssib ility o f h ou ses re ­

be m a d e a t p rices esta b lish ed b y P H A , b u t th o se

m a in in g u n so ld .” 6

to in v e sto rs a re to be set b y c o m p e titiv e b id ­
co m p e tin g w ith

d in g . P r ic e s u n d er e a r ly p o licies w e re to be

in d iv id u a l c o n su m ers w a s e lim in a ted b y H H F A

equal to “ rea son a b le m a r k e t v alu e s, b a sed on

P u b lic R e g u la tio n

co m p e te n t a p p r a i s a l: p ro vid ed , t h a t a d v a n ta g e

The

p o ssib ility

o f m u tu a ls
N o.

1, w h ich

replaced

the

N H A p o licy in A u g u s t 1 9 4 7 .7 T h a t r e g u la tio n

sh all n o t b e ta k e n o f sc a r c ity in th e m a r k e t

em p h a sized th e su b d iv isio n o f p r o je c ts f o r sale

to

a s in d iv id u a l b u ild in g s a n d p ro v id ed t h a t on

su b seq u en tly ch a n ged b y P u b lic R e g u la tio n N o .

o b tain

inflated

p r ic e s.” 9

T h is

p h ra se

w as

su b d iv id ed p r o je c ts sa le s p r e fe re n c e w a s to be

1 to rea d “ fixed p rices d eterm in ed * * * on co m ­

a cco rd ed o n ly to in d iv id u a l c o n su m ers. B u ild ­

p eten t a p p r a isa l on th e b a sis o f th e lo n g -te r m

in g s c o n ta in in g 1 to 4 u n its, n o t sold to in d i­

v alu e o f th e d w e llin g

(in c lu d in g th e lan d, a p ­

v id u a l o ccu p a n ts o r p r o sp e c tiv e o ccu p a n ts, w e re

p u rten a n ces,

and

to b e sold to p r iv a te in v e sto rs. T h e re g u la tio n

t h e r e t o ) .”

p ro v id ed t h a t “ ad eq u ate o p p o r tu n ity m a y be

p o licy s ta t e m e n t 8 is “ fa i r m a r k e t v a lu e .”

g iv e n to g r o u p s o f p r e fe r r e d p u r c h a se rs

la tte r

c lu d in g

m u tu a ls ]

d w e llin g , a g ro u p

to
of

p u rch a se

a

[in ­

m u lt ifa m ily

d w e llin g s, o r a n

en tire

tw o

u tilitie s,

fa c ilitie s

a llocated

T h e k ey p h r a se in the m o st recen t
p h ra se s w e re b o th

The

defined b y

the

sa m e P H A o p e r a tin g in stru ctio n s as “ th e p rice
w h ich ty p ica l b u y e r s w o u ld

be w a r r a n te d

in

p r o je c t * * * , ” b u t o n ly “ w h e re it is n o t fe a sib le

p a y in g fo r th e p r o p e r ty fo r lo n g -te r m use or

o r c o n siste n t w ith a p ra ctic a b le p lan o f d isp o si-

in v e stm e n t * * * . ”

tio n * * * to su b d iv id e a p r o je c t fo r th e sep a ra te

T e r m s o f s a l e : A l l p o licy sta te m e n ts h av e in ­

sate to in d iv id u a ls o f d w e llin g s in th e p r o je c t .”

dicated th a t sale sh ou ld be m a d e f o r cash , and

T h e P H A p o licy sta te m e n t issu ed p u r su a n t to

th a t n e c e ssa r y fin a n cin g should be o btain ed in

T itle V I o f th e L a n h a m A c t

th e p r iv a te fin an cial m a r k e t, b u t n u m ero u s e x ­

(w h ic h displaced

P u b lic R e g u la tio n N o . 1 in A p r il 1 9 5 0 ) co n tin ­

ception s h a v e been m a d e.

ues th e p o licy ex p re sse d b y th a t r e g u la tio n .8

sta te m e n ts and th e recen t P H A sta te m e n t m a d e

T itle V I its e lf p e r m its th e sale to m u tu a ls o f

p u r su a n t to T itle V I o f th e L a n h a m A c t 8 rec­

p r o je c ts co m p osed o f b u ild in g s c o n ta in in g 1 to

ogn ized th a t it m ig h t n ot a lw a y s be p o ssib le to

4 u n its, m o r e th a n 4 u n its, o r b o th .

B o th th e N H A p o licy

g e t p riv a te fin an cin g, and specifically a u th o rized
th e g r a n tin g o f te r m s in such cases.
m um

te r m s

p e rm itte d

by

FPHA

T h e m a x i­
reg u la tio n s,

6
FPHA Manual of Policy and Procedure Sec. 3550:10 (January
23, 1945). The same language may also be found in the succeeding
FPHA statements: Sec. 3550:2 (October 29, 1945, June 14, 1946,
and August 31, 1946).

and m o re rece n tly b y T itle V I o f th e L a n h a m

T FPHA Manual Sec. 3550:2 (April 18, 1947) anticipated one
restriction in P.R. No. 1, by limiting mutuals to purchasing units
“ not suitable for individual ownership/'

8 PHA Manual of Policy and Procedure, Sec. 3551:2
1950).




9 NHA Regulation 60-13 TJan. 15, 1945).

(July 7,

C O O P E R A T IV E

68

A c t , a re sh o w n in ta b le 3 3 .

H O U S IN G

IN

T H E

U N IT E D

S TA TE S

P u b lic R eg u lation

N o . 1, on th e o th er h an d , requ ired th a t “ all sales
sh all be fo r ca sh , w ith such fin an cin g as m a y be
requ ired to be secu red in th e p riv a te fin an cin g
m a rk e t u n d er th e p r o v isio n s o f S ectio n 6 1 0 o f
th e N a tio n a l H o u s in g A c t , a s am en d ed , o r o th er­
w is e .”

S ectio n 6 1 0 , on w h ich so m u ch relian ce

w a s placed b y th e reg u la tio n , w a s an a m e n d ­
m e n t a d op ted a t th a t tim e p e r m ittin g F H A to
in su re loa n s up to 90 p erce n t o f th e a p p ra ised
v alu e o f th e p r o p e r ty a n d fo r p eriod s up to 2 5
y e a r s.

The

A d m in is t r a t o r

recogn ized

in

h is

1 9 4 9 an n u a l r e p o r t “ th e difficulty in se c u rin g
p r iv a te fin a n cin g on rea son a b le t e r m s even w ith
F H A m o r tg a g e in su ra n c e, esp ecia lly on m u tu a l
o w n e r sh ip p u r ch a se s” a n d p ro m ise d th a t “ a re ­
v isio n o f th e reg u la tio n w ill be m a d e to p e r m it
ev en

g r e a te r

T

3 3 . — Standard

able

fle x ib ility .” 10

N e v e r th e le ss,

th e

financial terms for sale of permanent
war housing to mutuals 1
M im m M u
in u
axim m In re
te st
dw
o n am
ortiza­
te
p y en tio p rio (pra n
am t
n e d
e t)
rce
(p rc n
e e t) (y a
e rs)

E ctiv d tes
ffe e a

F igure

— Two

types o f apartment
at Greenhelt, Md.

36.

t
J n a 23, 1945-M 3, 1946____
a u ry
ay
______
M 4, 1946-A 17, 1947______ ________
ay
pril
A ril 18, 1947-A g st 26, 1 4
p
uu
947 ___
A g st 27, 1947-M 3, 1950___
uu
ay
_______
M 4, 1950-A 22, 1952_______________
av
pril

(2
)
35
31
0
W
1
0
1
0

(2
)

(2
)

40
52
5
(«
)
25
25

(•
)

3H
4
4
4H

1“W rook p jects” re e e sp cia te s n t sh w h re T
estb
ro
c iv d e l rm o o n e . erm sa s wr
le e e
a th rize o ly w e a eq a p a fin n in w s n t a a b
u o d n h n d u te riv te a c g a o v ila le.
2“A p p te term in th lig t of lo l fin n in p c e an th n ce
p ro ria
s
e h
ca a c g ra tic s d e e ssity fo
r
p pd o n
rom t isp sitio .”
3P s n e rn g d rin o e tio b m tu l u d r sa s co tra
lu et a in s u g p ra n y u a n e le n ct.
4T s in W er-E d aft B (S 1592) w ic p sse th S n te A ril 15,
erm
agn llen er-T
ill .
hh a d e ea p
1946.
‘ A o tio b th m tu l (b t n t its m b m h b ex n e u to40 y a
m rtiza n y e u a u o
em ers) ig t e te d d p
e rs
u d r th “E u R serv P .”
n e e q ity e e lan
*C shon te s g n don by e ce tio s m d b th A m istra
a
ly; rm ra te ly
x p n a e y e d in tor.
ca sh r e q u ire m e n t rem a in ed the w r itte n policy
o f the a g e n c y un til th e adoption o f T itle V I o f
th e L a n h a m A c t in A p r il 1 9 5 0 .

T o fa c ilita te

F H A -in s u r e d p r iv a te fin an cin g, P u b lic R e g u la ­
tio n N o . 1 req u ired , and th e recen t P H A policy
s t a te m e n t8* n ow p ro v id es, th a t co n su lta tio n s be
0
1
held w ith F H A b e fo r e a price is set on p r o je c ts
to be sold to c o n su m e r s.1
1
8 PHA Manual of Policy and Procedure, Sec. 3551:2

(July 7,

P ro jects

T h e s ta tu to r y a u th o rity o r ig in a lly g o v e r n in g
the disposal o f th e su b u rb a n re se ttle m e n t p r o j­
ects

(G r e e n b e lt,

G reen d a le, W i s .)

M d .,

G reen h ills,

O h io,

an d

w a s sufficiently b ro ad to a u ­

th o rize sale o f th ese p r o je c ts to m u tu a ls w ith ­
out sp ecifically n a m in g th em , bu t p e rm itte d n o
special p r e fe re n c e s or te r m s in th eir fa v o r .
co m p lete

r e v ie w

of

th is

sta tu to r y

A

a u th o rity ,

w h ich h as developed over th e y e a r s b e g in n in g
w ith th e N a tio n a l In d u str ia l R ec o v ery A c t in
1 9 3 3 , w o u ld be a la r g e u n d e r ta k in g and w o u ld
n ow

serv e

o n ly

a h isto ric a l

p u rp ose

b ecau se

no u n its w e re sold u n til a ft e r th e e n a ctm e n t o f
P u b lic L a w 6 5 in M a y 1 9 4 9 w h ich sp ecifically
ized on a n on p ro fit b a s is ” w h ich th e a ct defin es
to include, b u t n ot to be lim ite d to, “ m u tu a l

Housing

and

Home Finance

Agency

u PHA Manual o f Policy and Procedure, Sec. 3550:3, Part III,

paragraph 11 (issued pursuant to PR No. 1) set forth detailed pro­
cedures for attempting a reconciliation o f PHA and FHA valuations.
The new procedure issued pursuant to Title VI of the Lanham Act
(PHA 3551:2) merely required the consideration o f the FHA valua­
tion in setting the price, since Title V I explicitly authorizes term
sales (Sec. 607 ( f ) ).




D isp o sa l o f “ G reen tow n ”

g r a n ts p r e fe re n c e s to “ v e te r a n g ro u p s o r g a n ­

1 9 5 0 ).

1 Third Annual Report,
0
(1949), p. 60.

dwellings

o w n e rsh ip o r co o p erative h o u sin g a sso c ia tio n s
o r lim ite d -d iv id e n d co rp o ra tio n s w h ich b y th e
te r m s o f th e ir c h a r te r s an d b y la w s h av e lim ited
th e ir ra te o f re tu rn to a ra te no h ig h e r th a n
th e P u b lic H o u s in g C o m m issio n e r d eem s rea ­
son able and n e c e s s a r y .”

Chapter

VIII.—

Problems

S e m e o f the o b stacles fa c e d b y h o u sin g co­
o p e ra tiv e s h av e b een im p lied in th e p rece d in g
d iscu ssio n .

difficult to

In g e n era l, m a n y o f the

in

th is

very

co m p lex

in d u stry .

Bylaw and Legal Problems

tract

in

One

a ll-th e -w a y

co o p erative

a

w h o le

Thus

th is one sta g e

of

o p era tio n

w h o m it h ad a v erb a l a g r e e m e n t a n d w a s r e a d y
to con clu de a p u rch ase co n tra c t, w ith d re w fr o m
th e sa le.

in v o lv ed o n ly on p r o p e r ty to w h ich th e y had

R e ly in g on h is w o rd , th e a sso c ia tio n

h ad done a good deal o f p r e lim in a r y w o r k on

A c o -v e n tu r e co o p erative trie d to

th e lan d .

in c o r p o r a te u n d er th e n on p ro fit a ct o f its S ta te ,

A n o th e r a sso c ia tio n h a d a lm o st th e

sa m e ex p erien ce.

b u t lea rn ed th a t such an o rg a n iz a tio n could n ot

A ls o r e ly in g on v erb a l a g r e e ­

m e n t, it proceeded to m a k e an a g r e e m e n t w ith a

h old la n d ; th e r e w a s also th e q u estio n o f the

co n tra c to r, on ly to find th a t in th e in te r v a l th e

r ig h t o f a n o n p ro fit a sso c ia tio n to g iv e a clea r

la n d o w n e r h ad sold so m a n y o f th e lots th a t th e

title o r to fin an ce h o u sin g a c tiv itie s. I t th e r e ­

tr a c t cou ld no lo n g e r m e et th e c o o p e r a tiv e ’ s re ­

fo r e in c o rp o ra ted u n d er th e r e g u la r co rp o ra tio n

q u irem en ts.

la w o f th e S ta te .

fo r e

T h e m u tu a ls, fo r th e m o s t p a r t, fo llo w e d a

M o r e tim e an d e ffo r t w e re th e r e ­

co n su m ed

in

d isc o v e r in g

and

a c q u irin g

a n o th e r site.

r e g u la r p a tte rn , w ith th e a rticles o f in c o rp o ra ­

A n o th e r stated th a t one o f its w o r st p ro b ­

tio n , b y la w s, a n d co n tra c ts in c lu d in g p r o v isio n s

lem s, ta k in g a g r e a t deal o f tim e , w a s to clea r

H ow ­

up th e lien s on th e lan d , in o rd er to g e t title.

e ver, one o rg a n iz a tio n d e a lin g w ith th re e G o v ­
(P H A , F H A , and R F C )

a ft e r

loss o f tim e and m o n e y w h en a la n d o w n er, w ith

b y la w s, to p ro vid e th a t len d ers w o u ld be le g a lly

a lr e a d y fo r m u la te d b y F P H A o r P H A .

la n d ,

i t s e lf

w e ll-situ a te d

A n o th e r a sso c ia tio n in th e M id w e s t su ffered

It

C h a n g e s also h ad to be m a d e in th e

ern m e n t a g en c ies

o f ta x -d e lin q u e n t

7 m o n th s.

th e r e fo r e r e in c o rp o ra te d u n der th e S ta te n on ­

m a d e a loan .

co n sid e red

alon e co n su m ed o v e r I V 2 y e a r s ’ tim e .

d isco vered th a t it w ou ld be a t an e x tre m e dis­
a d v a n ta g e u n d er th e la w s o f its ow n S ta te .

a sso c ia tio n s

d isc o v e r in g a v e r y

sale, h o w e v e r, d elayed a cq u isitio n f o r a n o th e r

o rg a n ized

u n d er th e D is tr ic t o f C o lu m b ia C o o p e ra tiv e A c t

profit la w .

th e se

y e a r ’s sea rch . V a r io u s p o stp o n e m e n ts o f th e t a x

fo r m u la t in g b y la w s o r in m e e tin g leg al p ro b ­
lem s.

of

fo r tu n a te in
difficulty

it

th e y

o n ly one w h o se p rice w a s w ith in th e ir rea ch .
One

rep o rte d

fo u n d

a t p ric e s

e ith e r th e o n ly ad eq u ate t r a c t a v a ila b le o r th e

fo r e s ig h t.

a sso c ia tio n s

a re a s

m e m b e r s ’ e n th u sia sm f o r it b u t b ecau se it w a s

th e co o p e ra tiv e officers’ in ex p erien ce and lack o f

fe w

lan d

fin ally ch osen w a s b o u g h t n o t b ecau se o f th e

A ls o so m e o f th e difficulties w e re tra cea b le to

A

in d u stria liz ed

find su ita b le

could a ffo r d to p a y . In one o r tw o ca ses th e lan d

p ro b lem s w e re n ot p ecu liar to co o p era tiv es bu t
in h e re n t

Acquisition o f Land
tio n s in h ig h ly

special p ro b le m s th a t h ad to b e solved in c a r r y ­

a re

Cooperatives

In c o m m o n w ith all b u ild e r s m a n y a sso c ia ­

In a d d itio n , th ere w e re n u m ero u s

in g out th e p r o je c ts.

of

A

re­

n u m b e r o f co o p era tiv es b o u g h t lan d o u t­

p orted difficulty in re co n cilin g th e d em an d s o f

side city lim its in

th e th ree an d in m a k in g th e m a n y ch a n g es re ­

h ig h e r t a x level and m o re s tr in g e n t r e g u la tio n s

qu ired .

th a t w ou ld m e a n g r e a tly in creased co sts.

A n o th e r tr ie d to o rg a n iz e as a stock

o rd er to escape th e c ity ’ s
E ven

co rp o ra tio n , b u t could n o t g e t p e rm issio n fr o m

so, sev e ra l r a n in to co u n ty re g u la tio n s th a t in ­

th e S ta te S e c u ritie s E x c h a n g e C o m m issio n to

v olv ed a d d ition a l ex p en ses.
O n e g ro u p , u n d er th e im p r e ssio n th a t it w a s

sell stock, and ended b y in c o r p o r a tin g u n d er th e

b u y in g co u n ty lan d , d isco vered th e site to be in

non profit act.




69

70

C O O P E R A T IV E

H O U S IN G

a n a r r o w str ip o f h ig h -ta x city lan d ju t t in g up
in to c o u n ty te r r ito r y .

H o w e v e r , as th e tr a c t

IN

T H E

U N IT E D

S TA TE S

ern m e n t, in its effo rt to g e t w a r h o u sin g p r o j­
ects b u ilt sp eed ily, u sin g as f e w

critic a l m a ­

w a s in an a g r ic u ltu r a l a re a b u t w a s u n su itab le

te r ia ls as po ssib le, did n ot a lw a y s c o n fo r m to

f o r fa r m in g , it w a s o b ta in ed a t a p rice suffi­

all code an d z o n in g req u ire m e n ts.

cie n tly low to o ffse t so m e o f th e a d d ition a l city

it h as been n ece ssa ry in sev era l cases to o btain

co sts.

w a iv e r s o f th ose req u ire m e n ts fr o m

T h e r e fo r e ,
th e local

O n e a sso c ia tio n , ta k in g o ver a la r g e tr a c t,

a u th o ritie s b e fo r e th e p r o je c ts could be sold.

d isco v ered th a t m a n y p ro b le m s w e re in v o lv ed

T h e d ela ys in se c u r in g such w a iv e r s a ccou n t

in c a r r y in g out its su b d iv isio n u n d er S ta te and

in a n u m b e r o f p r o je c ts f o r th e d ela ys e x p e r i­

c o u n ty la w s.

In th e tim e -c o n s u m in g p ro cess it

enced b y the m u tu a ls in co n clu d in g sales con ­

lea rn ed a n u m b e r o f sh o rtc u ts w h ich one o f its

tr a c ts w ith P H A .

officers inten ded to w r ite o u t fo r th e ben efit o f

Installation o f Utilities

o th er g ro u p s.

In e x p e rie n ce led to difficulties w ith r e g a r d to

Building Codes and Zoning Regulations

u tilitie s in so m e cases. A

n u m b e r o f a sso c ia ­

C o m p a r a tiv e ly fe w a sso c ia tio n s h ad a n y diffi­

tio n s th a t co n sid e red th e m se lv e s m o s t fo r t u ­

c u lty w ith b u ild in g codes o r z o n in g reg u la tio n s.

n ate to o b ta in g ood b u t u n im p ro v e d lan d a t a

O n e a ll-th e -w a y co o p era tiv e b o u g h t lan d in a

rea so n a b le price d isco vered la te r th a t th e co st

w e a lth y a re a , w h e r e th e r e g u la tio n s req u ired a

w a s v e r y m u c h h ig h e r b y th e tim e th e lan d h ad

m in im u m o f 2 a cres o f sp ace f o r each d w e llin g .

been

T h is resu lte d in c o n sid e ra b ly h ig h e r lan d co sts

in g r e s s

th a n th e co o p e r a tiv e a n ticip a ted .

sew er, w a te r , g a s , a n d e lectricity .

O n e c o -v e n tu re d rew

up a plan fo r

cleared,

One

a b a l­

su rv ey ed ,

roa d

and

and

in te r io r

c o o p era tiv e

bought

p ro v id ed

str e e ts,
a

w ith

and

very

w ith

a ttr a c tiv e

anced c o m m u n ity , in c lu d in g a p a r tm e n t b u ild ­

piece o f lan d ju s t o u tsid e the c ity lim its , w e ll-

in g s a n d detach ed and

d ra in ed ,

sem i-d eta ch ed

h ou ses.

on

a

new

h ig h w a y ,

w ith

ex cellen t

T h e c o o p e r a tiv e 's p etitio n fo r a re v isio n o f th e

scenic v iew s, and w ith a n ew sh o p p in g cen ter

co d e to p e r m it a p a r tm e n t b u ild in g s w a s re je cte d

g o in g up sev era l b lo ck s a w a y .

a ft e r local resid en ts op p osed th e m o v e.

As a

g a s h ad only to be b r o u g h t in fr o m th e h ig h w a y .

resu lt, th e a sso c ia tio n confined i ts e lf to sin g le ­

In o rd er to o b tain se w e r fa c ilitie s, h o w ev er, th e

fa m i ly d w e llin g s.

a ssocia tio n h ad to la y a c o n n ectin g sew er lin e

I t sta rte d w ith 2 4 detached

E le c tr ic ity and

h o u s e s ; and w h en th ese w e re co m p leted tw o

(a t a cost o f $ 6 ,0 0 0 ) to th e n e a re st p o in t 2 ,0 0 0

o th er g ro u p s w e re b eg u n . H o w e v e r , th e delay in

fe e t a w a y . U n a b le to o b tain w a te r fr o m n ea rb y

a p eriod o f r a p id ly r is in g c o sts an d th e a sso c ia ­

p r iv a te w a te r s y ste m s, it n eg o tia ted a fo u r -w a y

tio n 's

fe w

a rr a n g e m e n t w ith a b u ild er b e g in n in g develop­

d w e llin g s a t a tim e in e v ita b ly m e a n t financial

m e n t n e a rb y , a la r g e la n d o w n er, and a g ro u p

p ro b lem s, loss o f so m e m e m b e r s w h o could n ot

of

w a it, and seriou s u n c e r ta in ty as to th e fu tu r e .

financed th e

in a b ility

to

p ro v id e

m ore

th a n

a

In a n o th er case, th e co o p e r a tiv e p r o je c t w a s

sm a ll h o m e o w n e rs

w h ereby

co n stru c tio n

line, 6 ,0 0 0 fe e t lo n g .

to g e th e r

o f an

8 -in c h

th ey
w a te r

T h e a sso c ia tio n 's sh a re o f

dela yed fo r over 2 y e a r s becau se o f a b u ild in g

th is cost w a s $ 4 ,5 0 0 . B y th e tim e all th ese u tili­

r e g u la tio n s

ties h ad been p ro v id ed f o r and roa d s and oth er

o p era tiv e

a m e n d m e n t,

had

b eg u n

p a ssed

w o rk .

a fte r

The

th e

co­

am endm ent

site im p r o v e m e n ts m a d e, th e p e r -a c r e co st to th e

w ou ld h a v e p ro h ib ite d the k in d o f h ou ses p r e ­

a sso c ia tio n h ad rise n fr o m $ 1 ,0 0 0

v io u sly

c o st)

a llow ed

(th e

o n ly

k in d

th e m e m b e rs

to s lig h tly over $ 5 ,0 0 0 .

(a cq u isitio n

B eca u se o f th is

could a f f o r d ) . A co u rt case b r o u g h t b y th e a sso ­

and th e in creased h o u se -c o n stru ctio n co sts, th e

cia tio n resu lted in a fa v o r a b le decision .

associa tio n e stim a te d th a t th e d w e llin g cost p er

N o n e o f th e a p a r tm e n t a sso c ia tio n s rep o rted
difficulties w ith z o n in g o r b u ild in g codes, b e­
cau se th e y w e re all in cities and w e re s u b je c t to
th e p r e v a ilin g city reg u la tio n s.
B o th

z o n in g

an d




h ad been ex p ected in th e b e g in n in g .
A M id w e s t a sso c ia tio n h ad to in sta ll a w a te r
sy ste m

b u ild in g -c o d e

a ro se f o r m u tu a ls b ecau se th e

m e m b e r w a s at lea st $ 1 ,0 0 0 to $ 2 ,0 0 0 m o r e th a n

p ro b lem s

F e d e ra l

G ov­

(c o n s is tin g

of

w a te r

w o r k s,

w a te r ­

so fte n in g p la n t, and d istr ib u tin g s y s te m ) co st­
in g $ 3 8 ,0 0 0 .

In a n o th er case, also in th e M id -

PROBLEM S
w est,

th e

u tilitie s

(w a te r

s u p p ly

a n d

OF

71

C O O P E R A T IV E S

s e w e r)

c o s t $ 6 9 ,0 0 0 .
A

F a r

in g
a

a

W e s t c o o p e r a tiv e ,

le a d -in

ro a d ,

p u m p h o u se

d is tr ib u tio n
th e

la n d

som e

th e

p ro sp e ctu s
at

a b ou t

to ta le d

th e

to

in

th e

T h e

sa m e

is o la tio n

an

it

fa c ilitie s

o f

th e

th e

a n d

a

In

a s s o c ia tio n ,

b o n d )

p u t

in

th e

a b le

t e le p h o n e
t e le p h o n e

tre n ch .

It

p u rp o se ,

T h e

h a d

to p

ste a m

o f

a

s u r fa c e

a ccess
$ 5 ,0 0 0
O n e

to

ste e p

h a d

it

a t

fr e e ,

o w n e r,

10

fo o t in g s .

m ile s

to

B y

th e
ic e

in

v ie w
(7 7 ).

w a te r
w h o




m u tu a ls ,
s in c e

R e la t io n s
F e w

o f

th a t

a s s o c ia tio n s

tim e

m e m b e r
d en t

a fte r

w ith

sn ow

a n d

w in te r .

sy ste m

w a s

sy ste m
to

th u s

T h e

o f

k eep

in s u r e

ro a d

cost

to

h a v e

u tili­

th e

la n d ,

an d

to

m a k e

th e

o f

la r g e

A n o th e r

w a s

it

in

th e

th e
co n ­

n u m b er
a b le

p a r­

u t ilit ie s .

u tility

p r o b ­

co n stru cte d

n e v e r

p ro v e d

p a tie n c e
y e t

p r o je c t .

w o rk .

to

n e v e r

te c tu r a lly

to

p u t

in

b y

th e

e x p e cte d

to

d e v e lo p

o f
u se

p re ­
th e

c r it ic iz e d
p r a c tic a l

th e

ju s tifie d

o r

E x p e n se s

p o rte d

som e

t iv e
a n d

a n d

a

fe w

rea ch ed
file d

an

e v e ry

an

w ith o u t
p le a s e d
th a t

a r c h ite c t.

w a y .

d e s ir e

a

r e s i­

re p o rte d

H e

h a d

d e s ir e s

fa m ilie s ’

n ot,

ca ses

a n d

fo r

som e

an

a r c h i­

fa ilin g

r e s u lt in g

w ith

c o o p e r a tiv e s

p la n s

in c r e a s in g

d e la y s

as

b e in g

to

m eet

costs
fr o m

c o n tr a c to r s

O n e

w ith

w ith
F H A .

a

im ­

F H A

u n d u ly .
u n s a t is ­

w e re

a ll-th e -w a y

a g re e m e n t

a p p lic a t io n

a

w e ll

o f

th e

w a s

c o m m u n it y .”

o r

ca ses.

as

c h o ic e

th e

th e re b y

r e la tio n s
in

its

a r c h it e c t u r a l

in

b eca m e

w ith
o f

a rc h itec t

a s s o c ia tio n s

in

o f

h a r m o n io u s

th e

th e

sev era l

a s s o c ia tio n

id e a l

s ig h t

d iffic u ltie s

th e m s e lv e s

in d iv id u a l

lo s t

C o n tr a c to r s

In

a n d

T h ese

O n e

b e

r e q u ir e m e n ts ,

fa c to r y

h ou ses

re g re tte d

w ith

a n d

re p o rte d

a s s o c ia tio n

e x p re sse d

th e ir

“ h a s

H e

th e

W h e th e r

w illin g
th e

a t

$ 3 ,0 0 0 .

fo r tu n a te
o f

a

n o

w ith

u n u su a l

co n tra cto r.

b u ild in g

o f

e x c e p tio n

h ill,

n o

A r c h it e c t s

c o o p e r a tiv e s

it

th e

h a d

a r c h it e c t o r

s a v in g s

up

re p o rte d

c o n n e c tio n

G o v e rn m e n t

w ith

e ith e r

th e

in s ta lle d

a ls o ,
th e

th e

d ig

p r o je c t

in

p r o je c ts .

s e ll

sy ste m

h a d

p ro p e rty .

T h e
le m s

in

w h ose

a s s o c ia tio n s

p r o b le m s

to

ed g e

w e re

a p a rtm e n t

its e lf

a n d
in

th e

T h e
tic u la r

e x p e cte d

ro a d

w a s

ing Association, Denver, Colo.

fo r

m a c h in e

u sed

37 .— Dwellings at project o f Mile High Hous­

i g u r e

la tte r

s u b d iv is io n .

d ig

la te r

to

fo r tu ­

o f th e

d itc h in g

fo r

h e a tin g

in v o lv e d
a n d

to

a

g ra d e ,

p r o je c t

c o m p a n ie s

se w e r

v io u s

o f

th e

co st

h a d

p u rp ose.

a s s o c ia tio n

n e c tio n s
h ou ses

a ls o

u n d er

a v a ila b le

u t ilit y

th e

a s s o c ia tio n ,

th e

a n d

sh a re

It

F

th e

S ta te s n o t o n ly

o f a n e ig h b o r in g

p a id

fr e e

in to

$ 1 9 ,0 0 0 .

w a s

h a d

p ip e s

ro a d

lin e .

a s s o c ia tio n

ea stern

th e

to

su m

co n stru c­

b u t

b o u g h t

its

o f a

sy ste m ,

h o u se

se rv e d

lie u

M o u n ta in

th e

m a c h in e

th e

h a d

h o u r s ; th is

se w e r

w h ic h

fo r

48

(in

$ 2 2 ,0 0 0 .

m em b ers

w a te r

to

d e v e lo p e r

le n g th ,

th e

o f

th e

to
h a d

g e t

a s s o c ia tio n

8 -in c h

a s s o c ia tio n

m ad e.

a

o f

in

co st

o w n

d e­

te r r a in

a d d itio n

b u ild in g

in

its

b e in g

tre n ch e s

t ie s

in

m ile s

n a te

its

th e

ro a d

c o o p e r a tiv e
to

w ith

th e

fo r

T h e

d iffic u lt
h illy

to

th e

t io n

A n

co st
costs

in s ta ll a w a t e r -

e q u ip m e n t, c o s t in g

b e p osted

it

in it ia l

h ou se

to

to

p r o je c t.

a

m ile s

o rd e r

s ta t io n

r e q u ir e d

th e

r a is e d

c a u s in g

(th e

In

1 .3

w a s

th e

w a te r-

o r g a n iz a t io n

w a ter, an d

ca s h , w ith in

se w e r

a

lo t,

th e

th e

ro a d

sy ste m .

b u ilt

h a d
o f

in

T h is

p e r

tra ct.

p r o je c t,

p r o v id e

a n o th e r

2

in s ta ll

d e v e lo p m e n t

a rea

$ 2 0 ,0 0 0

la y

b u ild ­

d e v e lo p m e n t

b eca u se

in g r e s s

d is tr ib u tio n
s e r v ic e

A

to

w e ll, b u ild

w ith d r a w

lo t).

th e

w ith in

b u ild

h a d

a

e x p e n d itu r e s

$ 1 ,3 0 0

e s tim a te d
p e r

s in k

a n d

T h ese

a b o u t

p r o b le m

s in k a w e ll t o

r a is e

to w e r,

a d d itio n

to

$ 3 0 ,0 0 0 .

s tre e ts

In

in

h a d

m e m b e rs

$60 0

v e lo p m e n t

to

b y

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C O O P E R A T IV E

d e n ly , th e c o n t r a c t o r d e m a n d e d
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s u ffe r e d

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a n d




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(in

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it

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a s s o c ia tio n s ,

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officials advise, h owever, that as individuals, they c a n obtain

insurance u n d e r Section 8, Title I of the H o u s i n g Act.




w a s
it

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ce d u re

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g a v e

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w a y

th e

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p la n

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it ;

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on

th is

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w e re

o p e r a t in g

m e m b e r

o r g a n iz a t io n

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fo r

to

th en

a s s o c ia t io n ’s

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u n a b le
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g iv e n

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a s s o c ia tio n

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c o m p le te d

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on

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fin a n c ­

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a ll

to

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fa c e d

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la n d

c ia tio n

c o o p e r a tiv e s

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to

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p r o d u c tio n .

r is in g

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d is c r im in a tio n
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w o u ld

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g ro u p ,

b e t t e r q u a lit y

s ta rt

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th e

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to g e th e r.
th e

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la r g e

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tr ib u te d ,

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th a t

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on

b u t

it

fin a n c in g .

c o u ld

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re p o rte d .

o f th e

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te r ia l,

b lo c k

th e

h a d

h a d

h ou ses,

a s s o c ia tio n

e x c e p tio n

w ith o u t

jo in e d

co m m o n

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s tu m b lin g

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w h o se

a n d

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th e

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it

c o n s tr u c tio n

c o n s tr u c tio n

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th a t

lo n g -te r m

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on

d on e

re p o rte d

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n ot

s u c c e e d in g

o b ta in in g fin a n c in g f o r

O n e

fir s t

in

c o u ld

c a r r ie d

e m p lo y e e s

its

tr o u b le

w h e re b y

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in

s e c t io n s .

c o m p le te d

s till

a t

d iffic u lty

tio n a l

In

w ith

th e

in ­

n o

h ou se

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F H A

c o m p le t io n .1

c a s e , h o w e v e r , th is
a n

o f

p e r fo r m a n c e

fo r

b y

p oses

th e ir h o u se s

73

C O O P E R A T IV E S

b o n d

n e ce ss a ry

d e fin ite

m e m b e rs

b u ild

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w a s

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im p r a c tic a b ility

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o f

sta n d a rd s.
in c r e a s e d
T h e

a sso ­

o f

its e lf

p u t t in g
a n d
T h is

a

u s in g
p r o ­

p ro g re ss ,

co u rse .

2 Early
members.

in 1950

it w a s

rated

as

eligible for F H A

insurance

for

74

C O O P E R A T IV E

T w o
on

c o -v e n tu r e s

th a t

h a d

th e h o u s e c o n s tr u c tio n

in g

a g e n c ie s .

fa m ilia r
t io n

a n d

th e

In

w ith

on e

th e

its

it

o w n e r s h ip

fe a tu r e

h a d

n o t

to

a s

to

t iv e

th a t

b a s is

le n d in g

r e je c te d , n o r
T h e

in d e fin ite ly ,

w e n t

w a s

u n til

e ls e w h e r e .

It

it

p e r s o n a l tr u s t, o n ly to
th a t th e
in

in c o m e

b e h a lf

w a s

o f

o f

h im s e lf

in s u ffic ie n t t o

fiv e

h ou ses.

T h e

fr o m

fr ie n d s ,

o th e r

a n d

b e a r

g ro u p

le a s t

12

n e v e r

k ep t

“ fe d

w a it­

u p ”

a n d

r e o r g a n iz e d

a s

a

in

p r o c e s s in g

T H E

U N IT E D

H o w e v e r , in
t io n

A n o th e r
th e

w a s

m e m b e rs )
ch a rg e s

r a is e d

th e

on

m o n e y

lo a n s

a n d

C o m p lia n c e
w a s

a s s o c ia tio n s
m o rtg a g e
s u lte d
w ith

th e

fin a n c in g

m o rtg a g e

th e
A

sa m e

th e

a n d

g a v e

a n d

p a p e rs

c o o p e r a tiv e

se co n d

is

c o o p e r a tiv e

o f

F H A

S e c t io n

T h e

in

e x tr e m e ly

a

o f

th e

a n d

a n ­

in

re a ch e d
w a s

p r o je c t

ro u g h

te r r a in
d id

an

r e je c te d

m o d e rn

in s titu tio n

6 0 -p e r c e n t

th e

a r c h ite c ­
o f its

s it e .

r e le n t

m o rtg a g e ,

la te r

b u t

th is

m em b ers.

a t le a s t t w o
its

ca ses

in a b ilit y

w a s d u e , a t le a s t in
A n o th e r
c a t io n

re p o rte d

fo r

o p e r a tiv e
O n e
p o lic y

6

re p o rte d

p a n ie s h a d

d re w
F o r

to

c o o p e r a tiv e
o b ta in

th a t

g e t

th e

fin a n c e

on e

b a n k

d u r in g

n o

k e p t

w h ic h

d e c is io n

c e r ­

fu n d s

in d ic a te d

its

t im e

e ith e r

w ith

a n

th a t a t le a s t s e v e n

O n e a fte r

th e ir

w a s

p a r t, t o its in t e r r a c ia l p o lic y .

m on th s,

c o u ld

th e

F a r W e s t c o o p e r a tiv e

p r o je c t.

o f

a m o n g
ou t

in

a ll

o f

d e la y s

r e ­

e x p e r ie n c e

p ie c e m e a l

th e

a s s o c ia tio n s

its

w a y

to

th e

p r io r

c o n n e c tio n

v a r io u s

m a n y

o b ta in in g

p ro ce d u re s,

m a n y

th is

to

e x p e ­

p a ssa g e

a p p lic a n ts

m e th o d s

u sed

u n d e r w r itin g

in

a sp ects

p r o je c ts .
q u ite

o b ta in in g

c o m m o n ly

a p p ro v a l

fa c ilitie s ,

fa c ilit ie s

e x p e n s iv e
as

a

e x p e r ie n c e d

o f

u s u a lly

w e r e

a p p li­
th e

w a y .

co m ­

fin a n c e th e

a n o th e r, h o w e v e r, th e y

w ith ­

o ffe rs .

g ro u p

th e ir

p la n s

b eca u se

ju d g e d

m en ts

a n d

p r o b le m s

n e w e r

o r g a n iz a t io n s .

w e re
In

on

fin a n c e

a v a ila b le
n o n e

o f

o n ly

th ese

a s s o c ia tio n ’s r e q u e s t f o r fin a n c in g b e e n




a rra n g e ­

b y

th e

b y

b y

th ese
u n d e r­

a m p le ,
w ith

fo r

th e

a n

in

c o m m u n ity

F H A

a n d

o f

o th e rs

fo r

m ix e d

o f

a im e d

p r o b le m s ,

on e

w e re
m ix e d

r e la tio n s

m a k in g

y e a rs

th em

F o r

e x ­

n e g o tia t io n s
a t

r e s o lv in g

c o o p e r a tiv e

o ccu p a n cy

stu d y

in c lu d e d

p la n n e d

to

10

fin a lly

a

v e n ­

fe ll b y

n a t io n a lit ie s

a n d

g ro u p s

h a d

fo r

a fte r
w e r e
In

p a ssa g e

a b le t o
o n e

th e

n o u n ce d

h a d

th e

r e m a in in g
c a t io n s

a p p lie d

th e

fo u r

h a d

n o

th is

S e c t io n

w h o se

r e je c te d ,

in

S e c tio n

m a d e.

h a d

a n d
1 95 0 .

b e e n
O f

in s u r a n c e

tw o

d if­

th ese

b e fo r e
2 1 3

h a d

w a s

o f

o f

1 950, u n d e r

d e c is io n

stu d y

g r o u p s

b e e n

S ix

in s u r a n c e

in

w h ic h

m e m b e rs

ra ces.

o f

q u a lify

ca se

w h e n

a s s o c ia tio n s

a cco m m o d a te

fe r e n t

2 13 .

o f

a
to

w a y s id e .

w e re

on e

a p p ro a ch

c o m m itm e n ts .

3

in

b y

d iffic u ltie s

a n d

co ­

o ffic ia ls

c o o p e r a tiv e s

fin a n c in g

th e

d iffi­

cre a te d

in d iv id u a l
S p e c ia l

th e

n e a r ly

tu r e p la n n e d
th e

th e

in s u r a n c e

a fte r

m u ltip lic ity

o f

o f

b y

p r o b le m s

h o u s in g

o b ta in in g

co s t

u n d e r w r itin g

r a c ia l c o m p o s itio n , b o th
in

th e

p r o b le m s

c o m p lic a t e d

s p e c ia l

th a n

to

T h e

d e v e lo p m e n t.

e n co u n te re d

fo r

r e je c te d .

r e la tio n

a ls o

th e

ra th e r

h o u s in g

T w o

a p a rtm e n ts , d a ta

w e r e

w ith

T h e

in te r r a c ia l

le n d in g

a w illin g n e s s to

co ­

in

w h o le .

e x p e r ie n c e d

d e a lin g

a c c e p ta b le

th a t

th e

la c k

In

c o m m u n ity

p ro p o s e d

o fte n

fin a n c in g

a s s o c ia tio n s

d iffic u lty
fo r

W h ile

n o t g o

th e

a n d

d e la y s

th e

to

w ith

p a y m e n t

ta in

u n til

r e q u ir e m e n ts

lo n g

p r o je c t s

2 1 3 .

a tte n tio n

a n d

In

d id

V A

c o n s u m in g

s p o n s o r ’s

a n d

th e

a r r a n g e m e n t o f c o u r s e m e a n t a 4 0 -p e r c e n t d o w n
b y

fin a n c in g

o r

tim e

p r e v a le n t

d ite

th e

in

le d ,

h a d

c o o p e r a tiv e

b e ca u se

le n d in g
it

a s s o c ia ­

w r it in g a u th o r itie s to b e u n n e c e s s a r ily e la b o r a te

fin a n c in g
a n d

th e

th a t

c a ll

F H A

v e r y

b u ild in g

fe e lin g

c u lt y

T h e

w ith

in s u r a n c e .

w ith

tu re

g e t

on e

a s co n tr a c to r.

ta k en .

re p o rte d

fr o m

o p e r a t iv e s

fo r

fin a n c in g ,

to

w e r e

fr e q u e n tly

o t h e r in s ta n c e , t o th e w it h d r a w a l o f a c o n t r a c t o r
w h o m

g e t

Experience With Insurers

o f c o o p e r a tiv e

o th e r

to

u n a b le

a p a rtm e n ts

d e a lin g

c r e d it-u n io n

o b ta in in g

o f

a g re e m e n t.

o rd e r

w a s

a c tin g

S TA TE S

h a d t o m a k e b o n d o f $ 2 5 0 ,0 0 0

th e g ro u n d

on

sou rce s.

D e la y s

r e la tiv e s ,

w a s

c a r r y in g

fin a lly

re ­

co o p e ra ­

( w h o

fo u r

th e

t it le s

d is c o u r a g e m e n t

b e ca m e

tru ste e

re ­

“ a t

in

b e r e je c t e d

th e

a n d

th e

s im p ly

e v e n tu a lly

c o ­

a s s o c ia tio n

a n y

w a s

a

IN

c o o p e r a tiv e -

a p p lic a tio n

a s s o c ia tio n

S in c e

as

w ith

on

d e la y s

Its

u n ­

o r g a n iz a ­

m e m b e rs

o th e r

a p p lic a t io n

e n co u n te re d

d e fin ite ly

th e

g iv in g

T h e

lo a n

a g e n c ie s .”

o ffe r e d .
in g ,

its

le n d ­

w e r e

o f

fu n d s

sta rte d

co -v e n tu r e ,

c a r r ie d
b y

s ta b ility .

u p

h a d

d w e llin g s .

th e ir

le n d e r s
ty p e

o b ta in

g iv e

it

o r g a n iz e

p o rte d

th e

fin a n c ia l

c o u ld

o p e r a t iv e ,

a

r e je c te d

c o o p e r a tiv e

d ou b ted

a s s o c ia tio n

th e m s e lv e s

w e re

ca se

H O U S IN G

a n ­
th e

a p p li­

te n ta tiv e

PR OBLEM S

fin a n c in g

a rra n g e m e n ts,

q u a lify in g
h a d

fo r

b een

lo a n

u n s u c ce s s fu l

c o m m it m e n t s .

r e g a r d in g

p o lic y

a s s o c ia tio n s ,
tio n

h a s

p la te d

c o n d itio n e d

in s u r a n c e ,

sta te d

in

In

to

re s p e ct

in te r r a c ia l

H o u s in g

p r o je c t s

o cc u p a n cy

d o w n , it h a s b e e n

on

th e ir
tw o

m o rtg a g e

to

“ if

on
o th e r

o b ta in in g

F e d e ra l

th a t

th e

re sp o n se

w ith

th e

a n d

O F

a n

in q u ir y

w h ic h

h a v e

co n te m ­

b een

tu rn e d

th e b a s is o f d e fic ie n t p la n s ,

u n a c c e p ta b le

lo c a tio n , o r

t io n

s t a n d a r d s .”

o f

F H A

M u ch
v e y

o f

A c t

o f

fo r

e x p e r ie n c e

w h ic h

in c lu d e d

p a ssa g e

c o o p e r a tiv e s ,

im p le m e n tin g

1 94 8

a n d

tio n

2 1 3

in

1 950

th e

in g

in

fa c t

fo r

in s u r a n c e

u n u su al

y e a rs

in

in

T h e

s e co n d

in

c o m p le te d

sa m e

th e

u n d er

a s

u n til

4

y e a rs

a fte r .

w ith o u t

th e

en a cted

th a t
u a lly ,
t io n

im ­

e v id e n c e d
a p p ly ­

w a r,

T h is

a n d

a t

n e w

w id e ly

le n g th e n in g
t io n

6

to o k

p e r io d

w a s

o f

th e

to ta l

T

w e re
th e

th e

lo n g

h o u se s

m e m b e r

b e g a n

n o t

w a it

is e s

b y

fo r

th e

T a b le
v e n tu re

sh o w s,

th e

tim e

d a te
In

its

o v e r

th e

h a lf,

b y

fo r

4

fo r

d w e llin g to

b u t
2

a n d

in

w h ic h

th e y
o f

c o u ld
p ro m ­

a n d

co ­

a s s o c ia tio n

w a s

w a s

on e

o f

re a d y

fo r

d w e llin g

th e

h a d

stu d y .

b een

Before
1946
1943

Association formed—
Before 1941___________
1945__________________
1946__________________
1947__________________
1948__________________
1949__________________
1950__________________
Total

th e

in to

fa c t

in d iv id ­

th e

a s s o c ia ­

w ith

r e s u lta n t

w h ic h

co n s tru c­
th e w a r

b u ild in g .

1947

No units
completed
July 1950

1948

1949

1950

1

2
3
2
2

1

2
1
3
11
9

9

2

26

1950

Project not
completed
July 1950

6
2
1
4

6

2

1

5

1

fo r

3

1943
or
before

b een

m o st

e x is te n c e

a s s o c ia tio n s

Last unit completed—

o cc u ­

h a d

In

in

h a d

o f
1

b een

y e a rs, a n d

w ith

J u ly

o f

th e

a t

o f th e

fir s t

fir s t h o u s e

c o o p e r a tiv e

le a s t

1 9 5 0 , fo r

fo r m a tio n

b u ilt its




to
fo r

First unit completed—

fo r m e d

c r e d it b y

th e

r e s p e c t iv e ly ,

c a s e s a ls o in c lu d e d
o f

n o t

fo rm e d

e la p s e d

a s s o c ia tio n s

c o m p le tio n

k n o w n , o n e h a d
y e a r

th a t

a ll-t h e -w a y

y e a rs, o n e

th e ir

o n e

Item

tw o

First unit completed—
Before 1943_______
_
1946 ________________
1947__________________
1948__________________
1949__________________
1950__________________
Total

th e

fin is h e d

in

in

th a t

th re e

in te r v a ls b e tw e e n

t iv e

r e s u lte d

in te r v a l

u n it

t im e

th re e

34.— Interval between form ation o f association and
completion o f first unit, and between first and last units

o f

y e a rs.

A m o n g

th e

th e

le s s ,

o p e r a tin g

L o ss

fu lfillm e n t

51

n o t

a s s o c ia tio n

o r

s it e .

p a tie n c e

th e

fir s t

c o m p le te d

y e a r

th e

u rg e n t

fo r

th ese

th e

o n

e v e n tu a l

a s s o c ia tio n s ,

th e

p a n cy .

th e

so

a sso ­

In

able

b e fo r e

c o o p e r a tiv e .

3 4

b e tw e e n
a n d

r is e
a n d

w e r e

o v e r

r e s u lts

sta g e s

v a r io u s

in

d e fe c tio n s , e s p e c ia lly o f th o s e w h o s e

n eed s

fiv e

n o t

d u e

in te r v a ls ,

a sso ­

p r o je c t

Number of associations with—
m o s t s e r io u s

a t

to

c o n fid e n c e

w id e s p r e a d
h o u s in g

d e la y s

a n d

a rra n g e d

c e s s a tio n

Problem o f Time Lag
fin a n c in g , th e

its

y e a r.

y e a rs ,

ca m e

la s t

re p o rte d

d iffic u ltie s .

N e x t to

u n it

w a s

p e r io d

O n e

o f

a s s o c ia tio n s

7

m e m b e rs
sp a ce d

4

in te r ­

a n d

p r o je c t .

on e, a n d

tw o

a n d

th e

fir s t

w e r e

fir s t

d e la y

p la c e . B o th

o f

fir s t

u n it s

In

y e a rs
a n d

a s s o c ia tio n s th a t

fo llo w in g

th e

lo n g

sh o w s

th e

th e ir

la s t

c o n s tr u c tio n

d u r in g
S ec­

th e

e la p s e d .

o f

s u b s t a n t ia l

p ro g ra m

b e fo r e

34

o f

r e m a in d e r

th e

th e

a fte r

c o o p e r a tiv e s

th a t

y e a r

w ith in

fo r m a ­

oth e rs.

th e 2 5

o f

a fte r
T h re e

a s s o c ia tio n s

ta b le

th e

a u th o r ity

p ro ce d u re s, a s
o f

p a rt

c o m p le te d

th e

la te r

fo u r

th re e

o f

y e a rs

a d o p tio n

a

h a lf

y e a r

y e a rs.

c o m p le tio n

2

d iffic u ltie s

th e

o f

o f

1

2

th e p r o je c t, fo r

c ia tio n
th e

w ith in

ca se

ca se

b e tw e e n

h a d

in

th e

th e

u n its in

so

w ith in

u n til

s u r­

N e v e r th e le s s , m a n y

r e s u lte d

th a t n o n e

e la p s e d

v a l

d on e
fiv e

c o o p e r a tiv e s

th e

s p e c ific

s im ila r

in s u r in g

v io la ­

h a d
a n d

H o u s in g

in

th o u g h

1 9 4 9 . A p p a r e n tly

p ro v e m e n t
b y

re p o rte d

in

o f th e

p r o v is io n s

th e H o u s in g A c t o f 1 9 5 0 .

a s s o c ia tio n s

fa c to r s

a n a ly z e d

th e

in s u r in g

t io n ,

c ia tio n s

b e fo r e

1 948,

s p e c ia l
in

th e

o cc u rre d

o th e r

o th e rs

in te r r a c ia l
A d m in is tr a ­

75

C O O P E R A T IV E S

w a s

2

1949

1

2

1
1

1

2

. .

1948

1
3

1

1

2
2

7
2
11

5

5

w h ic h

co o p e ra ­

th e

1947

on e

u n it
in

1946

w e re
sa m e

b o rn .

S ix

Problem o f Rising Costs
T h is
tim e

p r o b le m

la g .

p r o je c ts

W ith

a n d

th e

is
th e

c lo s e ly

r e la te d

e x c e p tio n

m u tu a ls ,

o f

to

th a t

th e

p r a c tic a lly

a ll

o f

p re w a r
o f

th e

C O O P E R A T IV E

76

a s s o c ia tio n s
co sts.
to

a

fe w ,

fo r

w e re

T h is

w a s

th e

h o u se s

c o m p le te d

th e

w e re

v is e
b u t

o f

w h ic h
th a t

w e r e

o ffe r e d
b e r s h ip

h a d

a n d

O n e

th e

ro s e

co -v e n tu r e

fr o m

o th e r
(fo r
A

a

p e r

b u ilt

a ls o

sq u a re

th a t

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its

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$ 8 ,0 0 0 -$ 1 0 ,0 0 0

to

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to

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to

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$ 1 0 ,6 0 0 -$ 1 4 ,5 0 0 .

th e

m e m b e rs

w o r k in g o n ly p a r t tim e )
b u ild in g
se co n d
th e

sto n e

o n

p r o je c t

t im e

co s t

th e

(th e n
h a d

tra ct.

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th e

g o t u n d e r w a y , som e
o f

th is

w o r k

(in

e m p lo y m e n t )

w a s

d e c id e d

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a

th e r e fo r e

m e m b e rs
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u n e m p lo y e d

th e

r e g io n , to

to

t im e

y e a rs

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la te r ,

a b le

m e m b e rs
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to

in

c in d e r

b lo c k s ,

th is

fa m ilie s

a s

a

in

h o u s in g

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p r o je c t.

fo r

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on .

d o

so

M a n y

o f

th e

O n e

A

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lo w e r

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c o n s id e r ­
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h o u se s )

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to

e x p re sse d

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to

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a

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m id d le -in c o m e
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a s s o c ia tio n s

o ffic e r

b e e n

co n ­

lo w e r -in c o m e

o r g a n iz a tio n

th e

n eed s

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g r o u p
it

co st.

u n a b le t o

w e n t

th a t

r a is in g

in c r e a s e d

th e

s iz a b le

fa ilu r e

a d d it io n a l

d r o p p in g

t im e

o p in io n

w e re

o f

fa m ilie s

o b je c t iv e

in

th e

b e g in n in g .
T h e se
m e m b e rs
fa lle n
d o
e ct

to

ou t.

so a n d

w ith

to

fu ll

v id e

a

ta k e

to

th e r e fo r e

th e

S o m e

h a d

p la c e

o f

a s s o c ia tio n s

h a d

b u ild e r
h e a v y

to

lo s s e s

to

th o se
w e re

d is b a n d , t u r n in g

p r iv a te

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fin d

n ew

w h o

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c o n tin u e ,
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th e

to

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th ose

u s u a lly

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n e v e r

s u ffe r e d
p a rt

s u ltin g

th is

fr o m

ca u ses

a s

b eca u se

a s s o c ia tio n s
o f

in te r e s t




fo u n d

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a tte n d a n ce

p e o p l e 's
a t

e x ­

m e e tin g s

fo r
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w a s

p u rch a se
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g r o u p
its

o f

th e

co o p e ra ­

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th e ir

u n til

c o u ld

a s s o c ia tio n s —

to

g r o w n

b e g in n in g

p r o je c t

c a r r y

w id e
w a s

su ch

p r o ­

e s p e c ia lly

p la n

r e c r u it

a

to

co m ­

s u ffic ie n t

flu c tu a tio n s

d u e

b e in g

p la n s ,

etc.

on

In

fa r

p a rt,
a n d

o th e r

th e

th e

c o o p e r a tiv e . T h u s , a n y
o f

th e

c o n s tr u c tio n

m e m b e r s h ip .
d iffic u lty

a n

h a d

to

ca se,

if

a

h o u s in g

to

o b ta in

b eca u se

“ fr o z e n "

in s ta lla tio n

u t ilit ie s

u n a b le

to

m a k e

b o o k s

a s

th e

o f

w e r e

r e fle c te d

a n d

th e

ca u se

w h ic h

b e g in n in g
o f

th e

to

lo s s

th e

o r

in s u r a n c e ,

o u t

b e ca u se
a n d

a t

In
a

s u p p lie d

la n d

h a d
su ch

s ta b le
b y

th e

p u rch a se

a s s o c ia tio n

m e m b e rs

th e re fo re

o f

e x p e r ie n c e d

e ls e w h e r e .

fu n d s

in

b y
th e

o r

w a s

w is h in g

to

s till

on

th e

im p o r ta n t

fo r

tw o

“ m e m b e r s ."

(1 )

tu r n -o v e r
It

m e m b e r s h ip
(2 )

s h a r p ly

la g b e tw e e n

r e m a in e d

a n d

r e fu n d s

T h e y

M e m b e r s h ip

m e n t

w a s

fin a n c ia l r e ­

im m e d ia te ly
it

th e

m e m b e rs w e re

w ith d r a w .

lo n g

d ro p p e d

m e m b e r s h ip

o f

it

e n co u n te re d

fin a n c in g

u s u a lly

h a v e

th e

th e ir

p o te n t

o b ta in in g

o p p o r tu n ity

o f

re s o u rce s

p a rt,

th a t th e

h a r d s h ip s

a s s o c ia tio n s

m e m b e rs

th e y

fa m ily

tu r n -o v e r

a s s o c ia tio n
w a s

In

in

o u t

th a t ch a n g e d

la r g e

b e y o n d

a ls o ,

d e la y s

fo r m a tio n

r e ­

c a r r y in g th e p r ic e o f th e h o u s e

p la n n e d
In

m e m ­

u n a v o id a b le

e a rn e r

d r a in s

illn e s s ,

in

tu r n -o v e r

a n d

b y m e m b e r s ' r e a liz a tio n

h a d

som e

th e

tra n s fe rre d

w a g e

th e

o f

to

g e n e ra l

o f th e

co sts w e r e

sou rces,

a n d
th a t

fe e

e x p e r ie n c e s .

th e

a b le

m e m b e rs

o f

re a s o n s :

Membership Problems

w h ic h

p e o p le ,
u p

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fr o m

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tim e .

s im ila r

S o m e

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O th ers
b e rs.

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th a t

to

m e m ­

a s s o c ia ­

s ig n e d

th e

c o o p e r a tiv e

fo r

o n e

m e m b e r s h ip .

m e m b e rs'

in v e s tm e n ts .

S o m e

q u ota

fig u r e , it w a s

a s s o c ia tio n s

on e

s te a d ily

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a

a s s o c ia tio n s

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fr o m

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p r o p o r tio n

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r is in g

fr o n te d
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ity

m o re

100

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M e m b e r s h i p t u r n -o v e r :

th e

u se

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h a d

fir s t

so m e w h a t

d e p e n d a b le

m e m b e r s h ip

a p p lie d

r e s ig n e d

p r o h ib itiv e .

b e

o f

in s te a d .
T h e

h a d

th e

b e

fu ll

m a k in g

m a k e

t iv e s

to

th ese

th e ir

w h e n

o f

m e e tin g s

a ttra cte d

o f

p a id

fo r ,
20

o r

q u a r r ie d th e ir o w n

T h e

b y p ro d u ct

c a lle d

p le tio n —

I n t h e fir s t, p r e w a r , p r o je c t o f a P e n n s y lv a n ia
a s s o c ia tio n

100

a n d

H o w e v e r,

co st

$ 1 0 .5 0 .

u p

s e lf-h e lp )

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r a is in g

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c o n s tr u c tio n ,

th a t its c o s t s h a d

h ou se

th ir d

n o te d

o f

$ 7 .3 2

s a id

h ou se

h ou ses

p r o o f

T h e

r e g u la r ly

la n d ,

p e r io d

r e lia b le

n e a r ly

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S TA TE S

m a te r ia l.

t io n

d ra w n .

m o n th

little

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U N IT E D

fa ta l

n o t

re p o rte d

w h e n

T H E

e m e rg e d .

c o u ld

c o s t in g

a n tic ip a te d

IN

r is in g

o f
w a s

fin a lly

a s s o c ia tio n

h o u se s

th a n

th e
a ll,

fig u r e

a fte r

m o re

in
fo r

s e r io u s

m e m b e rs

a t

A s s o c ia tio n

ca u g h t

H O U S IN G

th e

a n

in d ic a tio n

c o n fid e n c e

n e c e s s it y

n e w

o ffic e r s

is

a n d

is

m e m b e rs

in

fo r

th e

d e g re e

a s s o c ia tio n ,

c o n tin u a l

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c o m m it t e e s ,

o f

th e

a

r e c r u it­

d r a in

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on
t im e

77

PROBLEMS OF COOPERATIVES
a n d

stre n g th

sp e n t m o re
T a b le

th a t

35

g iv e s

s h ip

tu r n -o v e r

u re s

a re

b y

th e

le s s

th a n

th e
a

s h ip

w a s

F o r

in

J u ly

sh o w
a n d

a t

th e

b een

th e

th e

J u ly

fig u r e .

s iz e

sta rt

is

its

7

y e a rs '

to

sh o w n

T h e

th e

w ith

w a s

m u tu ­

ra te

w id e ly
o n ly

a

in

o n ly

12
9

o f

a

m e m b e r s h ip

b e tw e e n

sh ow n .

th e

T h is

sto ry ,

th e m o n th -to -m o n th

lo s s

h ig h

d o e s

n o t

b eca u se

it

o f

p o in t
b y

a n y

d oes

n o t

fig u r e s o f s m a ll lo s s e s

a c c r e tio n s .

(o f

th e

h a d

o f

35.—Membership

able

fluctuations in housing associations

le s s

th a t

to

A m o n g

N m er of m b rs at—
u b
em e
T e of a cia n
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Bg n g
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u

6
10
5,459
2,954

15
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17
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1
965

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21
7

2,168
1,242

11,671
11,069

a s

11,728

a s s o c i a t i o n 's

5,422

13,436

th e

ce n t ; th e

o th e rs

fr o m

g r o u p

5 p e rce n t. T h e y e a r ly
t io n s

fo r

w h ic h

h a d

th e

n o

o f m e m ­

ra te

o f tu rn ­

1 p e rce n t to

h a d

a

a v e ra g e

fig u r e s

lo s s e s

y e a r ly

le s s t h a n

la r g e s t

th e

a p a rtm e n ts.

n e a r ly

2 5 0

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tu rn -o v e r

70

fo r

p e rce n t
u s u a lly

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its

p e r
a

p u rch a se

th e re

a n d

fo r

a ll 2 2

o b ta in e d

o f
21

h a d
w h o le

d e a th
a

th e




20

y e a rs '

th e

in

ca u se

th e

O n e

th a t

a

a

v e r y

th a t

th a t.

a s s o c ia ­

th a n

w a s

cu ssed

7 .7

w a s

th e

p e r c e n t;
d e la y ,

a b ility
le ft

to

c a r r y

b eca u se

fo r

p r o b le m
w ith

o r

la n d

ca se

th e

a d v ic e ,
o f

b u t
h a d

o f

m e m b e rs,

fa it h

th ro u g h
th e ir

h o ld in g

red eem ed .

o r,

r e c e n tly ,

s ta b le ,

In

a n oth er,

t im e

w a s

b e fo r e

In

fin a l

th e

a n d

m e m b e rs,
tr y in g
g r e a te r

tru e

costs,

u sed

e t c .,

sta g e s,

a s

a t

a n d

c o u ld
a lr e a d y

le a s t

d is ­

in

th e

u p

e n g in e e r in g

m e m b e rs

g e n e r a lly

in

a s s o c ia tio n s

w e re

a n d

c a r r y in g

th e

th e

p r o j­

e x p e r ie n c e d

th e ir

e s p e c ia lly

a r c h it e c t

w a s

in

th e

u rg e n t

co n su m e d

fu n d s

w ith d r a w in g

m e m b e r s h ip

1 0 -

g r o u p

som e

lo s t

a s s o c ia tio n s
in

a m o n g

T h is

sta g e s,

sh a res

a

c o n s id e r ­

h o u s in g .

th e

ca se

p u rch a se ,

le g a l

o f

b e g a n ,

A n o th e r

70

a b o v e .

h a d

tu r n ­

e x p e r ie n c e d

d u r in g

lo n g

d iffic u lty

th e ir

O th e r

s m a ll

c o n s tr u c tio n

u n s u c c e s s fu l

in

o f

c o m p le tio n

t o s o lv e t h e ir v a r io u s p r o b le m s w a s e v e n

to

w ith d r a w a l

in

fe e s ,
w h ile

s till

b e

n o te d ,

n o m in a lly

fu n d s .

h ou se.
te n a n ts

lo s t

o f

1

o p e r a t io n ,

e x c e p tio n

h a d

th en .

a s s o c ia tio n s

A n o th e r

a fte r

p r o je c t .

p r o je c t,

fo r

2 5 -p e r c e n t

o f

fa m ily

o r ig in a l

a

th e

p e r­

a s s o c ia tio n

o n ly

d e ta ch ed

y e a rs.

p r o je c t

O n e

n o t

h a d

y e a r ;

o f

w a s

th e

tu r n -o v e r

p e rce n t.

th e

n eed

m o re

o f

e x p e r ie n c e , b u t its p r e -c o n s t r u c ­

o th e rs

T h e
ev en

p e rce n t

o f

o f

a b o u t

o f

re p re ­

m e m b e rs.

o f

tu r n -o v e r

w e re

tu r n -o v e r

a m o n g

w a s

r e s u lt

e a r lie r

M e m b e r s h ip

th e

a

45

m e m b e rs

sa m e
w a s

fiv e

50

th e

th ese

ra te s r a n g in g fr o m

b eca u se

b e fo r e

in

o f

25

p e rce n t.

1 .3

lo s s

o th e r

s in c e

y e a r ly

re p o rte d

n on e

im m e d ia te

s m a ll c o -v e n t u r e s

ra n g e d

p e r io d

tio n

e ct

L k o n m b rsh fig re
ast n w em e ip u .

o v e r

a b le

p r a c tic a lly
a b o u t th e

Total______________

T w o

o f

h a n d s

le a s t

ch a n g e

to

m e m b e rs.
lo s s

a s s o c ia tio n ,

b e tw e e n

a t

d is s o lv e d

on e

th e

v a r ie d

re p o rte d

sev en

p u rch a se

b u s in e s s

7
2
3,193
6
36

D
issolved

b e rs. A m o n g

o f

O n ly

p u rch a se

th e

little

th e
o f

sev en th

c o n s id e r a b le

p e rce n t

p r o je c t ,

p e rce n t

P ject com leted ___ ____
ro
p
.
P ject n co p :
ro
ot m leted
S m co stru n
o e n ctio _______
N co stru n . . . _____
o n ctio .

1

th e

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o v e r

A
ctive
A e-w
ll-th ay:
H ses____________
ou
M
utuals__
C
o-ven res. _ _______ _
tu

2

S ix

d u r in g th e y e a r o f n e g o ­

th e

w ith

v e r y

th a n

fa m ilie s

d is s a tis fa c tio n

tu r n -o v e r

u n its

a s s o c ia tio n s r e p o r te d

T

o f

ch a n g e d

p r o je c t ;

p r e c e d in g

p r io r

a

1 95 0 .

re p o rte d

a n o th e r,

h a d

o th e r

p r o je c t s .

th e m e m b e rs w ith d r e w

te n a n ts

b y

fiv e

2 0 0 )

o f

e x ch a n g e s

tia t io n s

w a s

th e

b eca u se

m u tu a l

u n its

A n o th e r

th ese

n o n p a y m e n t

m e m b e r s h ip

th e

le ft

o f

d e c is io n s .

o f

m o n th s

fa m ilie s

S till

O n e

c o n tin u e d

s m a ll t u r n -o v e r . I n

fir s t

n u m b e r

tim e s

m a jo r it y

T h e

o f

“ r e n t" ;

v a r io u s

h ig h

th e

o p e r a t io n .

b e ca u se

m o n th ly

a t

m e m b e r­

th e

th e

o f

le ft

sen ted

g r o u p

w h o le

in

h ou ses.

1 95 0

fr o m
o f

fig ­

p r o je c t.

is

th e

ra n g e

o f

p e a k

m e m b e r­
w h ic h

b u ild in g

s u b s id e n c e

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1 95 0

a s

o f

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w id e s t

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w h o le

te ll

T h e

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1 ,7 0 0

m e a n s

in d ic a tio n

a s s o c ia tio n s

o f

lim ite d

th e

a b o u t
a n d

th e

m a in ly

d w e llin g s

h a v e

fo r e c lo s u r e

m e m b e r s h ip

th ir d

s h o w e d

p o in t,

o t h e r w is e

a s s o c ia tio n s

a v a ila b le .

th e se

a ls

som e

fo r

a ll-t h e -w a y

F o r

c o u ld

c o n s t r u c tiv e ly .

s ix

w e re
w a s

a

s till
s ix -

m e m b e rs

In

b u t

on e

b eca u se
c is io n

o n ly

b eca u se

a s s o c ia tio n ,
o f

a

d is a g r e e m e n t

a g a in s t

th e

o f

la c k

b lo c k
w ith

o f

o f
th e

a s s o c i a t i o n 's

r e d e m p tio n

m e m b e rs
m a jo r ity
a c tin g

a s

le ft
d e­
its

COOPERATIVE HOUSING IN THE UNITED STATES

78
o w n

co n tr a c to r.

In

a n o th e r

in

w h ic h

v e r y

m is t ic id e a s o f th e c o s t o f th e p la n n e d
h a d

p r e v a ile d ,

b e ca u s e
th e

th e

a m o u n t

th a t

h a d

a lm o s t
h a d

1 5 9

m e m b e rs

a c c u m u la t in g
th e y

c o u ld

p r e v io u s ly

in s u p e r a b le

m e e t.

a t

on e

h a d

t im e

ex ce e d e d

a

cu m sta n ce s

d e v e lo p e d

A lm o s t

e n tir e

w o u ld
a b le

th e

h a v e

to

O th e r
o v e r
D e la y
th e

it

w a s

e re ct

a n d

th e

o f

th e

th e

th e

n o

to

o f

a

s e r io u s

(u s u a lly

th e

to

p r o b le m .
w h ic h

th e

p e r

c o u ld

o n e

o n e

p r o je c t ,

e x ­
w a s

b e ca u se

(n o n m e m b e r s

a m o r tiz a tio n )

w e r e

A l­

d is s a tis fa c tio n

re n te rs

a n d

b a s is .

c a r e fu lly

lo w e r

th a n

w h o se

th o se

o f

m e m b e rs.

o f

(b e ­

th a n

tiv e s

a p p e a r

n o t

to

h a v e

th e re

b e

h a d

r e s o lv e d

m a n y

g iv in g

b u ild in g

c o n tr o v e r s y

w e r e

o n ly )

:

h a v e

o f

th e

a n y

th e

re p o rte d
D is a g r e e ­

w e r e

stu d y

e ith e r

o r

th e

s p o n s ib le

fo r

B o th

o f

th ese

a t

th e

t im e

u n c o m p le te d

w e r e

s till t o o

in

th is

n e w

co o p e ra ­

A ll

to

re sp e ct.

h a v e
In

fa ce d

th e

co ­

w e r e

h o m e o w n e rs

re ­

m a in te n a n c e .
a p a rtm e n t

h o w e v e r,

a s s o c ia tio n s

re p o rte d

so m e

th o u g h

o w n e d

a n d

th e

ra th e r

s e r i­

c o n d itio n s .

T h e

a p a rtm e n ts,

s u b je c t

su ch

a s

to

th e

th o se

d iv id e n d
a

O f th e a s s o c ia tio n s

a ll-t h e -w a y

p r o b le m s .

in d iv id u a l

th e

m u tu a ls ,

th e

m a in te n a n c e

v e n tu re s

a re

o n ly

d iffic u ltie s

la w

n u m b e r

m e n ts'

h ou ses

h ou ses,

p r o je c t s

ou s

a ffo r d .

o p in io n .

a s s o c ia tio n

b u ild in g

C o n tr o v e r s ie s

w e r e

a s s o c ia tio n s
o f

in te r e s t

p a y m e n ts

w a s

a m o u n ts

Operating Problems

in d i­

u n it

G e n e r a lly ,

d iffe r e n c e s

ca u se s
b y

co n stru ct

n o t

th e re

th e

r e g u la tio n s )

c o u ld

d o

In

h o u s in g

m o re

m e m b e rs

w a s

c o o p e r a tiv e

z o n in g

m u ch

a lth o u g h

fo llo w in g

o f

sta g e

ca ses.

c o n tr o v e r sie s:

m a tte r

A m o n g

tw o

d e c is io n

c o s tin g

m e m b e r s h ip

a m ic a b ly ,
r is e

fir s t

o v e r

su b se q u e n t

m u ch

b e e n

th e

tu rn ­

r e s p e c t iv e ly .

c o n s tr u c tio n

in a b ilit y

w ith d r a w in g

b e e n

p e rce n t,

m u ltifa m ily

M em b ersh ip
w ith in

m e m b e r s h ip

la w s u it

a

in

som e

m o n th ly

th e

re n ta l

th is

m e m b e rs, th e

s till

p a y in g

th e

p u r e ly

fo r

M a in te n a n c e a nd r e p a i r s :

a

p la n n e d

v id u a l h o u s e s
th e

th e

in

n o t

a

a lla y e d

w e r e

m o n th ly

m o n e y .

3 0

r e a c h in g

th e

e n tir e ly

th e re

on

re a so n

b e ca u se

o v e r

u n h ou sed
th e y b e e n

a n d

re a s o n

s im u lt a n e o u s ly .
s till

10,

c h ie f

ca u se

th e ir

2 5 ,

c ir ­

a t th is p o in t h a d

h a d

in

th ir d ,

a lm o s t

a s s o c ia tio n s

o f

u n fo r tu n a te

m e m b e r s h ip

r e s ig n e d

r e c o v e r

o f

to

n o t

in c r e a s e d

p a id

th e

seem ed

d is s a tis fa c tio n

w e r e

fo r m e r ly

p la in e d

u n til,

b e e n

th o u g h

w h a t

s u rm o u n te d

s e r ie s

h a d

p a y m e n ts

p r o je c t

d iffic u ltie s , n e v e r t h e le s s h a d

w h o le

th e re

th ir d

A

o n ly a s m a ll t u r n -o v e r o f m e m b e r s h ip

s u d d e n ly ,

to

le ft

co s ts

o p ti­

d w e llin g s

p r o v is io n s

o n

re n t

w h ic h

o f

in c o m e

m a in te n a n c e

co sts.

a m o n g

c o lle c tiv e ly ,

v a r io u s

o r

th e

m a x im u m
o f

b e e n

in s u ffic ie n t

O n e

th e

th e

o ld e r

a s s o c ia tio n ,

r e p o r tin g
o ld

a

la w s ,

lim ite d -

r e n ta ls . F o r

som e

h a s

1 9 2 0 , w a s p r o b a b ly
g e n e ra l

co n tr o l

se ts

y e a rs

o f

a p a r t­

to

m e e t

fo r m e d

s it u a t io n

o r g a n iz a t io n s

in

ra th e r

w h e n

it

m e n t o v e r b u ild in g p la n s ; r e q u ir e m e n t o f a r c h i­

s ta te d th a t, b e ca u s e o f “ th e c h a n g in g e c o n o m ic s

t e c t ’s

a ffe c tin g

th e

a p p ro v a l

e x tr e m e ly

re g a rd e d
so m e

in d iv id u a l
c h o ic e

n e ce ss a ry
(in

th e ir

fa ir

g o

a lo n g

to

a ll

lim ite d

m e m b e rs

p u t in
n ess

a s

o f

a

fo r

o f

w ith

p la n s ,

fa ilu r e

o f

c o o p e r a tiv e )

to

re n ts

u n w illin g ­

a s s o c ia tio n ’s

r a c ia l

p o lic y .
o n e

a p a rtm e n t

o r g a n iz a tio n

m e m b e r s h ip

s h ip

re p o rte d

w a s

to

o p e r a tin g

w h e th e r
m a jo r

th e

to

its

b u ild in g

d iffic u ltie s .
b e

so

p o lic ie s

a

a s s o c ia tio n

it

in

Its

r e n t w ith

th a t

M id w e s t

d is s e n s io n

w a s

c o u ld

1 9 4 8 —

m e m b e r­

d o u b tfu l

s u r v iv e

a n y

w e re

v e r y

th e

m u tu a ls .

d iv is io n

o n

a n d

a b o v e

a

lim ita tio n

O th er

d iffe r e n c e s
E ig h t e e n

a n y




w e r e

re p o rte d

q u e s tio n .

In

ra re

a m o n g

in c o m e

n o

s e r io u s

tw o ,

h o w e v e r,

to

v a lu e

o f

w e a k n e ss
w h ic h

r e m a in

is

o f

in

a

r e s u lts

p r o b le m s
co s t

o f

w e r e

a s

little

p a rt

th o se

ta x e s,

fu e l,

th e

n e ce ss a ry

A m o n g

lo w ,

u se

a n d
it

is

W h ile

in

d e te r­

o p e r a t io n ,

to o -in fle x ib le
in

lo s s e s

s o lv e n t .

c o o p e r a tiv e

m a in ta in

(s u c h

so m e

r e s u lte d

d is p r o p o r tio n a te ly

c h a lle n g e

in t e r e s t ; c o lle c tin g

a n d

u n fa v o r a b le

fr o m

it

in c o m e
u n co n ­

c o n d it io n s .”

in c r e a s in g

e r ly ;

a n d

p a st w h e re b y

e x p e r ie n c e

th e

tr o lla b le

e sta te ,

th e

m a in te n a n c e

fix e d

rea l

in d ic a te s

re a l
in

m en ts

c r is is .

M e m b e r s h ip
th e

a s s o c ia tio n —

th a t b o u g h t

re p o rte d

a s

a

re n ta l

m in in g

O n ly

lo c a l

r e n tin g p e r io d s
in

w o r k ; a n d

th e

p la n s ;

h ou se

e c o n o m y ;

s e lf-h e lp

sh a re

o f

h ou se

to

r e p la c e m e n t

s p e c ia l

o f

o f

m e e tin g

th e

in s u r a n c e ,

a n d

fe e s

a n d

a sse ss­

th e b u ild in g

e x p e n s iv e

p r o p ­

e q u ip m e n t

p lu m b in g ).
th e

m u tu a ls ,

r e p a ir s

a n d

m a in te ­

79

PROBLEMS OF COOPERATIVES
n a n ce

m a y

U n u s u a lly

p ro v e
h ig h

a s s o c ia tio n s
to

to

n e g le c t

s a le

th a t

n o

fo r

th e

u sed

fir s t

fo r

in

to

th e

w h o le
t io n

o f

th e

in d iv id u a l
b e rs

so

v o te ,

b u ild in g s
n e n t

th a t

a

ca n

a t

in to

th e

o f

a n d

5

p r ic e

$ 1 ,6 0 0

p e r

e x tra

o u tla y

th e

m o re .

T h is

in

th a t

g o o d
a

p r o je c t

c o u ld
a n d ,

b o a r d

in te r io r

n e g le c t

a s

b y

a t

la r g e

th e

b y la w

w a s

a s

t im e
th e

th is

s m a ll

s e r io u s .

c o n s id e r in g
a

a

th e

b y

m e m ­

th e

b o a rd

b e

to

e n fo r c e

m e m b e rs.
1 ,4 0 0
o f

w a s

In

u n it s ),

m e m b e rs

a s s o c ia tio n ,

and

te n a n c ie s :

fo r m e d

in

e x p e r ie n c e

u n d e r

p e r ity

d e p r e s s io n .

b y

a n d

d e p r e s s io n s

b o th

fille d

o cc u p a n cy

c la s s e s
b e r

s itu a tio n ,
o f

th e

o f

th e ir

It

h a d

in

so

(2 )

h a d

re p o rte d
tr o u b le

g r a d u a lly

th a t
in

th e

th e re

th e

2 .9 4

w h e re
a n d

th e

a n
A

to

e v ic t

o w n e r.
w o u ld

a s s o c ia tio n .

a n d

T h e

ca n n o t

a p a rtm e n ts

b eca u se

lo n g
p ro s ­

d u r in g

to
a re

s e llin g
a

ra th e r
th ree

(1 )

m em ­

te n a n ts

th e

d iffic u lt.

In

fr o m

v ie w

in

a n d

a p p e a r

to

u n til

a fte r

m a jo r
th e

o f

th e

th e

a s

w h ic h

fo r m e r

h ir e d

h a s

fo r

a

as

r e s i­

la w y e r

c o u ld

A t

th e

m e m b e r s h ip -te n a n c y

th e

its

u n it s

o f

b een

th e

m e m b e rs.

sh o w n

jo in

v e te ra n s

e x p ir a tio n

p r o b le m

a s

to

p r o je c t

n o n m e m b e rs.

v is ite d

w a s

th e

II

h a d

th e

t im e

n u m b e r

a u th o r ity

n o n m e m b e rs

p r o je c t

th e

h a n d le d ,
a

r e fu s e d

W a r

a ll

e v ic t

in

a s s o c ia tio n ,

o r g a n iz a tio n

ca se,

b een

o v e r

ca ses

m e m b e rs

g iv e n

h a d

W o r ld

to

h a d

w a s

to o k

som e

b e co m e

n o t
re n t

to

g e t

a s s o c i a t i o n 's

a s s o c ia tio n

w a s

r e la tio n s h ip

in

b e lo w :
N u m ber of
u n its

Tenants still in occupancy .................................
Cooperative members in ownunit ......................
Cooperative members in project but not in own
u n i t ...............................................................................
Cooperative members not inp r o je c t.....................
Tenants subleasing members’ units in project. .
Members subleasing members’ units in project. .

290
298
43
36
45
2

r e n tin g

a s s o c ia tio n
se cu re

th e

n o w

ten a n ts

fo r

w h e n

a n d

su ccess,

w h o

o n ly

e v ic te d

7 48

S e v ­

p la n

th e

D iffic u lty

s u b le t t in g

(3 )

“ M e m b e rs

a

to

c o n s tr u c tio n

to

(s m a ll)

e x tre m e

in

a cu te,

lis ts .

n o t

T h is
o f

d is p o s s e s s e d

A

p la c e s

a r is e n

a s s o c ia tio n

on e

q u a rte rs

v a ca n cy
in

d oes

h a s

v a ca te.

a s s o c ia tio n

a cce p t

if

o n

th is

n o

w a itin g

le s s

r e fu s e d

d e g re e s

tr y in g

b e

o p e r a t io n

p r o b le m .

A n o th e r

w a s

In

b e ca m e

r e s id e n ts

m e m b e rs,

In

b e e n

b e g u n

r e s tr ic tio n s

n o t

th e

h a v e

v a ca n cy

a re

h a s

v a c a n c ie s

s itu a tio n

O n e

h a d

a lr e a d y

r e s id e n ts

w a y s.

o f

h a d

th e m

sh o rta g e

h o u s in g ,

v a r y in g

w h e n

in
a t

a n n u a l

h a v e

o f

a n d

k e e p in g

in

o f

w o u ld

o f

a s

s it u a t io n .

p e r io d

h a d

im m e d ia te

w ith

th e

o f

h a v e

s it u a t io n

te n a n cy

a n d

to

ca n ­

fr o z e n

w e r e

v a ca n c y

g r o u p
M o s t

h o u s in g

cu rre n t

w h ic h

a

2 3 -y e a r

a

m a jo r it y

fin a n c in g

in

a s

p o s s ib ility

b e

r e a s o n a b le

re n ts

p r o je c t s

w h o le

h o w e v e r,

th e

w ith

m e e t.

th e

h o u s in g
o f

to

th e

e r a l,

th e y

p e rce n t.

m u tu a ls

s it u a t io n

o f

th a t

o f

th a t

b u ild in g :

fa m ilie s

m e m b e rs,




h a s

c o n d itio n s

a s s o c ia tio n

le d

r e s id e n ts

n o n r e s id e n t

m e n te d :

o v e r

w a s

a p a rtm e n t

o w n e r -m e m b e r s .

a n d

r ig h ts

o ccu p a n ts,

fr o m

it

O n e

1 92 0 ,

a lte r n a te

w ith

m e m b e rs

d iv e r s e

A m a lg a m a te d

c o n tr o l.

V a c a n c ies

b u ild in g

th e

T h e

u n a b le

a p a r tm e n t a s s o c ia tio n s

fa ce d

th ir d

m e m b e rs

p o w e r s

n e w

y e t b e e n

o n ly

a s

th e

is

b e ca u se

r a t e s .”

n o t

is

its e lf

le a v e

e ls e w h e r e

d en ts. A

d ir e c tio n .

th e

lo w

to

w h e re

th is

v is ite d ,

th e

it

o f
th e

m u ch

r e c o g n iz e d

to

g iv e

w h en

d is a d v a n ta g e

(n e a r ly

fin d

c o r p o r a tio n
te n a n ts

M o st o f th e

w a te r

W ith

w ill
a

th e

p e rm a ­

a v e ra g e

th e

p r o je c t

to

th a t

p u t

on

a u th o r ity

s u b m is s io n

p r o v is io n

th e

u n it ).

a t

th e

so

(b )

p r o p o r tio n

T h e

te m p o ­

d is tr ib u ­

if

(a n

u n it

o f

s u rv e y

th em

set

n o

co s t

a

d o u b le

p e r

h a d

a

h a v e

c o n s id e r a t io n

m a in te n a n c e

e v e n

b e

w a s

co s t

a t

ou t,

tw o -b e d r o o m

a s s o c ia tio n

th e

b e

T h e

c o o p e r a tiv e

v e r y

a s s o c ia tio n ,

y e a rs,

(c )

a

ra te

p ro p e rty ,

p la c e

in to

p u rch a se

to

e x p e n d i­

b e tte r

c a r r ie d

a n d

th e

p r in c ip a l
w a s

(a )

to

s u p p ly . T h is w a s ta k e n

a b o u t

co n tra ct

on

lin e ,

m u st

en d

r e p a ir

fo u n d a tio n s ,

o f

p r o v id in g

p u rch a se d

on

b e

th e

b y

O n e

v ie w

b u ild in g s
s a le

o th e rs

r e g u la tio n s , m a y

s e w e r

w ith

re n ts

h e a v y

fu tu r e .

p r o je c t —

p r o je c t

n o t

in

m o n e y

m a k e

c ity

A n o th e r—

its

som e

p ro ce s s

m a d e

th e

p e rsu a d e

th e

th is

b e

e v ic te d .

b y

r e p la c e m e n ts .

tru n k

h o u s in g

th e

ca se

o f

m u st

n e a r

a

$ 2 5 ,0 0 0 .
r a r y

a n d

s u b je c t t o

in s ta ll

o n e

n eed

m u tu a ls

h e r e a fte r

In

y e a r s ;

r e p a ir s

S o m e
tu re s

s a le .

3

p r o b le m .

m a jo r

d u r in g

c o g n iz a n c e

p a y m e n ts

a

a ttr ib u te d

c o n s tr u c tio n ,

u p k eep

fo r

to o k

b e
a re

fa u lty

o f

n e g o tia t io n
o f

to

co sts

co m ­

o ccu p a n cy
ca n n o t

b e

T h e
h a v e

e x c e s s iv e

b een

a

te n a n c ie s

b u rd e n

b o o k k e e p in g .

T h e

in

in

a n o th e r

m o n th ly

th is

a s s o c ia tio n

re s p e ct—

ch a r g e

in

th a t

th is

o f

a sso ­

COOPERATIVE HOUSING IN THE UNITED STATES

80
c ia tio n
a n d

co v e rs

e le c tr ic ity ,

g a rb a g e

ch a r g e s

fo r

th e se h a v e

m e m b e rs

a n d

a c c o r d in g

to

d e n ce ,

g a s,

r e m o v a l.
to

te n a n ts
th e

m a k in g

b e

o n

a n d

to ta l

a

tra sh

co sts

a llo t t e d

o f

th ese

b o o k k e e p in g

o r

a s b e tw e e n

p e rce n ta g e

p r o p o r tio n

e x tra

h ea t,

T h e

b a s is ,

in

a n d

r e s i­

a cco u n t­

T e n a n c ie s
s it u a t io n

in

m o n th ly
th e

a ls o

g iv e

w h ic h

th a n

o f

ca u se s

a ls o

p o se s

t iv e

w h ic h

m a k in g

te n a n ts.

la r g e r

A lth o u g h

v is io n a l

s a le s

(u s u a lly

to

8

w ith

y e a rs

r e fle c te d

to

b e

c o n g r e s s io n a l

p r o b le m

fin a n c ia l

so u rce s,
a n d

fo r

o b ta in
to

e n o u g h

m e e t

in te r e s t

its

fo r

a n d

fr o m

th e

o w n

d e c is io n s

o f

th e

N a tio n a l

p a y m e n ts
p r o je c t.

ca u se

c o m p a r is o n
o th e r

w ith

g r o u p s,

tr o u b le

in

m u tu a ls

to o k

o v e r

th e y

d id

le m s

o f

la n d

a r c h ite c ts

o r

s tr u c tio n

m o n e y .

co n tr a c to rs ,

ca se s

P H A

o f th e

p u rch a se

fe w

A ls o ,

to o k

re p o rte d

a

o f

m o rtg a g e

p r ic e

a b o v e

d iffic u ltie s

in

c o u ld

h o u s­

tio n s

w ith

o b ta in in g
in

fo r

th e

so

th e

d o w n

a m o u n t

fin a n c in g .

b y

is

ce rn

th e

fo r

F u r th e r , th e q u e s tio n

o f r e la tio n s w it h b u ild in g -

n o t

p re s e n t

e r in g

p r o b le m

a r is in g

T h e
w a s

d id

fir s t

th a t

o f

d e s ir a b ility
b itte r

c o n v in c in g
o f

b u y in g

o p p o s itio n

p r o je c t

to

o n

h a v e

p r e fe r r e d

to

c o n tin u e

a s

p o s s ib le .

T o

m a n y ,

th e

a

le a s e

a p p e a lin g .
p e c tiv e
h a s

y e a rs .

p e c tiv e
o f

T h e

is

a

a cu te

T h is

th e

h o m e o w n e rs

jo in e d

o f

th is

id e a

c o n tin u in g
a n d

h a v e

m a y
is

tim e

w o u ld

re n te rs, h a d
id e a

to

th a t

h o ld in g
w a s
to

p r o s ­

b e

d o

so

It
fo r

a n tic ip a te d ,
w h e n

ra n g e

o f

T h e
o f

c h ie f p r o b le m
n e g o tia tio n

p u rch a se

w a s

fa c e d

fo r

e ffe c te d




b y

th e

c h o ic e

m u tu a ls

p u rch a se . In
in

a

s h o rt

so m e

a

to

d o

h a d

n o t

P H A

o f

(b y

o f

in

p a y m e n t
in

im m e d ia te

o th e rs

h a v e

th e y
a re

d e­
co n ­

so m e

w h ic h

a lr e a d y

a

h o p e

c o n s id ­

fo r

m u tu a l

p r o b le m

a n d

co n tr a c ts

s a le s

p u r c h a se

a g re e m e n t,
o r

th e

th is

1 94 3 ,

fo r

u s u a lly

to

n e g o tia te

b e ca u se

F e d e ra l
m u tu a l

1 9 5 0 )

th e ir

a n d

a g r eem en ts:

u n a b le

o f

A
a

so m e

c ir c u m s ta n c e s .

e ig h t

J u ly

a lth o u g h

1 9 4 0 ,

o f

o c c u r

m a n a g e m e n t

b e e n

e a rm a rk e d

d en ts,
to

h a d

p r o b le m s

T h re e

p r o je c t s

g re a te r.

w ith o u t

m u tu a ls

n a lly

m in i­

so.

c a p a b le

b e co m e

M u tu a ls

o f

s it u a t io n , a n d

o b ta in

s p e c ia l

a

o r g a n iz a ­

th e ir

H o w e v e r,

m e n t io n e d )

a s s o c ia tio n s

p u rch a se

little

co o p e ra ­

a n d

m ig h t

m a tte r

as

fe w

th e

b e e n

p r o je c t s

h o m e
s o ld

to

a s s o c ia tio n s

1 94 6 .

T w o

(in

o r ig i­

o w n e r s h ip
th e

d a te d

r e s i­
b a c k

P h ila d e lp h ia ,

p ro s ­

d w e llin g s .

th a t

a

is

w ill

h a d

N e g r o

d e fa u lts

a s

a s s o c ia tio n s

n o t

p r o b le m .

n o t

a r r iv e

so m e

th e

la r g e
su ch

m u tu a ls .

m e a su re s

m o re

In

o f

G o v e rn m e n t.

e n co u ra g e m e n t

h o u s in g

U n d o u b t­

o w n e r s h ip

o f

d iffic u lty

s h o u ld

h a d

w a n tin g

fin a lly

o f

“ s e llin g ”

b e co m e

h o w e v e r,

w h o

e v id e n c e

m e m b e rs

n o t

so m e

a s

th e

r e n ta l b a s is .

m a n y

o n ly

o f

su ch

O b t a in in g

m u tu a ls

S om e

p r o je c t s .

e d ly ,

b e e n

th e

r e s id e n ts

r e s id e n ts
a

r e s id e n ts

fo r

th e

th e

fr o m

c o n tin u e

its e lf.

n o t

(a lr e a d y

tra d e

o f

m e m b e rs —

m e e t

so m e

“ e x c e lle n t

p u rch a se d

a n d

th e

(w h ic h

o ffic ia ls .

p r e s s io n —

w a y s

h a v e

o f

A g e n c y ).
o f

th e

s m a ll

th a t

p o lic y

h o s tilitie s ,

m u tu a ls

w ith

a

le g is la t io n ,

a g e n c ie s

T w o

a d v ic e

p ro s p e ct

th e

to

u n io n s

n o t

th e

F H A

T h e

c o n ­
m a n y

p a y m e n t,

o b ta in in g

a n d

th e

re p o rte d

fr ic t io n .”

w ith o u t

b e ca u se

w in

o f th is

A g e n c y

H o u s in g

G o v e rn m e n t

o f

w o r k in g

o f

o r

fr o m

m u m

p r o b ­

h a v e

to

s a le s

o f

e x p e r ie n c e

r e la tio n s

a s s o c ia tio n

th e

r e a d y -m a d e
n o t

a c q u is itio n ,

B e ­

th e

le a s e
fr o m

p r o b le m s
in

F in a n c e

h o w e v e r,

th e ir

t io n

a g r e e m e n ts :

d e v e lo p m e n ts ,

in g

th e

p u r c h a se

a

A d m in is tr a to r

r e p la c e d

O n e

w i th

th e

H o m e

e n tir e

a b le

t e r m in a t io n

a n d

fr o m

w e r e

r e c o m m e n d a t io n s ,3

co o p e ra ­

th e

u n d e r

p u rc h a se )

ch a n g e s

H o u s in g

Special Problems o f Mutuals
M u tu a ls

a n d

It

in c o m e ,

th e

th e y

c e r ta in

s o lv e d

r e s u lt in g

m e m b e rs.

to

s p e c ia l

h a d

th e

n e v e rth e ­

p r o je c t

in

a p r o ­
w a ite d

p e r io d

th e

th e

o th e rs

v a r y in g le n g th

in

s itu a tio n

th e

N in e

b e e n

o b ta in in g

T h e

o p tio n

b e fo r e

to

a

y e a rs .
h a d

p r o v is io n a l c o n tr a c t. T h e

m a in ly

m u s t

p r in c ip a l

co n tr a c t.

o p e r a t in g

a g re e m e n t,

in te r e s t

a m o n g

se v e ra l

r e p o r tin g )

2 y e a r s o r le s s b e fo r e

d u e

su ch

to o k

13

e x is te n c e

a n d

co s t

d is c o n te n t
a

w h a te v e r

a re

th e

a n o m a lo u s

( o f

is

in

p a y m e n t,

le s s

a n

p ro ce s s

a m o r tiz a tio n

d iffe r e n c e

m e m b e r ’s

to

m e m b e rs

p a y m e n ts

in c lu s io n

r is e

th e

a s s o c ia tio n s

3

in g .

o f

o th e rs

w a s
ca se s

p e r io d ;

in

3 The House o f Representatives in A ugu st 1947 passed a bill
requiring all P H A -adm inistered p rojects to be sold, fo r cash only,
by Dec. 31, 1948. A lthou gh this bill was not passed by the Senate,
its term s w ere accepted b y the F H A , at the behest o f the Senate
B anking and Currency Comm ittee, as b eing the “ sense o f C ongress.”
This p olicy was in effect until the passage o f the Lanham A c t in
May 1950.

81

PROBLEMS OF COOPERATIVES
P a .,

a n d

B e llm a w r ,

N .

u n til

p r o je c ts

h a d

b u ild in g -c o d e
b o n ,

N .

le a s e

J .,

o f

w a s

1 95 0

in

w h ic h

6 0 7

tio n ,

a n d

O n e
y e a rs

3

m u tu a l
u n d e r

p e r io d

w a s

ca sh

o ffe r s

w e re

p r o je c t

w a s

p ro ce s s

fo r

fo r

th e

p r o je c t

a n o th e r

S ta te.
p le te

a g re e m e n t

r e s u ltin g

fr o m

E x e m p tio n
g ra n te d ,

o n

th e

s h ip

th e

fr o m
ju s t

fr e e z e

g r o u p

ch a se

its

h a d

A

o th e r

8

co n tr a c ts

M d .)

“ fr e e z e ”

t in u e .

th a t

T h e

m u tu a l

a

o c ­

th ir d
to

in

s o c ia l

w a s,

V e te ra n s

ca u se

w ith

m u ch

a s

a n d

o f

w h e n

o f

th e

th e

th e

fr o m

th e

is s u e d

p u r­
th re e

a n d

n e g o tia t io n s

G re e n in

th e

K o re a n
in

th e ir

c o u ld

co n ­

C o r p o r a tio n

o f

a s

g o

u p ,

m e m b e r s h ip ,

p u rch a se r,

in c r e a s e s

M d .,
a n d

w a s
n e g o ­

th e

w h a te v e r

p r in c ip le
ra ce

th e

th e

m e m b e rs

th e

fa c t

th a t

p r ic e s

v a lu a tio n

th e

lo w e r

p r e v io u s ly .

m e m b e r ’s

v a lu a tio n

m o st

a s s ig n e d
c a r r y

ca ses

fo r

o u t

th e

a m o u n t

is

a

p r ic e s

A s

d o w n

re ­

in

p r ic e s

p a y m e n t

n e ce ss a ry

to

la g .

its

n o

o r

o f

op en

cre e d ,

a

s in g le

in a b ilit y

p r o je c t .

in te r v e n e d

w h ic h

th e

a

ca ses,

th a t
a

In

o f

t im in g ;

p e r io d

w h ic h

fe w

in

it

th e

w h ic h

h a d

A n a ly s is

n o
o f

u n s u c ce s s fu l

co n tro l

a n d

fa c e d

r e q u is it e

o f

b y

ir o n

o b s ta c le s

m u ch

in

to

to

a n d

th a t

w h ic h

th e

o v e rco m e ,

a

d a ta

fa r

th a t

le s s —

c a r r ie d
S om e

e ffe c t
th e

n o

th a n
th e ir

o f

th e

o f

th e

O th e rs

if

th e
w e r e

e n co u n ­

lo n g -d r a w n -o u t

e s p e c ia lly

it.

w e r e

s o m e th in g

c u m u la tiv e

in

o v e r

in

o b s ta c le s

p e r s is te n c e .

su ch

w a s

a g a in s t

fa ilu r e

c o m p le tio n .
la c k e d

to

w a y

c o n d itio n s

o f

ca ses

c o o p e r a tiv e s

b y

u n d e r

a s s o c ia tio n s

som e

p e rh a p s

o v e r w h e lm e d

th e

b e

n o t su r­

d iffic u lty

g o t

fo r

d is s o lv e d

th ro u g h

fa ilu r e s

th a t

c o u ld

m a in

m ilit a te d

ca u ses

a s s o c ia tio n s

in d ic a te s

p r o je c t

c o o p e r a tiv e
th e

c o u ld

a s s o c ia tio n

c ir c u m s ta n c e s

g r e a t m a n y

th e

so m e

b y

th e

p r o je c t

a

o b ta in e d

re a so n

o f

G e n e r a lly

m ou n t.

te re d

4 P ublic A ct 849 (76th C o n g .), approved O ct. 14, 1940.
5 A purchase con tract had already been arrived at in the case o f
Greenhills, Ohio, where the mutual association w ill act as interim
ow n er until the residents buy the individual units.
6 A purchase agreem ent was arrived at in 1952.




m o n th s

to

b e ­

fr o m

r e q u ir e m e n ts

u p o n

th e

th e

Reasons for Failure

th o se

o f

b y

th is

g r e a te r—

ir r e s p e c tiv e

9

th e re fo re ,

c o v e r

(a

a g a in .6

R o c h d a le

b a sed

r e la te d

b e in g

fin a lly ,

b y

b e

o f

co n tr a c ts

r e s u lt in g

th a t

th e

o b ta in in g

p r o je c t

im p r o v e d
a re

co n ­

th e

fo r

v a lu a tio n s

in
w e r e

o f

s tr ic te r

m a y

on e

G r e e n b e lt ,

th e

T h e

n o t

s till

a n d

p a y m e n ts

ca se

w ith o u t

in

b e g u n

c o n tr o ls

d o w n

s it u a t io n
F H A

p r ic e s ,

g r e a te r

in s u r a n c e .

s tu d y

fin a n c in g

s itu a tio n .

la r g e r

a n d

fix e d -p r ic e

g iv e n

Other Problems
lin e

a

th e

in

d is ­

m a jo r ity ,

lik e lih o o d

a n d

r is in g

t ig h t e n e d

m ilita r y

—

th e

m e m b e rs

d iffic u lty

so

e x p e r im e n t

H o u s in g

o f

b id s

m a d e

re p o rte d

a rea , a n d

th e

d e c r e a s in g

fir m

d iffic u lty

o f

m e a n

g r e a te r

(w h ic h ,

th e

c o o p e r a tiv e s
o f

re ­

h a d

th e

fin a n c in g

t im e

a n

th ese

o f

o f

p r o ­

a s

p o lic y

o f

s ite

a

it

a s s o c ia tio n

p r e fe r r e d

a s

v ie w

a ll

th e

g e t

g r e a te r

th e

p e r io d ic a lly ,

o cc u rre d .

b u y

W is .,

h o w e v e r,

p u rch a se

w e r e

to

in

th e

lo s s

v is e d

m u tu a l o w n e r­

tw o

e x c e p tio n

a s s o c ia tio n )

d e s ig n a te d
tia t io n s

a s

A n

o r d e r

so

in c lu d e d

o f

T h e

m a te r ia ls ,
a b le

w e r e

o b ta in in g

a t

th e

d e c is io n

“ fr e e z e ”

th e

a s s o c ia tio n s

(G r e e n d a le ,

b u ilt

m id -1 9 3 0 ’s .5

In

s tr u c tio n

a ll

A m o n g

co m ­

a lm o s t

b e in g

o p tio n

b e e n

a s s o c ia tio n

fo r

in

a d jo in in g

s it u a t io n

its

th e

s it u a t io n
a n

w h e n

in te n d e d

o n ly

b een

c e r ta in

in

6
in

tim e

h a d

a n d

fo r

p o lic y

su ch

a b a n d o n e d )

th o rn y .

a n ta g o n is m
in

th a t

h a d

th e

P r o b le m s

s o ld

w h ic h

p r ic e

th e

o f

th e

d iffic u lty

In

o f

“ g r e e n to w n s ”

ca se ,

b e

n on e

fr o m

p u t

a d o p te d

P r a c t ic a lly

m o re

o f

o r

c o n v ic tio n

p a th

p u b lic

o cc u rre d .

T h e

b e lt,

P H A

b e g in n in g .

e x e r c is e d

M a y

I n c lu d e d

th e

re a ch e d

b y

th e ir

e ith e r

b y la w s

p o lic y .

in c id e n t a lly ,

s e n t in g

a m o r tiz a ­

P H A

A t

sa m e

K o r e a n

p r o je c ts

h a d

o f

n o

T h e

g r o u n d

W e s tb ro o k

m a y

d u r in g

P H A ,

c la im e d

th e

a g e n t

h a d

p o rte d

r e s u lts

A c t ,4

th e ir

o p e r a tin g

p r o b ­
in

a s s o c ia tio n s

in

te rm s

o n

o f

v is io n

th e ir

y e a rs ’

a s s o c ia tio n
it

n u m b e r

fo llo w in g :

b u t

b y

w ith

w a s

4 5

n e g o tia t io n s

a r is e n .

H o w e v e r,

a

lo n g ­

L a n h a m

a g re e m e n t.

tim e

h a d

u n d e r

T h is

p r o je c ts

tim e

v is ite d ,

p r o b le m s

o f

A u d u ­

o u t

p a ssa g e

th e

e n t e r t a in e d .

cu rre d

in

a s

th e

so m e

th e

in te r e s t.

a g e n c y

th is

w o r k

th e

o f

th ese

a cte d

a n

p r o je c t

to

d e la y .

b y

p a y m e n ts,

p e rce n t

a t

a g re e m e n t

( f )

th a t

d o w n

b u y

w a iv e r s

th ir d ,

th e

to

r e s o lv e d

p r o v id e s
n o

n o t

a rra n g e m e n ts .

c o n tr ib u t e d

S e c t io n

A

P H A

r e a c h in g

fin a lly

o f

w ith

se t

fo r

s e w a g e -d is p o s a l

p u rch a se

le m

c o u ld

r e c e iv e d

o p e r a t in g

w a itin g

D iffic u lty

J .)

r e q u ir e m e n ts .

w a s

w h ile

te rm

th e y

w e r e
s e r ie s

w a s

to o

w h o le

COOPERATIVE HOUSING IN THE UNITED STATES

82
e x p e r ie n c e
a n ce

w a s

w ith o u t

to p p e d

w h ic h

b y

a

re fu s a l

fin a n c in g

w a s

o f

N um ber

in s u r ­

p r a c t ic a lly

o f cases1

6. Loss of time, resulting from —

im p o s s ib le .
T h e

fo llo w in g

w h o le

g r o u p

n u m b e r
cu rre d .
s h o u ld
m a y

to

o f

e a ch

T h u s,

r e s u lte d
o b ta in

fr o m

p o lic y ,

o f
o f

fa ilu r e
th ese

im p r a c tic a lity
p o o r

fin a n c in g ,

fo r

a s s o c ia tio n s ,

ca u se

in te r d e p e n d e n c e

n o te d .

r a c ia l

sh ow s,

u n s u c c e s s fu l

w h ic h

T h e
b e

h a v e

a b ility
t io n ’s

in

ta b u la tio n

th e

th e
o c ­

ca u ses
o f

p la n

le a d e r s h ip ;

fr o m

Search fo r suitable site ...........................
Attempts to get zoning changes ............
Examination of types of housing, in rela­
tion to costs .............................................
Making decisions on a rch ite ctu re ..........
Mistakes of professional a d v is e r s ..........
Delays in processing of applications fo r—
Financing .............................................
Insurance:
F H A ...........................................
VA .................................................
Making adjustments required by insurer
Coping with overt neighborhood hostility

th e

in ­

a s s o c ia ­

e tc.
N um ber
o f ca ses1

1. Attributable to membership:
Refusal toabide byprofessional advice
3
Too many (costly) changes in house
plans ..............................................................
3
Unwillingness to devote sufficient time to
project .........................................................
1
Dissension over—
Policies ofboard ....................................
5
1
Racial policy ..........................................
4
Architectural design or kind of
houses ...................................................
4
Loss of membership interest ....................
11
2. Attributable to leadership:
Poor judgment or poor business methods1 11
2
Ill-advised decisions, adding to costs . . .
3
Insufficient vigilance over management. .
4
Idealistic but impractical leadership . . .
5
Mistakes arising from inexperience in
housing fie ld ........................................
21
3. Attributable to manager:
Poor m anagem ent.....................................
5
Dishonesty .......................................................
1
Membership dissatisfaction over quality
of house .......................................................
1
4. Attributable to professional or business ad­
visers :
Poor advice or service .................................
6
5. Inherent in project plan:
Plan impractical ............................................
4
Project too isolated ......................................
4
Plan too ambitious in relation to re­
sources of group ........................................
4
Tract-development costs too great..........
6
Insufficient water s u p p ly ........................
2
Members’ payments too low to provide
working capital ..........................................
5
Interracial policy ..........................................
5
1 Groups n ot m utually exclusive.
2 Includes excessive expenditures fo r equipm ent, services, etc.




3
5
4
3
5
6
5
l
6
5

7. Outside relationships:
Financing, inability to obtain—
Initial financing ......................
Construction fin a n c in g ..............
Permanent financing ..............
Insurance, inability to o b t a in ..............
Harassment by neighbors ....................
Harassment by realty in te r e s ts ..........

5
7
5
8
5
4

8. Other factors beyond association’s control:
Inability to recruit sufficient membership
to carry plan to com p letion ..................
7
4
Material shortages .....................................
Rising costs .................................................
15
Membership dissatisfaction over—
Cost of houses .....................................
7
Long delays .....................................
11
Newspaper strike .......................................
1
Lenders’ and insurers’ prejudice against
modern architecture ................................. 4

It
o f

a p p e a rs

(m e m b e r s ,
ite m s

1, 2,

(a n d

o fte n

th ose

s is ,
u p on

a n d

a s

ite m s

ca ses,

a d d ed

to

ta b u la tio n
p a rt

th e
o f

b y

w e r e

s e r io u s
o u t s id e
4,

7,

a s
th e
a n d

m a n y

g u id a n c e

th a t

th e

ca u ses

o f

a n d

on e

o r

fa ilu r e )
th e

fa c t

fr o m

p o in ts

p la n ) —

n u m e ro u s

o f

T h e

a s

a ss o ­

th a t,

in

in e x p e r ie n c e

u p

co o p e ra to rs
fo r

a s

co n tro l
8.

m is t a k e s

a s s o c ia tio n s
a n d

a lm o s t

a r is in g

d iffic u ltie s

n e c e s s it y

o f

m a n a g e m e n t,

5—

m is ta k e s
th e

p la c e d

so u rce s

th e
th e

o n

le a d e r s ,
3,

ca u ses

c ia tio n —

21

fr o m

c o m m is s io n

th e

em p h a ­

in t e r v ie w e d ,
m o re

t e c h n ic a l

ce n tra l

a s s is ta n c e .

A p p e n d ix e s

Appendix A.— Housing Associations Covered in Study
All-the-W ay Cooperatives Building Houses
Colorado— D e n v e r....................Mile High Housing Association, 2401 S. Dahlia Lane.
Illinois:
Chicago

............................. York Center Community Cooperative, Inc. Office, 3435
Van Buren St.
Evanston .......................... Gibraltar Consumers Cooperative Association, Inc.,
1832 Lamar Ave.
Usonia Homes, Inc., Bear Ridge Rd.
New York— Pleasantville
Pennsylvania:
Glen Mills ........................ Fellowship Cooperative Homesteads, Inc., RFD. No. 1.
Philadelphia...................... 1American Veterans Housing Cooperative, Inc., Room
701, 1011 Chestnut St.

Co-ventures
California:
Campbell .......................... 2 Valley Homes, Inc., 760 Audrey Ave.
Culver City ...................... Mar Vista Homes, 4127 Inglewood Blvd., Zone 34.
Friends Housing Group, care of 13870 Sayre St., San
Los Angeles
.............
Fernando.
Los Angeles ...................... Hermits Glen Corp., 2400 Laurel Canyon Blvd.
Los A n g e le s ...................... Mutual Housing Association, Inc., 1000 N. Hanly Ave.,
Zone 49.
Salinas ................. ............. Mutual Home Ownership Association of Monterey
County, 6 Bernal Dr.
Tracy ................................... Mountain View Homestead Association, Inc., R. No. 1,
Box 814.
Colorado:
Boulder ............................... 2 Faculty Court.
Denver ............................... Glennon Heights, Inc., 5550 Saulsbury Ct.
Connecticut— Darien ............. Boulder Ridge, Inc., 108 Leeuwarden Rd.
District of Columbia— Wash­
ington ..................................... Careybrook Co., Inc., 145 Ivanhoe St. S.W ., Zone 20.
Idaho— Iona ............................... Iona Self-Help Cooperative.
Illinois:
Bloomington .
1 Marygrove Cooperative Homes Association, Room 600,
Livingston Bldg., 102 W . Washington St.
C ham paign........................ Champaign-Urbana Amvet Homestead Association, 203
W . Hill St.
Chicago ............................... A VC Homes, Inc., 25 N. Jackson Blvd.
G len view ............................. Cooperative Community, Inc., 606 Forest Rd.
Indiana— South Bend ........... Edison Park, Inc., 919 S. Michigan Ave.
Maryland— Bethesda ............. Bannockburn Cooperators, Inc., 6304 Bannockburn Dr.,
Zone 14.
Massachusetts:
Belmont ............................. Snake Hill Trust, Snake Hill Rd.
Lexington .......................... Six Moon Hill, Inc., 1 Moon Hill Rd.
Michigan :
East L a n sin g .................... 2Home Sites, Inc., Burchan Dr.
Jackson ............................... Cascade Veterans’ Cooperative.
Nebraska— Omaha ................. Golden Valley Cooperative Association. Office, 4406 N.
__________
30th St.; Mail, P.O. Box 515.
1 Out of business by mid-1952, without reaching1 construction stage.
2 Out of business by mid-1952. project completed.




83

84




A P P E N D IX E S

Co-ventures — Continued
New Jersey— Kearney

.........

Legion-Veterans’ Cooperative Housing, Inc., 403 Maple
St.

New York:
P o m o n a ...............................
Tappan ...............................

Skyview Acres Cooperative, Inc.
Mary crest Association. Mail, care of C. W . Neill, 60 E.
42nd St., New York 17, N. Y .
North Carolina— Newport . . Cherry Point Veterans’ Mutual Housing Association,
Box 82.
Ohio:
Campbell ........................... Camvets Housing Association, Inc., P.O. Box 369.
C incinnati........................... Rainbow Homes, Inc., care of 6481 Rainbow Lane,
Zone 30.
Dayton ............................... 2 Hyland Home Owners’ Association, R. No. 9.
Dayton ............................... Pineview Mutual Homes, Inc., 652 Clement Ct.
Lorain ................................. Lorain Veterans’ Housing Association, Inc., R . No. 2,
Meister Rd.
Youngstown ...................... 2 Kirkmere Home Owners, Inc., 2714 Bears Den Rd.
Oklahoma:
Ardmore ............................. Ardmore Veterans’ Housing Corp., American Legion
Bldg.
Cushing ............................. 2 Cushing Housing Corp.
Fairview ........................... 2 Veterans’ Housing Project, Inc.
Perry ................................. 2 Perry Veterans’ Housing Corp., First National Bank
Bldg.
W a lt e r s ............................... 2 Legion Housing Corp., 203 Bank Bldg.
Pennsylvania:
Moylan ............................... Cheyney Cooperative Homesteads.
Penn-Craft ...................... Penn-Craft Housing Project, Mail, R. No. 1, East
Millsboro.
Southampton (Bucks Co.) Bryn Gweled Homesteads.
Puerto Rico— Rio Piedras . . Comunidad Cooperativa, University Station, Box 112.
Tennessee— Knoxville .........
Veterans’ Cooperative Housing, Inc.
Utah— Salt Lake C i t y .........
Homeless Veterans, Inc., care of 2653 Barbey Dr.,
Mail, Box 1551.
Washington:
S e a ttle ................................. Hilltop Community, Inc., care of 904 Seventh Ave.
Zone 4.
S e a ttle ................................. 2 Veterans’ Mutual Building Association, care of Mario
Storlazzi, University of Washington.
Wisconsin:
. Madison ............................. Wisconsin Cooperative Housing Association, Crestwood.
Milwaukee ........................ Milwaukee Cooperative Homes, Inc., 4232 W . Bonny
PI., Zone 16.
Milwaukee ........................ North Side Homes, Inc., 702 W . Walnut St.

Apartment Associations
California:
Los A n g e le s ......................
San Francisco ...............
Illinois:
C h ica g o ...............................
C h ica g o ...............................
C h ic a g o ...............................
Minnesota— Duluth ...............
--------------------

Avenel Associates, Inc., 2837 Avenel St.
2250 Hyde Corporation, 2250 Hyde St.
Cooperative Residences, Inc., 343 S. Dearborn St., Zone
4.
Douglas Park Cooperative Apartments, 1641 S. Cali­
fornia Ave., Zone 8.
Lex-Lawn Cooperative, 3646 W . Lexington, Zone 24.
Highland Acres Cooperative Housing Association, 310
Bradley Bldg., Zone 2.

1 Out of business by mid-1952, without reaching construction stage.
3 Out of business by mid-1952, project completed.

L IS T

O F

A S S O C IA T IO N S

S T U D IE D

Apartment Associations — Continued
Missouri:
Florissant ........................ Veterans’ Cooperative, R. No. 2, Box 132.
University C i t y ............... Veterans Housing Association, 7270 Balson Ave.
New York:
Bayside ............................... United Veterans’ Mutual Housing Corp., 220-48 67th
Ave.
Bronx ................................. Amalgamated Housing Corp., 98 Van Cortlandt Park
South, Zone 63.
Bronx ................................. Farband Housing Corp., 2925 Matthews Ave., Zone 67.
Bronx ................................. Varma Cooperative Homes, Inc., 825 Walton Ave.,
Zone 51.
B roo k lyn ............................. Advance Homes Association, Inc., 848-856 43d St.
B roo k lyn ............................. Baltic Homes, Inc., 4113 Seventh Ave.
B roo k lyn ............................. Bayview Home Association, Inc., 671 47th St., Zone 20.
B roo k lyn ............................. Broadview Association, 4323 9th Ave., Zone 32.
B roo k lyn ............................. Corner View Association, Inc., 4401-4407 4th Ave.
B roo k lyn ............................. Finnish Home Building Association, Alku, Inc., 816-826
43d St.
B roo k lyn ............................. Florence Homes Association, Inc., 546 40th St., Zone 32.
B rooklyn ............................. 466 49th Street Club, Inc., 466 49th St.
B roo k lyn ............................. Hilltop Association, Inc., 4404 6th Ave., Zone 20.
B rook lyn ............................. Linden Heights Association, Inc., 702-712 45th St.,
Zone 20.
B rooklyn ............................. Parkside Association, Inc., 549-561 41st St., Zone 32.
B roo k lyn ............................. Park Slope Association, Inc., 570 44th St., Zone 20.
B rooklyn ............................. Pleasant View Association, 574 44th St.
B rooklyn ............................. Riverview Homes Association, Inc., 673-683 41st St.
B rook lyn ............................. Sun Garden Homes Association, Inc., 637-661 41st St.
B rooklyn ............................. Sunset Court Association, Inc., 4002-4012 7th Ave.,
Zone 32.
B rook lyn ............................. Sunset Home Association, Inc., 4015 7th Ave., Zone 32.
B rook lyn ............................. Sunset View Association, Inc., 605-611 41st St., Zone
32.
B rooklyn ............................. Victory Home Association, Inc., 672 46th St.
New York ........................ Amalgamated Dwellings, Inc., 504 Grand St., Zone 2.
New York ........................ Beekman Hill Cooperative Association, 343 E. 50th St.,
Zone 22.
New York ........................ Consumers Cooperative Housing Association, Inc., 87
Bedford St.
New York ........................ Dorie Miller Housing Co., Inc., 270 Broadway.
New York ........................ First Housing Co., 270 Broadway.
New York ........................ Harry Silver Housing Co., 270 Broadway.
New York ........................ Hillman Housing Corp., 530 Grand St., Zone 2.
New York ........................ 109 West 141st Street Corp., 103-109 W . 141st St.
New York ........................ 152-154 West 131st Street Holding Co., Inc., 152-154
W . 131st St.
New York ........................ 137-139 West 142d Street Cooperative Corp., 137 W .
142d St.
New York ........................ Stockbridge Apartments, Inc., 603-605 W . 138th St.,
Zone 31.
Virginia— Arlington ............. Virginia Veterans’ Cooperative Association. Office, 454
Washington Bldg., Washington, D. C.

Mutuals With Purchase Contracts
California:
Alameda ............................. Alameda Mutual Homes Corp., 1711 2nd St.
Compton ............................. Mutual Housing Association of Compton, 491 S. Colin
Ave., Zone 3.




85

86




A P P E N D IX E S

Mutuals With Purchase Contracts — Continued
Colorado— Fort Logan ......... Sunset Ridge Veterans, Inc., Box 21.
District of Columbia— Wash­
ington ...................................... Veterans Cooperative Housing Association, 30th and
Naylor Rd. SE., Zone 20.
Indiana— South Bend ........... Walnut Grove Mutual Housing Corp., 2717 Woodmere
Lane, Zone 14.
Kansas:
Kansas C i t y ...................... Veterans Quindaro Homes, Inc., 660 Manorcrest, Zone
2.
Wichita ............................... Hilltop Manor Mutual Housing Corp., Inc., 1411 S.
Oliver St., Zone 17.
Maryland— Indian Head . . . . Potomac Heights Mutual Home Owners Association,
Inc., Potomac Heights.
Michigan— Center Line . . . . Kramer Homes Co-operative, Inc., 8830 E. Ten Mile
Road.
Minnesota— Hermantown . . . Duluth Homestead Association. Mail, 310 Bradley Bldg.,
Duluth 2.
New Jersey— Linden ............. Winfield Mutual Housing Corp., Roosevelt Plaza, Winfield Park.
North Carolina— Wilmington Veterans’ Homes, Inc., Lake Forest.
Ohio:
Dayton ............................... Greenmont Mutual Housing Corp., 20 Rembrandt Blvd.,
Zone 10.
Greenhills ........................ Greenhills Home Owners Corp. Mail, P.O. Box 4,
Cincinnati 18.
Pennsylvania:
Hatboro ............................. Fulmore Heights Home Ownership Association, 201
Fitch Rd.
New K ensington............. Aluminum City Terrace Housing Association, Alumi­
num City Ter.
Puerto Rico— San Juan
Asociacion Cooperativa del Falansterio, Puerba de
Tierra.
Texas:
Dallas ................................. Dallas Park Mutual Ownership Corp., Dallas Park.
Grand Prairie .................. Avion Village Mutual Ownership Corp., Avion Village.
Utah:
Ogden ................................. . Grandview Acres Mutual Ownership Corp., 3796 Quincy Ave.
South Ogden ...................., Washington Terrace Non-Profit Housing Corp., Washington Ter.
Virginia:
Arlington ........................ . George Washington Carver Mutual Homes Association,
13th and S. Queen St.
Arlington ........................ . Paul Lawrence Dunbar Mutual Homes Association,
3500 S. Kemper Dr.
Falls Church ............... . Hillwood Square Mutual Home Owners Association,
Cherry St.
West Virginia— South
Charleston ...................... . Kenna Homes Veterans’ Cooperative Corporation, Kenna Dr.

Mutuals Without Purchase Contracts
Indiana— South Bend ......... . Beacon Heights Mutual Housing Association, 3603
Curtis Dr., Zone 19.
Fincastle Heights Mutual Ownership Corp., 3512 FinKentucky— Louisville .........
castle Rd., Zone 13.
Maryland— Greenbelt ......... . Greenbelt Veterans’ Housing Corp., 56 B Crescent Rd.

L IS T

OF

A S S O C IA T IO N S

S T U D IE D

Mutuals Without Purchase Contracts — Continued
New Jersey:
Audubon Park ...............
Gloucester ........................
Pennsylvania:
Philadelphia

....................

York ...................................
Wisconsin— Greendale .........

Audubon Mutual Housing Corp., Road C.
Bellmawr Park Mutual Housing Corp., 31 Woodland
Road, Bellmawr Park.
Pennypack Woods Home Ownership Association, 8724
Crispin Dr., Zone 36.
Yorktown Homes, Inc., care of 1051 Community PL,
Greendale Veterans’ Cooperative Homes Association,
Box 308.

Dissolved Associations— P roject Completed
Indiana— Mishawaka ...........
Iowa— Granger ........................
Minnesota :
Minneapolis ......................
St. Paul .............................
New York— Larchm ont.........

Veterans’ Homes of Mishawaka, Inc., 2729 N. Main St.
Granger Homesteads.

Cooperative Housing Association of Minneapolis.
Cooperative Housing Association.
Larchmont Veterans Building Corp., 24 Elkan Rd.,
Elkan Park.
North Carolina— Chapel Hill Service Employees Corp., University of North Carolina.
Ohio— Dayton ........................... Dayton Mutual Homes, Inc., 104 Malcolm Dr., Zone 10.
Virginia— Front Royal ......... Old Dominion Housing Corporation.

Dissolved Associations— P roject N ot Completed
California:
Berkeley .............................
Los A n g e le s ......................
Palo Alto ...........................
San F ran cisco..................
San F ra n cisco ..................
Connecticut— New Haven . .
District of Columbia— Wash­
ington ..................................
Illinois:
Chicago .............................
Chicago .............................
Maryland— Suitland .............
Michigan— Detroit ..................
New Jersey:
Leonia .
...............
New Brunswick .............
New York— C am illu s.............
North Dakota— Bismarck . . .
Ohio:
Columbus . .
Dayton
Oregon— E u g e n e ......................
Pennsylvania:
Philadelphia ....................
Pittsburgh ........................
Wisconsin:
K e n o s h a .............................
R a c in e ...............................




Planned Community Cooperative.
Community Homes, Inc.
Peninsula Housing Association, Inc.
Community Cooperative Development Corp.
Veterans Housing Cooperative, Inc.
Cooperative Homes of West Haven.
Veterans’ Mutual Housing Cooperative, Inc.
Evergreen Cooperative, Inc.
Home & Community Planning Association, Inc.
Hollywood Park Cooperative.
Schoolcraft Gardens Cooperative, Inc.
Leonia Veterans’ Association, Inc.
Veterans’ Building Cooperative, Inc.
Home Owners Cooperative, Inc.
Bismarck Veterans’ Homeowners Cooperative Associa­
tion, Inc.
Amvets Homestead Association, Inc.
Air Village.
Dillard Village Cooperative.
Cooperative Homes, Inc.
Parkway Cooperative Association.
Cooperative Homes of Kenosha.
Racine Cooperative Homes, Inc.

87

Appendix B.— Documents and Forms Used by Housing Cooperatives
A ll-th e-w ay C oo p era tiv es
Bylaws of All-the-way Cooperative
A rticle I.— Name and Location
The name of this organization is the ----------- Housing Association. Its principal place of business shall be
-----------, although it may operate in the suburban area of -----------, and hold meetings at the site of any property
owned, whether inside or outside of -----------.
A rticle II.— Declaration of Intent
Many factors have operated to deter home ownership. These include high land and construction costs, high
financing and maintenance costs, absence of planning on a community scale, and dependence upon subdivision
promoters for initiative in instituting home building. This nonprofit corporation has been organized for the pur­
pose of purchasing a tract or tracts of land, obtaining skilled planning and architectural and construction serv­
ices, and building homes and community facilities for members of the association and others who wish to join
with them, with resulting benefits to all.
A rticle III.— Membership
Section 1.— Qualifications. The association shall consist of the present membership and all other persons
who hereafter may be admitted to membership in accordance with these bylaws. Qualifications which will be con­
sidered include an intent to live in the house covered by the lease agreement, good moral character, a neighborly
disposition, willingness to subscribe to the provisions and principles set forth in the charter and bylaws, de­
sire to enter in the community life and contribute to its development as well as to enjoy its benefits, and financial
responsibility. A list of present members is hereto attached and made a part of these bylaws.
Sec. 2.— Joint membership. Subject to approval by the nominating committee and the membership, joint
membership shall be granted applicants for membership, or a single membership may be converted to a joint mem­
bership, upon the written request of the member and the agreement of his or her spouse to comply with the by­
laws and rules of the association. The effect of a joint membership shall be that:
(a ) The presence at a meeting of either or both of the joint members shall be accepted as the presence of
one member.
(b ) Both jointly shall have one vote which may be cast by either. If they disagree each may cast a half
vote.
(c ) Notice to either shall constitute notice to both, and the remaining member shall have all the rights and
privileges and be subject to all the obligations of the membership.
( d) Withdrawal or expulsion of either shall terminate joint membership. In case of divorce of joint mem­
bers the one to whom the lease is awarded shall be considered the “ remaining member.”
(e) Either may serve on the board of directors but not both at the same time.
( /) Obligations of the joint membership to the association shall be joint and several, enforceable against
both or either.
( g ) When one of two joint members dies the entire membership vests in the survivor, but the estate of the
deceased remains liable on all obligations to the association. When a single member or both joint members die the
membership shall be treated the same as upon the death of a single member, subject to Section 9 of this article.
Sec. 3.— Admission of members. Prospective members must be nominated by a member and sign a
written application form provided by the nominating committee. This nomination is to be placed before the
nominating committee. It shall be the duty of the committee to interview the nominee, investigate his character
and financial reliability, and conscientiously determine his desirability as a fellow member. A majority vote of
the committee in favor of applicant’s admission shall be a tentative admission. A copy of his application shall
then be forthwith delivered to each member. If no member files written and signed objections with the committee
within 15 days, the admission becomes final. If such objection is made, the application shall be held pending,
while the objector communicates the reasons for his objections to the committee. A fter the committee has
heard these objections, it will vote again, either passing or rejecting the new application. If either applicant, his
sponsor, or the person objecting to his application is dissatisfied with the committee’s decision he may within
10 days appeal the whole matter to the board, whose judgment will be final. The association shall issue to
each member or to each joint membership a membership certificate in form approved by the board of directors.




88

DOCUMENTS AND FORMS USED

89

Sec. 4.— Voting rights. Each member or joint membership shall be entitled to one vote on all questions.
Voting by proxy shall not be allowed. Written or absentee ballots may be provided if requested 7 days before the
date of the meeting at which the vote is to be taken. A t the request of 10 members, or by the vote of the board
of directors, voting shall be by secret ballot. The request for secret ballot should be in writing if before the
meeting or viva voce if during the meeting.
Sec. 5.— Duties of members. Every member must agree to obey the rules of the association as set
forth in these bylaws, or elsewhere, and the decisions of the general membership meeting or of the board of
directors. He must also do his utmost to promote the aims and purposes of the association, the success of its
operations, and the welfare of its members. Members shall agree to pay all charges and assessments voted by
the board or by the members. As soon as the dwelling selected by the member is ready for occupancy, the mem­
ber shall sign a lease agreement, prepared by the board and approved by the Federal Housing Commissioner.
Sec. 6.— Withdrawal o f members. In handling withdrawals, it is the purpose of the association not to
permit withdrawing members to profit, beyond the benefits they gained during membership, by receiving
more than their equity as defined in Article V, upon surrender of membership. A t the same time it is the pur­
pose of the association to protect the member against loss of his equity in the association upon withdrawal
in so fa r as this can be done without occasioning loss or financial embarrassment to the association, and it is
contrary to the purpose of these bylaws for the association to make any profit at the direct expense of the
equity of the withdrawing member. These provisions of these bylaws shall be interpreted so as to give maxi­
mum effectiveness to this policy. The procedure to effectuate this policy appears in the following para­
graphs :
(a) Any member wishing to terminate his membership shall make written application to the board of direc­
tors and tender therewith to the secretary of the association his membership certificate and lease agreement.
Thereupon, and in any event within 30 days, the board of directors shall determine whether, in their opinion
the member’s equity, plus that portion of the outstanding mortgage indebtedness attributable to the dwelling oc­
cupied under such lease agreement, exceeds the fair appraised market value of the property covered by the
lease. If it does, then the board shall, within said 30 days, notify the withdrawing member to that effect and
proceed under paragraph (c) of this section. If the board shall not so determine and notify the withdrawing
member within 30 days, then the procedure shall be as provided in paragraph (b) of this section.
( b ) The board of directors shall purchase the equity of the withdrawing member at a price determined
in accordance with Article V, section 2, and within 90 days from receipt of the application to withdraw; pro­
vided that the board shall not be obligated to make any purchase of an equity when in the judgment of the
majority of the membership of the association expressed by vote at a regular or special membership meeting,
such a reduction of the association’s capital would endanger the financial condition of the association. If the
association shall fail to complete said purchase within the said 90 days, the withdrawing member shall then
have the option of presenting to the association persons acceptable for membership and ready, able, and willing
to assume the financial obligations of membership; and upon the acceptance of such persons for membership,
the association shall pay the withdrawing member the amounts as paid by the incoming member for said
equity, up to the value of the withdrawing member’s equity. This option shall extend until such time as the
association is prepared to complete the purchase, but not longer than 90 days from the expiration of the afore­
said first 90-day period; if no purchase has been consummated by the end of said second 90-day period, the
association shall proceed to determine the fair appraisal value of the equity in accordance with the procedure
set forth in paragraph ( c ) hereof and thereafter proceed in accordance with said paragraph ( c ).
(c) When the board of directors shall determine to purchase an equity at an appraised value, it shall so
notify the withdrawing member within 30 days of receipt of application to withdraw or within 30 days
after expiration of the second 90-day period provided in paragraph (b) of this section, as the case may be, and
with such notification shall furnish to the withdrawing member the name of an appraiser selected by the asso­
ciation. The withdrawing member shall within 10 days thereafter also name an appraiser, and the two apprais­
ers shall appraise the market value of the property and of the equity and if they agree they shall file their
findings with the secretary of the association. If they fail to agree, they shall within 10 days after their ap­
pointment name a third appraiser, and the judgment of the majority of the three shall be binding. If within
said 10-day period they shall fail to agree upon a third appraiser, then upon the petition of the board and the
withdrawing member or either of them, the judge of the ........... County Court may name a third appraiser,
and the judgment of the majority shall be binding. (The cost of this proceeding and of any third appraiser
shall be divided equally between the association and the member.) Upon the filing of the findings with the sec­
retary of the association, the board shall notify the member and offer to buy the equity at its appraised
value, subject to the right of the members of the association as in paragraph (b) provided, to determine that such
a reduction in the association’s capital would endanger the financial condition of the association. If the member
is not willing to accept the offer, he shall be allowed 60 days from the date of the offer within which to pre­
sent to the association a person or persons acceptable for membership and ready, able and willing to become




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members and assume the financial obligations of membership. Upon the acceptance of said person or persons
for membership, the association shall pay the withdrawing member the amounts as paid by the incoming mem­
ber for said equity, up to the value of such withdrawing member’s equity as determined in Article V. If the
membership shall have disapproved purchase of the member’s equity at the appraised market value, the fore­
going option of the withdrawing member to present eligible persons shall be extended until such time as the
association is prepared to complete the purchase at the appraised value.
( d) In the event that purchase of a withdrawing member’s equity depends on resale to another, whatever
sum is received by the association in payment for the equity of the withdrawing member shall be paid over by
the association to the withdrawing member promptly as it is received, up to the value of his equity as defined
in Article V. The association may, if its financial condition permits, pay the full sum to the withdrawing member
in advance of receipt by the association of such funds from the incoming member.
( e ) In the event that a withdrawing member shall have received less than the value of his equity as de­
termined in Article V, and the association shall within the 2-year period thereafter resell the membership at
terms more favorable to the association than the price paid by the withdrawing member, the association shall
pay such difference (minus expenses) to the member who had thus withdrawn up to the amount which would,
when added to the amount actually received upon his withdrawal, equal such value.
( /) If purchase be made of any withdrawing member’s equity, the payment shall i n n o e v e n t , and notwith­
standing the operation of the above paragraphs, be less than the member’s prepayments as determined in accord­
ance with Article V, Section 4.
Sec. 7.— Expulsion of members, (a) For violation of these by-laws or other rules of the association, for
nonpayment of dues or assessments, or failure to meet any obligations or for conduct detrimental to the associa­
tion, the board of directors may expel any member.
( b ) Charges seeking expulsion of a member may be brought only by another member, and such charges
brought shall be in writing and if, in the judgment of the board of directors, they constitute a ground for expul­
sion, a copy thereof shall be served upon the member charged together with a notice (by registered mail, post­
age prepaid, or by personal service) of the time and place at which the charges will be considered. The ac­
cused member must, within 15 days after service of such charges, answer them in writing either admitting
them, denying them, or setting up any defensive matter. Failure to do so shall constitute admission of the truth
of the charges.
(c) The accused member shall be entitled to appear before the board at the time and place fixed and shall be
entitled to cross-examine witnesses and present witnesses and evidence in his own behalf. Formal and technical rules
of evidence shall not apply.
( d ) From a judgment concerning expulsion by the board the accused member or accuser shall be entitled
to appeal to the membership, by giving written notice to the board of directors within 10 days after the decision.
The appeal shall be heard at the next regular meeting of the members or, in the discretion of the board of di­
rectors, at a meeting specially called. A two-thirds vote of the full membership is required for expulsion of a
member.
( e ) If the accused member makes no appeal or if the membership sustains the board, expulsion shall become
forthwith effective.
( /) Upon expulsion, the member’s lease agreement shall be terminated and his equity must be purchased,
the price to be determined as in section 6 of this article.
Sec. 8.— Nontransferability. Membership shall not be transferable,

except as herein expressly provided.

Sec. 9.— Death of members. The association shall have an option, extending for 6 months, to purchase the
equity from an estate in the case of the death of a single member or the surviving member of a joint mem­
bership or upon simultaneous death of the joint members. Such heirs at law, or beneficiaries under the will, if any,
of a deceased member as shall be residents on the association's project shall be granted priority over nonresidents
for leases in the project, if they apply for membership in their own name or names (or by guardian, if minors)
and if the application be approved. The association shall purchase the equity from the estate of decedent or de­
cedents in the manner provided in section 6 of this article for purchase of equity of withdrawing member, written
notice of the death being equivalent to application to withdraw.
Sec. 10.— Members delinquent in payments to the association. The board may call before itself any member
who is 30 days or more in arrears in his payments to the association, and after investigation into the circum­
stances of the particular case, and in light of the general financial condition of the association, decide how best to
protect the member and the association. The board shall not be bound to extend any credit to any member, but in
no case shall the board extend credit to any member in excess of his equity in the association.
Sec . 11.— Members to receive bylaws. Each member shall receive a copy of these bylaws, and each revision
thereof, and shall acknowledge receipt in writing and sign an agreement to be bound by these bylaws.




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IV.— Fiscal Year

The business period of this association shall begin on September 1 of each year and end on August 31.
V.— Equities , Membership Certificates , and Reserves ( “ Balance Sheet Accounts'’)

SEC. 1.— Equity payments to the association required of members, (a) Each member shall be required to
pay to the association funds necessary to provide for an equity on his membership before the construction of the
dwelling to be leased to him begins. The amount of initial equity required shall be as follows: IIV 2 percent of
the total of all estimated costs attributable to the dwelling to be leased by the member, plus 25 percent of the
estimated cost of any car port and/or garage to be constructed on said property. Thereafter, each member shall
be required to pay to the association monthly funds necessary to amortize in not more than 30 years that portion
of the association’s mortgage indebtedness allocated to said property, as determined in paragraph (b) of this
section, and these payments to the association shall be used by the association to pay the principal of any mort­
gage or mortgages on all the property, both real and personal, such monthly payments to be according to the
schedule to be attached to the lease agreement. Any failure to meet required monthly payments shall constitute
a breach of the lease agreement. Individuals who become members after construction of the house shall be required
to make payments as agreed between the new member and the board of directors upon approval of the auditing
committee.
(b) Aggregate costs shall be allocated to properties covered by individual lease agreements on the following
basis: Actual total cost of construction of dwelling and appurtenances such as garages, car ports, walks, drive­
ways, and landscaping (including all financing and carrying charges), to be allocated according to data furnished
by the contractors; share of total raw land cost prorated according to area of lot; share of all other improvements
and developmental costs (utilities, roads, community landscaping, community facilities, organizational expense)
prorated equally among the members. The share of the mortgage allocated shall be according to the difference
between such aggregate costs for each unit, and the amount of initial equity provided by the member leasing
such unit.
Sec. 2.— Member’s equity, (a) The value of a member’s equity in the association shall be the payments re­
quired by section 1 of this article plus any voluntary prepayments to the association plus the appraised value of
any alterations made by the member, minus depreciation of the structure leased to him. The appraised value of a
member’s equity shall include such fixtures as may have been attached by the member at his own expense.
(6)
No alteration or structural changes or additions shall be made by any member to the property leased with­
out the prior consent of the board of directors. In the event of neglect to properly maintain the leased property,
the association may, after due notice, enter upon the premises, perform such work as is necessary to put the
premises in proper condition, and shall charge the same to the member, payable upon demand, or charge the
same against his equity. In the event that the membership and the association cannot agree on the appraised
value of alteration, each shall appoint an arbitrator and these shall select a third, and a majority decision shall
be binding on both parties. If the two cannot agree on a third, the judge of the ........... County Court may ap­
point, on request of either, a third arbitrator.
Sec. 3 .— Reserves. ( a ) General reserve fund: Any balance arising from the transfer of a membership lease
shall be placed in general reserve fund. This fund shall be available for any corporate purpose so designated by the
board of directors; however, in no event shall said fund be used to distribute as dividends to members except
upon dissolution. The fund shall not be divided among members who have withdrawn or been expelled under the
provisions of these bylaws.
(b) Patronage surplus: Any excess of monthly service charge payments during any fiscal year over the
actual operation expenses of the association for that year shall, at the vote of the majority of the whole mem­
bership, be credited to the patronage surplus account or refunded to the members in cash, in proportion to their
monthly service charge payments. The patronage surplus account may be used to absorb operating deficits of un­
successful years, or for any other corporate purpose as may be decided by the majority of the whole member­
ship.
(c) Rental surplus: Any excess of rental payments over expenses chargeable to the rental account during
any year shall, at the vote of the majority of the whole membership, be credited to the rental surplus account or
refunded to the members in cash in proportion to their monthly rental payment. The rental surplus account may
be used to absorb operating deficits or for any other corporate purpose at the vote of a majority of the whole
membership.
(d) Reserve for depreciation: Depreciation shall be charged to the member’s equity and credited to the
reserve for depreciation. The initial rate of depreciation shall be IV2 percent per year of the initial cost of the
structure. The rate of depreciation may be changed by two-thirds vote of the entire membership of the associa­
tion.
(e) Replacement reserves: The association shall maintain such replacement reserves as shall be required
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( /) Maintenance reserve: Any excess of maintenance reserve payments over expenses of maintaining' the
member’s structure shall be credited to the maintenance reserve account of the member. This reserve can be used
only for the benefit of that member. Upon withdrawal of the member the balance in his reserve account will be
refunded to the member.
S e c . 4.— Voluntary prepayments to the association. Members are permitted and encouraged to make prepay­
ments of the equity required in section 1 above.
(a) Before occupancy: Voluntary prepayments beyond those required of all members in advance of con­
struction shall draw interest at the rate of 4 percent per annum, such interest to be credited to the member’s
equity on the books of the association within 30 days of the first occupancy, and interest thereupon shall then
cease.
(b) After occupancy: The amount a member agrees to pay to the association to amortize that portion of the
mortgage applicable to his residence shall be paid in monthly installments so arranged as to retire such full
amount in not to exceed 30 years. However, any member may elect amortization in a shorter period of time. All
equity payments made by members in advance of those which would be required for a standard 30-year amorti­
zation shall be considered as prepayments, and in the event of settlement with the member making such pre­
payments, shall have priority in favor of such member over the regularly required payments of all members.
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V I. — Receipts and Disbursements (Income and Expense Accounts)

S e c t i o n 1.— Rental income and expense. In addition to the amortization payment specified in Section 1, Article
V, each member shall pay to the association a monthly rental, which shall be sufficient to cover the interest on
the unpaid balance of the mortgage chargeable to the house leased by the member, F H A insurance, hazard and
casualty insurance, replacement and general reserves, and taxes. This shall be based on the pro-rata portion of
the blanket mortgage attributable to the house and the assessed value of the property.
It shall be the obligation of the association to pay all expenses enumerated above.
S e c . 2 . — Monthly service charge and expenses . The association shall collect from each member a monthly
service charge. This charge shall cover the operating and maintenance expenses of the association (not including
maintenance of member’s structures provided for in Section 4, this article), maintenance of community proj­
ects, and cost of utilities and other services. The amount of the monthly service charge shall be set by the board
of directors. The monthly service charge shall be fixed by September 1 of each year and shall remain at a con­
stant monthly rate for the entire fiscal year. Each annual change in rate shall apply pro rata.

Sec. 3.— Special assessments . Special assessments may be levied for any corporate purpose but only upon
a two-thirds vote of the whole membership. Funds raised by special assessments must be used exclusively
in the manner and for the purpose specified in the resolution authorizing the assessment, provided that any ex­
cess of special assessments over actual expenses shall be credited to the patronage surplus account.
S e c . 4.— Maintenance and repair fund. Upon occupancy each member shall pay to the association, for a
maintenance and repair fund to be used only for said member’s structures (except as provided in section 3 ( / ) ,
Article V ) the sum of $5 per month until fund amounts to $250 and the same amount each month thereafter
whenever said fund shall, by reason of expenditures therefrom, be less than $250.
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V II.— Leasing and Subleasing o f Dwellings

In the event of vacancy during change in membership, the board may, upon approval of the auditing com­
mittee, lease to nonmembers dwellings not covered by lease agreements with members, for such short periods
of time and on such terms as deemed necessary by the board.
A member may sublet his dwelling to individuals acceptable to the board of directors at a rate and on terms
approved by the board of directors. Members subletting shall continue to be responsible to the association for
monthly payments and all other charges and assessments.
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V III.— M eeting of Members

1.— Regular meetings. Regular meetings of the membership shall be held quarterly, on the third
Friday of February, May, August, and November. The annual meeting shall be the May meeting, for purposes
of electing members of the board of directors and auditing committee.
Notice of all regular meetings (except the annual meeting) shall be given in the same manner and for the
same period as hereinafter provided for special meetings but any business of the association may be transacted at
such meetings without being specified in the notice. The notice of the annual meeting shall state that directors
and members of the audit committee are to be elected at such meeting and shall be mailed at least 30 days before
the meeting and published at least 10 and not more than 30 days before the meeting, all as provided in Section 27,
Chapter 41, Colorado Statutes Annotated, 1935.
I f for any reason the annual meeting shall not be properly noticed or held on the day hereinabove pro­
vided, then directors and members of the membership and audit committees shall be elected at the next regular
or special meeting and the notice thereof shall so advise the members.
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Sec . 2.— Special meetings. A special meeting of the members may be called by the president whenever he
shall deem it necessary or as directed by resolution of the board of directors or upon a petition signed by 5
members. Such meeting shall be called by a written notice mailed or delivered to the members at least 12 days
before the meeting. Such notice shall specify the time and place and object of such meeting, and no business
other than that which is specified shall be transacted thereat.
Sec. 3.— Quorum . Fifty percent of the members, present in person, shall constitute a quorum for transac­
tion of business.
Sec. 4.— Rules of order. A t all meetings of the members and of the board of directors, the order of busi­
ness and parliamentary practices shall be governed by Roberts’ Rules of Order, Revised.
Sec. 5.— Powers o f membership. Membership meetings have and may exercise all lawful powers of this asso­
ciation except as expressly limited by the articles of incorporation or these bylaws.
A rticle IX .— Management
Section 1.— Directors. The Board of Directors of this corporation shall consist of 7 members of the associa­
tion elected by the members at the annual meeting. At the first meeting 3 directors shall be elected for 1 year
and 4 directors shall be elected for 2 years. Thereafter at each annual meeting directors, to fill the positions of
those whose terms then expire, shall be elected for a 2-year term. Also at each annual meeting 2 members shall
be elected as alternates for terms not to exceed 1 year. No director shall be eligible to serve more than two suc­
cessive terms of whatever length.
(a) Vacancies in the Board of Directors shall be filled for the remainder of the vacant term by majority
vote of the remaining members of the board from the alternates. If more than two vacancies occur in any year
those in excess of two may be filled, by majority vote of the then members of the board, from the general mem­
bership of the association.
(b) Immediately following each election of directors the board shall convene and elect from its membership,
each for a 1-year term, a president and a vice president. The board shall also appoint a secretary and a treasurer
and an assistant secretary and assistant treasurer, each for a 1-year term.
(c) All directors and all officers shall serve as such until their respective successors are elected and
qualified, unless, in case of officers or assistants, the office be sooner declared vacant by the board. Directors
and officers and assistants may resign by written notice to the board or in manner provided by statute.
(d) Assistants shall assist and be under the control of their principals but during absence or inability of the
principal the assistant may exercise all powers of the principal except as may be limited by resolution of the
board of directors.
(e) The board of directors shall have power, subject to these bylaws, to transact the business of the asso­
ciation, to employ labor and other services, to buy materials, to enter into contracts, to buy, sell, lease, and en­
cumber land and other property and otherwise and generally to direct and conduct the affairs of the association
in such manner as they deem for its best interests.
( / ) The board shall hold a general meeting once each month on a date to be fixed by the board at its
meeting when officers are elected. If no date be fixed the meetings shall be held on the same date as last fixed
by the board.
Special meetings may be called by the president and shall be called by him on written request of three
directors.
Written notice of all meetings shall be mailed by the secretary to each director at least 5 days before the
date set for the meeting. Notice of special meetings shall specify the purpose and object of the meeting and only
the business specified shall be transacted at such meeting except by unanimous consent of all directors. No notice
shall be required for the meeting immediately following the election of directors.
When a director shall sign a waiver of notice or shall sign the minutes of the meeting, such meeting, so far
as concerns such director, shall be deemed to have been duly and legally called, noticed, held and conducted, and,
whenever such director signs the minutes of such meeting, the acts of such meeting shall be deemed and held to
be approved by such director except as otherwise noted in the minutes or above his signature.
(g) A majority of the directors shall constitute a quorum but a less number may adjourn from time to
time not exceeding 14 days at any one adjournment.
( h ) The board of directors shall establish such committees, other than elected committees, as the board deems
necessary or desirable in carrying out the purposes of the association. Duties of the committees shall be assigned
by the board. Members of such committees shall be appointed or removed by the president of the board. One mem­
ber of each committee shall be designated by the president of the board as the chairman.
Sec. 2.— Annual report and budget. The board shall make a comprehensive report at the annual meeting
of the association and shall submit to the membership in writing at least 12 days before the August meeting a
budget or an approximate estimate of the income and proposed expenses for the coming year.




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S e c . 3.— Duties of the president. The president shall be the chief executive officer of the association; he shall
preside at all meetings of members and directors and shall have general supervision and direction of the association affairs, except as herein, or by the board or members, otherwise provided; he shall sign all certificates, con­
tracts, documents, and evidence of indebtedness and papers securing the same, for and in the name of the asso­
ciation and perform such other duties as the board may authorize and direct and those which are incidental to
such office.

Sec . 4.— Duties of the vice president. The vice president shall discharge the duties of the office of president
during the president’s absence or inability to act, and shall perform such other duties as the directors may author­
ize or direct, and also those usually incident to such office, and shall also act in place of the president, when
expressly authorized by the board of directors, in case of the refusal of the president to act in accordance with
the directions of the board.
SEC.. 5.— Duties of the secretary. The secretary shall record the attendance and proceedings of all meetings
of members and directors in a book kept for that purpose. He shall be custodian of the seal of the association
and affix the same only to, and countersign, such certificates and other instruments as the board of directors
shall authorize; he shall keep a record of members with their addresses; he shall carry on the correspondence of
the association and perform such other duties as the board of directors shall authorize and direct and such as are
usually incident to such office.
S e c . 6.— Duties of the treasurer. The treasurer shall attend all meetings of the members and directors; he
shall receive all moneys, bonds, notes or other securities belonging to the association and his receipt or endorse­
ment shall be a full acquittance and discharge therefor; he shall keep all funds in a depository or depositories
designated by the directors. He shall keep complete books of account showing the financial transactions of the
association and examine and audit all bills and accounts due or against the association, subject to the auditing
committee. He shall report to the directors as they may require and make an annual report to the members at
the annual meeting. He shall perform such other duties as the directors may authorize or direct and those usually
incident to such office or required by statute. He shall give bond with such responsible sureties or surety and in
such amount as the board of directors may from time to time prescribe.

Sec . 7.— Signing o f checks. Checks on association funds shall be signed by such officer or officers as the board
of directors may, from time to time, authorize and direct.
Sec . 8.— Removal of officers. Any officer may be removed from office during his term by majority vote of
the entire membership of the board of directors.
Sec. 9.— Auditing committee. The auditing committee shall consist of three members elected at the annual
meeting for 3-year terms except that at the first election 1 shall be elected for 1 year, 1 for 2 years and 1 for
3 years. Thereafter one shall be elected at each annual meeting, for a 3-year term. The committee shall at all
times have access to the books, vouchers, and accounts of the association; shall examine and audit the same and
every balance sheet of the receipts and expenditures and effects of the association at least every 3 months; and
shall present audit reports to the quarterly membership meetings with recommendations. The committee shall be
responsible for the daily and perpetual accounting system kept by the treasurer, and shall cheick same periodically
Sec. 10.— Nominating committee. A t each February membership meeting a nominating committee of five mem­
bers who shall not at that time be directors shall be elected by a majority vote of the whole membership.
The committee shall thereupon nominate two qualified members for each directorship and committee member­
ship to be elected at the next ensuing annual meeting. The list of nominations shall be sent to the members with
the notice of the annual meeting. Other nominations may be made from the floor at the annual meeting.
This committee shall perform the duties relative to membership applications, etc., as hereinbefore provided,
including those provided in Section 3 of Article III.
Sec . 11.— Recall of directors and elected committee members. Any director or elected member may be removed
from office at any duly called and noticed regular or special meeting of the members held at least 10 days after
charges in writing shall have been filed with the secretary by any member, by majority vote of the entire member­
ship or by a two-thirds vote of a quorum present in person. The accused and accuser may present evidence and
be represented by counsel at such meeting. The unexcused absence of a director from three successive meetings
of the board or of a committee member from three successive committee meetings shall automatically remove
such director or committee member from office. The vacancy may be filled for the remainder of the term by the
same vote as required for removal, at the same or any subsequent meeting.
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X . — P roperty

Priorities

1.— Site. Members may express first, second, and third preferences as to choice of dwelling site within
the association’s property. An attempt shall be made by the architects to assign sites according to above prefer­
ences.
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If after consultations with the architects, one of the preferred sites is approved by the member and the
architects, it shall be tentatively assigned, subject to approval by the board.
If the member and the architects cannot agree on one of the preferences or on any other available site the
matter shall be submitted to the board for assignment. The board shall take into consideration the member’s
preferences, the tenure of membership, the recommendations of the architects and any other matters in the interest
of the member of the association. Other members who may have interest in the decision of the board are encour­
aged to express such interest to the board. A majority vote of the whole board shall constitute a decision which
shall be binding upon all parties concerned.
Sec. 2.— Building . Priorities in the building of houses will be determined by the most economical order of
eonstruction.
A rticle X I.— Amendments
These bylaws may be amended, repealed or otherwise changed, in manner not contrary to law or the articles
of incorporation, at any duly and regularly called and noticed regular or special meeting by majority vote of the
entire membership, provided that notice of such meeting, whether regular or special, shall contain a fair state­
ment of the proposed amendment, repeal or change. So long as any mortgage of the association is insured by the
Federal Housing Commissioner, no change in these bylaws shall take effect until it has his approval, in writing.
Lease Agreement of All-the-way Cooperative
This lease is made ............... day of ............... , 19
, between the ............... Housing Association, a nonprofit
cooperative duly incorporated and existing under the laws of the State of ............... , hereinafter called the
“ association”, and ............... , residing a t ................. (a single member or joint members of the association) herein­
after called the “member” or “lessee.”
Whereas, the association has been incorporated for the purpose of owning and operating dwelling properties
in the County of . ............. and State o f .................. , known as Nos..................... Street, ............... , hereinafter called
the “ properties,” upon a cooperative basis, with the intent that the members of the association shall have the
right to lease and occupy dwellings therein under the terms and conditions hereinafter set forth as long as they,
respectively, are members; and
Whereas, the member is the owner and holder of a membership certificate of the association, and has paid
to the association the sum of $ ..........., and is entitled by reason thereof to a lease of the dwelling hereinafter
described, subject to the bylaws of the association;
Now, therefore, in consideration of the premises and the covenants, conditions, and agreements herein con­
tained, the association hereby lets to the member and the member hereby hires from the association the dwelling
and appurtenances now known as ............... , hereinafter called the “ dwelling”, consisting of . . . rooms and . . .
baths to be occupied strictly as a private dwelling by the member and the family of the member, except as here­
inafter provided, for 99 years, beginning on t h e ............... day o f .................. , 19. . ..
The parties hereto mutually covenant and agree as follows:
1. The member agrees to pay, over a period o f ................ years, the sum of $ ........... as the portion of the
blanket mortgage of the association attributable to the dwelling, said payment to be made in monthly install­
ments as a part of the monthly payments provided for in the succeeding paragraph, and in accordance with the
schedule hereto attached and made a part hereof.
2. The member shall make monthly rental payments to cover the association’s payments of interest on that
portion of the blanket mortgage of the association attributable to the dwelling, F H A mortgage insurance, replace­
ment and general reserves, hazard and casualty insurance, and taxes attributable to the dwelling. The member
shall, in addition, pay a monthly service charge to cover his share of the operating and maintenance expenses
of the association. The amount of these payments, as determined by the board of directors of the association, in
accordance with the bylaws of the association and the terms of the mortgage of the association, may vary from
year to year, and the association shall give notice of these changes to the lessee. These payments, together with
payments required by section 1, hereinafter called the “ monthly payment,” shall be due and payable in advance
on the first day of each month.
3. In consideration for, and on condition of, the member’s prompt making of said monthly payments and
promptly and strictly performing the conditions, covenants, and agreements contained in this lease and in the
rules and regulations of the association, the association covenants that the member may, at all times during the
said term, peaceably have and enjoy the dwelling.
4. The association shall maintain and manage the properties on a high level and shall make available
electricity, gas, and sewers without discrimination among member-lessees, and shall supply water. The association
reserves the right to suspend the above supplies and services at such time as may be necessary by reason of
shortage of labor or accidents, or because of alterations or repairs deemed desirable by the association. The




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association shall not be held responsible for interrupted supplies or services caused by any reason whatsoever,
nor shall there be any diminution or abatement of monthly payments on account of such interruption, but the
association shall not discriminate among member-lessees in such matters.
5. The association shall keep in good repair the grounds, community structures, structural elements and
exteriors of dwellings, and utility improvements, including all electric and heating fixtures and equipment appur­
tenant to the dwelling, it being agreed that the member shall give the association prompt notice of any accident
or defect requiring such repairs to be made, and shall at all reasonable times allow the agents of the association
to enter and inspect the dwelling in order to ascertain when such repairs are needed and the nature and extent
thereof and to make such repairs and, upon reasonable notice, to remove such portions of the walls, floors, and
ceilings of the dwelling as may be required for the purpose of making such repairs, which portions, so removed,
the association shall, as soon as such repairs can reasonably be finished, replace in as good condition as before such
removal, all such repairs to be at the expense of the association unless the same shall have been rendered neces­
sary by the negligence, carelessness, or other act of the member, or of any member of the family, guests, or
employees of the member, in which case the expense is to be borne by the member.
6. The member shall, during the term of this lease, keep the interior of the dwelling and plumbing and
other appurtenances belonging thereto, except as above provided, in good order and repair, and make all decora­
tions therein, and the association shall not be held answerable for any repairs or decorations in and to the dwell­
ing, except as hereinbefore specifically provided, and in case of refusal or neglect of the member during 30 days
after notice in writing from the association to make such repairs, or to restore the dwelling to good condition,
such repairs or restoration may be made by the association, and any expense incurred thereby by the association
shall be immediately due and payable from the member to the association, and shall be added to the monthly
payment for the dwelling. The member shall not without the written consent of the association make any altera­
tions, additions, or improvements. Any alterations, additions or improvements which may be made by the member
in, to, or upon the premises shall be the property of the association and shall remain upon and be surrendered
with the premises at the termination of this lease without disturbance, molestation, or injury; provided that
movable furniture and fixtures put in at the expense of the member, and which normally may be removed with­
out damage to the real estate, may be removed by said member but that any injury caused by moving said
furniture and fixtures in or out shall be repaired by the member.
7. The member shall promptly comply with and execute all laws, ordinances, rules, orders, and regulations
of the Federal, State, and local governments, and of the board of fire underwriters, applicable to the dwelling, or
concerning any matter in, upon, or connected with the dwelling, except such as require structural changes or
repairs. If the member shall fail to comply promptly with and execute any of the foregoing requirements the
association may, upon 5 days’ written notice to the member, enter in and upon the dwelling and comply with and
execute the same for the account of the member and any expenses thus incurred by the association shall be
immediately due and payable from the member to the association, and shall be added to the monthly payment for
the dwelling. The member shall not do anything or suffer anything to be done in or about the dwelling which
will increase the rate of insurance upon the property, or which may be deemed hazardous under the law or
by the usage of insurance companies.
8. The member shall hold the association free from liability for any damage to person or personal property
in the dwelling caused by gas, steam, electricity, rain, snow, water from the tanks, pipes, plumbing work, sewer­
age, falling plaster, or any other cause whatsoever; the member shall hold his personal property in the dwelling
or anywhere else in the properties at his own risk, and shall hold the association free from any liability for any
damage thereto from any cause arising.
9. In case of damage by fire or the elements, the member shall give immediate notice thereof in writing to the
association. The association shall repair same with all reasonable dispatch at its own cost and expense, except as
provided in section 5. If the damage shall be so extensive as to render the dwelling wholly untenantable, the
monthly payments shall be suspended from the time the association is notified of such damage until the dwelling
is restored to tenantable condition, and thereafter shall begin to run and to be payable as before.
No claim for compensation shall be made by the member by reason of inconvenience, damage, or annoyance
arising from the necessity of repairing any portion of the dwelling, however the necessity may occur.
10. If the dwelling or plot of land on which it stands, or any part thereof, be condemned or taken for public
use or quasi-public use, the association shall be entitled to and shall receive any award that may be made to, or
for the account of the member for the value of the unexpired portion of the term of this lease. In such case the
parties hereto shall negotiate for a modification of this lease for the balance of the term in order to equitably
readjust the terms hereof in view of conditions as changed by such condemnation or taking. If they cannot agree
then, upon demand in writing of either party, naming an arbitrator, the other party shall name an arbitrator and
if the two arbitrators cannot agree and cannot agree upon a third arbitrator, a third arbitrator shall be named
by the then presiding judge of the ............... County Court. The arbitrators shall proceed in the usual manner and
their decision, by majority vote, shall be final.




DOCUMENTS AND FORMS USED

97

11. The member shall, at the option of the association, purchase from the association, or from any person or
corporation designated by the association, such electric current, gas, water, and sewage disposal as may be required
by the member for use in the dwelling upon condition that the rates charged therefor by the person or corporation
furnishing said utilities shall not, at any time, exceed the rate fixed for the district by the appropriate rate­
making authority. The member agrees to pay for such utilities upon presentation of a bill for such utilities,
and upon the failure of the member to pay for such utilities, the amount so due shall be added to and become
a part of the monthly payment next becoming due.
12. The association reserves the right to make such rules and regulations as in its judgment from time to
time may be needed for the safety, care and cleanliness of the properties, and for the preservation of good order
and comfort therein, and the member agrees faithfully and punctually to observe and comply with such regula­
tions and further agrees that all persons living in or visiting the dwelling will also punctually observe and comply
therewith.
13. This lease is and at all times shall be subject and subordinate to the lien of any mortgage, deed of trust,
encumbrance or encumbrances now affecting the project of which the dwelling herein described is a part, or
which may at any time hereafter be placed thereon, or on any part thereof, and subject and subordinate to
any modification of any such mortgage or deed of trust and to any substitute mortgage or deed of trust and
further the member agrees to execute, at the association’s expense, any instrument which the association or any
lender may deem necessary or desirable to effect the subordination of this lease to any such encumbrance, and the
member hereby appoints the association the member’s attorney in fact, irrevocable, during the term hereof, to exe­
cute any such instrument on behalf of the member.

14. For default by the member in the payment of any sum payable hereunder, the association shall have the
same legal remedies as for default in the payment of rent. The various rights, powers, remedies, options, and
elections to the association reserved, expressed, or contained in this lease are cumulative and no one of them shall
be deemed exclusive of the others, or of such rights, powers, remedies, options, or elections as are now or may
hereafter be conferred upon the association by law. For any breach or threatened breach of this lease, the
association shall be entitled to restrain the member by injunction.
15. No voluntary surrender of this lease or the term hereby demised, shall be valid or binding upon either
party, unless such surrender shall be in writing duly signed by both the parties hereto.
16. All notices may be delivered to either party personally or by registered mail, addressed respectively to
the association at its office or to the member at the dwelling.
17. The failure of the association in any one or more instances to insist upon the strict performances of any
of the covenants of this lease, or to exercise any option herein conferred, shall not be construed as a waiver or
relinquishment of any such covenants, conditions, or option, or of any breach thereof, but the same shall continue
and remain unaffected by any such failure.
18. The member shall not, without first obtaining the written consent of the association in each and every
ease, under penalty of forfeiture of this lease and expulsion from membership:
(a) Either assign, mortgage, or otherwise encumber this lease, in whole or in part, or any interest therein;
( b) Or sublet the dwelling or any part thereof;
(c) Or occupy or permit the dwelling or any part thereof to be occupied except for dwelling purposes;
( d ) Or permit anyone other than the member or members of his family regularly to occupy the dwelling or
any part thereof.
19. The association hereby consents to the member’s subletting the dwelling upon the following conditions
solely:
A . Members shall make an application in writing for leave to sublet.
B. Proposed sublessee, the rate and terms of sublease must be acceptable to and approved by the association.
The member, while subletting, shall continue to be responsible to the association in all respects the same as if he
had not sublet.
C. Application for leave to sublet under subdivision B of this paragraph shall be made on a form to be
provided by the association and shall contain the name, address, and occupation of the proposed subtenant. It shall
also contain a statement that the member has not received nor been promised any consideration or thing of value,
directly or indirectly, from the proposed subtenant or any other person for the making of the proposed sublease
or as subrental therefor except what is mentioned in said application. Such application shall also contain such
further information pertinent thereto as the association may from time to time require.
D. Any sublease made hereunder shall be in a form to be provided by the association and shall contain a
suitable provision that such sublease shall terminate at any time the association shall determine that because of
conduct on the part of such subtenant or of persons living in or visiting the dwelling the tenancy of such sub­
tenant is undesirable, and upon 5 days’ written notice of such determination.




98

APPENDIXES

E.
It is understood by the member that it is one of the association principles and purposes which the
association was incorporated to accomplish that no member shall derive any profit directly or indirectly from the
making’ of a sublease and the member agrees that he will not at any time take any profit. A breach of this cove­
nant shall entitle the association to terminate this lease as provided in paragraph 20 hereof.
20. The granting of this lease and the continuance of the term hereof are conditioned that at the association’s
option, upon the happening of any of the events mentioned in subdivision A to F, both inclusive, of this para­
graph, or in subdivisions (a) to (d) of paragraph 18, or in case of the violation of any term or condition of this
lease agreement, the association may give the member at least 30 days’ written notice of the association’s election
to end the term of this lease, and upon the date specified in such notice the term of this lease shall terminate,
and all right of occupancy hereunder on the part of the member or any subtenant shall cease, with the same force
and effect as though that were the date originally set in this lease for the termination thereof, and the member
shall thereupon forthwith quit and surrender the dwelling to the association, unless before the expiration of
such period the member shall have eliminated all defaults and brought himself fully up to date according to the
terms, conditions, and agreements hereof. In the event of such termination the association shall have the right to
re-enter the dwelling and dispossess and remove therefrom the member or other occupant or occupants thereof
and their effects. The member shall, however, remain liable to the association for past obligations and any addi­
tional expense incurred by the association under or as a result of any of the matters or situations described or
provided for in this paragraph.
Among the conditions and events herein referred to are the following:
A. In case at any time during the term of this lease the member shall cease to hold membership in the asso­
ciation, to which membership this lease is appurtenant;
B. In case the member becomes or is adjudicated insolvent or a bankrupt, or makes a general assignment for
the benefit of creditors, or takes the benefit of any insolvency or bankruptcy act, or in case a receiver, trustee, or
assignee is appointed for the member’s property, or in case an execution or attachment issues against the mem­
ber’s property whereby the dwelling or any of the member’s rights under this lease shall be levied upon, adver­
tised for sale, or sold by operation of law or otherwise;
C. In case of any subletting hereunder, without the consent hereinbefore required; or in case of any mis­
representation in any application for leave to sublet;
D. In case of the expulsion of the member as provided for in section 7 of Article III of the bylaw of the
association;
E. In case the member shall default, for a period of 30 days, in the monthly payment or any other proper
charge against him;
F. In case the member, either before or after the commencement of the term hereof shall be in default in
the performance of any other covenant, condition, or agreement hereof, for 30 days after written notice of such
default shall have been given to the member by the association.
21. Should this lease be terminated, the member shall deliver this lease and a duly executed and acknowl­
edged surrender thereof to the association, and deposit therewith, and surrender to the association, the member’s
membership certificate appurtenant to this lease, receiving a receipt therefor.
Should the member fail to make the deposit provided for in the above paragraph, then the association shall
have the option at any time upon 10 days’ written notice to the member to cancel said membership certificate on
its records and the same shall thereafter be void and of no effect.
22. Whenever the member makes to the association a written offer to surrender the lease and the member­
ship certificate appurtenant thereto, the association shall proceed in accordance with the bylaws of the associa­
tion. When and only when repurchase or other transfer of the member’s equity is accomplished and completed,
as provided in the bylaws, the member shall be released from all liability on said lease.
23. If this lease is made to a joint membership, then the joint members shall be deemed liable hereunder
jointly and severally. When one of two joint members dies the rights and responsibilities under this lease rest in
the survivor. This lease agreement shall terminate upon the death of the individual lessee or the survivor of
joint lessees.
24. The member shall quit and surrender the dwelling at any termination of this lease in as good condition
as it was at the beginning thereof, and as it was at the beginning of occupancy, reasonable wear and damage by
the elements excepted. All loss to the association or damage to or depreciation of the dwelling resulting from nonapproved changes or neglect in maintenance of the dwelling shall be charged against the member’s equity at the
time of any termination of this lease. If the dwelling be not promptly surrendered at any termination of this
lease, all loss or damages which the association may suffer by reason thereof shall be charged against, and de­
ducted from, the member’s equity.
25. Each party hereby promises and agrees to execute and deliver any and all papers or documents of any
nature which may, from time to time, be required or necessary in order to fully effectuate any of the provisions
of this lease according to the spirit, intent and purpose hereof.




99

DOCUMENTS AND FORMS USED

In witness whereof, the parties hereto have set their respective hands and seals the day and year first above
written in duplicate.
In presence of:
................................................................................................................................................................................................................... [L.S.]
................................................................................................................................................................................................................. [L.S.]
...............

H ousing A ssociation

B y:

President
A ttest:

Secretary.
State

of

...............

................................. County o f ..................................
The

foregoing

instrument was

acknowledged

before me this ........................................................................................ day

o f ....................................................... 1 9 . . . . b y ................................................................................................................................................... .
Witness my hand and official seal.
My commission expires..........................................
Notary Public
State

of

................................. County o f . .
I,

a Notary Public in and for said County, in the State aforesaid, do hereby

certify that ........................................................................................................................................................................................................
who are personally known to me to be the same persons whose names are subscribed to the foregoing lease as hav­
ing executed the same respectively as President and Secretary of ........... Housing Association, a corpora­
tion, and who are known to me to be such officers, respectively, appeared before me this day in person and sev­
erally acknowledged: That the seal affixed to the foregoing instrument is the corporate seal of said corporation;
that the same was thereunto affixed by the authority of said corporation; that said instrument was by like
authority subscribed with its corporate name; that the said ...................................................................................... is the
President of said corporation, and the said ....................................................... is the Secretary thereof; that by the
authority of said corporation they respectively subscribed their names thereto as .......................... President and
Secretary, and that they signed, sealed and delivered the said instrument of writing as their free and voluntary
act and deed, and as the free and voluntary act and deed of said corporation, for the uses and purposes therein
set forth.
Given under my hand and official seal, t h i s ............... day of .
. . , A.D., 1 9 . . . . .
My commission expires ..............................., 19......... .
C o-ven tures
Articles of Incorporation of Co-venture Association
We, the undersigned, have this day voluntarily associated ourselves together for the purpose of forming a
nonprofit corporation under the laws of the State of .................
W e hereby certify—
1. That the name of said corporation shall be ...............

Housing Association.

2. That the purposes for which it is formed are—
(a) To take, purchase, exchange, hire, lease, or otherwise acquire, and to own and hold
and without the State of ............... and elsewhere, to occupy, control, maintain, manage, sell,
lease, sublease or otherwise alienate or dispose of, and to mortgage or otherwise encumber
handle and to deal in real estate and real property, either improved or unimproved, and any
therein.




unlimitedly within
convey, exchange,
and otherwise to
interests or rights

100

APPENDIXES

(6 ) T o build, erect, construct, purchase, lease, or otherw ise acquire, own, provide, establish, m aintain, hold
and operate homes, schools, child nurseries, fa ctories, laboratories, warehouses, agencies, depots, garages, buildings,,
structures, offices, w orks, stores, plants, com m issaries, delivery and tran sportation fa cilities, and all oth er things
o f w hatsoever kind and nature, w ithin and w ithout the State o f ............... , suitable, necessary, useful, convenient
or advisable in connection w ith an y o r all of th e objects herein before or h erein a fter set forth .
( c ) T o em ploy, engage, h ire and to appoin t corporations, firms and individuals in an y and all parts o f th e
w orld to a ct as agents f o r this corporation in such capacity and on such conditions as m ay be determ ined fro m
time to tim e b y th e board o f directors, w ith the approval o f the holders o f m em bership certificates. T he p roce­
dure necessary to obtain the approval o f the m em bership shall be provided in the bylaw s.
(d ) T o enter into, make, p erform and ca rry out con tracts o f every sort and kind w hich m ay be necessary or
convenient fo r the purposes o f this corporation w ith an y person, firm, association, corporation, private, pu b lic
or m unicipal, body politic, an y State, territory or m unicipality o f the U nited States o r an y fo re ig n government*
colony or body politic, o r w ith the U nited States o f A m erica, any political, adm inistrative or governm ental sub­
division therein, or any corporation form ed b y or supervised by the U nited States o f A m erica, or b y any foreig n
governm ent, colony or body politic.
( e ) T o borrow or raise m oneys f o r an y o f the purposes o f this corporation and fr o m tim e to tim e to issue
w arrants, bonds, debentures, notes, or other obligations, secured o r unsecured, o f this corporation fo r m oneys s o
borrow ed, or f o r any o f the other objects or purposes o f this corporation, or in connection w ith its business t o
secure such bonds, debentures, notes and other obligations b y m ortga ge or m ortgages, or deed or deeds o f tru st,
or pledge or other lien upon any o r all o f th e p rop erty righ ts, privileges or fran ch ises o f this corporation w here­
soever situated, acquired or to be acquired, and to pledge, sell, or otherw ise dispose o f any or all o f such bonds,
debentures, notes and other obligations o f this corporation f o r its corp orate purposes.
( / ) T o ca rry on any business w hatsoever w hich this corporation m ay deem p rop er or convenient in connec­
tion w ith an y o f the fo r e g o in g purposes or otherw ise, or w hich m ay be calculated directly or indirectly to
prom ote the interests o f this corporation, or to enhance th e value o f its p rop erty or business, to have and to
exercise all the pow ers con ferred by the law s o f the State o f ................upon corporations form ed under the la w s
pursuant to and under w hich this corporation is form ed, as such law s are n ow in effect or m ay a t any tim e
h ereafter be amended.
(g )
This corporation does n ot contem plate pecu niary gain or profit to the mem bers th ereof. Its pu rpose is
to p rovide homes and develop com m unity life and activities f o r the occupation o f, participation in and benefit o f
the holders o f its m em bership certificates.
3. T h a t the cou nty in w hich the p rin cip al office fo r the transaction o f the business o f said corporation is
located i n ............... County, State o f ....................
4. M em bership in this corp ora tion shall be evidenced by a
and qualifications o f the m em bership o f this corporation, the
o f the m em bership, the liabilities o f the mem bership fo r dues
th ereof, shall be as provided in the bylaw s o f this corporation,

certificate o f m em bership. T h e authorized num ber
p rop erty, v otin g and other righ ts and privilegesand assessments, and the m ethod o f collection
and as amended in such bylaw s from tim e to tim e.

Bylaws o f Co-venture Association
A

r t ic l e

I.— N a m e and Offices

S e c t io n

1 .— N a m e .

T he nam e o f the corporation (h erea fter called the co-op ) i s ................A ssociation.

S e c . 2 .— O ffices .

T he p rin cipal office shall be in the city o f ............... , State o f .................. The co-op m ay h a ve
an office in the city o f ............... , ................., and also offices at such other places as the board o f directors m a y
fr o m tim e to tim e determ ine or th e business o f the co-op m ay require.
A

r t ic l e

II.— P u r p o s e and P o lic y

1.— P u r p o s e . T he purpose o f the co-op is to p rovid e its stockholders (h erea fter called “ m em bers” )
w ith housing and related fa cilities and services on the cooperative plan f o r their m utual benefit.
S e c t io n

S e c . 2.— P o lic y . I t shall be the policy o f the co-op to prom ote the econom ic and social w elfa re o f its mem­
bers by—
(a ) U tilizin g their united fu n ds and efforts to provide housing and related fa cilities and services fo r use and
n ot fo r profit
( b ) A dh erin g to cooperative principles and methods
(c ) O peratin g as econom ically as feasible
(d ) P rom oting the participation o f a ll m em bers in the developm ent o f cooperative activities
( e ) M aintaining fa ir labor practices in its relations w ith its em ployees
( / ) G iving p referred consideration to the use and purchase o f m aterials, com m odities, and services produced
and distributed under union labor conditions




DOCUMENTS AND FORMS USED
(g)
(A)

P u r c h a s in g th r o u g h a n d fr o m
A s s o c ia tin g

i t s e l f w it h

1 0 1

c o o p e r a tiv e o r g a n i z a t io n s

o th e r c o o p e r a tiv e

s o c ie tie s

fo r

a d v a n c in g

th e

k n o w le d g e

and

p r a c t ic e

of

con­

s u m e r c o o p e r a tio n , p a r t i c u la r ly in t h e fie ld o f h o u s in g
(i)

D o i n g s u c h o th e r t h i n g s a s s h a ll s e r v e t h e s o c ia l, e c o n o m ic , a n d

c u lt u r a l

w e lfa r e

of

it s

m em b ers

t h e p u b lic .
A

r t ic l e

I I I .—

S e c t io n

Membership
Requirements for membership.

1 .—

A n y p e r s o n , o r a n y t w o a d u lt s in o n e h o u s e h o ld j o i n t l y , m a y b e­

c o m e a m e m b e r o f t h e c o -o p b y —
(a )

S h o w i n g p r o o f o f m e m b e r s h ip i n ................... A s s o c i a t io n

(b)

F ilin g

a

s ig n e d

m e m b e r s h ip

a p p lic a t io n

and

fu r n is h in g

such

in f o r m a t io n

as

th e

board

of

d ir e c to r s

m a y r e q u ir e

(c)

P a y in g

a

m e m b e r s h ip f e e

b e r e f u n d a b le o r t r a n s f e r a b le .

of

$50

w h ic h , a f t e r t h e a p p lic a n t h a s b e e n a c c e p te d a s a m e m b e r , s h a ll n o t

( T h i s p r o v is io n

s h a ll b e a p p lic a b le o n ly to p e r s o n s m a k i n g a p p lic a t i o n f o r m e m ­

b e r s h ip o n o r a f t e r ......................)
(d )

P a y in g f o r

o r sh o w in g p r o o f o f

o w n e r s h ip

of

205

sh a res

of

s to c k

in

th e

c o -o p

at

th e

par

v a lu e

of

$1 p er sh a re
( e) A g r e e i n g t o p u r c h a s e a lo t a n d d w e lli n g u n i t in t h e c o o p e r a t iv e h o u s in g p r o je c t
( /)

M a k i n g a n in it i a l p a y m e n t t o b e c r e d ite d t o a p p l ic a n t t o w a r d t h e p u r c h a s e p r i c e o f a lo t a n d d w e llin g

u n i t ( i n t h e c a s e o f a n o r ig i n a l a p p lic a n t , n o t a t r a n s f e r e e o f a n o t h e r a p p l ic a n t o r m e m b e r , t h e r e q u ir e d in it i a l
p a y m e n t s h a ll b e $ 8 0 0 )
( g) A g r e e in g

to

e x e c u te

a

m e m b e r s h ip

a g r e e m e n t a n d to m a k e a d d itio n a l p a y m e n t s , a s a n d w h e n n e e d e d ,

t o fin a n c e t h e c o s t o f t h e lo t a n d d w e lli n g u n i t se le c te d b y h im

(h)

A g r e e in g to

c o m p ly w it h

th e

r u le s

of

th e

c o -o p , a s s e t f o r t h in th e s e b y la w s o r a s d u ly e s t a b lis h e d b y

a c tio n o f t h e b o a r d o r o f t h e m e m b e r s , a n d a t a ll t i m e s t o p r o m o t e t h e a i m s a n d p u r p o s e s o f t h e c o -o p , t h e s u c c e s s
of

it s

o p e r a t io n s , a n d t h e w e l f a r e

Provided,

T h a t m e m b e r s h ip

and

s h a ll

h arm on y

of

t h e c o o p e r a t iv e h o u s in g c o m m u n ity .

n o t b e c o m e e ffe c t iv e u n t il t h e a p p l ic a n t h a s b e e n a c c e p te d a s

a m em ber

b y a c tio n o f t h e b o a r d o r o f t h e m e m b e r s .
Any

1 0 m e m b e r s m a y , b y w r it t e n p e t it io n , a p p e a l t o t h e m e m b e r s h ip o n b e h a lf o f a p e r s o n w h o s e a p p lic a tio n

h a s b e e n r e je c t e d b y t h e b o a r d . A n y 1 0 m e m b e r s m a y , b y w r it t e n p e t it io n , a ls o a p p e a l t o t h e m e m b e r s h ip a g a i n s t
t h e a c tio n o f t h e b o a r d in a p p r o v i n g a n a p p l ic a n t , p r o v id e d t h e a p p e a l is file d w it h i n 1 0 d a y s a f t e r n o tic e to t h e
m e m b e r s h ip o f t h e b o a r d s a c tio n b y p u b lic a tio n in t h e m o n t h l y
ty p e o f

a p p e a l s h a ll b e h e a r d

new s

le t t e r

or

o th e r

a p p r o p r ia te

m ean s.

E it h e r

a t th e n e x t m e m b e r s h ip m e e t i n g a f t e r t h e a p p e a l is file d a n d n o tic e t h e r e o f s h a ll

b e g i v e n t o t h e m e m b e r s p r i o r to th e m e e t i n g , b u t i f n o m e m b e r s h ip m e e t i n g is s c h e d u le d t o b e h e ld w it h in 3 0
d a y s o f s u c h a p p e a l, th e n t h e s e c r e t a r y s h a ll c a ll a s p e c ia l m e e t i n g to b e h e ld w it h i n s u c h p e r io d .
N o m e m b e r m a y h o ld m o r e t h a n

on e m e m b e r s h ip

in

th e

c o -o p ,

and

no

m e m b e r s h ip

s h a ll

be

tr a n s fe r a b le

e x c e p t a s p r o v id e d in t h e s e b y la w s .

Joint membership.

S e c . 2 .—

t h i s a r t ic le , a

s in g le

S u b je c t to

m e m b e r s h ip

m ay

be

a p p r o v a l b y t h e b o a r d o r t h e m e m b e r s h ip a s p r o v id e d in s e c tio n 1 o f
c o n v e r te d

to

a

jo in t

m e m b e r s h ip

upon

th e

w r it t e n

requ est

of

th e

m e m b e r a n d t h e a g r e e m e n t o f b o th p a r t ie s to t h e j o i n t m e m b e r s h ip t o c o m p ly w it h t h e b y la w s a n d o th e r r u le s
a d o p te d b y t h e c o -o p . T h e e ffe c t o f a j o i n t m e m b e r s h ip s h a ll b e t h a t —
(a )

T h e p r e s e n c e a t a m e e t i n g o f e ith e r j o i n t m e m b e r s h a ll b e a c c e p te d a s t h e p r e s e n c e o f o n e m e m b e r , a n d

s h a ll r e v o k e a p r o x y is s u e d b y e ith e r o r b o th
(6 )

B o th

(c )

N o t i c e to e it h e r s h a l l c o n s t i t u t e n o tic e to b o th

jo in tly

s h a ll h a v e

o n e v o te

w h ic h

m ay

b e c a s t b y e ith e r

(d)
(e)

E i t h e r , b u t n o t b o th , m a y b e e le c te d o r a p p o in te d a s a d ir e c t o r o r officer

( /)

U p o n t h e d e a th o f e ith e r , t h e m e m b e r s h ip

W i t h d r a w a l o r e x p u ls io n o f e ith e r s h a ll t e r m in a t e j o i n t m e m b e r s h ip
s h a ll b e in t h e n a m e o f t h e s u r v iv o r , b u t t h e e s t a t e o f t h e

d e c e a s e d s h a ll n o t b e r e le a s e d f r o m a n y d e b ts d u e th e c o -o p .
S e c . 3 .—

Termination of membership.

(a )

T h e t r a n s f e r o f a m e m b e r ’s s to c k o r it s r e d e m p tio n o r r e p u r c h a s e

b y t h e c o -o p s h a ll t e r m in a t e h is m e m b e r s h ip .

(b)

T h e board

of

d ir e c to r s m a y

t h a t su c h m e m b e r h a s v io la t e d

a t a n y t im e

p r e f e r c h a r g e s a g a i n s t a m e m b e r i f t h e b o a r d is o f t h e o p in io n

a n y o f th e p r o v is io n s o f

th e se

b y la w s ,

or

th a t he

has

d e t r im e n t a l t o t h e c o -o p . T h e m e m b e r a g a i n s t w h o m t h e c h a r g e s a r e t o b e p r e f e r r e d

been

g u ilty

of

conduct

s h a ll b e in fo r m e d t h e r e o f

in w r i t i n g a t le a s t 1 0 d a y s in a d v a n c e o f a r e g u la r o r s p e c ia l m e e t i n g o f t h e m e m b e r s , a n d s h a ll h a v e a n o p p o r ­
t u n it y to b e h e a r d in p e r s o n o r b y c o u n s e l a t th e m e e t i n g . A m e m b e r m a y b e e x p e lle d b y th e v o te o f t w o -t h i r d s
o f th e m e m b e r s v o t i n g a t s u c h m e e t i n g , p r o v id e d t h a t t h e a ffir m a tiv e v o te o f a m a j o r i t y o f t h e e n tir e m e m b e r s h ip
s h a ll b e r e q u ir e d f o r e x p u ls io n , a n d p r o v id e d f u r t h e r t h a t
t h e m e e t in g .




such

p rop osed

e x p u ls io n

w as

lis te d

in

th e

n o tic e

of

and

APPENDIXES

1 0 2

(c )

U p o n t h e e x p u ls io n o f a m e m b e r o r o n t h e d e a t h o f a m e m b e r o th e r t h a n a j o i n t m e m b e r , h is s to c k s h a ll

b e s u b je c t t o r e d e m p tio n a s p r o v id e d in A r t i c l e I V ;

and

h is

p u rch ase

agreem en t

and

m e m b e r s h ip

agreem ent

s h a ll b e t e r m in a t e d e x c e p t f o r t h e r i g h t t o t r a n s f e r r i g h t s t h e r e u n d e r in a c c o r d a n c e w it h t h e i r t e r m s . S u c h a g r e e ­
m e n t s s h a ll p r o v id e t e r m s a n d c o n d itio n s o f g e n e r a l a p p l ic a b ili t y

g o v e r n in g

a

m em b er’s

tra n sfe r

of

h is

r ig h ts

th e r e u n d e r a n d t h e c o n s id e r a tio n h e m a y r e c e iv e t h e r e f o r .
A

r t ic l e

Capital Stock

I V .—

S e c t io n

1 .—

Authorized capital stock.

The

a u th o r iz e d

c a p it a l s to c k o f t h e c o -o p s h a ll b e $ 1 0 0 ,0 0 0 , c o n s i s t in g

o f 1 0 0 ,0 0 0 s h a r e s o f a p a r v a lu e o f $ 1 p e r s h a r e .

Share certificates.

S e c . 2 .—

E a c h m e m b e r s h a ll b e e n title d t o a c e r tific a te o r c e r t if ic a t e s , c e r t i f y i n g t h e n u m ­

b e r o f s h a r e s o w n e d b y h i m , s ig n e d b y t h e p r e s id e n t o r v i c e p r e s i d e n t a n d t h e s e c r e t a r y o r t r e a s u r e r a n d s e a le d
w it h t h e c o r p o r a t e s e a l. A l l c e r tific a te s f o r s to c k w h ic h is r e s t r ic t e d o r lim it e d a s t o it s t r a n s f e r a b i l i t y o r v o t i n g
p o w e r s , o r w h ic h is p r e f e r r e d o r li m i t e d a s t o it s d iv id e n d s , o r a s t o i t s s h a r e o f t h e a s s e t s u p o n d is s o lu tio n s h a ll
h a v e p r i n t e d t h e r e o n a s u m m a r y o f r e s t r ic t io n s , li m i t a t i o n s , o r p r e f e r e n c e s a s r e q u ir e d b y la w .
Sec.

3 .—

Registered stockholders.

The

c o -o p

s h a ll b e e n title d t o t r e a t t h e h o ld e r o f r e c o r d o f a n y s h a r e o r

s h a r e s o f s to c k a s t h e h o ld e r in f a c t t h e r e o f a n d , a c c o r d i n g ly , s h a ll n o t b e b o u n d t o

r e c o g n iz e

any

e q u ita b le

or

o t h e r c la i m t o o r in t e r e s t in s u c h s h a r e o n th e p a r t o f a n y o t h e r p e r s o n , w h e t h e r o r n o t i t s h a ll h a v e e x p r e s s o r
o t h e r n o tic e t h e r e o f , e x c e p t a s o t h e r w i s e p r o v id e d b y la w .

Lost certificate.

S e c . 4 .—

In

case a

c e r tific a te is lo s t , d e s tr o y e d o r m u t il a t e d , a n e w c e r tific a te m a y b e is s u e d

t h e r e f o r u p o n s u c h u n i f o r m t e r m s a n d in d e m n i t y t o t h e c o -o p a s t h e b o a r d o f d ir e c t o r s s h a ll p r e s c r ib e .

Member’s shareholdings.

S e c . 5 .—

T h e m in i m u m

n u m b e r o f s h a r e s t o b e h e ld b y e a c h m e m b e r s h a ll b e 2 0 5 .

I f a n d w h e n a p p r o v e d b y a m a j o r i t y v o te o f a ll t h e m e m b e r s , e a c h m e m b e r m a y b e r e q u ir e d t o p u r c h a s e a d d it io n a l
s h a r e s , b u t n o m e m b e r m a y b e r e q u ir e d to p u r c h a s e m o r e t h a n

500

sh a res

except upon

th e

a f f ir m a t iv e v o t e

of

t w o - t h i r d s o f a l l t h e m e m b e r s , b u t in n o c a s e s h a ll a m e m b e r b e r e q u ir e d t o p u r c h a s e m o r e s h a r e s t h a n t h e m a x i ­
m um

num ber

s p e c ifie d

in t h e

m e m b e r s h ip

a g re e m e n t.

In

no case

s h a ll

any

m e m b e r b e r e q u ir e d

to

h o ld m o r e

s h a r e s t h a n a n y o t h e r m e m b e r is r e q u ir e d to h o ld .
S e c . 6 .—

Return on shares.

S e c . 7 .—

Transfer of shares, (a)

N o in t e r e s t o r d iv id e n d s s h a ll b e p a id on c a p it a l s to c k .
A l l t r a n s f e r s o f t h e s to c k o f t h e c o -o p s h a ll b e m a d e u p o n t h e b o o k s o f t h e

c o -o p b y t h e h o ld e r s t h e r e o f in p e r s o n o r b y t h e i r l e g a l r e p r e s e n t a t iv e s , a n d s h a ll b e s u b je c t to t h e c o n d itio n s s e t
f o r t h in t h e s e b y la w s . C e r t if ic a t e s o f s to c k o ffe r e d f o r t r a n s f e r

s h a ll

be

su rren dered

and

c a n c e le d

and

new

c e r tific a te s is s u e d in t h e n a m e o f t h e a s s ig n e e .
(6 )

T h e s h a r e s o f s to c k o f t h e c o -o p is s u e d to a n y p u r c h a s e r o r h o ld e r t h e r e o f , a n d t h e c e r tific a te o r c e r ­

t ific a te s r e p r e s e n t in g t h e s a m e , s h a ll b e t r a n s f e r a b le o n ly

as

an

e n tir e ty ,

u n le s s

th e

board

of

d ir e c to r s

s h a ll

o t h e r w i s e p e r m it .
(c )

N o s h a r e s s h a ll b e t r a n s f e r r e d u n t il a ll c la im s o f t h e c o -o p a g a i n s t t h e o w n e r o f s u c h s h a r e s h a v e b e e n

(d)

A s a c o n d itio n p r e c e d e n t to t h e t r a n s f e r o f a n y s to c k , o r o n a t r a n s f e r t h e r e o f v o lu n t a r il y o r b y o p e r a ­

p a id .

t i o n o f la w , t h e c o -o p s h a ll h a v e t h e o p tio n o f r e p u r c h a s in g t h e s a m e

a t t h e p a r v a lu e t h e r e o f w it h i n

30

days’

n o t ic e o f t h e t r a n s f e r o r o f t h e p r o p o s e d t r a n s f e r . T h e p u r c h a s e a g r e e m e n t o r t h e m e m b e r s h ip a g r e e m e n t s h a ll
p r o v id e t e r m s
(e )

and

c o n d itio n s

of

general

a p p l ic a b ili t y

I n t h e e v e n t t h e c o -o p d o e s n o t e x e r c is e it s

g o v e r n i n g t h e e x e r c is e o f t h i s o p tio n b y t h e c o -o p .

o p tio n , t h e m e m b e r m a y t r a n s f e r h is s h a r e s a n d h is r i g h t s

u n d e r t h e p u r c h a s e a g r e e m e n t o r t h e m e m b e r s h ip a g r e e m e n t t o a p e r s o n a c c e p t a b le t o t h e c o -o p . I f
t r a n s f e r e e is d is a p p r o v e d b y t h e b o a r d , t h e m e m b e r m a y

appeal

to

th e

m e m b e r s h ip ,

and

th e

a p rop osed

d e c is io n

m e m b e r s t h e r e o n s h a ll b e fin a l. S u c h a p p e a l s h a ll b e h e a r d a t t h e n e x t s p e c ia l o r r e g u la r m e m b e r s h ip
a n d i f n o s u c h m e e t i n g i s s c h e d u le d to b e h e ld w it h in 3 0 d a y s

of

such

s p e c ia l m e e t i n g t o b e h e ld w it h i n s u c h p e r io d . A n y

sh a res tra n sfe r re d

be s u b je c t t o r e d e m p t io n

of

( /)

as

p r o v id e d

in

s e c tio n

8

a p p e a l, th e n
w it h o u t t h e

th e

S e c re ta ry

approval o f

of

th e

m e e tin g ,

s h a ll

c a ll

t h e c o -o p

a

s h a ll

t h is a r tic le .

T h e t r a n s f e r o f s h a r e s u p o n th e d e a th o f a m e m b e r ,

o th e r

th a n

a

jo in t

m em b er,

s h a ll

be

p e r m it t e d

S u b je c t t o t h e p r o v is io n s o f t h e c e r tific a te s o f in c o r p o r a t io n , a n y

sh a res o f

a c c o r d i n g t o t h e t e r m s o f t h e p u r c h a s e a g r e e m e n t o r th e m e m b e r s h ip a g r e e m e n t .
S e c . 8 .—

Redemption of shares.

t h e c o -o p s h a ll b e s u b je c t , a t t h e o p tio n o f t h e c o -o p , t o
su ch

o p tio n

m ay

be

e x e r c is e d

o n ly

in

th e

fo llo w in g

r e d e m p tio n b y t h e

c o -o p

a t t h e p a r v a lu e

th e r e o f, b u t

cases:

(а)

I f t h e h o ld e r t h e r e o f s o r e q u e s ts

(б )

I f th e s to c k is t r a n s f e r r e d c o n t r a r y t o t h e p r o v is io n s

o f th e s e b y la w s , t h e p u r c h a s e

agreem en t

o r th e

m e m b e r s h ip a g r e e m e n t
(c )

If,

an d to

th e




e x te n t th a t,

a

m e m b e r ’ s h o ld in g s e x c e e d t h e a m o u n t s p e c ifie d in s e c tio n 5 o f t h i s a r t ic le

103

DOCUMENTS AND FORMS USED
(d)

I f t h e h o ld e r t h e r e o f , a f t e r 3 0 d a y s ’ w r it t e n n o tic e o f s u c h d e f a u lt , r e m a in s in

d e f a u lt

as to

any

pay­

m e n t s r e q u ir e d b y t h e p u r c h a s e a g r e e m e n t , t h e m e m b e r s h ip a g r e e m e n t , o r t h e s e b y la w s
( e) I f t h e m e m b e r s h ip

a g r e e m e n t o f th e h o ld e r o f t h e s h a r e s is t e r m in a t e d in a c c o r d a n c e w it h it s t e r m s o r

is a s s i g n e d b y h im
( /)

I f t h e h o ld e r t h e r e o f i s e x p e lle d f r o m m e m b e r s h ip

(g)

U p o n t h e d e a t h o f a m e m b e r , e t h e r t h a n a j o i n t m e m b e r , e x c e p t a s p r o v id e d in t h e m e m b e r s h ip a g r e e ­

(h)

I f t h e h o ld e r t h e r e o f s e lls o r t r a n s f e r s h is p r o p e r t y in t h e c o o p e r a tiv e h o u s in g c o m m u n it y .

m en t
S h a res
A

so

s h a ll

be

h e ld

as

trea su ry

s to c k a n d m a y b e so ld b y t h e c o -o p .

Membership and Option Agreements

V .—

r t ic l e

red eem ed

S e c t io n

1 .—

Membership agreement.

T h e rig h t o f a n y

u n i t in t h e c o o p e r a t iv e h o u s in g c o m m u n it y s h a ll b e

a p p l ic a n t o r m e m b e r to p u r c h a s e a lo t a n d d w e lli n g

d e p e n d e n t u p o n h is e x e c u t i n g t h e c o -o p ’ s s t a n d a r d f o r m

of

m e m b e r s h ip a g r e e m e n t , a s a d o p te d a n d a p p r o v e d b y a t w o -t h i r d s v o t e o f t h e m e m b e r s v o t in g , w h ic h s h a ll s e t o u t
t h e p u r c h a s e p r i c e o r t h e m e t h o d o f a s c e r t a in i n g i t , t h e t e r m s o f p a y m e n t , a n d a ll t h e r i g h t s , p r i v il e g e s , d u tie s ,
a n d li a b ili t ie s o f b o th t h e c o -o p a n d t h e m e m b e r w it h r e s p e c t t o m e m b e r s h ip in t h e c o -o p a n d o w n e r s h ip , u s e , a n d
o c c u p a n c y o f a d w e lli n g u n i t in t h e c o o p e r a t iv e h o u s in g c o m m u n it y .

Option agreement.

S e c . 2 .—

E a c h m e m b e r , a s a c o n d itio n p r e c e d e n t t o d e liv e r y o f a

a n d d w e lli n g u n i t , s h a ll e x e c u te th e c o -o p 's s t a n d a r d f o r m

d e e d to t h e s e le c te d lo t

o f o p tio n a g r e e m e n t , a s a d o p te d a n d

t w o -t h i r d s v o te o f t h e m e m b e r s v o t in g , g i v i n g t h e c o -o p t h e f ir s t o p tio n t o p u r c h a s e

approved b y a

or rep u rch ase

t h e lo t a n d

d w e lli n g u n it u p o n t h e h a p p e n in g o f a n y o f th e c o n d itio n s t h e r e in s p e c ifie d a n d a t a p r ic e d e te r m in e d a c c o r d i n g
to t h e m e t h o d t h e r e in p r o v id e d . T h e o p tio n a g r e e m e n t s h a ll b e r e c o r d e d w it h th e d e e d .
A

r t ic l e

Members’ Accounts and Patronage Rebates

V I .—

S e c t io n

1 .—

Payments on lot and dwelling unit.

The

in i t i a l p a y m e n t o f $ 8 0 0 r e c e iv e d f r o m

each m em b er

s h a ll b e c r e d ite d t o t h e m e m b e r ’s a p p r o p r i a t e a c c o u n t o n t h e c o -o p ’ s b o o k s a s a p a y m e n t t o w a r d t h e c o s t o r p u r ­
c h a s e p r i c e o f t h e lo t a n d d w e lli n g u n i t s e le c te d o r t o b e
r e q u ir e d o f

a n y m e m b e r u n t il

a

fir m

s e le c te d b y h im . N o f u r t h e r d o w n p a y m e n t s h a ll b e

c o m m it m e n t h a s b e e n e n te r e d in t o f o r c o n s tr u c tio n o f t h e d w e lli n g u n i t

s e le c te d b y h im . A n y a d d i t io n a l p a y m e n t s r e c e iv e d f r o m

a m e m b e r in a c c o r d a n c e w it h t h e t e r m s o f t h e m e m ­

b e r s h ip a g r e e m e n t s h a ll li k e w i s e b e c r e d ite d to t h e m e m b e r ’ s a c c o u n t . N o in t e r e s t s h a ll b e p a i d o n th o s e a c c o u n ts ..
S e c . 2 .—

Patronage rebates.

ex p e n se s, su ch a s th e

co sts o f

I n o r d e r to d e f r a y t h e c o s t

of

cu rren t

m a in t e n a n c e ,

a d m in is t r a t iv e ,

and

o th e r

s e r v ic e s r e n d e r e d b y th e c o -o p , e a c h m e m b e r s h a ll b e r e q u ir e d to m a k e p a y m e n t s

to t h e c o -o p , a t su c h t i m e s a n d in

su c h

a m o u n ts

a s m a y b e d e te r m in e d

v o t in g , w h ic h p a y m e n t s s h a ll b e c r e d ite d to th e m e m b e r ’ s

p a tr o n a g e

by

a

t w o -t h i r d s

v o te

of

th e

a c c o u n t . A t l e a s t o n c e d u r in g

m em b ers

each

fis c a l

y e a r o f t h e c o -o p t h e r e s h a ll b e c h a r g e d t o e a c h m e m b e r ’ s a c c o u n t h is p r o p e r s h a r e o f t h e c o s t o f s u c h a d m in is ­
t r a t i v e , m a in t e n a n c e , a n d

o th e r

exp en ses.

In

d e t e r m in in g t h e a m o u n t t h e r e o f , th e b o a r d m a y g r o u p t h e c h a r g e s

a n d t h e c o r r e s p o n d in g c o s ts a n d e x p e n s e s in v o lv e d t o t h e e x t e n t t h a t i t m a y
w it h o u t c r e a t i n g

s u b s t a n t ia l in e q u itie s .

The

excess

of

t r a t i o n , a n d o t h e r e x p e n s e s , s h a ll b e a v a ila b le f o r p a t r o n a g e
th em

a t le a s t

on ce

d u r in g

each

fis c a l y e a r

of

th e

deem

s u c h g r o u p i n g s to b e f e a s i b le

th e r e c e ip ts o v e r t h e c o s t o f c u r r e n t m a in t e n a n c e , a d m in is ­

c o -o p

re b a te s to th e m em b e rs

o n t h e b a s is

of

t h e ir

and

s h a ll b e r e f u n d e d

p a tr o n a g e ;

p r o v id e d ,

to

how ever,

t h a t b e f o r e m a k i n g a n y p a t r o n a g e r e b a t e s , t h e b o a r d o f d ir e c t o r s s h a ll h a v e a u t h o r i t y to r e t a in s u c h a m o u n t s
u p to 2 5 p e r c e n t o f t h e e x c e s s o f r e c e ip ts o v e r c o s ts a n d e x p e n s e s a s t h e y m a y th in k p r o p e r t o p r o v id e a r e s e r v e
f u n d o r f u n d s f o r w o r k i n g c a p it a l, t o c o v e r c o n tin g e n c ie s , o r f o r s u c h o th e r p u r p o s e s a s t h e n e e d s o f t h e c o -o p
m a y r e q u ir e . N o in t e r e s t s h a ll b e p a i d o n a n y s u c h r e s e r v e f u n d o r f u n d s o r o n t h e m e m b e r ’ s p a t r o n a g e a c c o u n t s .
O n t e r m in a t io n o f a m e m b e r s h ip f o r a n y r e a s o n , t h e r e s h a ll b e n o o b lig a t io n on t h e p a r t o f t h e c o -o p t o r e t u r n t o
t h e f o r m e r m e m b e r a n y p a r t o f s u c h r e s e r v e f u n d o r f u n d s , e x c e p t a s p r o v id e d in th e s e b y la w s o r th e m e m b e r s h ip
a g re e m e n t.
A

r t ic l e

V I I .—

S e c t io n

Meetings of Members

1 .—

Place of meeting.

M e e t in g s o f m e m b e r s s h a ll b e h e ld a t s u c h p la c e a s is d e s ig n a t e d in t h e n o tic e o f

t h e m e e t i n g o r in t h e c o n s e n t to t h e h o ld in g t h e r e o f e x e c u te d b y t h e m e m b e r s . A n y m e e t i n g o f m e m b e r s m a y b e
h e ld a t a p la c e o u t s i d e ................... i f t h e m e m b e r s e n title d t o c a s t a m a j o r i t y
e ith e r

(a )

in

num ber o f

v o te s

a t th e

m e e tin g

c o n s e n t in w r i t i n g e x e c u te d a n d file d w it h t h e r e c o r d s o f t h e m e e t i n g e ith e r b e f o r e o r a f t e r t h e h o ld in g

t h e r e o f t o t h e h o ld in g t h e r e o f o u ts id e

................... , o r

(b )

a p p e a r b y th e ir a d d re sses a s sh o w n on th e b ooks o f th e

c o -o p t o b e n o n r e s id e n t s o f ................... ; b u t in a ll o th e r c a s e s m e e t i n g s o f m e m b e r s s h a ll b e h e ld w it h in
S e c . 2 .—
N ovem ber o f

Annual meeting.
each

year

A n a n n u a l m e e tin g o f m e m b e rs

a t su ch

tim e

and

at

such

b e g in n in g

w it h

th e

year

1947,

s h a ll

........................
be

h e ld

in

p la c e a s s h a ll b e d e s ig n a t e d in t h e n o tic e o f t h e m e e t i n g , a t

w h ic h t h e m e m b e r s s h a ll e le c t d ir e c to r s a n d m a y t r a n s a c t s u c h o th e r b u s in e s s a s m a y p r o p e r ly b e b r o u g h t b e f o r e




104

APPENDIXES

t h e m e e t i n g . F a i l u r e to h o ld t h e a n n u a l m e e t i n g a t th e d e s ig n a te d t i m e s h a ll n o t w o r k a f o r f e i t u r e o r d is s o lu t io n
o f t h e c o -o p .
S e c . 3 . — Annual

statement.

A

f u l l a n d t r u e s t a t e m e n t o f t h e a f f a ir s o f t h e c o -o p

a n n u a l m e e t i n g a n d s h a ll b e file d w it h in 2 0

s h a ll b e s u b m it t e d

a t th e

d a y s t h e r e a f t e r a t t h e p r i n c ip a l office o f t h e c o -o p . S u c h s t a t e m e n t

s h a ll b e p r e p a r e d b y t h e s e c r e t a r y o r s u c h o th e r e x e c u tiv e officer a s m a y b e d e s ig n a t e d b y t h e b o a r d .
S e c . 4 .—

Special meetings.

A t a n y t i m e in t h e in t e r v a l b e tw e e n a n n u a l m e e t i n g s , s p e c ia l m e e t i n g s o f t h e m e m ­

b e r s m a y b e c a lle d b y t h e p r e s i d e n t , o r b y a m a j o r i t y o f

th e b o a r d .

O n th e

r e q u e s t in

w r itin g

d e liv e r e d

to

th e

p r e s i d e n t o r s e c r e t a r y o r a n y d ir e c t o r , o f 1 0 p e r c e n tu m o r m o r e o f m e m b e r s , i t s h a ll b e t h e d u t y o f t h e p r e s id e n t ,
s e c r e t a r y o r d ir e c to r t o c a ll f o r t h w i t h a m e e t i n g o f t h e m e m b e r s . S u c h r e q u e s t s h a ll s t a t e t h e p u r p o s e o r p u r p o s e s
o f th e p ro p o se d m e e tin g .

No

b u s in e s s

s h a ll b e t r a n s a c t e d a t a s p e c ia l m e e t i n g e x c e p t t h a t n a m e d in t h e n o tic e

o f su c h m e e tin g .
S e c . 5 . — Notice

of members’ meetings.

in t h e c a s e o f a s p e c ia l m e e t i n g o r a n

W r i t t e n n o tic e s t a t i n g t h e p la c e , d a y , a n d h o u r o f t h e m e e t i n g a n d ,

a n n u a l m e e t i n g a t w h ic h b u s in e s s r e q u i r in g s p e c ia l n o tic e i s t o b e t r a n s ­

a c t e d , t h e p u r p o s e o r p u r p o s e s f o r w h ic h t h e m e e t i n g i s c a lle d a n d t h e b u s in e s s p r o p o s e d t o b e t r a n s a c t e d t h e r e a t ,
s h a ll b e
a lly

d e liv e r e d

n o t le s s

o r b y m a il, to

th a n

10

days

each m em b er. I f

nor

m ore

t h a n 2 0 d a y s b e f o r e t h e d a t e o f t h e m e e t i n g , e it h e r p e r s o n ­

m a ile d , s u c h n o t ic e s h a ll b e d e e m e d t o b e d e liv e r e d w h e n d e p o s ite d in t h e

U n i t e d S t a t e s m a il , a d d r e s s e d t o t h e m e m b e r a t h is a d d r e s s a s i t a p p e a r s o n t h e r e c o r d s o f t h e c o -o p , w i t h p o s t a g e
th ereo n

p r e p a id .

The

fa ilu r e

of

any

m em ber

to

r e c e iv e n o tic e o f a n a n n u a l o r s p e c ia l m e e t i n g o f t h e m e m b e r s

s h a ll n o t in v a li d a t e a n y a c t io n w h ic h m a y b e t a k e n b y t h e m e m b e rs* a t a n y s u c h m e e t i n g .
SEC. 6 .—

Quorum.

T e n p e r c e n t o f th e t o t a l n u m b e r o f m e m b e r s , p r e s e n t in p e r s o n , s h a ll c o n s t it u t e a q u o r u m

f o r t h e t r a n s a c t io n o f b u s in e s s . I f le s s t h a n a q u o r u m i s
p e rso n m a y a d jo u r n th e m e e tin g fr o m
t i m e a n d p la c e o f

such

a d jo u r n e d

p resen t a t

a

m e e tin g ,

a

m a jo r ity

of

th o se

p r e s e n t in

t i m e t o t i m e , p r o v id e d t h a t t h e s e c r e t a r y s h a ll n o t i f y a l l m e m b e r s o f th e

m e e tin g . A t

any

s u c h a d jo u r n e d m e e t i n g a t w h ic h a q u o r u m is p r e s e n t a n y

b u s in e s s m a y b e t r a n s a c t e d w h ic h m i g h t h a v e b e e n t r a n s a c t e d a t t h e m e e t i n g a s o r i g i n a ll y n o tifie d .
S e c . 7 .—

Voting.

E ach

m e m b e r s h a ll b e e n t it le d t o o n ly o n e v o t e . A l l q u e s tio n s s h a ll b e d e c id e d b y a v o t e o f

a m a j o r i t y o f t h e m e m b e r s v o t i n g t h e r e o n e x c e p t a s o t h e r w is e p r o v id e d b y l a w , t h e c e r t if ic a t e o f in c o r p o r a t io n , o r
t h e s e b y la w s . E x c e p t a s o t h e r w i s e sp e c ifie d in t h e s e b y l a w s , v o t i n g

s h a ll b e b y

v o ic e , b u t t h e

c h a irm a n

or

any

m e m b e r p r e s e n t m a y r e q u i r e a s h o w o f h a n d s o r a s t a n d in g v o t e , w h ile a t h i r d o f t h e m e m b e r s p r e s e n t in p e r s o n
o r b y p r o x y m a y r e q u i r e a s e c r e t b a llo t . H o w e v e r , a n a c c r e d it e d

p r o x y -h o ld e r

s h a ll

not

be

d e n ie d

th e

rig h t

to

v o te su ch p r o x y .
S e c . 8 . — Record

date.

T h e b o a r d o f d ir e c to r s is a u th o r iz e d t o fix a d a t e n o t le s s t h a n 2 0 n o r m o r e t h a n 3 0

d a y s p r e c e d in g t h e d a t e o f a n y m e m b e r s ’ m e e t i n g a s a r e c o r d
n o tic e o f a n d t o v o t e a t s u c h m e e t i n g , a n d

d a te

fo r

d e t e r m in a t io n

of

m em b ers

e n t i t le d

to

o n ly m e m b e r s o f r e c o r d o n s u c h d a t e , w h e n fix e d a s h e r e in p r o v id e d ,

s h a ll b e e n t it le d to n o t ic e o f a n d to v o te a t s u c h m e e t i n g .
S e c . 9 .—

Proxies.

A m e m b e r m a y v o t e b y p r o x y e x e c u te d in w r i t i n g b y t h e m e m b e r . S u c h p r o x y s h a ll b e file d

w i t h t h e s e c r e t a r y b e f o r e o r a t t h e t i m e o f t h e m e e t i n g . N o p r o x y s h a ll b e v a lid u n le s s i t s h a ll d e s ig n a t e t h e p a r ­
t i c u l a r m e e t i n g a t w h ic h i t is t o b e v o te d , a n d n o p r o x y s h a ll b e v o te d a t a n y m e e t i n g o th e r t h a n t h e o n e so
d e s ig n a t e d

or an y

a d jo u r n m e n t th e r e o f. A

m e m b e r m a y g i v e h is p r o x y o n ly t o a n o t h e r m e m b e r o r t o a n a d u lt

r e la t iv e l i v i n g in t h e s a m e h o m e w i t h s u c h m e m b e r , a n d n o p e r s o n m a y h o ld m o r e t h a n o n e p r o x y a t a n y m e e t i n g .
T h e p r e s e n c e o f a m e m b e r a t a m e e t i n g s h a ll r e v o k e a p r o x y t h e r e t o f o r e e x e c u te d b y h im
b e e n t it le d

t o v o t e a t s u c h m e e t i n g in t h e

sam e m an n er and

w it h

th e sa m e

e ffe c t a s

a n d s u c h m e m b e r s h a ll
if

h e h a d n o t e x e c u te d

a p ro xy.
S e c . 1 0 .— Matters

submitted in writing.

T h e f o l l o w i n g m a t t e r s s h a ll b e s u b m it t e d in w r i t i n g to t h e m e m b e r s

in a d v a n c e o f a n y m e m b e r s ’ m e e t i n g w h e n e v e r t h e y a r e t o b e b r o u g h t b e f o r e a n y m e e t i n g f o r a c t i o n :
(а )

E le c t io n

(б )

A m e n d m e n t o f t h e c e r t if ic a t e o f in c o r p o r a t io n

o f d ir e c to r s

(c)

A m e n d m e n t o f t h e b y la w s

(d)

M a t t e r s w h ic h a r e t h e s u b je c t o f t h e c a ll o f s p e c ia l m e e t in g s

(e )

A n y m a t t e r u p o n w h ic h a v o t e o f a fix e d o r s p e c ifie d

p r e s s l y r e q u ir e d b y t h e s e b y la w s o r t h e c e r t if ic a t e o f
( /)

M a t t e r s w h e t h e r in t h e f o r m

p r o p o r tio n

or

p e rc e n ta g e

of

th e

m em b ers

is

ex­

in c o r p o r a tio n , o r b y la w

o f a q u e s tio n , m o t io n , o r r e s o lu tio n w h ic h

a r e p re se n te d to th e b o a rd b y

p e t it io n o f 2 5 m e m b e r s n o t la t e r t h a n 2 0 d a y s p r e c e d in g th e d a t e o f a n y m e m b e r s ’ m e e t i n g ; p r o v id e d t h a t f o r s u c h
s u b m is s io n e a c h s u c h m a t t e r s h a ll b e s t a t e d in n o t m o r e t h a n 2 0 0 w o r d s .

(g)
( h)
(i)

E x p u ls io n
A p p e a ls
Any

o f m em b ers an d rem ova l

fro m

a c tio n s

o th e r m a t t e r s




by

th e b o a r d

w h ic h t h e b o a r d

o f d ir e c t o r s a n d office rs
as

p r o v id e d f o r in t h e s e b y la w s

m ay

w is h to s u b m it in t h i s m a n n e r .

105

DOCUMENTS AND FORMS USED
Order of business.

S e c . 1 1 .—

T h e o r d e r o f b u s in e s s a t t h e

a n n u a l m e e tin g o f th e m em b e rs

and,

so f a r

as

a p p r o p r i a t e , a t a ll o th e r m e e t i n g s o f t h e m e m b e r s , s h a ll b e e s s e n t i a lly a s f o l l o w s :
(а )

D e t e r m in a t io n

(б )

R e a d in g o f th e n o tic e o f t h e m e e t i n g , o r d u e p u b lic a t io n o r m a i l i n g t h e r e o f , a n d o f w a iv e r s t h e r e o f

o f a quorum

(c )

R e a d in g o f u n a p p r o v e d m in u t e s o f p r e v io u s m e e t i n g s o f t h e m e m b e r s a n d t h e t a k i n g o f n e c e s s a r y a c tio n

th e r e o n .

(d)

P r e s e n t a t io n a n d c o n s id e r a tio n o f r e p o r t s o f o ffic e rs a n d c o m m itte e s

(e )

E le c t io n o f d ir e c to r s

( /)

E le c t io n o f c o m m itte e s

(g)
( h)

U n f in is h e d b u s in e s s

(i)
A

N ew

b u s in e s s

A d jo u r n m e n t .

r t ic l e

V I I I .—

S e c t io n
w h ic h

Board of Directors
General powers.

1 .—

s h a ll

e x e r c is e

a ll th e

T h e b u s in e s s a n d a f f a ir s o f t h e c o -o p s h a ll b e m a n a g e d b y a b o a r d o f d ir e c to r s

p ow ers

of

th e

c o -o p

e x c e p t s u c h a s a r e b y la w , t h e c e r t if ic a t e o f in c o r p o r a t io n , o r

th e s e b y la w s c o n f e r r e d u p o n o r r e s e r v e d to t h e m e m b e r s . A l l d ir e c to r s m u s t b e m e m b e r s o f t h e c o -o p .

Number of directors and terms of office.

S e c . 2 .—
p o r a tio n

and

T h e p e r s o n s n a m e d a s d ir e c to r s in t h e c e r tific a te o f in c o r ­

s u c h a d d itio n a l p e r s o n s , n o t e x c e e d in g f o u r , s e le c te d b y th e m s h a ll c o m p o s e t h e b o a r d u n t il t h e fir s t

a n n u a l m e e t i n g o r u n t il t h e i r s u c c e s s o r s h a v e b e e n e le c te d a n d q u a lifie d . A t th e f ir s t a n n u a l m e e t i n g t h e r e s h a ll
b e e le c te d 1 1 d ir e c t o r s , 5 t o s e r v e u n t il t h e n e x t a n n u a l m e e t i n g a n d 6 t o s e r v e u n t il t h e a n n u a l m e e t i n g a f t e r
t h e n e x t o n e . T h e r e a f t e r , a ll d ir e c to r s s h a ll b e e le c te d f o r

2 -y e a r

term s.

D ir e c t o r s

s h a ll

se rv e

u n t il

th e ir

su c­

c e s s o r s h a v e b e e n e le c te d a n d q u a lifie d , u n le s s r e m o v e d e a r l ie r b y th e m e m b e r s . N o p e r s o n m a y s e r v e a s d ir e c to r
f o r m o r e t h a n t h r e e c o n s e c u tiv e f u l l t e r m s .
S e c . 3 .—

Nominations.

N o t le s s t h a n 4 0 d a y s n o r m o r e t h a n 6 0 d a y s b e f o r e a m e e t i n g a t w h ic h d ir e c to r s a r e

t o b e e le c te d , t h e p r e s i d e n t s h a ll a p p o in t a n o m in a t in g c o m m itte e o f fiv e o r m o r e m e m b e r s , n o n e o f w h o m i s a
d ir e c to r . T h e c o m m it t e e s h a ll p r e p a r e a n d r e p o r t t o t h e
b e fo r e th e

m e m b e rs’ m e e tin g .

The

p r e s id e n t

s h a ll

o th e r offices o f t h e c o -o p im m e d i a t e ly . A n y 2 0
d a t e n o t le s s t h a n

20

p r e s id e n t

a

lis t

of

n o m in e e s ,

not

le s s

th a n

30

days

c a u s e t h e li s t o f n o m in e e s t o b e p o s te d in t h e p r i n c ip a l a n d

or m ore m em b ers

d a y s b e fo r e th e m e e tin g a n d

m ay,

by

w r it t e n

p e t it io n ,

n o m in a t e

a

c a n d i­

s u c h n o m in a tio n s s h a ll b e p o s te d b y t h e s e c r e t a r y t o g e t h e r

w it h t h e c o m m it t e e ’s n o m in a t io n s . T h e s e c r e t a r y s h a ll m a i l
n u m b e r o f d ir e c to r s t o b e e le c te d a n d t h e n a m e s o f t h e

w it h

th e

c a n d id a t e s ,

c o m m itte e a n d t h o s e m a d e b y p e t it io n , i f a n y . T h e c h a i r m a n

s h a ll

n o tic e
lis tin g

i n v it e

of

th e

m e e tin g

s e p a r a te ly

a d d it io n a l

th e

a

sta te m e n t

of

th e

n o m in a t io n s

of

th e

n o m in a tio n s

fro m

th e

flo o r

a t t h e m e e t i n g a n d n o m in a t io n s s h a ll n o t b e c lo se d u n t il a t l e a s t o n e m in u t e h a s p a s s e d d u r in g w h ic h n o a d d i­
t i o n a l n o m in a t io n s h a v e b e e n m a d e .
S e c . 4 .—

Election of directors.

D ir e c t o r s s h a ll b e e le c te d b y s e c r e t b a llo t . E a c h m e m b e r m a y v o te f o r a s m a n y

n o m in e e s a s t h e r e a r e d ir e c to r s t o b e e le c te d , a n d t h e n o m in e e s , e q u a l t o t h e n u m b e r o f d ir e c to r s t o b e e le c te d ,
w h o h a v e r e c e iv e d t h e h i g h e s t n u m b e r o f v o te s s h a ll b e d e c la r e d e le c te d . A t t h e f i r s t a n n u a l e le c tio n , t h e 6 s u c ­
c e s s fu l n o m in e e s h a v i n g t h e h i g h e s t n u m b e r o f v o te s s h a ll b e e le c te d f o r t h e 2 - y e a r t e r m .
S e c . 5 .—

Removal of directors by members.

w h ic h n o tic e h a s b e e n
t h ir d s

v o te

of

th e

d u ly g i v e n , a n y

m em b ers

d ir e c to r s h a ll b e in f o r m e d

presen t

in

in

w r itin g

A t any

r e g u la r o r s p e c ia l m e e t i n g o f

d ir e c to r m a y , b y v o te
p erso n

of

th e

or

by

charges

proxy,

m em b ers

d u ly

c a lle d , o f

o f a m a jo r it y o f a ll th e m em b e rs o r b y a
w h ic h e v e r

is

le s s ,

be

rem oved

fro m

office.

tw o Such

a g a i n s t h im a t l e a s t 1 0 d a y s p r i o r t o t h e m e e t i n g o f t h e

m e m b e r s a t w h ic h t h e c h a r g e s a r e t o b e c o n s id e r e d a n d s h a ll h a v e a n o p p o r t u n i t y a t t h e m e e t i n g to b e h e a r d in
p e r s o n o r b y c o u n s e l a n d t o p r e s e n t e v id e n c e in r e s p e c t o f t h e c h a r g e s ; a n d t h e p e r s o n o r p e r s o n s b r i n g i n g th e
charges

a g a in s t h im

s h a ll h a v e t h e

sam e

o p p o r t u n i t y . A n y v a c a n c y c r e a t e d b y s u c h r e m o v a l m a y b e fille d b y

v o te o f th e m e m b e r s a t s u c h m e e t i n g w it h o u t c o m p lia n c e w it h t h e f o r e g o i n g p r o v is io n s w it h r e s p e c t to n o m in a t io n s
o r th e f o llo w i n g p r o v is io n w it h r e s p e c t t o v a c a n c ie s .
S e c . 6 .—

Vacancies.

S u b je c t to t h e p r o v is io n s o f th e p r e c e d in g s e c tio n w it h r e s p e c t t o t h e f illin g o f v a c a n c ie s

c a u s e d b y th e r e m o v a l o f d ir e c to r s b y m e m b e r s , a v a c a n c y o c c u r r in g in t h e b o a r d s h a ll b e fille d b y t h e a ffir m a tiv e
v o t e o f a m a j o r i t y o f t h e r e m a i n i n g d ir e c to r s w h e t h e r o r n o t t h e y c o n s t i t u t e a q u o r u m , u n t il t h e n e x t a n n u a l
m e e t in g , w h e n t h e m e m b e r s s h a ll e le c t a d ir e c to r to s e r v e f o r t h e r e m a in d e r o f t h e u n e x p ir e d t e r m , i f a n y .
A

r t ic l e

I X .—

S e c t io n

Meetings of the Board

1 .—

Regular meetings.

A

r e g u la r

m e e tin g o f th e b o a r d

s h a ll b e h e ld w it h o u t n o tic e , i m m e d i a t e ly

a f t e r , a n d a t t h e s a m e p la c e a s t h e a n n u a l m e e t i n g o f t h e m e m b e r s . A
b e h e ld m o n t h ly

or

o fte n e r,

at

such tim e

and

p la c e ,

r e g u la r m e e t i n g o f t h e b o a r d s h a ll a ls o

e it h e r w it h i n o r w it h o u t

.............., a s t h e b o a r d m a y p r o ­

v id e b y r e s o lu tio n . S u c h r e g u la r m e e t i n g s m a y b e h e ld w it h o u t n o tic e o th e r t h a n su c h r e s o lu tio n f ix i n g t h e t i m e
a n d p la c e t h e r e o f.




106

APPENDIXES
S e c . 2 .—

Special meetings.

S p e c ia l m e e t i n g s

o f t h e b o a r d m a y b e c a lle d b y t h e p r e s i d e n t o r b y a n y 3 d ir e c ­

t o r s a n d i t s h a ll t h e r e u p o n b e t h e d u t y o f t h e s e c r e t a r y t o c a u s e n o tic e o f s u c h m e e t i n g to b e g i v e n to e a c h d ir e c ­
t o r a t l e a s t 2 d a y s b e f o r e th e m e e t i n g . T h e p r e s i d e n t o r t h e d ir e c to r s c a ll i n g t h e m e e t i n g s h a ll fix t h e t i m e a n d
p la c e , e it h e r w it h in

o r w it h o u t

w h ic h w a s n o t sp e c ifie d in

.............., f o r t h e h o ld in g o f t h e m e e t i n g . A n y

t h e n o t ic e o f t h e m e e t i n g

a c tio n t a k e n

at a

s p e c ia l m e e t i n g

s h a ll b e s u b je c t t o r a t if ic a t io n a t t h e n e x t r e g u la r m e e t i n g ,

u n le s s t h e d ir e c to r s n o t p r e s e n t a t t h e s p e c ia l m e e t i n g

s h a ll h a v e

s ig n e d

a

w a iv e r

e ith e r

b e fo r e

or

a fte r

th e

s p e c ia l m e e t i n g .
S e c . 3 .—
A

r t ic l e

X .—

Quorum.

A

m a j o r i t y o f th e d ir e c to r s s h a ll c o n s titu te a q u o r u m a t a n y m e e t i n g o f th e b o a r d .

Executive Committee

T h e b o a r d o f d ir e c to r s , b y r e s o lu tio n a d o p te d b y a m a j o r i t y o f t h e w h o le b o a r d , m a y p r o v id e f o r a n e x e c u ­
t i v e c o m m it t e e to c o n s is t o f t w o o r m o r e o f t h e d ir e c to r s . I f

p r o v is io n b e m a d e f o r

an

e x e c u tiv e

c o m m it t e e , t h e

m e m b e r s s h a ll b e e le c te d b y t h e b o a r d . T h e e x e c u t iv e c o m m itte e s h a ll h a v e a n d m a y e x e r c is e a ll t h e p o w e r s o f
t h e b o a r d in t h e m a n a g e m e n t o f t h e b u s in e s s a n d a f f a i r s
o r r e s o lu t io n s , o r b y s u b s e q u e n t r e s o lu tio n
or m em b ers

o f t h e e x e c u tiv e

a d o p te d

of

t h e c o -o p

to

th e

e x t e n t p r o v id e d

in

s a id

r e s o lu t io n

b y a m a j o r i t y o f t h e w h o le b o a r d . I n t h e a b s e n c e o f a m e m b e r

c o m m itte e , t h e m e m b e r s t h e r e o f p r e s e n t a t a n y m e e t i n g

(w h e th e r or n o t th e y con­

s t i t u t e a q u o r u m ) m a y a p p o in t a m e m b e r o r m e m b e r s o f t h e b o a r d t o a c t in t h e p la c e o r p la c e s

o f such

ab sen t

m e m b e r o r m e m b e r s . T h e e x e c u t iv e c o m m itte e s h a ll k e e p m in u t e s o f i t s p r o c e e d in g s a n d s h a ll r e p o r t t h e s a m e to
t h e b o a r d a t t h e m e e t i n g n e x t s u c c e e d in g , a n d a n y a c tio n b y t h e e x e c u t iv e c o m m itte e s h a ll b e s u b je c t t o
and

a lt e r a t i o n

by

t h e b o a r d , p r o v id e d

th a t no

rig h ts

r e v is io n

o f t h i r d p e r s o n s s h a ll b e a f fe c te d b y a n y su c h r e v is io n o r

a l t e r a t i o n . V a c a n c i e s in t h e e x e c u tiv e c o m m itte e s h a ll b e fille d b y t h e b o a r d .
A

r t ic l e

Officers

X I .—

S e c t io n

1 .—

Number.

T h e o fficers o f t h e c o -o p s h a ll b e a p r e s id e n t , o n e o r m o r e v ic e p r e s i d e n t s ,

se c re ta ry ,

a n d t r e a s u r e r . T h e offices o f s e c r e t a r y a n d o f t r e a s u r e r m a y b e h e ld b y t h e s a m e p e r s o n , b u t s u c h p e r s o n s h a ll
n o t e x e c u te , a c k n o w le d g e , o r v e r i f y

any

in s t r u m e n t in m o r e t h a n o n e c a p a c i t y , i f

b y s t a t u t e , t h e s e b y la w s , o r r e s o lu tio n o f th e b o a r d t o

be e x e c u te d ,

a c k n o w le d g e d ,

s u c h in s t r u m e n t is r e q u ir e d
or

v e r ifie d

by

tw o

or

m ore

office rs.
S e c . 2 .—

Election and term of office.

The

officers

s p e c ifie d a b o v e s h a ll b e e le c te d a n n u a ll y b y a n d f r o m

th e

b o a r d a t it s m e e t i n g h e ld im m e d i a t e ly a f t e r t h e a n n u a l m e e t i n g o f t h e m e m b e r s . I f t h e e le c tio n o f officers s h a ll
n o t b e h e ld a t s u c h m e e t i n g , s u c h e le c tio n s h a ll b e h e ld a s
s h a ll h o ld

office u n t il t h e

f ir s t m e e t i n g

of

th e

board

so o n t h e r e a f t e r a s c o n v e n ie n tly m a y b e . E a c h

officer

f o llo w i n g th e n e x t s u c c e e d in g a n n u a l m e e t i n g o f t h e m e m ­

b e r s o r u n t il h is s u c c e s s o r s h a ll h a v e b e e n e le c te d a n d s h a ll h a v e q u a lifie d . A v a c a n c y in a n y office s h a ll b e fille d
b y th e b o a r d f o r t h e u n e x p ir e d p o r t io n o f t h e t e r m .
S e c . 3 .—

Other officers and agents.

T h e board m a y

n e c e s s a r y , w h o s h a ll h o ld t h e i r offices f o r s u c h t e r m s

a p p o in t s u c h o t h e r o fficers a n d a g e n t s a s i t s h a ll d e e m

a n d s h a ll e x e r c is e s u c h p o w e r s a n d p e r f o r m s u c h d u tie s a s

s h a ll b e d e te r m in e d f r o m t im e t o t im e b y t h e b o a r d . T h e

board m a y , fro m

t i m e to

c o m m itte e o r a n y o ffic e r t o a p p o in t a n d r e m o v e s u b o r d in a te officers a n d a g e n t s
S e c . 4 .—
by

th e

Compensation.

board,

except

th a t

The
no

s a la r ie s

d ir e c to r

of

a ll

nor

any

t i m e , a u th o r iz e t h e

officers a n d a g e n t s o f t h e c o -o p s h a ll b e fix e d f r o m
c lo s e

e x e c u tiv e

a n d p r e s c r ib e t h e i r d u tie s .
t i m e to ti m e

r e la t iv e o f a d ir e c t o r s h a ll r e c e iv e c o m p e n s a tio n f o r s e r v ­

i n g t h e c o -o p in a n y c a p a c i t y , u n le s s t h e p a y m e n t a n d t h e a m o u n t o f

such

c o m p e n s a tio n

s h a ll

be

s p e c ific a lly

a u th o r iz e d b y a v o t e o f t h e m e m b e r s . T h e b o a r d m a y a u th o r iz e t h e e x e c u tiv e c o m m itte e o r a n y officer, on w h o m
t h e p o w e r o f a p p o in t i n g s u b o r d in a t e o fficers m a y h a v e b e e n c o n f e r r e d , to fix t h e c o m p e n s a tio n o f s u c h s u b o r d i­
n a t e o ffic e rs o r a g e n t s .
S e c . 5 .—

Bonds of officers and agents.

T h e t r e a s u r e r a n d a n y o th e r officer o r a g e n t o f t h e c o -o p c h a r g e d w it h

r e s p o n s ib il it y f o r t h e c u s t o d y o f a n y o f it s f u n d s o r p r o p e r t y

s h a ll g i v e

bond

a t th e

exp en se

of

th e

c o -o p

in

s u c h s u m a n d w it h s u c h s u r e t y a s t h e b o a r d s h a ll d e te r m in e . T h e b o a r d m a y a ls o r e q u ir e a n y o th e r officer, a g e n t ,
o r e m p lo y e e o f th e c o -o p t o g i v e b o n d a t t h e e x p e n s e o f t h e c o -o p in s u c h a m o u n t a n d w it h s u c h s u r e t y a s i t s h a ll
d e te r m in e .
S e c . 6 .—

Removal of officers and agents.

A n y officer

or

agent

of

th e

c o -o p

m ay

be

rem oved

by

th e

board

w h e n e v e r in it s ju d g m e n t t h e b e s t in t e r e s t s o f t h e c o -o p w ill b e s e r v e d t h e r e b y . I n a d d i t io n , a n y m e m b e r o f t h e
c o -o p m a y b r i n g c h a r g e s a g a i n s t a n officer a n d b y f ilin g w it h t h e s e c r e t a r y s u c h c h a r g e s in w r i t i n g t o g e t h e r w it h
a p e t it io n s ig n e d b y 1 0 p e r c e n t o f t h e m e m b e r s , m a y r e q u e s t t h e r e m o v a l o f s u c h officer. T h e officer a g a i n s t w h o m
su c h c h a r g e s h a v e b e e n b r o u g h t s h a ll b e in fo r m e d

in

w r i t i n g o f t h e c h a r g e s a t le a s t 1 0 d a y s p r i o r to t h e b o a r d

m e e t i n g a t w h ic h t h e c h a r g e s a r e t o b e c o n s id e r e d a n d s h a ll h a v e a n o p p o r t u n i t y a t t h e m e e t i n g to b e h e a r d in
p e r s o n o r b y c o u n s e l a n d t o p r e s e n t e v id e n c e in r e s p e c t o f t h e c h a r g e s ; a n d t h e p e r s o n o r p e r s o n s b r i n g i n g t h e
charges

a g a i n s t h im

s h a ll h a v e

th e

sam e

o p p o r t u n i t y . I n t h e e v e n t t h e b o a r d d o e s n o t r e m o v e s u c h office r, t h e

q u e s tio n o f h is r e m o v a l s h a ll b e c o n s id e r e d a n d v o t e d u p o n a t t h e n e x t m e e t i n g o f t h e m e m b e r s .




D O C U M EN TS

A N D

FORM S

USED

107

S ec . 7.— P re sid e n t. T he President shall—
(а ) Be the prin cipal executive officer o f the co-op and, unless otherw ise determ ined by the president or the
board, shall preside at all m eetings o f the members and o f the board.
(б ) In general, p erform all duties incident to the office o f president and such other duties as m ay be pre­
scribed by the board fr o m tim e to time.
S ec . 8.— V ic e p re sid e n t. In the absence o f the president, or in the event o f his inability o r refu sal to
act, th e vice president shall p erform the duties o f the president, and when so acting, shall have all the pow ers
o f and be su bject to all the restrictions upon the president. T he vice president shall also p erform such other
duties as fr o m tim e to tim e m ay be assigned to him b y the board.
S ec . 9.— S e c r e ta r y . T he secretary shall be responsible fo r —
(а ) K eeping the m inutes o f the m eetings o f the mem bers, o f the board, or o f the executive com m ittee, if
any, in one or m ore books provided f o r th a t purpose
(б ) Seeing th at all notices are duly given in accordan ce w ith these bylaw s o r as required by law
(c ) Custody o f the corporate records and o f the seal o f the co-op w hich shall be affixed to such instrum ents
as m ay requ ire it and thereupon be attested b y his sign atu re or th at o f the treasurer
(d ) K eepin g a register o f the names and post-office addresses o f all mem bers
(e ) S ign in g w ith the president, certificates o f m em bership, the issue o f which shall have been authorized by
the board o r th e m em bers
( / ) K eeping on file a t all tim es a com plete cop y o f the certificate o f in corporation and bylaw s o f the co-op
containing all amendments th ereto (w hich cop y shall alw ays be open to the inspection o f any m em ber) and, at
the expense o f the co-op, fo rw a rd in g a cop y o f the bylaw s and o f all amendments thereto to each m em ber
(р ) In general, p erform in g all duties incident to the office o f secretary and such other duties as fro m tim e
to tim e m ay be assigned to him b y the board.
S ec . 10.— T r ea su r er . T he treasurer shall—
(а ) H ave ch arge and custody o f and be responsible fo r all fu n ds and securities o f the co-op
(б ) Be responsible f o r the receipt o f and the issuance o f receipts fo r all m oneys due and payable to the
co-op and fo r the deposit o f all such m oneys in the name o f the co-op in such bank or banks as shall be selected in
accordance w ith the provisions o f these bylaw s
(с ) In general p erform all th e duties incident to the office o f treasu rer and such other duties as fro m tim e
to tim e m ay be assigned to him b y the boa rd ; and
(d ) Be responsible fo r keeping the financial records o f the co-op.
A rticle X II.— F in a n cia l T ra n sa ctio n s
S ection 1.— C o n tra cts. E xcept as otherw ise provided in these bylaw s, the board m ay authorize any officer
or officers, agent, or agents to enter into any con tract or execute and deliver an y instrum ent in the nam e and on
beh alf o f the co-op, and such au thority m ay be general o r confined to specific instances.
Sec . 2.— L o a n s. T he co-op m ay accept loans fro m its members or fro m nonm em bers when in the ju dgm en t o f
the board this is to th e beet interest o f the c o -o p ; provided, however, th at any loans designed to finance new types
o f business m ust first be authorized by vote o f the m em bership. Notes or other evidences o f indebtedness shall be
given by the co-op fo r such loans. Interest on loans shall be at a rate fixed by the board, not in excess o f 6 percent
per annum, and m ay be cum ulative.
S ec . 3.— S ig n in g o f ch eck s , etc. A ll checks, d ra fts, or other orders fo r paym ent o f money, and all notes, bonds,
o r other evidences o f indebtedness issued in th e nam e o f the co-op shall be signed b y such officer o r officers,
agent or agents, em ployee or em ployees o f the co-op and in such m anner as shall fro m tim e to tim e be determ ined
b y resolution o f the board.
S ec . 4.— D e p o s its . A ll fu n ds o f the co-op shall be deposited fro m tim e to tim e to the credit o f the co-op in
such bank or banks as the board m ay designate.
S ec . 5.— F isc a l y e a r . The fiscal y ear o f the co-op shall begin on the first day o f O ctober o f each year and
shall end on the th irtieth day o f Septem ber o f the next year.
A rticle X III.— M iscella n eou s
Section 1.— M e m b e r sh ip in o th e r orga n iza tion s. The co-op shall not becom e a m em ber o f or purchase stock
in any other organization w ithout an affirmative vote o f the mem bers at a duly held m eeting, the n otice o f which
shall sp ecify that action is to be taken upon such proposed mem bership or stock purchase, provided, however,
that the co-op m ay, upon the authorization o f the board, purchase stock in or becom e a m em ber o f any corporation
organized on a cooperative or n onprofit basis fo r the specific purpose o f fu rth erin g the consum er cooperative
movement.




108

A P P E N D IX E S

S ec . 2.— R u les and reg u la tio n s. The board shall have p ow er to m ake and adopt such rules and regulations,
not inconsistent w ith law , the certificate o f incorporation, or these bylaw s, as it m ay deem advisable fo r the m anage­
m ent o f the business and affairs o f the co-op.
S ec . 3.— S e a l . The corp ora te seal o f the co-op shall be in the fo rm o f a circle and shall have inscribed there­
on the nam e o f the co-op, the y ea r o f its organization, and the w ords, “ C orporate S e a l , .............”
S ec . 4.— W a iv e r o f n otice. N o notice o f the time, place, or purpose o f any m eeting o f m em bers o r directors,
w hether prescribed b y statute, b y the certificate o f in corporation, or b y these bylaw s, need be given to an y mem­
ber w ho attends in person o r b y p rox y , or to any director w ho attends in person, or to any m em ber or director w ho,
in w ritin g executed and filed w ith the records o f the m eeting either b efore o r a fte r the h oldin g th ereof, w aivers
such notice.
S ec . 5.— E x a m in in g c o m m ittee. A n exam ining com m ittee o f 3 m em bers, none o f whom m ay be directors, shall
be elected annually b y the m em bers. This com m ittee shall exam ine the books, records, and accounts o f the
co-op at least every 3 months, shall m ake pertinent recom m endations to the board and shall rep ort and m ake
recom m endations to the annual m eeting.
S ec . 6.— A n n u a l audit. T he board shall, a fte r the close o f each fiscal year, cause a fu ll and com plete audit
o f the books, accountsi, and financial condition o f the co-op to be made. Such audit shall be available fo r in­
spection b y the mem bers, and the results o f the audit shall be subm itted to the mem bers at the annual m eeting.
S ec . 7.— D istr ib u tio n o f a s se ts on dissolu tion . U pon dissolution o f the co-op, an y assets rem aining a fte r p ay­
m ent o f its debts and liabilities shall be used first, to liquidate the m em bers’ loan accou nts; next, f o r the p ay­
m ent o f an y cred it balances in the m em bers’ patron age accou nts; next, f o r the paym ent o f any cred it balances
in the m em bers’ accounts in respect o f paym ents on the lot and dw elling u n its ; and next, fo r th e p ro-ra ta redem p­
tion o f the capital stock a t n ot in excess o f the p a r value th ereof. A n y assets still rem aining shall be distributed
am on g the m em bers in p roportion to th eir shareholding.
S ec . 8.— N o n lia b ility f o r d e b ts o f th e co -o p . N o m em ber shall be liable or responsible fo r any debts o r lia­
bilities o f th e co-op, bu t the co-op shall have an absolute lien on the shares, loans, refu n ds due, or deposits o f a
m em ber f o r an y debt due the co-op b y him, and any sum credited to such m em ber m ay be applied tow ard the p a y ­
m ent o f such debt.
A rticle X IV . — A m e n d m e n ts
These bylaw s m ay be altered, amended, or repealed by the m em bers a t any reg u la r or special m eeting i f the
notice o f such m eeting shall have contained a cop y o f the proposed alteration, amendment, or repeal, but no pro­
vision requ irin g a specified num ber o r percen tage o f votes m ay be changed b y a lesser vote, n or m ay any
change w hich is n ot proposed o r indorsed b y the board o f directors be m ade b y less than the affirmative vote o f a
m a jority o f the mem bers.

Membership Agreement o f Co-venture Association
This agreem ent m ade b y and betw een ........... (h erein a fter referred to as the “ mem ber” ) and ...........
H ousing A ssociation, a corporation du ly organized and existin g under and b y virtue o f the law s o f the State o f
........... (h erein a fter referred to as the “ co-op ” )
W IT N E S S E T H :

W hereas, the m em ber is a stockholder in the co-op and owns, or has contracted to purchase, a hom e o r lot
in t h e ........... h ousing com m unity, th e prem ises bein g described as fo llo w s :
W hereas, the parties hereto wish to set ou t th eir respective righ ts, privileges, duties, and obligation s w ith
respect to m em bership in the co-op and ow nership and occu pancy o f the above prem ises,
N ow th erefore, it is m utually agreed as fo llo w s :
1. T he m em ber agrees to abide b y the bylaw s and the general rules and regulations adopted b y the co-op
f o r the good o f the h ousing com m unity and agrees to assure com pliance w ith such bylaw s, rules and regulations
by all oth er persons residin g on the above prem ises. The m em ber also agrees to keep the exterior o f said prem ises
in good order and rep a ir and to m aintain the grou nds in good condition. W ithou t the w ritten consent o f th e co-op,
the m em ber shall n ot m ake an y change in the design or structure o f the dw elling o r alterations in lan dscapin g on
the prem ises.
2. T he co-op shall provide access f o r the m em ber and his fa m ily to all general com m unity fa cilities on an
equal basis w ith all other mem bers o f the co-op, except that the co-op m ay b y general rules provide f o r the
lim itation o f m em bership privileges o f those m em bers w ho have violated the bylaw s or an y o f the rules and
regulations o f the co-op and persist in such violation a fte r w ritten notice.




D O C U M EN TS

A N D

FOR M S

109

USED

3. I f and when required b y an affirm ative vote o f a m a jority o f all the m em bers pursuant to the bylaw s o f
the co-op, the m em ber agrees to purchase additional shares o f stock in the c o -o p ; but in no case shall the mem ber
be required to hold m ore than 500 shares o f stock in the co-op. T he p rice a t w hich the co-op offers stock to
m em bers shall n ot exceed par.
4. T he co-op agrees w ith the m em ber th at the co-op m ay n ot m ake an y charges or assessm ents again st the
m em ber other than—
(а ) F o r the purchase o f additional shares o f stock in the co-op as herein prov id ed ;
(б ) F o r such services and m aterials as are rendered b y the co-op on a fee-fo r-se rv ice basis at the rates
fixed fo r the services o r m aterials supplied the m em ber at his request;
( c ) F o r adm inistrative, m aintenance and other expenses o f m aintaining and operatin g com m unity fa c ili­
ties pursuant to assessm ents again st all m em bers as provided in the bylaw s attached hereto and m ade a p a rt
h ereof (o r any amendments thereto m ore fa v ora b le to the m em ber), bu t not in excess o f $5 p er m on th ;
5. The m em ber shall have a p ro-ra ta interest in any reserve fu n d o r fu n d s set aside b y the board o f directors
o f the co-op fro m assessm ents f o r m aintenance, adm inistrative and other expenses as authorized b y the bylaw s.
B ut upon term ination o f the m em ber’s m em bership, the m em ber agrees that his righ ts in any such reserve fu n ds
shall be lim ited to a tra n sfer o f this mem bership agreem ent togeth er w ith a tra n sfer o f his stock in the co-op,
fo r a consideration w hich m ay include the value o f the m em ber’s pro-ra ta interest in an y such reserve fu n ds,
to a tra n sferee acceptable to the co-op. T he term “ acceptable to the co-op ” means acceptable in the first instance
to the board o f directors, w ith the righ t o f appeal to the mem bership in case a proposed tran sferee is rejected
b y the board. I t is expressly agreed th at this mem bership agreem ent m ay n ot be assigned by the mem ber w ithout
the consent o f th e co -o p ; and in the event the m em ber’s interest herein should be assigned or tra n sferred by op­
eration o f law or otherw ise w ithout such consent, the righ ts o f the assignee or tran sferee shall likew ise be
lim ited as herein provided.
6. This agreem ent shall bind the parties hereto and their respective heirs, executors, adm inistrators, suc­
cessors, and assigns.
In witness w h ereof, the parties have hereunto affixed th eir signatures and seals t h i s ........... day o f ..................
............... , 1 9 .........
W itn ess:
....................................
Member

.

[seal]

..................................................................................... [SEAL ]
Joint Member
H

A tte s t:

o u s in g

A

s s o c ia t io n

B y .................................................
President

Membership Application and Purchase Agreement o f Co-venture Association
[B ecause these securities are believed to be exem pt fro m registration , they have n ot been registered w ith the
Securities & E xchan ge C om m ission; but such exem ption, i f available, does n ot indicate th at the securities have been
either approved o r disapproved b y the com m ission o r that the com m ission has considered the accu ra cy or com ­
pleteness o f the statem ents in this com m unication.]
In consideration o f the m utual agreem ents h ereafter set out, the undersigned ........... , h erein after called the
applicant, and ........... C ooperative, h erein after called the co-op, do a gree as fo llo w s :
1. T he applicant desires to become a m em ber o f, and stockholder in, the co-op. A pp lica n t agrees that i f
he is accepted as a mem ber he w ill com ply w ith the rules o f the co-op, as th ey m ay be set fo rth in its bylaw s o r as
d u ly established b y action o f the board o f directors, or o f the mem bers, and w ill at all times prom ote th e aim s
and purposes o f the co-op, the success o f its operations, and the w elfa re and harm ony o f the cooperative housing
com m unity.
2. A pp lica n t agrees to p a y a m em bership fe e o f $50 and submits herew ith $50 in fu ll paym ent thereof.
H e fu rth er agrees th at once he has been accepted as a member, such mem bership fe e shall n ot be refunded or
tran sferred in the event o f term ination o f mem bership fo r any reason.
3. A pp lica n t agrees, i f he has n ot already done so, to a pply f o r m em bership in and to purchase im m edi­
a tely tw o shares o f capital stock in ........... H ousing C ooperative at the p a r value o f $5 per share.




110

A P P E N D IX E S

4. A pp lican t agrees to purchase 205 shares o f cap ital stock in the co-op at the p a r value o f $1 per share
an d submits herew ith $205 in fu ll paym ent th ereof.
5. A p p lica n t desires also to purchase a lot and dw elling unit in the housing com m unity developed and in itially
ow ned b y the c o -o p ; and i f accepted fo r mem bership, he agrees to purchase the same. He agrees to p a y the co-op
the sum o f $800, $300 to be p aid w ithin 5 days a fte r the m ailing o f notice o f acceptance fo r m em bership an d $500
to be paid w ithin 30 days th ereafter. Such sum or sums shall be credited to applicant tow ard paym ent f o r the lot
and dw elling unit to be selected b y applicant as provided in p a ragrap h 7 h ereof and ow ned and occupied b y him.
6. A pp lica n t agrees th at his undertakings herein shall be bin din g upon him fo r 60 days a fter he has sub­
m itted this application and the additional in form ation required fo r consideration o f his application. H e shall
th erea fter be released fr o m such undertakings unless the co-op has accepted his application f o r m em bership and
so notified him in w riting.
7. I f th e a p p lican t is accepted f o r m em bership, th e co-op agrees that, when the lan d has been subdivided and
the co-op has determ ined w h at ty p e o f dw elling is to be constructed on each plot, the applicant shall have the
rig h t to select his lo t and dw elling unit, in accordance w ith his p r io r ity ; and applicant agrees to m ake his selec­
tion at th at time.
8. It is understood and agreed betw een the ap p lica n t and co-op th a t p riorities in the selection o f a lot and
dw elling unit shall be assigned in the order o f filing o f the com plete application at the co-op office. A s between
applications filed on the same day, p riority shall be determ ined b y lot. In case o f a dispute as to p riority , the
decision o f the co-op shall be final.
9. A pp lica n t agrees, upon m aking his selection o f a lot and dw elling unit, to enter into the co-op ’s standard
approved fo r m o f “ M em bership A greem en t,” p rovid in g fo r the m aking o f fu rth er cash paym ents tow ard the
total cost o f the selected lo t and dw elling unit, the p la cin g or assum ption b y the m em ber o f a pu rchase m oney
m ortgage, and the righ ts, privileges, duties, and obligation s o f both the co-op and the m em ber w ith respect tr
m em bership in th e co-op and the ow nership, use, and occupancy o f the dw elling unit.
10. A p p lica n t fu rth e r agrees, as a condition preceden t to the delivery o f deed to the selected lo t and dw ell­
in g unit, to execute the co-op ’s standard approved fo r m o f “ Option A greem en t,” w hich shall be recorded w ith the
deed, g iv in g th e co-op the first option to purchase or repurchase the lo t and dw elling unit upon th e happening
o f any o f th e conditions th erein specified and a t a price determ ined accord in g to the m ethod therein provided.
11. It is fu rth e r agreed betw een th e applicant and the co-op th at if, p rior to the tim e the applicant enters
into the above-m entioned “ M em bership A greem ent,” the applicant should—
(а ) D efa u lt in any o f the paym ents herein called fo r
( б ) W ith d raw fr o m the co-op
( c ) In accordan ce w ith the bylaw s, be expelled fro m the co-op or have his stock redeemed fo r any reason
( d ) R efu se o r fa il to m ake a selection o f a lot and dw elling unit
( e ) D ecline to enter into th e “ M em bership A greem en t” or
( / ) Die, except in the case o f a jo in t m em ber
his righ ts to the stock o f the co-op and all other righ ts under this agreem ent shall be lim ited as provided in p ara­
g rap h 12 hereof. 1
2
12. P rio r to m aking selection o f a lo t and dw elling unit and en tering in to the “ M em bership A greem en t,” the
applicant or his legal represen tative m ay, i f he so elects, assign his stock and this agreem ent to a n assign ee a c­
ceptable to th e co-op, provided th e consideration th e re fo r does n ot exceed the total am ount paid b y ap p lica n t
under this agreem ent (in clu din g am ounts paid fo r capital stock bu t exclu din g m em bership fe e o f $ 50). A n as­
signee accepted b y the co-op shall be entitled to fu ll cred it f o r all sums paid b y the a p p lica n t under th is a g re e ­
ment, except f o r the m em bership fe e o f $50. I f the a pplican t o r his lega l representative w ishes to a ssign the
stock and agreem ent, he m ust offer the sam e f o r 60 days to persons on th e co-op w aitin g list and accept the
offer o f th at person h igh est on such list, and acceptable to the co-op, w ho agrees to assume a p p lican t’s obligations
and to p a y to applicant th e am ount paid b y applicant u n der this agreem ent, oth er than the $50 m em bership
fe e . I f n o person on th e list w h o is acceptable to the co-op accepts the offer w ithin such 60 days, applicant o r his
lega l representative m ay assign to any person acceptable to the co-op w h o agrees to assum e applicant’s ob lig a ­
tion s under this agreem ent. A s used in th is p a ra g ra p h , “ acceptable to the co-op” m eans acceptable in the first
instance to the board o f directors, w ith th e rig h t o f a p p ea l to the m em bership in case a proposed assignee is re ­
je cte d b y the board. A n assignee shall not, how ever, be entitled to applicant’s p riority in selection o f a lo t and
dw elling unit. U pon a tra n sfer o f applican t’s stock volu n ta rily or b y operation o f law , the co-op sh all have the
option o f repu rchasin g the same at the p a r value th ereof w ithin 30 days’ notice o f the tra n sfer.




D O C U M EN TS

A N D

FORM S

111

USED

13.
The applicant further agrees to complete and submit with this application the additional information
requested by the co-op.
Signature of Applicant

Signature of Joint Applicant

Address

Dated...........
Witness:

Accepted, this . . . .

day of

H

, 19

o u s in g

A

s s o c ia t io n

By

[seal]
Title

Attest :

Secretary

N ote : This application is not complete and cannot be considered unless accompanied by a remittance of $255,
to cover the membership fee of $50 and the cost of 205 shares of stock of . . . . Housing Association, and unless
applicant is a member of or has applied for membership in ........... Housing Cooperative as specified in Section 3
above. If this application is rejected, the $255 will be refunded to the applicant.
This Membership Application and Purchase Agreement is offered in connection with the distribution of not
to exceed 450 units of 205 shares each of stock of the co-op, at the par value of $1 per share. No underwriting
discounts or commissions are to be paid in connection with this distribution, the sole expenses being those for
printing, clerical help, and postage, which it is estimated will not exceed $1 per unit. The net proceeds of this issue
will be used for development of a cooperative housing project in ........... County, ..........., and to pay administra­
tive and promotional expenses.
The ........... Housing Association stock is part of a distribution of not to exceed 2,000 shares to be sold at
the par value of $5 per share. The offering at the present time is not to exceed 900 shares to be sold in units of two
shares at the par value of $5 per share. No underwriting discounts or commissions are to be paid in connection
with this distribution, the sole expenses being those for printing, clerical help, and postage, which it is estimated
will not exceed 50 cents per share. The net proceeds of the issue will be used to pay administrative expenses and
finance general educational work on cooperative housing, and also to advance initial and promotional development
expenses for particular housing projects until such time as such advances are reimbursed by the cooperative or
other organization formed to build and operate the particular housing project.

Realty Sale and Building Contract o f Co-venture Association
This contract, made by and between ........... (hereinafter referred to, jointly and severally, as “ Purchaser” )
and ........... Housing Association, a corporation duly organized and existing under and by virtue of the laws
of the State of ............... (hereinafter referred to as “ co-op” ),
W IT N E SSE TH .'

Whereas, Purchaser is a stockholder and member of the co-op and is desirous of purchasing and occupying
a lot and dwelling unit in t h e ...........housing community;
Now, therefore, in consideration of the mutual promises hereinafter stated and of good and valuable consid­
erations, it is mutually agreed as follows:
1. Purchaser agrees to buy and the co-op agrees to sell the following described premises:
2. The price which the purchaser shall pay for the above premises shall be . . . .
able as follows:




dollars ( $ ...........), pay­

112

A P P E N D IX E S

3. T itle is to be good o f record and in fa c t, subject, how ever, to covenants, conditions, and restrictions o f
record. Settlem ent shall be m ade w ithin 30 days a fte r th e date h ereof, o r as soon th erea fter as a rep ort on the
title ca n be secured i f p rom ptly ordered. D eposit w ith the title com pany searching the title o f purchase m oney,
deed o f con veyance fo r execution, ta x certificate, and such other papers as are required o f either p a rty b y the
term s o f this con tract shall be considered good and sufficient tender o f p erform an ce o f the term s h ereof. The
co-op agrees to execute the usual special w a rra n ty deed. T axes, w ater, rent, special assessm ents, annual benefit
charges, and sim ilar item s shall be apportioned and a dju sted to the date o f tra n sfer and assum ed th ereafter b y
the purchaser. E xam ination o f title, ta x certificate, con veyancing, n ota ry fees, and all record in g charges, in­
clu din g those f o r pu rchase m oney trusts, i f any, are to be at the cost o f purchaser. T itle to the prem ises is to
be conveyed in the nam e o f (s ) o f .............
4. A s a condition precedent to delivery o f the deed, purchaser shall execute the co-op ’s standard approved
fo r m o f “ Option A greem en t,” w hich shall be recorded w ith the deed g iv in g the co-op the first option to purchase
o r repurchase th e prem ises in the event o f the pu rch aser’s desire to sell.
5. T he co-op fu rth e r agrees w ith th e purchaser to a rran ge f o r the construction, on th e above-described
prem ises, o f house-type n u m b e r ........... as shown on plans d a t e d .............. on file in the office o f th e co-op, an d ac­
com pan yin g specifications, w ith th e follow in g options or alternates as shown on said plans and specifications:

su bject to such changes and options as m ay be m utually agreed upon b y the m em ber and the co-op, and su bject
fu rth e r to such changes in, o r substitutions o f, m aterials as conditions o f supply and a va ila b ility m ay, in the
ju d gm en t o f th e co-op, m ake desirable or necessary. The co-op shall provid e and arra n ge f o r the su pplyin g
o f all the m aterials and the perform a n ce o f all the w ork m entioned in th e said plans and specifications, fo r ob­
tain in g all n ecessary perm its fr o m prop er authorities an d com pliance w ith bu ildin g and other regulations o f
such authorities, and fo r keeping the building, a t all times du rin g the progress o f th e w ork a n d in th e course
o f erection, insured to the fu ll value th ereof fr o m loss or dam age by fire, lightning, storm , o r other casualty.
6. T he p rice to be paid by the purchaser fo r the above dw elling house shall be .......... dollars ( $ ........... ) ,
w hich p rice is su bject to such increases as m ay resu lt fr o m application o f escalator clauses as set fo r th in the
con tra ct betw een the co-op and builder and additional cost o f rock excavation, i f any is required, on the prem ises
and f o r th e fe e o r com m ission, i f any, charged f o r obtaining a construction loa n ; and su bject to decreases re­
su lting fr o m savings in the construction o f the grou p o f houses contracted fo r , o f w hich this is one, to b e a p p or­
tioned betw een th e co-op and the builder as provided in the construction con tract, w hich increases or decreases
shall be equitably apportioned b y the board o f directors am ong the m em bers pu rchasin g such grou p o f houses.
T h is p rice shall be payable as fo llo w s :

7.
P rio r to con veyance o f the land to the purchaser as provided in p a ragrap h 3 h ereof, this con tract shall
not be assignable b y th e purchaser w ithout the consent o f the co-op. P urchaser agrees th at i f he should desire
to assign th is con tract o r w ith draw fr o m the co-op his righ ts hereunder shall be lim ited as fo llo w s:
“ In such event, this con tract m ay be assigned togeth er w ith the pu rchaser’s M em bership A greem en t w ith
the co-op and his stock in the co-op, provided the consideration th erefor does n ot exceed th e amounts paid b y
the purchaser tow ard the purchase price o f the above prem ises plus the am ount paid by him fo r his stock in
the co-op, plus his share o f any accrued patronage rebates, and plus his p ro-rata in terest in any reserve fu n d
or fu n d s set up b y the co-op ou t o f assessments fo r adm inistrative and m aintenance expenses pursuant to the
bylaw s. P urch aser (o r his legal representative in th e case o f his death) shall first offer, fo r a period o f 60 days,
to assign this contract, his stock in the co-op, and said M em bership A greem ent, to persons on the co-op ’s w aitin g
list and accept the offer o f that person highest on such list, acceptable to the co-op w ho agrees to p a y pu rchaser
th e above-stated consideration and assum e pu rchaser’s obligations under this con tract and his said M em bership
A greem ent. I f n o such person accepts the offer w ithin said 60 days, then this con tract and said stock and
M em bership A greem en t m ay be assigned to any other person w ho is acceptable to the co-op and w ho agrees to
p a y the above-stated consideration and assum e said obligations. A s used herein, th e term “ acceptable to the
co-op ” m eans acceptable in the first instance to the board o f directors o f the co-op, w ith th e r ig h t o f appeal to the
m em bership o f the co-op in case a proposed assignee or tran sferee is rejected b y the board. It is fu rth e r agreed
th at should pu rchaser’s interest in this con tract be assign ed o r tra n sferred b y operation o f la w or otherw ise
(ex cep t in case o f p u rch aser’s death o r in com p eten ce), w ithout th e w ritten approval and consent o f the co-op,
the righ ts o f the assignee or tran sferee shall likew ise be lim ited as herein provided.”




DOCUMENTS AND FORMS USED

113

A f t e r c o n v e y a n c e o f t i t l e t o p u r c h a s e r , t h e a s s i g n m e n t o f t h i s c o n t r a c t b y p u r c h a s e r s h a ll b e g o v e r n e d b y t h e
t e r m s o f t h e O p t io n A g r e e m e n t t o b e e x e c u te d b y t h e p u r c h a s e r a s p r o v id e d in p a r a g r a p h 4 h e r e o f.
8.

T h is

c o n t r a c t s h a ll b in d t h e p a r t ie s

h e re to a n d

th e ir

r e s p e c t iv e

h e ir s ,

e x e c u to rs,

a d m in is tr a to r s ,

a ssig n s.
In

w it n e s s w h e r e o f , t h e p a r t ie s h a v e h e r e u n to a ffix e d t h e i r s ig n a t u r e s a n d s e a ls t h i s ...................................... d a y o f

................................................................

19

...........

W itn e s s e s :
.........................................................................................................

.........................................

. .

[seal]

Purchaser

........................................................................[ s e a l ]
Purchaser

A tte st:

.....................................................................

H

o u s in g

A

s s o c ia t io n

B y ..........................................
President

Option

Agreement

T h i s a g r e e m e n t , m a d e b y a n d b e tw e e n
and

..............

of

Co-venture

Association

H o u s i n g A s s o c i a t io n

( h e r e i n a f t e r r e f e r r e d t o a s t h e “ c o -o p ” )

..................................................................................................................................................................................................................................................................................

..............

( h e r e i n a f t e r r e f e r r e d t o , j o i n t l y a n d s e v e r a lly , a s t h e “ m e m b e r ” )

W IT N E S S E T H :
I n c o n s id e r a tio n o f t h e s u m o f $ 1 p a i d b y t h e c o -o p t o t h e m e m b e r , r e c e ip t o f w h ic h i s h e r e b y a c k n o w le d g e d ,
a n d o f th e c o n v ey a n ce to th e m em b e r, b y deed th is d a y

d e liv e r e d , o f t h e f o l l o w i n g d e s c r ib e d p r e m i s e s :

a n d o f o th e r g o o d a n d v a lu a b le c o n s id e r a tio n ,
N o w , t h e r e f o r e , t h e p a r t ie s h e r e to d o m u t u a l ly a g r e e
1. T h e m e m b e r h e re b y g iv e s a n d g r a n ts u n to th e

as

fo llo w s :

c o -o p , it s s u c c e s s o r s , a n d a s s i g n s , t h e f i r s t r i g h t a n d o p tio n

t o p u r c h a s e o r r e p u r c h a s e t h e a f o r e s a i d p r e m is e s in t h e e v e n t o f t h e m e m b e r ’ s d e s ir e t o s e ll, a n d s a i d o p tio n s h a ll
b e e x e r c i s a b le b y t h e c o -o p o r b y a n y p e r s o n n o m in a te d o r d e s ig n a t e d b y it .
2 . I n s u c h e v e n t , t h e m e m b e r a g r e e s t o g i v e n o tic e in w r i t i n g t o t h e c o -o p o f t h e m e m b e r ’s o f f e r t o s e ll, a n d
s u c h n o tic e s h a ll s t a t e t h e p r i c e t h e m e m b e r s h a ll b e

w i ll i n g t o a c c e p t f o r t h e p r e m is e s a n d t h e t e r m s o f t h e

sa le

c o -o p s h a ll h a v e a p e r io d o f 3 0 d a y s a f t e r r e c e ip t o f s a i d

(ca sh

d o w n p a y m e n t , d a t e o f c lo s in g , e t c .) .

The

n o tic e w it h i n w h ic h to e x e r c i s e it s o p t io n t o p u r c h a s e t h e p r e m is e s o r t o p r o d u c e a p u r c h a s e r r e a d y , w i ll i n g , a n d
a b le t o a c c e p t t h e p r i c e a n d t e r m s sp e c ifie d in t h e n o tic e . I f d u r in g o r s u b s e q u e n t t o s u c h 3 0 - d a y p e r io d t h e m e m ­
b e r s h a ll e le c t t o o f f e r t h e p r o p e r t y a t a d if f e r e n t p r i c e o r o n d if f e r e n t t e r m s , t h e c o -o p s h a ll b e s o n o t if ie d ; a n d
i t s h a ll h a v e a f u r t h e r o p tio n p e r io d o f 7 d a y s f r o m th e r e c e ip t o f s u c h n o tic e w it h i n w h ic h t o p u r c h a s e o r p r o ­
d u c e a p u r c h a s e r a t t h e p r ic e a n d t e r m s sp e c ifie d in s a i d n o tic e . T h e c o -o p s h a ll h a v e a s i m i l a r 7 - d a y o p t i o n e a c h
t i m e t h e r e s h a ll b e a c h a n g e in t h e p r ic e o r t e r m s o f t h e o f f e r ;

provided, however,

o r t e r m s s h a ll li m i t o r r e d u c e t h e p e r io d o f 3 0 d a y s d u r i n g w h ic h t h e c o -o p

t h a t n o s u c h c h a n g e in p r ic e

s h a ll h a v e

th e

f ir s t r e f u s a l

of

th e

p r e m is e s a t a p r i c e a n d t e r m s n o le s s f a v o r a b l e t o t h e c o -o p t h a n th o s e s t a t e d in t h e f ir s t n o tic e . I f n o n e o f th e s e
o p t io n s

s h a ll b e t i m e ly

e x e r c is e d , t h e p r e m is e s

s h a ll b e f r e e l y t r a n s f e r a b l e ;

b e r s h o u ld b e u n s u c c e s s f u l in e f fe c t in g a s a le o f s a id

p r e m is e s w it h i n

provided, however,

1 year

th a t i f th e m em ­

a ft e r th e e x p ira tio n

o f th e

f ir s t

o f t h e a f o r e s a i d o p t io n s th e n t h e m e m b e r s h a ll b e o b lig e d t o r e p e a t t h e a b o v e p r o c e d u r e b e f o r e a t t e m p t i n g t o s e ll
t h e p r e m is e s t o o n e o t h e r t h a n t h e c o -o p o r a p u r c h a s e r
li k e o p t i o n s

as

a f o r e s a id .

For

th e

pu rp ose

of

g iv in g

o b ta in e d b y i t , a n d in

s u c h e v e n t t h e c o -o p s h a ll h a v e

r i s e t o a 7 - d a y o p tio n , a c h a n g e i n t e r m s o f t h e o f f e r sh alL

r e f e r t o a c h a n g e o n ly in a n y o f t h e f o l l o w i n g :
(а )

D e p o s i t r e q u ir e d o n s i g n i n g c o n t r a c t o f s a le

(б )

T h e d o w n p a y m e n t r e q u ir e d

(c)

T h e a m o r t iz a t io n o r in t e r e s t r a t e a p p lic a b le t o th e b a la n c e o f t h e p a y m e n t

(d )

T h e p e r io d b e tw e e n c o n t r a c t o f s a le a n d c lo s in g

(e)

T h e fu r n itu r e




and

e q u ip m e n t c o v e r e d

by

th e

p r ic e .

and

114

APPENDIXES

3.
th e

In

c o -o p , i t

th e
is

th e tra n s fe re e

event

th at

e x p re s s ly
a t th e p r ic e

th e m e m b e r, a f t e r h a v in g
a g re e m e n t

w h ile

any

h e r e u n d e r s h a ll b e

th e

a g re e d

m em ber

s h o u ld

th a t th e

w h ic h

su ch

tra n s fe r

r ig h t s

of

tra n s fe re e

s h a ll h a v e p a id f o r t h e p r e m is e s . I t

o ffe re d s u c h p r e m is e s to t h e

o f th e

c o -o p ’s

s p e c if ic a lly

o p t io n s

e n f o r c e a b le

as

t h e a b o v e p r e m is e s w it h o u t f ir s t o f f e r in g s a id p r e m is e s to

t h e co -o p h e r e u n d e r s h a ll b e s p e c if ic a lly e n fo r c e a b le a g a in s t
c o -o p ,

h e r e in

s h o u ld

p r o v id e d

a g a in s t th e

tra n s fe re e

b y s u c h t r a n s f e r e e i f t h a t b e lo w e r t h a n t h e o p t io n p r ic e . I n
be e n fo rc e d

by

a c t io n

com m enced

w it h in

90

days

of

th e

m o rtg a g e e

F e d e r a l H o u s in g

a c q u ir e

s a le , a l l r i g h t s

r ig h t s

h e r e in

c o n fe rre d

se cu re d

m o rtg a g e

any

th e

m o rtg a g e
or

and

c o -o p

upon

any

m o rtg a g e
in

th e

w it h

u n d e r t h is

co -o p

a re

d e f a u lt
O p t io n

or

u n d e r t h is

deed

o f tru s t

a ls o

O p t io n
In
iz e d

(b )

A g r e e m e n t s h a ll t h e re u p o n

s a id

cease

th e

and

th e

m em ber

has

and

h e re u n to

to

or

of

th e

t h is
co -o p

a t th e

p r ic e

a c t u a l n o t ic e o f t h e t r a n s ­

th e

a f o r e s a id

p r e m is e s

s u b o r d in a t e d to th e

w h ic h

is

in s u r e d

by

th e

in th e m o rtg a g e , o r u p o n t h e o c c u r r e n c e o f a v a lid f o r e ­

of

su ch

such

or

be o f no

p r e m is e s ,

g u a r a n t e e d o r in s u r e d

p u rch a se r

m o rtg a g e

w it n e s s w h e r e o f t h e c o -o p h a s c a u s e d t h is

o f fic e r s

a n d te rm s

of

e it h e r o f t h e a b o v e t w o e v e n t s , t h e c o -o p ’s r ig h t s m a y

r e s p e c t to t h e a f o r e s a id

in th e e v e n t t h a t

d e f a u lt in

p r ic e

r ig h t s

h e r e b y s u b o r d in a t e d to t h e r i g h t s o f t h e h o ld e r o f t h e in d e b t e d ­

o f t r u s t b e h e ld , o r

s h a ll b e fo re c lo s e d ,

O p t io n A g r e e m e n t , o r

t it le to s a id p r e m is e s u p o n

th e

a g re e d th a t if

v io la t io n

A g r e e m e n t s h a ll t h e r e u p o n c e a s e a n d b e o f n o e ffe c t. T h e

b y th e A d m in is t r a t o r o f V e t e ra n s A f f a ir s , to th e r ig h t s
m o rtg a g e

a t t h e o p t io n

th en

in

c o n f e r r e d u p o n t h e co -o p a r e h e r e b y

re sp e ct

o r d e e d o f t r u s t w it h

deed

o u t s t a n d in g ,

is lik e w is e

p r e m is e s

e v e n t t h a t t h e m o r t g a g e e s h a ll f o r e c lo s e a n d t a k e p o s s e s s io n o f t h e

t it le t h e re t o u p o n

o f th e

n ess se cu re d b y
by

any

A d m in is t r a t io n ;

p r e m is e s o r o t h e r w is e
c lo s u r e

under

s a id

a f t e r t h e co -o p s h a ll h a v e r e c e iv e d

f e r . I t is f u r t h e r a g re e d , h o w e v e r, t h a t th e r ig h t s h e r e in
r ig h t s

is

tra n s fe r

A d m in is t r a t o r ;
s h a ll

h o ld e r

deed

of

tak e
or

tru st,

and

such

(a )

fre e

t it le

th e n

and,

if

th e

in d e b t e d n e s s

( in w h o le o r in p a r t , in a n y e v e n t )
of

in

th e

th e

A d m in is t r a t o r
a ll

r ig h t s

of

event th a t

r ig h t s

of

th e

o t h e r w is e

th e

co -o p

such
co -o p

a c q u ir e s

under

t h is

e ffe c t.

a g r e e m e n t t o b e e x e c u t e d a n d i t s s e a l a f f ix e d b y i t s d u l y a u t h o r ­

a f f ix e d

h is

hand

A tte st:

and

s e a l t h is

.............

day

o f ............. ? 1 9

...................................................... ................. H

o u s in g

.,
A

s s o c ia t io n

By
......................................................... [
M em b er

sea l

......................................................... [ s e
M em b er

a l

]

]

A cknow ledgm ent

L ss.

O n t h i s .............d a y o f ... ............................ , 1 9
H o u s in g A s s o c ia t io n , a c o r p o r a t io n , to

me

., b e f o r e m e a p p e a r e d
know n

...............................................................

( o r s a t is fa c t o r ily

p ro v e n )

f o r e g o in g in s t r u m e n t o n b e h a lf o f s a id c o r p o r a t io n a n d a c k n o w le d g e d
a n d d e e d o f s a id c o r p o r a t io n f o r t h e p u r p o s e s t h e r e in c o n t a in e d .
In

w it n e s s

w h e re o f

I

h e re u n to

set

my

hand

and

to

be

to m e t h a t

th e

s a id

0£

p e rso n

w ho

in s t r u m e n t

is

e x e cu te d

th e

th e

act

fre e

s e a l.

Notary Public.

A cknow ledgm ent

ss.

e

.............

s a t is f a c t o r ily

^ay

p ro v e n )

of

.............................> 1 9

to b e th e

p e rs o n (s )

a c k n o w le d g e d to m e t h a t h e (s h e ,
p u r p o s e s t h e r e in c o n t a in e d .
In

w it n e s s

w h e re o f




I

h e re u n to

th ey )

, b e fo re

me

w h ose n a m e (s )

e x e cu te d

th e

a p p e a re d
is

sam e

(a re )
as

................................................. y t o
s u b s c r ib e d

h is ,(h e r ,

t h e ir )

to t h e f o r e g o in g
fre e

act

and

me

know n

in s t ru m e n t

deed

and

fo r

’
set

m y

hand

and

o f f ic ia l s e a l.

N o ta ry P u b lic .

(o r
and
th e

115

DOCUMENTS AND FORMS USED
Mutuals
Articles

The
.............

u n d e r s ig n e d
C o o p e ra t iv e

in c o r p o r a t o r s

A s s o c ia t io n

of

Association

a s s o c ia t e t h e m s e lv e s

A ct,

T it le

of

in

Mutual

a

Association

m u t u a l o w n e r s h ip

29 , C h a p t e r 8, o f th e

Code

n o n p r o f it c o r p o r a t io n , u n d e r th e

of Law s

of

.............

fo r

th e fo llo w in g

p u r­

p o se s a n d o b je c t s :

Pu rposes o f A ssociation
(a )
s e ll,

The

le a s e ,

...........

p le d g e ,

m u t u a l b e n e f it
th e
II,

C o o p e r a t iv e
m o rtg a g e ,

of

it s

m e m b e rs,

S ta te s

U n it e d

on

o r a fte r

in c lu d in g

th o se

p r e s e n t ly

H o u s in g

or

A s s o c ia t io n

o t h e r w is e
w ho

s h a ll

S e p te m b e r
so

s e r v in g ,

d is p o s e
be

is

of

v e te ra n s

16, 1 9 4 0 , a n d
t h e ir

fa m ilie s

fo rm e d
h o u s in g
w ho

to

a c q u ir e ,

of

a ll

se rv e d

ow n,

k in d s

and

h o n o r a b ly

b e f o r e t h e o f fic ia lly

in

h o ld ,

b u ild ,

m anage,

a p p u rte n a n t
th e m ilit a r y

d e c la r e d

f a c ilit ie s

fo r

th e

o r n a v a l fo rc e s

t e r m in a t io n

a n d t h e ir s u c c e ss o rs , a s m a y

o p e ra te ,.

b e p r o v id e d

of

W o r ld

of

W ar

b y th e b y la w s

o f t h e a s s o c ia t io n .
(b )

To

n e ce ssa ry

p r o v id e

on

a

n o n p r o f it

b a s is ,

o r c o n v e n ie n t f o r t h e w e lf a r e

such

o f it s

c o m m u n it y

and

o th e r

f a c ilit ie s ,

s e r v ic e s

or

b e n e f it s

as

m ay

be

m e m b e rs a n d t h e u s e f u ln e s s o f s a id a s s o c ia t io n .

N am e o f A ssociation
T h e nam e

o f th e

a s s o c ia t io n

s h a l l b e “ .............

C o o p e ra t iv e

H o u s in g

A s s o c ia t io n .”

T erm o f E x isten ce
The

p e r io d

d u r in g

w h ic h

it

is

to

c o n t in u e

as

an

a s s o c ia t io n

is

n o t lim it e d

and

th e

a s s o c ia t io n

s h a ll

have

p e r p e t u a l e x is t e n c e .

A ddress
T h e a s s o c i a t i o n m a y o p e r a t e i n .............o r e l s e w h e r e .
a s s o c ia t io n

s h a ll b e

The

lo c a t io n

and

a d d re ss

of

th e

p r in c ip a l

o f f ic e

of

th e

............. ..

In corporators
The

nam es

and

a d d re sse s

of

th e

in c o r p o r a t o r s

of

t h is a s s o c ia t io n a r e :

D irectors
T h e a s s o c ia t io n s h a ll h a v e n o t le s s t h a n 5 n o r m o re t h a n 9 d ir e c t o r s , a s m a y b e e s t a b lis h e d b y t h e b y la w s o f
t h e a s s o c ia t io n . T h e n a m e s a n d a d d r e s s e s o f t h e d ir e c t o r s w h o
f ir s t y e a r , u n le s s

soo ner ch a n g e d

by

s h a ll m a n a g e t h e

a ff a ir s

o f th e

a s s o c ia t io n

fo r

th e

th e m e m b e rs, a r e :

Membership
The
b e r s h ip

a s s o c ia t io n

is

o r g a n iz e d

w it h o u t

sh a re

c a p it a l a n d s h a ll c o n s is t o f n o t m o re t h a n 5 ,0 0 0 m e m b e rs . M e m ­

m a y b e o f o n e o r m o r e c la s s e s , d e p e n d in g u p o n t h e e q u it y in t e r e s t o f t h e m e m b e r , b u t e a c h m e m b e r s h a ll

h a v e o n e v o t e a n d o n ly o n e v o t e in t h e m a n a g e m e n t o f th e a f f a ir s
an

in t e r e s t in

o f th e a s s o c ia t io n

and

n o p e rs o n

m ay

a c q u ir e

t h e c a p it a l o f th e a s s o c ia t io n o t h e r t h a n a d u ly a c c e p t e d m e m b e r. T h e a s s o c ia t io n m a y p r o v id e f o r

a d v is o r y m e m b e rs n o t to e x c e e d 1 0 in n u m b e r w it h s u c h




r ig h t s ,

d u t ie s

and

p o w e rs

as

m ay

be

p r o v id e d

by

th e

116

APPENDIXES

b y l a w s o f t h e a s s o c ia t io n . T h e m a x im u m
any

m em ber

n o p e rs o n
t io n .

s h a ll

be

a

s in g le

s h a ll c o n t r o l, d ir e c t ly

The

jo in t

p e r m is s ib le

in t e r e s t ,

o r in d ir e c t ly , a n y

o w n e r s h ip

of

o t h e r w is e

but

a

a m o u n t o f p e rce n ta g e

m e m b e r s h ip
m e m b e r s h ip

m e m b e r s h ip

o f c a p it a l w h ic h

m ay

be ow ned

o r c o n t r o lle d

by

r e g a r d le s s o f th e a m o u n t t h e r e o f o r o f it s c la s s if ic a t io n , a n d

in t e r e s t in m o re t h a n o n e liv in g q u a r t e r o w n e d b y t h e a s s o c ia ­

in t e r e s t

b y a h u sb an d

in t e r e s t m u s t b e

ow ned

a n d w ife , w it h

and

c o n t r o lle d

r ig h t to s u r v iv o r s h ip

by

an

in d iv id u a l

s h a ll b e

n a tu ra l

p e rs o n .

Lim itation on M em bership
M e m b e r s h ip

s h a ll

c ia t io n , e x c e p t t h a t
by

a

m e m b e r, h is

pancy

o f liv in g

be

lim it e d

p r o v is io n s
h e ir s

or

q u a rte rs

to

p e rs o n s

m ay

a s s ig n s ,

by

th e

w ho

be m ade

in

o c c u p y o r in t e n d t o o c c u p y l i v i n g q u a r t e r s o w n e d b y t h e a s s o ­

th e b y la w s f o r th e t e m p o r a r y

w it h o u t o c c u p a n c y , f o llo w in g

m em ber

w ho

ow ns

v o lu n t a ry

h o ld in g

o f a m e m b e r s h ip

o r in v o lu n t a r y

in t e r e s t

t e r m in a t io n

o f occu­

th e m e m b e r s h ip in t e r e s t . E x c e p t a s a r e s u lt o f t h e o p e r a t io n

o f t h is p r o v is o , a ll m e m b e r s s h a ll b e v e t e r a n s a s h e r e in b e f o r e p r o v id e d .

D issolution
The

a s s o c ia t io n

Code of L aw s

m a y b e d is s o lv e d u n d e r t h e m e th o d

o f th e

.................... I n

th e fo llo w in g m a n n e r a n d o r d e r :

p r o v id e d

t h e e v e n t o f d is s o lu t io n ,
(1 )

th e

B y p a y in g th e d e b ts a n d

t h e m e m b e r s t h e b o o k v a lu e o f m e m b e r s h ip

by

T it le

a sse ts

29,

o f th e

C h a p ter

8,

a s s o c ia t io n

S e c t io n

s h a ll b e

e x p e n s e s o f th e a s s o c ia t io n ;

in t e r e s t , th e a m o u n t p a id

o n t h e ir

(2 )

s u b s c r ip t io n s

2 9 -8 3 6

of

th e

d is t r ib u t e d

in

b y r e t u r n in g

to m e m b e r s h ip

to

and

a n y la w f u l d is t r ib u t io n o f in t e r e s t u p o n c a p it a l c o n t r ib u t io n s o r lo a n s t o t h e a s s o c ia t io n , b y r e t u r n in g t o m e m b e r s
in

6

p r o p o r t io n to t h e ir p a y m e n t s a n d t h e ir c la s s o f m e m b e r s h ip
y e a rs

im m e d ia t e ly

p r io r

to d is s o lu t io n ;

t o t h e ............. f o r t h e b e n e f i t o f v e t e r a n s

and

any

o f W o r ld

s u r p lu s
W ar

II,

t h e ir

s a v in g s

r e m a in in g

re tu rn s

th e re a fte r

w it h o u t r e g a r d

a c c u m u la t e d

s h a ll

be

d u r in g

c o n t r ib u t e d

to d is c r im in a t io n

by

as

re a so n

a

th e
g ift

o f c la s s ,

r a c e , r e lig io n , o r c o lo r .

O th er P rovision s
T h is

a s s o c ia t io n

m e m b e rs

or

n o t h in g h e r e in
such

No

c a p it a l

s h a ll b e c o n s t ru e d

c o n d it io n s

t h e ..................

s h a ll n o t e n g a g e

in d iv id u a ls .
as

th e

c o r p o r a t io n

in

a n y a c t iv it y f o r

sto ck

s h a ll

be

to p r e v e n t t h e
and

such

is s u e d

th e

p u rp o se

and

re p a y m e n t

m em ber m ay

no

of

o b t a in in g

d iv id e n d s

of m oney

d e t e r m in e

s h a ll

lo a n e d

p r o f it
be

or

o r p e c u n ia r y

p a id

to

advanced

a n d a g re e u p o n

any

by

g a in

fo r

m e m b e r,

but

a

m em ber under

a n d a s a re

c o n s is t e n t w it h

C o o p e r a t iv e A s s o c ia t io n A c t .

T h e a s s o c ia t io n m a y a m e n d t h e s e a r t ic le s in t h e m a n n e r p r o v id e d b y t h e la w
p r o v id e d t h a t s u c h a m e n d m e n t o r a m e n d m e n t s w o u ld h a v e
s h a ll n o t v io la t e

th e

te rm s,

c o v e n a n ts , o r c o n d it io n s

been

a u t h o r iz e d

by

u n d e r w h ic h

s a id

o f a n y t ru s t cre a te d o r a n y

la w

as

i t is in c o r p o r a t e d ,

o r ig in a l

a r t ic le s

and

a g r e e m e n t e n t e re d in t o b y th e

a s s o c ia t io n .
The
b e r s h ip

a s s o c ia t io n

s h a ll n o t d ir e c t ly

or

in d ir e c t ly

u s e a n y o f it s fu n d s , n o r is s u e

in t e r e s t , n o r i n c u r a n y in d e b t e d n e s s f o r t h e p a y m e n t

of

any

c o m p e n s a t io n

sh a re s, n o r g ra n t a n y
fo r

th e

o r g a n iz a t io n

m em ­
of

th e

a s s o c ia t io n , e x c e p t n e c e s s a r y le g a l fe e s .
E x e c u t e d i n .................. t h i s ..................... d a y o f .......................

Bylaws

A

r t ic l e

1 . — N am e

Th e nam e
o u t c a p it a l

or

a s s o c ia t io n

sh a re s,

is

..................

e s t a b lis h e d

2 9 , C h a p t e r 8, o f t h e C o d e o f L a w s o f
A

r t ic l e

2 .—

Mutual

Association

and Location

o f t h is

sto ck

of

C o o p e r a t iv e H o u s in g A s s o c ia t io n . I t is a n o n p r o f it a s s o c ia t io n w it h ­

p u rsu a n t

to

and

u n d e r th e

C o o p e ra t iv e

A s s o c ia t io n

A ct,

T it le

P u rposes

A s se t f o r t h in it s A r t ic le s o f In c o r p o r a t io n , t h is a s s o c ia t io n
f o llo w in g
“ (a)

..........

....................

p u rp o se s:
T h e ..................

C o o p e r a t iv e H o u s in g A s s o c ia t io n

s e l l , le a s e , p le d g e , m o r t g a g e , o r o t h e r w i s e
m u t u a l b e n e f it o f i t s m e m b e r s .




d is p o s e

is n o t o r g a n iz e d f o r p e c u n ia r y

g a in

b u t fo r th e

i s f o r m e d t o a c q u i r e , o w n , h o ld , b u i l d , m a n a g e , o p e r a t e ,

o f h o u s in g

of

a ll

k in d s

and

a p p u rte n a n t

f a c ilit ie s

fo r

th e

117

DOCUMENTS AND FORMS USED
“ (6 )

T o p r o v id e o n

a

n o n p r o fit b a s i s , s u c h c o m m u n it y a n d o th e r f a c i l i t i e s , s e r v ic e s o r b e n e fits a s m a y b e

n e c e s s a r y o r c o n v e n ie n t f o r t h e w e l f a r e o f i t s m e m b e r s a n d t h e u s e f u ln e s s o f s a i d a s s o c i a t i o n ."
(c)

I n p u r s u a n c e o f s a i d p u r p o s e s t h e a s s o c ia tio n

F e d e r a l G o v e r n m e n t f o r t h e a c q u is itio n o f

...................

s h a ll

e n te r

in t o

an

a p p r o p r ia te

H o u s in g P r o j e c t lo c a t e d i n ....................

agreem en t

w it h

th e

( h e r e i n a f t e r c a lle d t h e

“ p r o j e c t ” ) a s it s in it i a l a c q u is itio n .
A

3 .— Directors

r t ic l e

S e c t io n

1.

and Officers

T h e a f f a i r s o f t h e a s s o c i a t i o n s h a ll b e m a n a g e d b y a

board

of

d ir e c to r s

com p osed

of

9

p ersons).

E x c e p t a s to t h e f ir s t b o a r d , w h o s e m e m b e r s a r e d e s ig n a te d in t h e A r t i c l e s o f A s s o c i a t io n o r a r e e le c te d b y th o s e
s o d e s ig n a t e d a n d w h o s h a ll s e r v e u n t il t h e f ir s t a n n u a l m e e t i n g
e le c te d a n d s h a ll q u a l i f y , d ir e c to r s s h a ll b e e le c te d b y m e m b e r s

of

th e

m em b ers

a t t h e r e g u la r

or

u n t il

th e ir

su ccessors

a n n u a l m e e tin g a n d

h o ld

are

office

u n t il h is o r h e r s u c c e s s o r is e le c te d a n d s h a ll q u a l i f y , s u b je c t to th e p r o v is io n s o f th e s e b y la w s .
S e c . 2 . A t t h e f ir s t a n n u a l m e e t i n g o f th e m e m b e r s , 3 d ir e c to r s
d ir e c to r s f o r a t e r m

o f 2 y e a r s , a n d 3 d ir e c to r s f o r a t e r m

of

s h a ll b e e le c te d f o r

a te rm

of

3 years, 3

1 y e a r . T h e r e a fte r , a t ea ch a n n u a l m e e tin g , 3

d ir e c t o r s s h a ll b e e le c te d f o r a t e r m o f 3 y e a r s . N o c o m p e n s a tio n , r e m u n e r a t io n , o r p a y m e n t o f a n y k in d , o r in
a n y f o r m , s h a ll b e p a i d

to a n y

d ir e c to r f o r

h i s s e r v ic e s

as

such,

p r o v id i n g ,

how ever,

th a t

d ir e c t o r s

m ay

be

r e i m b u r s e d f o r a c t u a l e x p e n s e s in c u r r e d in b e h a lf o r f o r t h e b e n e fit o f t h e a s s o c ia tio n .
Sec.
board

of

3 . D u r i n g t h e f ir s t 4 y e a r s f o l l o w i n g t h e c o n v e y a n c e
d ir e c to r s

s h a ll b e p u b lic m e m b e r s

c h o se n f r o m

m e m b e r s h ip , o r r e s id e n t s in t h e p r o je c t . T h e r e a f t e r a n d

of

th e

p r o je c t

n o t le s s

th a n

2

m em bers

p e rso n s o th e r th a n m em b e rs, ap p ro v e d
fo r

any

c o n t in u in g

p e r io d

d u r in g

of

th e

a p p lic a n t s f o r

w h ic h

th e

F ed eral

G o v e r n m e n t r e t a in s a fin a n c ia l in t e r e s t in t h e p r o je c t , 1 m e m b e r o f t h e b o a r d s h a ll b e a p u b lic m e m b e r .
Sec.

4. T h e procedu re fo r

n o m in a t io n s o f

p e r s o n s a s c a n d id a te s f o r e le c tio n a s d ir e c t o r s s h a ll b e g o v e r n e d

b y th e fo llo w in g p r o v is io n s :
1.

T h r e e m e m b e r s a p p o in te d b y t h e b o a r d o f d ir e c to r s

s h a ll

c o n s t it u t e

th e

c o m m itte e

on

n o m in a t io n s .

No

officer o r m e m b e r o f t h e b o a r d o f d ir e c to r s s h a ll b e a p p o in te d a m e m b e r o f s u c h c o m m itte e . T h e c o m m it t e e s h a ll
p r e p a r e a n d t h e s e c r e t a r y o f t h e a s s o c ia t io n s h a ll p o s t a t t h e office o f t h e r e s id e n t m a n a g e r a n d in a t l e a s t t w o
o t h e r p r o m in e n t p la c e s o n t h e h o u s in g p r o je c t a t le a s t 3 0 d a y s b e f o r e t h e a n n u a l m e e t i n g o f t h e m e m b e r s a l i s t
o f n o m in a tio n s f o r d ir e c to r s t o b e e le c te d t h e r e a t b y t h e m e m b e r s o f t h e a s s o c ia tio n .
2.

T h e s e c r e t a r y s h a ll m a il t o e a c h m e m b e r o f t h e a s s o c ia t io n w it h th e n o tic e o f t h e a n n u a l m e e t i n g ( w h ic h

n o tic e s h a ll s e t f o r t h t h e t i m e a n d p la c e t h e r e o f ) a s t a t e n e n t o f t h e n u m b e r o f d ir e c to r s t o b e e le c te d a n d a l i s t
o f th o s e n o m in a te d .
3.

C o m p lia n c e w it h t h e f o r e g o i n g p r o c e d u r e s h a ll n o t b e m a n d a t o r y f o r t h e e le c tio n o f a d ir e c to r t o fill a

v a c a n c y , a s h e r e i n a f t e r p r o v id e d .
Sec.

5 . A n y d ir e c to r o r o t h e r o ffic e r o f t h e a s s o c ia tio n m a y r e s i g n a t a n y t im e . T h i s r e s i g n a t io n s h a ll b e m a d e

in w r i t i n g , a n d s h a ll t a k e e ffe c t a t t h e ti m e s p e c ifie d t h e r e in a n d , i f n o t i m e b e sp e c ifie d , a t t h e ti m e o f it s r e c e ip t
b y t h e p r e s i d e n t o r s e c r e t a r y . T h e a c c e p t a n c e o f a r e s i g n a t io n s h a ll n o t b e n e c e s s a r y t o m a k e i t e ffe c tiv e .
S e c . 6 . T h e o ffic e rs o f t h e a s s o c ia tio n

s h a ll c o n s is t o f a p r e s id e n t , w h o s h a ll s e r v e a s c h a i r m a n o f t h e b o a r d

o f d ir e c t o r s , a v ic e p r e s id e n t , w h o s h a ll s e r v e in t h e a b s e n c e o f t h e p r e s id e n t , b o th o f w h o m s h a ll b e m e m b e r s o f
th e b o a r d o f d ir e c t o r s , a n d a s e c r e t a r y a n d t r e a s u r e r . T h e f ir s t b o a r d o f d ir e c to r s s h a ll e le c t t h e a f o r e s a i d o fficers
a t it s f ir s t m e e t i n g , a n d t h e r e a f t e r t h e b o a r d o f d ir e c to r s s h a ll e le c t t h e a f o r e s a id officers a f t e r it s f ir s t m e e t i n g ,
w h ic h s h o u ld b e h e ld w it h i n

5 days

a fte r

each a n n u a l m e e tin g

of

th e m em b ers.

S a id

officers

s h a ll

h o ld

office

u n t il t h e f i r s t m e e t i n g o f t h e b o a r d o f d ir e c to r s f o llo w i n g t h e n e x t s u c c e e d in g a n n u a l m e e t i n g o f t h e m e m b e r s
o f t h e a s s o c ia t io n o r u n t il t h e i r s u c c e s s o r s s h a ll h a v e b e e n e le c te d a n d s h a ll q u a l i f y .
Sec.

7. A

c o m p le tio n

v a c a n c y in t h e b o a r d o f d ir e c to r s , o r in a n y

o f term , upon

a

of

s a i d o ffic e s,

occu rs upon

th e

d e a th ,

r e s i g n a t io n ,

p u b lic m e m b e r o f t h e b o a r d b e c o m in g a m e m b e r o f t h e a s s o c ia tio n o r a n a p p r o v e d

a p p l ic a n t f o r s u c h m e m b e r s h ip , o r u p o n a n o n p u b lic m e m b e r o f t h e b o a r d c e a s in g to b e a m e m b e r o f t h e a s s o c i a ­
tio n , r e m o v a l fr o m

office o r a b s e n c e f r o m

t h r e e s u c c e s s iv e m e e t i n g s o f t h e b o a r d

of

d ir e c to r s

of

a

d ir e c to r

or

officer d e te r m in e d b y t h e b o a r d to b e w it h o u t d u e ju s t if ic a t i o n . W h e n a v a c a n c y o c c u r s in t h e b o a r d o f d ir e c t o r s ,
e x c e p t b y r e a s o n o f r e m o v a l o f a d ir e c to r , b e f o r e t h e e x p i r a t i o n o f h is o r h e r t e r m , t h e v a c a n c y s h a ll b e fille d b y
t h e r e m a in in g m e m b e r s o f th e b o a r d a t t h e n e x t su c c e e d in g m e e t i n g o f t h e b o a r d b y e le c t in g a p e r s o n w h o s h a ll
s e r v e u n t il t h e n e x t a n n u a l m e e t i n g o f t h e m e m b e r s , a t w h ic h m e e t i n g th e m e m b e r s s h a ll e le c t a p e r s o n t o s e r v e
a s d ir e c to r t o c o m p le t e t h e th e n r e m a in in g p o r t io n o f t h e u n e x p ir e d t e r m . W h e n a v a c a n c y o c c u r s in t h e office
o f a n officer o f t h e a s s o c ia t io n f o r a n y c a u s e b e f o r e s a id o ffic e r 's t e r m

h a s e x p ir e d , t h e v a c a n c y s h a ll b e fille d

b y t h e b o a r d o f d ir e c t o r s a t i t s n e x t s u c c e e d in g m e e t i n g b y e le c t in g a p e r s o n t o s e r v e f o r t h e r e m a in d e r o f t h e
u n e x p ir e d t e r m o r u n t il h is s u c c e s s o r h a s b e e n e le c te d b y t h e b o a r d o f d ir e c to r s a n d s h a ll q u a l i f y .




118

APPENDIXES
Sec. 8. A

m a j o r i t y o f t h e m e m b e r s o f t h e a s s o c ia tio n p r e s e n t a t a n y r e g u la r o r s p e c ia l m e e t i n g d u ly c a lle d

m a y r e m o v e a n y d ir e c to r o r officer f o r c a u s e a f f e c t i n g t h e a b i l i t y o r fitn e s s o f t h e d ir e c t o r o r officer t o p e r f o r m h is
d u tie s

upon

m em ber
th e

sp e c ific

w r it t e n

c o m p la in t

d ir e c to r

or

m a k in g

th e

c o n s id e r a tio n

of

s a id

p r e v io u s ly

c o m p la in t ,

c o m p la i n t

by

th e

file d

w it h

th e

se c re ta ry

of

th e

a s s o c ia t io n ,

s ig n e d

by

th e

a c c o m p a n ie d b y a p e t it io n s ig n e d b y a t le a s t 1 0 0 m e m b e r s r e q u e s t in g
m e m b e r s h ip . W i t h i n 5 d a y s o f r e c e ip t o f s a i d c o m p la i n t a n d p e t it io n ,

t h e s e c r e t a r y o f t h e a s s o c ia t io n s h a ll g i v e 1 0 d a y s ’ n o tic e in w r i t i n g o f t h e t i m e , p la c e , a n d o b je c t o f s u c h m e e t i n g
t o t h e m e m b e r s a n d to th e d ir e c to r o r offic e r a g a i n s t w h o m t h e c o m p la i n t is m a d e , s a i d n o tic e to b e a c c o m p a n ie d
b y a c o p y o f t h e c o m p la in t . S u c h d ir e c to r o r officer s h a ll b e g i v e n a n o p p o r t u n i t y a t s a id m e e t i n g to b e h e a r d in
p e r s o n o r th r o u g h c o u n se l a n d t o p r o d u c e w it n e s s e s in r e g a r d to t h e c o m p la in t . I f a d ir e c t o r b e r e m o v e d u n d e r
t h e p r o v is i o n s o f t h i s s e c tio n , t h e m e m b e r s s h a ll a t t h e s a m e m e e t i n g o r a t a n a d jo u r n e d m e e t i n g e le c t a p e r s o n
t o fill t h e v a c a n c y th u s c r e a t e d f o r t h e r e m a in d e r o f t h e
p r o v is io n s

o f t h i s s e c t io n , t h e b o a r d

of

d ir e c to r s

u n e x p ir e d

term .

If

an

officer

be

rem oved

under

th e

s h a ll a p p o in t a n o t h e r t o fill t h e v a c a n c y th u s c r e a te d f o r t h e

r e m a in d e r o f t h e u n e x p ir e d t e r m a s p r o v id e d in s e c tio n 7 o f t h i s a r t ic le .
A

r t ic l e

4 .—

S e c t io n

Powers and Duties of the Board of Directors
1 . T h e b o a r d o f d ir e c to r s in it s c o r p o r a t e c a p a c i t y s h a ll e x e r c is e a ll t h e p o w e r s o f t h e a s s o c ia tio n a n d

m a k e n e c e s s a r y r u le s a n d r e g u la t i o n s n o t in c o n s is t e n t w it h t h e la w , t h e A r t i c l e s o f I n c o r p o r a t io n , o r t h e s e b y l a w s ;
a n d n o d ir e c to r in h i s in d iv id u a l c a p a c i t y s h a ll a t t e m p t to d e a l w it h m e m b e r s o f t h e a s s o c ia t io n , e m p lo y e e s , o r
o th e r s in b e h a lf o f t h e a s s o c ia t io n u n le s s a u th o r iz e d to

do so b y t h e b o a r d o f d ir e c to r s .

S e c . 2 . T h e b o a r d o f d ir e c to r s m a y a p p o in t , d is c h a r g e , a n d fix th e d u tie s a n d s a l a r i e s o f o fficers a n d o f t h e
m a n a g e r a n d o f s u c h e m p lo y e e s , a t t o r n e y s , a n d a g e n t s a s i t m a y d e e m n e c e s s a r y t o c a r r y o n t h e b u s in e s s o f t h e
a s s o c ia tio n . S u c h a p p o in te e s n e e d n o t b e m e m b e r s o f t h e a s s o c ia tio n .
S e c . 3 . T h e b o a r d o f d ir e c t o r s , b y a n a f fir m a tiv e v o t e

o f th e m a jo r ity

o f th e

w h o le b o a r d , m a y

e le c t f r o m

t h e i r m e m b e r s h ip a n e x e c u tiv e c o m m itte e o f t h r e e o r m o r e a n d m a y a p p o in t o n e o f t h e m e m b e r s o f s a i d c o m m itte e
a s c h a i r m a n t h e r e o f , s a id c o m m itte e m e m b e r s t o h o ld s a id office u n t il t h e n e x t a n n u a l m e e t i n g o f t h e m e m b e r s o f
t h e a s s o c ia t io n o r u n t il t h e i r s u c c e s s o r s a r e e le c te d , w it h a u t h o r i t y t o e x e r c is e t h e p o w e r s d e le g a t e d t o i t b y t h e
b o a r d in i t s b e h a lf d u r in g t h e in t e r v a ls b e tw e e n t h e m e e t i n g s o f t h e b o a r d , a t e a c h o f w h ic h m e e t i n g s s a i d c o m ­
m it t e e s h a ll r e p o r t a n y

and

a l l in t e r v e n i n g a c tio n ta k e n

by

it .

The

board

of

d ir e c to r s

s h a ll

a ls o

a p p o in t

a

c o m m itte e o n m e m b e r s h ip , t h e c h a i r m a n o f w h ic h s h a ll be a m e m b e r o f t h e b o a r d o f d ir e c t o r s , a n d s u c h o th e r
c o m m itte e s ,
n o t been
Sec.

fro m

c h o se n

th e ir
by

ow n

th e

m em b ers

m em b ers

at

or

fro m

r e g u la r

m e m b e r s o f t h e a s s o c ia t io n , a s a r e d e e m e d d e s ir a b le , w h ic h h a v e
or

s p e c ia l m e e t in g s o f t h e a s s o c ia tio n .

4 . T h e b o a r d o f d ir e c to r s s h a ll m e e t a t le a s t m o n t h ly a t a r e g u l a r t i m e a s

d e c id e d b y

th e b oard

of

d ir e c to r s . S p e c ia l m e e t i n g s o f t h e b o a r d o f d ir e c to r s s h a ll b e h e ld u p o n t h e c a ll o f t h e p r e s i d e n t o r v ic e p r e s id e n t
o r u p o n t h e w r it t e n r e q u e s t o f t h e m a j o r i t y o f t h e m e m b e r s o f t h e b o a r d o f d ir e c to r s t o t h e p r e s id e n t . N o t i c e o f
r e g u la r o r s p e c ia l m e e t i n g s s h a ll b e in w r i t i n g a n d b e m a ile d o r o t h e r w is e d e liv e r e d t o e a c h d ir e c to r b y t h e s e c r e ­
ta ry

a t le a s t 3 d a y s

and

n o t m o r e th a n

10

d a y s b e f o r e t h e m e e t i n g . N o t i c e o f e v e r y s p e c ia l m e e t i n g s h a ll s t a t e

t h e o b je c t o f s u c h m e e t i n g , a n d n o b u s in e s s o th e r t h a n t h a t s p e c ifie d in s u c h n o tic e s h a ll b e t r a n s a c t e d .
S e c . 5 . T h e b o a r d o f d ir e c t o r s s h a ll s e le c t o n e o r m o r e b a n k s to a c t a s d e p o s ito r ie s o f t h e f u n d s o f t h e a s s o ­
c ia t io n a n d d e te r m in e t h e m a n n e r o f r e c e iv in g , d e p o s itin g , a n d d is b u r s in g t h e f u n d s o f t h e a s s o c ia t io n a n d th e
fo rm

o f c h e c k s a n d t h e p e r s o n o r p e r s o n s b y w h o m t h e s a m e s h a ll b e s ig n e d w h e n n o t s ig n e d b y t h e t r e a s u r e r ,

a s p r o v id e d h e r e in . I n e v e r y c a s e t h e b a n k o r b a n k s s e le c te d s h a ll b e a m e m b e r o f t h e

...................

C o r p o r a t io n

or

th e su cce sso r th e r e o f.
Sec.

6 . T h e b o a r d o f d ir e c t o r s s h a ll r e q u i r e t h e t r e a s u r e r , m a n a g e r , a n d e v e r y in d iv id u a l a c t i n g a s officer o r

e m p lo y e e o f t h e a s s o c i a t i o n a n d h a n d lin g a s s o c ia t io n f u n d s a n d s e c u r it ie s a m o u n t in g t o

$ 1 ,0 0 0

o r m o r e , in

any

o n e y e a r , t o b e c o v e r e d b y a d e q u a t e b o n d s a s d e te r m in e d b y t h e b o a r d , a n d t o b e f u r n i s h e d b y r e s p o n s ib le b o n d ­
i n g c o m p a n ie s a s a p p r o v e d b y t h e b o a r d , a t t h e e x p e n s e

of

th e

a s s o c ia t io n .

The

board

m ay

a ls o

r e q u ir e

th e

b o n d in g o f o th e r e m p lo y e e s a n d office rs.
A

r t ic l e

Sec.

5 .—

Membership and Rights Thereunder

1. M e m b e r s h ip s h a ll b e o p e n t o a n y v e t e r a n w h o s e r v e d h o n o r a b ly in t h e m i l i t a r y o r n a v a l f o r c e s o f th e

U n ite d S ta te s on o r a f t e r S e p te m b e r 1 6 , 1 9 4 0 , a n d b e fo r e th e
in c lu d in g t h o s e p r e s e n t l y s o s e r v i n g , t h e i r f a m i l i e s

and

o ffic ia lly

su ccessors,

d e c la r e d t e r m in a t io n

and

as

d e fin e d

in

th e

of

W o r ld

M u tu a l

W ar

II,

O w n e r s h ip

C o n tra ct.
Sec. 2. A n
...................

o p tio n t o b e c o m e a m e m b e r s h a ll a ls o b e

e x te n d e d

to

any

te n a n t

o c c u p y in g

an

a p a rtm e n t

at

o n t h e d a te t h e c o n t r a c t o f p u r c h a s e is s ig n e d , a s a m e m b e r w it h f u l l r i g h t s t o p u r c h a s e t h e p e r p e t u a l

u s e a n d e n jo y m e n t o f t h e d w e lli n g u n i t o c c u p ie d b y s u c h t e n a n t o n t h e s a m e t e r m s , s u b je c t t o t h e s a m e c o n d i­
tio n s a n d w it h t h e s a m e p r i v il e g e s , r e q u ir e d o f a n d e x te n d e d to o th e r m e m b e r s o f t h e a s s o c ia t io n , w h ic h




o p tio n

D O C U M EN TS

A N D

FOR M S

USED

119

shall extend and rem ain open fo r a period o f 90 days fro m date o f m ailing o f n otice to such tenant, n otify in g
such tenant o f the term s o f m em bership.
S ec . 3. E xcept a t the discretion o f the board o f directors, m em bership shall be lim ited to persons w ho occupy
or intend to occu py livin g quarters owned by the association except th at fo r a period not to exceed 6 months, a
tem porary holding o f a m em bership interest b y a mem ber, his heirs or assigns, w ithout occupancy, follow in g
volu n tary or in volu n tary term ination o f occupancy o f livin g quarters by the member, w ill be perm itted.
S ec . 4. The jo in t ow nership o f a m em bership interest by husband and w ife w ith righ t to survivorship shall
be perm issible, otherw ise m em bership interest m ust be owned and controlled by an individual natural person.
S ec . 5. The mem bership com m ittee shall consider the m oral ch aracter and the financial ability o f all appli­
cants fo r mem bership and shall approve such applicants and n o tify the board o f directors o f such approval. The
board o f directors m ay then extend a m em bership to the applicant.
S ec . 6. E ach applicant fo r m em bership in this association, as a condition o f m em bership, sh all: (1 ) supply
fo r the in form ation o f the board such data as it shall deem essential; (2 ) be recom m ended f o r mem bership by
the com m ittee on mem bership and approved b y the b oa rd ; and (3 ) agree in w ritin g to abide b y the bylaw s and
all rules and regulations o f the association, and (4 ) p a y such mem bership fe e as the board o f directors m ay fro m
time to tim e provide. One whose application f o r m em bership has been disapproved b y the com m ittee on m em ber­
ship m ay appeal in w ritin g to the board o f directors.
S ec . 7. T he certificate fe e fo r m em bers shall be $1 and no certificate o f mem bership shall be issued
until such fe e has been paid. E ach certificate o f mem bership in the association shall be num bered in order and
shall be entered in the mem bership book o f the association as it is issued. E ach certificate o f mem bership shall
exh ibit the m em ber’s name, recite his m em bership in the association, contain a statem ent o f the requirem ents o f
section 6, article 8 hereof, have plainly printed on the fa c e th ereof the w ord “ N on tran sferable,” and be signed
by the president o f the association and bear the seal o f the association attested b y its secretary.
Sec . 8. Certificates o f mem bership are n ot tran sferable. One w ho becomes eligible to m em bership by succeed­
ing to the righ ts o f a m em ber o f this association and w h o becomes a mem ber o f the association shall be issued
a new certificate o f m em bership.
Sec . 9. M em bership in the association shall cease upon term ination o f the M utual Ownership Contract.
S ec . 10. T he board o f directors m ay at any tim e make a form a l com plaint against an occupant m em ber o f
the association i f the board is o f the opinion th at such m em ber has violated any o f the provisions o f these
bylaw s, or th at he has been gu ilty o f conduct detrim ental to the association, or th at he is fo r any reason unde­
sirable as a resident. A ft e r service upon him o f a copy o f the com plaint and a h earing given him b y th e board
upon his w ritten request f o r such h earin g filed w ith the secretary o f the association, his m em bership, M utual
O w nership Contract, and any other con tract w ith the association m ay be term inated b y the affirm ative vote o f 6 o f
the mem bers o f the board, w hereupon the m em ber’s rig h ts and obligations shall be as provided f o r in such event
in such contracts.
S ec . 11. The term ination o r fo r fe itu r e o f mem bership hereunder shall autom atically revoke the C ertifi­
cate o f M em bership o f th e m em ber affected thereby and such revocation shall be so recorded in the m em bership
book o f the association. U pon term ination or fo r fe itu r e o f m em bership, the fo rm e r m em ber shall surrender his
Certificate o f M em bership to the association. T h ereafter, as and when provided in his M utual Ownership Con­
tra ct o r other con tracts w ith the association, th e board o f directors shall p a y to the ou tgoin g m em ber such sums
as he m ay be entitled to thereunder.
A rticle 6 .— D u tie s o f O fficers
S e c t io n

1. T he president shall—

(1 ) A c t as p residin g officer a t all m eetings o f the association and o f the board o f directors
(2 ) Call special m eetings o f the board o f directors, and o f m em bers o f the association
(3 ) Sign, w ith the treasurer, all checks, contracts, prom issory notes, deeds, and oth er instrum ents on b eh alf
o f the association, except those w hich the board o f d irectors specifies m ay be signed b y oth er persons
(4 ) P erform all acts and duties usually required o f an executive to insure th at all orders and resolutions o f
the board are ca rried into effect, and he shall be ex-officio a mem ber o f all standing committees.
S ec . 2. T he vice president shall—
(1 ) A c t as presiding officer a t all m eetings o f the association and o f the board o f directors when the presi­
dent is absent
(2 ) In the absence o f the president, p erform all oth er acts o r duties ordin arily required o f the president
(3 ) A n d such other duties as directed b y the board o f directors.




120

A P P E N D IX E S

S ec . 3. Should the president and the vice president be absent fr o m any m eeting, the directors shall select
fr o m their num ber a person to a ct as chairm an o f the meeting.
S ec . 4. T he secretary shall—
(1 ) A tten d all (reg u la r or special) m eetings o f the m em bers o f the association and o f the board o f directors
and keep a ll records and m inutes o f proceedings th ereof or cause the sam e to be done
(2 ) H ave the custody o f the corporate seal w hich shall be affixed to such instrum ents as m ay require it and
thereupon shall be attested b y his signature or by the signature o f the treasu rer
(3 ) A ttend to all correspondence on beh alf o f the board, issue n otice o f m eetings, and prepare the regu lar
qu arterly statem ents o f the affairs o f the association
(4 ) Keep th e mem bership book and receive all applications fo r adm ission to m em bership and present such
applications to the board at its n ext regu lar m eeting
(5 ) P ursue such oth er duties as the board o f directors m ay determ ine and on all occasions, in the execution
o f his duties, a ct under the superintendence, control and direction o f said board
(6 ) H ave cu stody o f the m inute books o f the m eetings o f directors and m em bers, w hich m inute books shall
a t all tim es be available f o r the in form ation o f directors.
Sec.

5. T he treasu rer shall—

(1 ) A ttend all m eetings o f the association and the board o f directors

(2) R eceive such sums o f m oney as m ay be paid in to his hands fo r the account o f the association and dis­
burse fu n ds as m ay be ordered b y the board, tak in g p rop er vouchers f o r such disbursem ents, and be custodian
o f all securities, contracts, leases and other im portant documents pertaining to the business o f the association
w hich he shall keep sa fely deposited in a firep roof sa fe or vau lt
(3 ) Supervise the keepin g o f accounts o f all the financial transactions o f the association in books belon gin g
to the association and deliver such books to his successor. H e shall p repare and distribute to all the mem bers o f
the board at least 10 days b efore each annual m eeting o f the m em bers and w henever else required, a sum m ary
o f the financial transactions and conditions o f the association fo r the precedin g year. He shall m ake a fu ll and
accurate rep ort on m atters and business pertaining to his office to th e mem bers a t the annual m eeting and make
all reports required b y law
(4 ) D eposit all fu n ds o f the association in the nam e and to the credit o f the association, in such depositories
as shall be designated b y the board o f directors
(5 ) Sign as treasu rer all checks, and, w ith the president, sign all contracts, prom issory notes, deeds, and
other instrum ents on b eh alf o f the association, except those which the board o f directors specifies m ay be signed
by other persons
(6 ) F urn ish the association w ith indem nity bond against loss f o r such am ount as m ay be determ ined by the
board o f directors, at the expense o f the association

(7) P erform such other duties as m ay be required o f him b y the association o r the board o f directors.
A

r t ic l e

7.— D u tie s

o f M ana ger

1. T he duties o f the m anager shall be—
(1 ) T o m anage and con duct the business o f the association
authorizations o f the board o f directors
S e c t io n

in

accordance

w ith

the

general

policies

and

(2 ) T o engage and discharge the em ployees o f the association subordinate to him in a ccordan ce w ith
au th ority given b y the board o f directors
(3 ) T o cause accu rate books to be kept o f the business o f the association and to subm it the same, togeth er
w ith all files and records and inventories, and other in form ation pertain in g thereto, f o r inspection at any tim e by
the board o f directors o r b y auditors appointed b y the board, certified public accountants appointed b y the board,
auditing com m ittees o f the association or a n y duly authorized representative o f th e Federal G overnm ent
(4 ) T o disburse the fu n ds o f the association in paym ent o f its debts in accordan ce w ith budgets approved
b y the board o f directors and upon authorization by the board, tak in g p rop er vouchers f o r such disbursem ents
(5 ) T o giv e aid, advice, and recom m endations to the board o f directors in preparation o f budgets o r other
estim ates o f expenditures and to fu rn ish to the board a m onthly statem ent in w ritin g o f the condition o f the
association’s business and subm it a report o f the m anagem ent at the regu lar m eetings o f the mem bers
(6 ) T o forth w ith turn over to the treasu rer o f th e association f o r deposit b y him in the corp orate bank
account, any and all sums o f m oney received b y him fo r o r on beh a lf o f the association

(7) T o assist the board o f directors and attend to such other duties and offices as the board o f directors
m ay require.



D O C U M EN TS

A

r t i c l e

8.

A N D

FORM S

USED

121

—Meetings of Members

1. T he regu la r annual m eeting o f the m em bers shall be held on the last W ednesday in Septem ber a t
such tim e and place as designated b y the board o f directors, a t w hich time, in addition to tran sactin g the general
business o f the association, directors and m em bers o f standing and special com m ittees shall be elected and reports
given upon all m atters affectin g the association. N oth in g herein shall be construed to prevent the election b y
the m em bers o f other com m ittees at other regu lar or special m eetings o f the mem bers.
S e c t io n

Sec . 2. Special m eetings o f the mem bers shall be called b y the president w henever he shall deem it necessary
o r as directed by resolution o f the board o f directors or w ithin 5 days o f receipt b y him o f a petition signed by a t
least 10 percent o f the mem bers addressed to the president and m ailed or otherw ise delivered to him.
S e c . 3. N otice o f regu lar and special m eetings shall be in w ritin g and be m ailed or otherw ise caused to be
delivered b y the secretary at least 3 days and n ot m ore than 10 days b efore the m eeting. N otice o f every special
m eeting shall state the object o f such m eeting, and no business oth er than th at specified in said notice shall be
transacted thereat. W henever an y notice is required b y these bylaw s to be given, personal notice is n ot m eant
unless otherw ise so stated, and any notice so required shall be deemed to be sufficient i f given b y depositing the
sam e in a post-office box addressed to the person entitled thereto at his last known post-office address, and such
notice shall be deemed to have been given on the day o f such m ailing.
S e c . 4. The presence o f at least 20 percent o f the m em bers shall constitute a quorum f o r the transaction o f
business a t any m eeting o f the association. I f less th a n a quorum shall be in attendance at any tim e fo r which
a m eeting shall have been called, such m eeting m ay, a ft e r the lapse o f at least one-half hour, be adjou rn ed fro m
tim e to tim e b y a m a jority o f mem bers present. I f notice o f such adjourned m eeting is sent to th e m em bers, such
notice containing a statem ent o f the purpose o f the m eeting and also th at the previous m eeting fa iled fo r lack o f
a quorum , and th at it is proposed to hold the adjourned m eeting w ith a quorum o f those present, then any num ber
o f m em bers shall constitute a quorum a t such meeting.

S ec . 5. T he order o f business at all m eetings o f the m em bers and o f the board o f directors shall be as
fo llo w s:
(1 ) R oll call
(2 ) P r o o f o f due notice o f m eeting
(3 ) R eadin g o f the minutes o f the previous m eeting and action thereon
(4 ) R eports o f officers and trustees
(5 ) R eport o f comm ittees
(6 ) Unfinished business
(7 ) N ew business
(8 ) A djou rnm ent
The parliam entary procedure fo r conduct o f all m eetings shall be governed by R obert’s Rules o f O rder
(R e v is e d ).
S e c . 6. E very mem ber is entitled to 1 v ote only upon all questions com ing b efore any and all m eetings o f
the association. E ach vote m ust be cast in person, and there shall be no votin g by p rox y or b y m ail. P ro v id ed ,
h o w e v e r , I f a m em ber is absent fro m the housing p roject and is th erefore unable to cast his vote in person, his or
her spouse shall be entitled to ca st the vote o f the absent mem ber, upon presentation o f evidence o f said absence
which is sa tisfa ctory to the p residin g officer.

S ec . 7. V otin g (ex cep t in the election o f directors, w hich shall be by secret ballot) shall be v iv a v o c e (b y the
v oice) o r b y show o f hands, unless the chairm an calls fo r a risin g vote, a roll-call vote, or a secret ballot.
A

r t ic l e

9 . — N o n p r o fit R e q u ire m e n ts

1. D w ellin g unit and other services and necessities shall be m ade available to the m em bers o f the
association a t no p rofit to the association. T he charges th erefore as determ ined b y the board o f directors shall be
only sufficient to enable the association to meet its property-pu rch ase am ortization paym ents to the Governm ent,
p a y fixed and operatin g expenses and build up a general reserve f o r contingencies and special reserves to take care
o f m aintenance and repair, vacancies, and the repurchase o f equities fro m w ith draw ing m em bers under th eir M u­
tual Ow nership C ontracts w ith the association.
S e c t io n

S e c . 2. U pon a m em ber’s w ith draw ing fro m membership in the association and leaving the com m unity fo r
em ploym ent elsew here or fo r other valid reasons or causes, said m em ber m ay sell and tra n sfer his or h er net
equity, i f any, and occu pancy righ ts to the association or to another under the term s o f his M utual O w rersh ip
C ontract w ith the association, su bject to the lim itations th at a purchaser and tra n sferee oth er than the associaion shall first be approved by the association to take said m em ber’s place in the dw elling unit vacated.




122

A P P E N D IX E S

A rticle 10.— Auditing
S e c t i o n 1. A committee of 3 persons shall be chosen from among the members of the association by the board
of directors to serve as an auditing committee until the first annual meeting of the members of the association.
Thereafter said committee shall be elected by the members of the association at their regular annual meeting.
Vacancies in said committee shall be filled from among the members who are not directors of the association by
the members at the next regular meeting of members following the occurrence of the vacancy, or at a prior
special meeting called for that purpose. It shall be the duty of the auditing committee to make an audit of the
books of the association twice annually, giving a written report thereof to the members.
S e c . 2. The board of directors shall employ a certified public accountant who is not a member of the associa­
tion to audit the books of the association before each annual meeting of the association. A copy of said account­
ant's report of his audit shall accompany each notice of the annual meeting. Said report shall also be read to
the members at their annual meeting. Provided , however, That in lieu of incurring the expense of said audit, the
board of directors may accept and utilize audits and reports of the Federal Government.
A rticle

11.—^-Fiscal Year

The fiscal year of this association shall begin January 1 and end December 31.
A rticle

12.— Seal

The association seal shall be circular and shall have inscribed concentrically thereon the name of the associa­
tion. Said seal may be used by causing it, or a facsimile thereof, to be impressed or affixed or reproduced, oi
otherwise.
A rticle

13.— Lost Certificate o f Membership

The board of directors may direct a new certificate of membership to be issued for the same cost as the
original in place of any certificate theretofore issued by the association alleged to have been lost or destroyed,
upon the making of an affidavit of that fact by the person claiming the certificate to be lost and the performance
of such further acts and production of such further evidence as the board may require.
A rticle

14.— Copy of Certificate of Incorporation and Bylaws fo r Members

The articles of incorporation and the bylaws of the association shall be printed together in a booklet form
and a copy thereof shall be made available to each memoer of the association, kept up to date by current supple­
ments.
A rticle

15.— Amendments

These bylaws may be amended by a two-thirds vote of the members present and voting (there being a quorum
present at the time the vote is taken) at any regular or special meeting subject to the same limitations and
prohibitions as to subject matter as those set forth in the provisions of the Certificate of Incorporation with refer­
ence to amending the Certificate of Incorporation. Amendments may be proposed by the board of directors or
by petition signed by at least 20 percent of the members containing the exact text of the proposed’ amendment
or amendments, filed with the secretary of the association, who shall mail or otherwise deliver notice thereof to
all members not less than 3 days before amendments shall be voted upon.

Mutual Ownership Contract o f Mutual Association
This Mutual Ownership Contract, entered into this ............... , by and between the ................. Mutual Homes
Corporation, a ............... corporation (hereinafter called the ‘‘corporation"), a n d ................ a member of said cor­
poration (hereinafter called the “ m em ber");
W ITN ESSETH :

That, in consideration of the terms, understandings, and mutual covenants herein contained, it is agreed as
follows:
1. Membership fee. The corporation hereby acknowledges the payment by the member of the sum o f ...........
dollars ( $ ...........) and in consideration thereof extends all rights and privileges of membership to the member.
2. Sale and purchase of perpetual use . Subject to all provisions hereinafter contained in this contract and
for the purchase price hereinafter set forth, the corporation hereby gives, sets over and transfers to the member,
and the member hereby purchases and takes from the corporation, a right of perpetual use and enjoyment (herein­
after called the “perpetual use") of that certain dwelling located a t ............... in the city o f .................. , County of
............... , State o f ..................




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3. M e m b e r sh ip certifica te. T he perpetual use o f each p a rticu lar dw elling shall be delivered by the corp ora­
tion to the mem ber in the fo r m o f a M em bership Certificate, w hich shall be issued by the corporation to th e
m em ber upon the m em ber's agreem ent to com ply w ith all the term s o f this agreem ent, w ith the articles o f in cor­
p oration, bylaw s, and rules and regulations o f the corporation.
4. P u rc h a se p rice o f p er p etu a l u se. T he m em ber hereby agrees to p a y to the corporation as the purchase
p rice fo r said perpetual use o f th a t certain dw elling, as set fo rth in p a ragraph 2 above, the sum o f . . . . dollars
( $ ........... ) , on such term s and conditions and w ith such interest as is h erein after provided.
5. D o w n p a y m e n t. T he m em ber agrees to pay to the corporation as the initial dow n paym ent fo r the perpetual
use o f the prem ises described in p a ragraph 2 above, the sum o f ................dollars ( $ .................. ) , receipt w h ereof is
hereby acknow ledged b y the corporation.
6. B a la n ce du e on p u rch a se p rice o f p er p etu a l u se and m o n th ly p a y m e n ts . T he m em ber agrees to p a y to the
corporation ........... dollars ( $ ........... ) , which is the unpaid balance o f the purchase price o f the perpetual use o f
said p roject, plus interest upon the said unpaid balance a t th e rate o f 4 percen t per annum.
T he m em ber agrees to m ake equal m onthly paym ents o f ........... dollars ( $ ..............) , payable in advance on the
first day o f each and every month. It bein g understood that the m onthly paym ent set fo r th above includes the
m em ber's share o f prin cipal and interest due in accordance w ith the term s o f that certain prom issory n ote and
deed o f tru st executed b y and between the corporation and t h e ............... M utual L ife Insurance Co., reserves, and
other costs as provided f o r in p a ragraph 8 below. I t is fu rth er understood th at the operating ch arges w hich are
included and m ade a p a rt o f the m onthly paym ent as set fo r th above are su b ject to change as required b y the
corporation to m eet said operating paym ents, reserves, and oth er charges, and m ay be increased o r decreased
fr o m tim e to tim e as required b y the corporation, thereby in creasing or decreasing the m onthly paym ent to be
m ade by the mem ber. I t being fu rth e r understood that the prin cipal and interest paym ent w hich is included in
the above m onthly paym ent shall cease at the tim e the total purchase price, plus any other ch arges or costs
assessed b y the corporation, has been paid in fu ll. H ow ever, in an y event, the operating paym ents applicable
to perpetual use purchased b y the m em ber hereunder, and as established b y the corporation fro m tim e to tim e,
shall continue f o r the entire term o f the said perpetual use o f said dwelling.
7. A d v a n c e p a y m e n ts . A fte r 1 yea r fr o m date h ereof, the m em ber shall have the rig h t to make advance p a y ­
ments on the balance due on the purchase p rice o f the perpetual use, p rovid in g said additional paym ents are in
a ccord w ith the schedule o f paym ents. N ot m ore than 20 percent o f the unpaid balance o f the purchase price m ay
be paid in any one year.
8. O p era tin g p a y m e n ts . The m onthly paym ent listed in p a ragraph 6 above includes an operating paym ent to
cover the estim ated cost o f operatin g services, gas and w ater, real-estate taxes, reserves, and other ch arges estab­
lished by the corp ora tion ; such paym ents b y the m em ber fo r operating charges shall be subject to change fro m
tim e to tim e as is required by the corporation.
9. O ccu p a n cy and su b lettin g . T he m em ber shall occu py the dw elling covered b y this con tract as a private
dw elling f o r him self and his im m ediate fam ily , and m ay en joy the use, in com m on w ith all other members o f the
corporation, o f all com m unity prop erty and facilities o f the p roject, so lon g as he rem ains a m em ber o f the
corporation, occupies the dw elling, and abides b y all the term s o f this contract, articles o f in corporation, bylaw s,
and rules and regulations. The m em ber m ay, but only with the p rio r w ritten consent and approval o f th e corpora­
tion, sublease his dw elling du rin g a period o f tem porary absence, f o r a period o r periods, provided th at in no
event m ay the total periods exceed 6 m onths in any calendar year.
10. C o rp ora tion to p ro v id e f o r op era tin g s e r v ic e s , u tilities , and r e s e r v e s . The corporation shall—
(а ) P rovide the necessary m anagem ent and adm inistration o f the p roject
(б ) P a y or provide fo r the paym ent o f all real property taxes and assessments levied against the p ro je ct
(c ) P rocure and pay, or provide fo r the paym ent o f fire insurance on the project, including insurance on the
m em bers' dw ellings, but not on personal p rop erty within the dwellings
(d ) P rovide f o r any w ater and gas, so lon g as these services rem ain on m aster meters
(e ) Set up adequate reserves to cover vacan cy and collection losses and fu tu re cost o f replacem ents
( / ) P rovide and p a y fo r all necessary repairs, m aintenance and replacem ents on the in terior or exterior sur­
fa ces o f com m unity buildings and grounds in said p rojects
( g ) P rovide and p a y f o r the rep a ir and m aintenance o f the ex terior su rfa ces o f all buildings in said p roject,
including the pain ting th ereof
(h ) P rovide each m em ber w ith a kitchen stove, a h ot-w ater heater, and a circu latin g h eatin g unit, w ith the
express understanding that any repairs or replacem ents shall be m ade a t the m em ber's expense.
The w ord “ dw elling” as used in this con tract shall include, am ong other things, the items m entioned in sub­
division (h ) o f Section 10.




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A P P E N D IX E S

11. O blig a tion o f m e m b e r s. T he mem bers shall—
1. C om ply w ith the term s o f this contract, the articles o f incorporation, bylaw s, and regulations o f the
corp ora tion
2. M aintain the lawns, shrubs and trees in the vicinity o f th eir dw elling in a m anner sa tisfa ctory to the
corporation
3. M aintain the in terior o f th eir prem ises in a condition sa tisfa ctory to the corporation, assum ing responsi­
bility , am ong other things, fo r all repairs to w irin g, h eating and plum bing therein, as w ell as all in terior pain ting
an d decorating
4. On leaving the p roject, surrender the kitchen stove, heating unit and h ot-w ater tank to the corporation in
a s good a state o f rep a ir as he received them, reasonable use, w ear and tear th ereof excepted
5. R efra in fr o m alterin g or ch angin g the bu ilding erected on the prem ises or any p a rt th ereof, in any
m anner w hatever, w ithout first obtaining the corporation's w ritten consent thereto
6. P erm it the corporation to m ake periodical inspections o f the prem ises as to th eir fitness and repair, and
perm it the corporation to make rep a irs that the m em ber neglects or refu ses to m ake in accordance with this
con tract, articles o f in corporation, bylaw s, and rules and regulations o f the corporation
7. R efra in fr o m m aking any con tra ct th at m ay create or be the fou n dation o f any lien upon the above
prem ises; in the event any such lien be filed, the m em ber agrees to discharge the sam e w ithin 10 days a fte r the
filing th ereof, a t his own expen se; i f not, the corporation shall have the rig h t to disch arge sam e in a m anner
a p p ea rin g below
8. A gree that, in the event the m em ber does n ot fu lfill his obligations to the satisfaction o f the corporation,
the corporation m ay have any w ork or labor p erform ed which in its ju dgm en t is necessary, or disch arge any
lien, and ch arge the cost to the m em ber; i f such a ch a rg e is n ot paid w hen it accrues, it shall be added to and
becom e a p a rt o f the unpaid balance o f the purchase price, and bear interest therewith.
12. C o rp o ra tio n r ig h t to p u rch a se. In the event the m em ber wishes to leave the p roject, o r sell his perpetual
use, the corporation shall have the sole rig h t to purchase the perpetual use o f the m em ber fo r an am ount equal
to the purchase p rice (as set ou t in p a ragraph 4 a b o v e ), less the unpaid balance o f the purchase price, an d less the
estim ated cost o f m aintenance, repairs, p ain tin g and decorating w hich are necessary to place th e dw elling in suit­
able condition fo r an oth er occupant m em ber; o r in an am ount equal to the then fa i r m arket value o f the perpetual
use o f the m em ber, as determ ined b y the board o f directors o f the corporation, less the unpaid balance o f the
purchase price, and less th e estim ated cost o f m aintenance, repairs, pain ting and decorating as outlined above,
w hichever is the lesser. E xcept that, in the event th at the fa ir m arket value o f the perpetual use o f th e m em ber
is, as determ ined b y the board o f directors, h igh er than an am ount equal to the purchase price, less the esti­
m ated cost o f m aintenance, repairs, painting, and decorating which are necessary to place th e dw elling in suitable
condition f o r another occu pan t m em ber, then the corporation shall p ay to the m em ber such higher am ount less
said unpaid balance o f the purchase price, and less the estimated cost o f m aintenance, repairs, pain ting and
decorating as is set fo rth above.
13. E x c h a n g e o f d w ellin g. I f the m em ber wishes to m ove into another dw elling in the p roject, he m ay make
w ritten application th erefor to the corporation, and upon the approval o f the corporation, m ay m ove in to such
oth er dw elling w henever a suitable vacan cy occurs. In such event, he shall p ay fo r an y m aintenance, repairs, pain t­
ing, and decoratin g necessary to place his form er dw elling in suitable condition f o r another occupant, and a
new con tract w ill be entered into w ith ap p rop riate changes in the purchase price, and in the prin cipal and
interest paym ents and other n ecessary provisions.
14. T r a n s fe r b y d ea th o f m e m b e r . In the event o f the death o f the mem ber, his perpetual use o r any interest
therein m ay be devised to his heirs or representatives, provided that, i f such perpetual use o r interest is so devised
to a person other than an im m ediate m em ber o f the m em ber’ s fa m ily, such person shall n ot be perm itted to occu py
the prem ises, n or shall he be entitled to becom e a m em ber w ithout the p rio r approval o f the corporation. In the
event the corporation refu ses m em bership to such successor in interest, the term s o f paragraph 12 shall apply
herewith.
15. T erm in a tio n o f co n tra ct. In the event o f default b y the m em ber o f an y paym ents or charges required
under this con tract, o r violation o f an y other provisions th ereof, the corporation m ay term inate this contract
upon 10 days’ w ritten notice m ailed to the mem ber. The corporation m ay also term inate this con tract in accord­
ance w ith A rticle I, Section 9 o f the bylaw s, w hich are hereby m ade a p a rt o f this contract. In the event o f
term ination under this p aragraph , o r in accordan ce w ith A rticle I, Section 9 o f the bylaw s, the corporation m ay
purchase the perpetual use upon the term s set fo r th in paragraph 12 herein.
16. S u rr e n d e r o f d w ellin g. T he m em ber agrees,
ever, to quit and surrender the dw elling occupied b y
as when delivered to the m em ber, ord in a ry use, w ear,
cessor in interest, b y operation o f la w o r otherwise,




upon the term ination o f this con tract f o r any cause w hatso­
him to the corporation in as good rep a ir, ord er and condition
and tea r excepted. T h e mem ber, f o r h im self and an y suc­
hereby w aives a n y and all notice and demand f o r possession,

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and agrees that, upon termination of the contract, the corporation may immediately reenter and fully recover
the member’s dwelling and dispossess the member, or any successor in interest, without legal notice or the institu­
tion of any legal proceedings whatsoever.
17. Observance of mutual ownership principles. The member covenants that he shall preserve and promote
the mutual ownership principles upon which the corporation has been founded, abide by the articles of incorpora­
tion, bylaws, and rules and regulations of the corporation, and by his active cooperation with its other members
bring about for himself and his comembers a high standard in home and community conditions.
18. Peaceable possession. If the member makes the payments herein required and performs all of the condi­
tions and agreements of this contract, articles of incorporation, bylaws, and rules and regulations of the corpora­
tion, and remains desirable as a member within the discretion of the board of directors, the corporation covenants
that at all times while this contract remains in full force and effect, the member may peaceably have and enjoy
for his sole use and benefit the property herein described, and may enjoy, in common with all other members of
the corporation, the use of the community property and facilities of the project.
In witness whereof, the parties hereto have caused this contract to be signed and sealed on the date first
mentioned above.

Members of

Mutual Homes Corporation.

B y ...............

President.
By

S ecretary .
Financial Questionnaire
TO THE M E M B E R : The purpose of this financial questionnaire is to assemble the pertinent facts concerning
the individual member’s ability to finance a home. In order to protect the stability of the group as a whole,
the association would not want the member to undertake more than he can afford. The information you
supply on this form will be treated in the strictest confidence. Only the financial advisor will see your
answers. Therefore, please supply as accurate information as you can, and please return form to M r ................ ,
a t ............... , b e fo r e ................ .
C O N FID E N T IA L

C O N FID E N T IA L

C O N FID E N TIA L

Name of member........................................................................... Mailing address......................................................................
.................................

Telephone...............................

Age of wage earner..............................................

Are you a World War II veteran?......................................

A.

Employment status:

W ife

Husband
1. Name of employer..............................................................
2. Address of employer.........................................................

2.

3. Employer’s business .........................................................

3.

4. Position held .......................................................................

4.

5. Name and title of superior............................................

5.

6. Number of years in present employment..................
B.

1.

6.

Life insurance record:
1. Total amount in force $. .

2. Cash surrender value $ .............

3. Dividend accumulations $

4. Outstanding loans on policies $




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APPENDIXES

5.

Total annual cost of life insurance premiums $ .........................

6. Would you be willing to buy life insur­

ance on your life to the extent of the unpaid balance due on your house?...............
C.

Property owned:
1.

Bank accounts

Amount $
(N am e o f bank)

Amount $

2. Other savings ...........................................................................
(N am e o f depository)

3. Investments:
a. Marketable securities (present market value) $ . .
b. Other investments $ ..............................................
4. Real estate (do not include Housing Association property) :
a. Present sale value

$ .....................................

b. Mortgage outstanding $ .....................................
c. Your equity
D.

$ .....................................

Income. (Professional and business men should show net income after deduction of business expense and
overhead)

Husband
1. Basic salary for year

W ife

? .

2. Overtime, summer pay, etc. .
3. Total net income from rents .

$ ..

4. Income from other sources .

?. ■

Total income .
E.

Amount owed. (Do not include any mortgages listed in Section C (Property) of this questionnaire.)
1. Accounts payable $ ............................................................

How paid?

2. Automobile installments

$ ............................................

How paid?

3. Other installments $ .........................................................

How paid?

4. Notes payable $ ..................................................................

How paid?

5. Total amount owed $ .......................................................
F.

Cost of house:
1.

G.

Down payment: Maximum you are able to pay $ .

Next year’s income:
1.

W'hat would you estimate your income at, for next year?
A. For certain $ ............................................
B. Probable maximum $. . . .

H.

Note: Return questionnaire to:




Maximum you are willing to pay $. . .

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Bylaws of Community Council
A r t i c l e 1.—

Name

In accordance with the needs and wishes of the residents of ............... , who are organized into th e................
Housing Corporation and the provisions of the amended bylaws of the corporation, Article II, Section (b), there
is hereby created an operating unit of t h e ............... Housing Corporation which is to be known as the ..................
Community Council.
A rticle II.— Purposes and Responsibility
Section 1.— Purposes. The purposes of this organization shall be—
(a) To encourage and supplement mutual housing i n ........... by endeavoring to satisfy the recreational and
leisure-time needs of the residents o f ............... through a well-planned program of activities.
( b ) To establish policy, rules and regulations for the use of community facilities.
( c ) To sponsor, support, and encourage community activities of general benefit to the residents of . . .
( d ) To coordinate community activities in .................
(e) To participate in local efforts of national drives for the general welfare.
Sec. 2.— Responsibility, (a) In carrying out these purposes, the council shall be governed by these bylaws
and the bylaws of the ............... Housing Corporation, its rules and regulations, and actions and decisions of the
membership and the board of trustees.

(b)
These purposes shall be carried out with the aid and advice of the tenant aide of the corporation, desig­
nated by the board of trustees.
A rticle III.— Membership
S e c t i o n 1. ( a )— Composition. The ............... Community Council shall be composed of 15 members, chosen by
members of the corporation at annual elections, procedure for which is herein detailed. In addition, the president
of the ............... Housing Corporation shall be a member ex-officio.

(b )
— Term of office. The first council shall consist of 8 members elected for a period of 2 years, and 7
•members elected for a period of 1 year; thereafter, elections shall be held to fill vacancies for a period of 2 years.
(c ) — Vacancies. Where a vacancy occurs on t h e ............... Community Council for any reason other than
normal expiration of term, the vacancy shall be filled by the remaining members of the council at the next
general election of the membership, when vacancies shall be filled for the unexpired term.
S e c . 2.— Honorary memberships shall be extended to the chairman of the Township Committee, the executive
director of t h e ............... Housing Corporation, the president of the Board of Education, the principal of the
............... School, and tenant aide of the corporation.
S e c . 3. (a) Each authorized organization in ............... shall be entitled to one delegate to the council or an
alternate in the absence of the delegate, who shall be recognized as the official representative of that organization
for purposes of council business. Such delegate shall have voice but no vote.

( b)

Authorization procedures shall be as follows:

1. Applications for authorization shall be made to the council in writing, specifying the purposes of the
organization, the number of members enrolled, names of delegate and alternate. Such application shall be referred
to the executive committee of the council. The executive committee of the council shall make recommendations
for action on the application at the following council meeting.
2. Any organization complying with the council's aims and purposes shall be acceptable to the council, and
acceptance shall be noted at a regularly called council meeting upon majority vote.
3. No organization shall be denied membership because of race, creed, or political affiliation.
4. Change in designation of organization delegate and/or alternate must be filed with the community
council one council meeting prior to change becoming effective.
A

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IV . — Election Procedure

S e c t i o n 1. An election committee, chosen
nected with the elections.

by

the council, shall be responsible for all procedural details con­

Sec. 2. The executive committee of the council shall constitute itself as the nominating committee.
S e c . 3. Elections for membership on t h e ............... Community Council shall take place annually at the May
quarterly membership meeting of the corporation; the first election to be held May 1949.




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S e c . 4. E very m em ber in good standing o f t h e ............... H ou sin g C orporation shall be eligible to one vote, or
have his vote cast by his spouse.

Sec . 5. A n y m em ber in good standing o f t h e ............... H ousing C orporation or one o f his fa m ily , at least 21
years o f age, m ay be placed on the ballot by—
(а ) D esignation o f council nom inating comm ittee.
(б ) Presentation o f petition w ith 15 signatures o f corporation m em bers, no la ter than 2 weeks b e fo re the
election date.
S e c . 6. N otices o f election dates shall be posted on center bulletin boards, noted in the official tow nship new s­
paper and publicized in any other fo r m w hich the election com m ittee m ay see fit, n o later than 3 weeks p rior
to the election date.

Sec . 7. V ote tabulation shall be m ade w hile an authorized representative o f the board o f trustees o f th e
................H ousing C orporation is present.
A

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V .— O fficers

1. The officers o f the council shall be a president, vice president, treasurer, a record in g secretary*
and a correspon din g secretary.
S e c t io n

S ec . 2. These officers shall be elected fr o m th e m em bership o f the council a t the regu la rly scheduled m eetin g
in M ay and shall im m ediately assum e the duties o f th eir office.
S ec . 3. A ll officers shall serve f o r a term o f 1 y e a r ; or until th eir successors are elected and have qualified.
S ec . 4. In case o f a vacated office, such office shall be filled b y an appointm ent b y the president, to fill the
unexpired term , except in the case o f the president, w h o shall be replaced b y the vice president.
A

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V I.— D u tie s o f O fficers and M e m b e r s

1. D uties o f officers shall be as fo llo w s:
(а ) T h e president shall preside ov er all m eetings o f the com m unity council and the executive committee*
and shall appoin t all com m ittees unless otherw ise directed.
( б ) T he v ice president shall p erform the duties o f the president in his absence.
(c ) T he record in g secretary shall be in ch arge o f all correspondence.
(d ) T he treasu rer shall be responsible fo r collecting and disbursing all m oneys o f the council and k eep in g
an accu rate record o f same. T he treasu rer shall have records ready f o r au diting in A p ril or October.
(e ) S ign ators o f all checks shall be the treasu rer and president o r v ice president.
( / ) A n y officer w ho does n ot sa tisfa ctorily p erform his duties m ay be rem oved fr o m office b y m a jo rity v o te
a t a regu lar m eeting o f th e council.
( g ) A n y m em ber absent fo r three consecutive m eetings w ithout acceptable excuse m ay be rem oved by
m a jo rity vote o f the council.
S e c t io n

A

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V II.— C o m m itte e s

S e c t io n

1. The executive com m ittee shall consist o f all officers o f the council.

S ec . 2. The council shall create such subcommittees as it m ay deem necessary to accom plish its stated p u r poses.
A

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V III.— R e c r e a tio n A sso c ia tio n

S e c t i o n 1. T he com m unity council shall sponsor a R ecreation A ssociation, w hose fu n ction it shall be to a ssist
in the ra isin g o f council fu n d s and the planning, supervising, and conducting o f recreation program s, except as
otherw ise provided.

S ec . 2. The com m unity council shall designate one o f its m em bers as a representative to the R ecreation
A ssociation.
Sec . 3. T he R ecreation A ssociation shall be recognized as an a u t h o r iz e d ................organization.
Sec . 4. T he R ecreation A ssociation shall p rovide the Com m unity Council w ith a w ritten rep ort on its activi­
ties and finances as requested b y the council.
A

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IX .— J u n ior C ou ncil

S e c t i o n 1. T he Com m unity Council shall sponsor a Ju n ior Council com posed o f teen-agers, w hose fu n ction it.
shall be to assist in the ra isin g o f council fu n ds, and the plan n in g and ca rry in g out o f educational, recreational
and leisure-tim e program s fo r the teen-age residents o f .................




D O C U M E N T S

A N D

F O R M S

USED

129

S e c . 2 . T he Com m unity Council shall appoint an a d u lt representative to the Ju nior Council, w hose duty it
shall be to coordinate th e activities o f both groups.

S ec . 3. T he Ju nior Council shall be recognized as an a u t h o r iz e d ............... organization.
S e c . 4. T he Ju n ior Council shall p rovid e the Com m unity Council w ith a w ritten rep ort on its activities and
finances as requested b y th e council.
A

r t ic l e

X .— A th le tic A sso c ia tio n

S e c t i o n 1 . T he Com m unity Council shall sponsor an A th letic A ssociation, w hose fu n ction it shall be to assist
in the ra isin g o f council fu n d s and the planning, su pervisin g and con ductin g o f all athletic p rogram s f o r ............... ,
ex cep t as otherw ise provided.

S ec . 2. The Com m unity Council shall designate one o f its m em bers as representative to th e A th letic A sso­
ciation.
S ec . 3. The A th letic A ssociation shall be recognized as an a u t h o r iz e d ............... organization.
Sec . 4. T he A th letic A ssociation shall provide the Com m unity Council w ith a w ritten rep ort on its activi­
ties and finances as requested b y the council.
A

r t ic l e

X I .— M e e tin g s

S e c t i o n 1 . M eetings o f the Com m unity Council shall take place on ce a m onth on the fo u rth T uesday o f each
month. Council m em bers and authorized representatives shall receive at least 72-hour notice o f regu lar m eetings
and at least 48-hour notice o f special m eetings.

S ec . 2. Special m eetings m ay be called b y the presiden t o f the council, or upon application to the president
f o r sam e b y 8 o r m ore m em bers o f the council. N otices o f such special m eetings shall contain a statem ent o f the
special business fo r w hich the m eeting is bein g called, w hich shall be the only order o f business.
S ec . 3. E igh t m em bers shall constitute a quorum fo r regu lar or special m eetings. Three m em bers o f the
execu tive com m ittee shall constitute a quorum at executive com m ittee m eetings.
S ec .
1.
2.
3.
4.

4. The order o f business fo r general m eetings o f the council shall be as fo llo w s :
R oll call
5. Com m ittee reports
R eadin g o f the minutes
6. Unfinished business
R eadin g o f com m unications
7. N ew business
F in an cial rep ort
8. A djou rn m en t

S ec . 5. The executive com m ittee w ill m eet separately fro m the Com m unity Council a t such times as it is
deem ed necessary fo r the purpose o f form u la tin g plans a n d /o r recom m endations fo r presentation and final
action o f the council a t a regu la r or special m eeting.
A

r t ic l e

X I I .— F in a n c e s

S e c t i o n 1. M oneys accum ulated b y th e Com m unity Council shall be entered into a general fu n d, and shall be
expended as the council sees fit, provided that expenditures are consistent w ith the stated purposes o f this grou p.

S ec . 2. N o subdivision or com m ittee o f the council m ay m ake com m itm ents as to disbursem ent o f any fu n d s
raised b y th at com m ittee w ithout au th ority o f the council a t a regu la r or special m eeting.
Sec . 3. A n annual financial rep ort shall be submitted at the regu lar m em bership m eeting o f the Com m unity
C ouncil in A pril.
Sec . 4. T h e ................ H ousing C orporation shall not be financially com m itted in any w a y b y the council,
except upon express action and consent b y the corporation, in accordance w ith its bylaw s.
A

r t ic l e

X I I I .— A m e n d m e n ts

Am endm ents to these bylaw s m ay be proposed at regu lar or special m eetings o f the council, and i f passed
b y a m a jority o f the m em bers present can then be presented to t h e ................H ousing C orporation o r the board o f
trustees th ereof f o r final action. U pon approval o f the m em bership, o f t h e ................ H ousing C orporation o r the
board o f trustees th ereof, the amendments shall be deemed as adopted.
A

r t ic l e

X I V .— A n n u a l R e p o r t

A n annual rep ort o f the activities and finances o f the council shall be m ade by the council at the M ay
mem bership m eeting o f the corporation.




Appendix

C.—

Information

for

N e w

Groups

S u gg estion s f o r S tartin g a H o u s in g C o o p e ra tiv e 1
1. Select a steering committee from among those interested, bearing in mind that these persons will prob­
ably become the first board of directors.
2. Send out properly prepared questionnaires to those interested, to determine the general location, type
of house, size, price, etc., desired, plus the ability to pay for such a house.
3. Analyze the returned questionnaires in order to determine the price, class of house, and the neighborhood
in which such houses would be in character.
4. Select a site near schools, business centers, transportation, churches, parks, utilities, etc., giving thought
to securing interesting contours in the land site.
5. Obtain an option on the land for as long a period of time as possible, paying as little as possible for the
option, in order to work out land planning, financing, etc.
6. Organize a cooperative association, keeping in mind its purpose and also making it legally workable.
An attorney’s advice should be sought at this point.
7. Get your engineering and land planning done by the best talent available.
8. Retain a competent architect to draw up the house design, working drawings and specifications. Be
sure that all changes in house plans are made before the construction contract is closed; otherwise, they will be
charged for as “ extras.” It is advisable to hire a local architect; he will then be available to supervise con­
struction. He should be experienced, practical in outlook, know local materials, codes, and contractors, as well as
F H A regulations and procedures.
9. Be certain that your senior financing, construction financing, etc., is done by a competent person.
10.

Be certain that your sales program and junior financing is worked out in a sensible manner.

11.

Be sure that the obtaining of bids, letting of contracts, etc., is properly safeguarded.

12.

Provide for supervision of work and regular inspections thereof.

13.

Be sure to have the proper auditing set-up before, during, and after construction.

14.

Draw up a management program, to function during and after the construction period.

15. Lastly— and this is one of the most important steps— set up all possible safeguards to protect those
interested in the plan from TH E M SE L V E S, from noncooperative members, as well as from those outside who
are antagonistic.
Regulations and Procedures Under Section 213 of National Housing Act of 19502
C o o p e r a tiv e
th e
th is
to

h o u s in g

G o v e rn m e n t
fo r m

o f e n te r p r is e

d e s c r ib e

in te r e s te d
te c h n ic a l
m is s io n e r

in

g r o u p s

a n d

W a s h in g to n ,
B r ie fly

a n d

D .
th e

C o o p e r a tiv e
e ith e r
w h ic h

a n d

a s s is ta n c e
o f

th e

r e g u la tio n s

b e

ty p e ”

S ta te

S ta te s

en a ctm e n t
im p e tu s .

is

o f

a

In

is

n o t

th e

o ffic e s

a v a ila b le

to

n ew ,

S e c t io n

p r o je c t.

d is tr ic t

C o o p e r a tiv e

o f

b u t

th e

s u p p o rt

a n d

e n co u ra g e m e n t

o f

th e

H o u s in g

A c t

o f

2 1 3

ste p s

o u tlin e d

b e lo w

F u ll in fo r m a t io n
o f th e

th e

fie ld

H o u s in g

a n d

n o

o ffic e s

D iv is io n ,

a n d

is

b y

H o u s in g

th e

o f

h a s

g iv e n

b een

m a d e

a v a ila b le

A d m in is tr a tio n .

g r o u p s

F e d e ra l

a tte m p t h a s

g u id a n c e

F e d e r a l H o u s in g

1 95 0

to

a ll

F u r th e r

A s s is ta n t

C o m ­

A d m in is tr a tio n

in

C .

I.
m a y

U n ite d

th e

d e v e lo p m e n t

a t th e

s ta ff

th e

b y

tre m e n d o u s

d e ta il th e

a d v ic e

in

in d ic a te d

h o u s in g

“ m a n a g e m e n t
p e r m its

a n d

p ro ce d u re

p r o je c ts
ty p e ”

r e le a s e

o f

m u st

w ith

a re

a s

fo llo w s :

c o n s is t

o f

o ccu p a n cy

d w e llin g

to

n o t

lim ite d

th e

le s s
to

in d iv id u a l

th a n
th e

12

d w e llin g

c o o p e r a tiv e

m e m b e rs

a fte r

u n it s .

m e m b e rs,

A

p r o je c t
o r

c o m p le tio n

“ s a le s
o f

th e

p r o je c t .3

1 A dapted from an outline draw n up by one o f the housing
associations covered in the study. F or detailed instructions on start­
in g a housing association, see U . S. Bureau o f L abor Statistics
Bulletin N o. 858: O rganization and M anagem ent o f Cooperative
and Mutual H ousing A ssociations. That pam phlet m ay be obtained
fro m the Superintendent o f Docum ents, Governm ent P rin tin g Office,




Washington 25, D. C., for 20 cents per copy. Money order or check
should accompany order; postage stamps are not acceptable.
2 Material in this section was supplied by Warren J. Lockwood,
Assistant Commissioner, Federal Housing Administration.
3 These terms correspond to “ all-the-way cooperatives” and “ co­
ventures,” used in this report.

130

131

INFORMATION FOR NEW GROUPS
II.
in

A

g o o d

h a v e

c o o p e r a tiv e

fa ith

to

a g re e d

g r o u p

se cu re

(a m o n g

s p e c u la tiv e

r e s a le

r e c o g n iz e d

th a t

fo r

in v o lv in g
s e r v ic e s

o w n

III.

In

s u ffic ie n t
th e

th e

e a r ly

to

IV .
w h o , if
tu re ,

A

o r

to

le g a l
a

w h o

o r

h a v e

a g re e d

a m o n g

E a c h

m e m b e r

p r o je c t.

a c q u ir e

fo r

h is

a c c o m m o d a tio n s
s k ille d

in

s e r v ic e s

A r c h ite c ts , b u ild e r s

is

o w n

in c lu d e d

in c o r p o r a to r s ,
g r o u p s

a g e

h o u s in g

o cc u p y

r e q u ir e

ex p e n se s.

b e co m e

o f

b u ild

d w e llin g

w ill

c o o p e r a tiv e

th e

F H A

in te r e s t

b e e n

c o o p e r a tiv e

b u ild in g

b y

g r o u p

h a d

sta g e ,

r e s tr ic te d

to

in

o r

th e

p e rs o n s

in te n t

o f

o n

m u st

a n d

a ls o

n o t

p r o je c t.

fo r

I t

is

p la n n in g

a n d

r e n d e r in g

a tto rn e y s

o ffic e r s

th e m s e lv e s

u se

o r g a n iz in g ,

a n d

s to c k h o ld e r s ,

n o t

th e

b e

fe e

p a id

F e d e ra l

s h o u ld

so m e

p a y m e n ts

a p p lic a t io n

s h o u ld

a p p ro v e d

p o s s ib le , h a v e

o r

th e

o r g a n iz a t io n a l

c o v e r

p a r tic ip a tin g
h a s

in

to

su ch

c o o p e r a tiv e
a c q u ir in g

a

c o r ­
h o m e

o ccu p a n cy .

o n ly

m e m b e r

o f

g r o u p s

n o t

p e rs o n s

a n d

p e r s o n a lly

n o rm a l fe e s

m a y

M e m b e r s h ip

th e ir

o n e

c o o p e r a tiv e

o f

s ite

th in g s )

p r o fit

p r o fe s s io n a l

fo r

c o n s is ts

s u ita b le

o th e r

c o n s tr u c tio n

p o r a t io n s .

a

a n d

u n til

a fte r

H o u s in g

fo r m

a

T h e

c o m m itte e

b y

m e m b e rs

th e

s h o u ld

ex p e n se s.

c r e d it

b e

T h e

s ta n d in g

in

a n

fu ll

o f

a m o u n t

a m o u n t

th e

o f

in d iv id u a l

A d m in is tr a tio n .

c o m m itte e

p r a c t ic a l e x p e r ie n c e

c o n s tr u c tio n .

m a d e

m is c e lla n e o u s

in

c o n s is tin g

o f

n o t

le s s

th a n

m o rtg a g e

fin a n c in g ,

re a l

ta k e

fo llo w in g

ste p s

s h o u ld

th e

5

m e m b e rs

e sta te ,
to

a r c h ite c ­

a c h ie v e

its

p u r p o s e :

1.
s it e s

T h e

a n d

c o m m it t e e

fu r n is h

p r o fe s s io n a l
o n

th e

la n d

th e

w ith

2.

A fte r

a

fe e

re q u e st

d e ta ile d

to

o f

th e

E lig ib ility ”
in c lu d in g
P r io r
p re se n t
th a t

to

th e

r e lia b le

A ft e r

th e

F H A

p e r io d

S ig n

is

la w s

w ith

a

h a s

o f

b e e n

th e

T h e

th e

p la n s ,

th e

lo a n

w ith

a n y

“ S ta te m e n t

w r it t e n

lo c a l

th e

o f

N o

o ffic e ,

m a k e
F H A

s p e c ia l

fr o m

a n
o ffic e

th e

o f

w ill

b y

th e

c o m m itte e
o f

w ill

th en

E lig ib ilit y .”

p a id

w ith
e t c .,

o f

th e

A n

req u est.

s u ffic ie n tly

r e p la c e m e n t

a

“ S ta te m e n t

o f

F H A

“ S ta te m e n t

o f

to ta l

th e

is s u e

th e

th e

co s t

to

th e

b y

ch a rg e d

w ill

sta g e .

su rv e y s,

c o n d itio n s

a n

is

e s tim a te

A tta ch e d

e s tim a te

fe e

b e

p la n s .

A d m in is ­

A d m in is tr a tio n

“ S ta te m e n t
m u st

fo u n d ,
o p tio n s

flo o r

H o u s in g

p r e lim in a r y

F H A

E lig ib ility ”

s ta te m e n t

H o u s in g

is

fo r

ty p ic a l

F e d e ra l

s p e c ific a tio n s ,
to

a v a ila b le .

s h o w in g

th is

re q u e ste d

A d m in is tr a tio n

in s p e c t s u c h
s ite

a n d

th e

p r o je c t.

a

to

p la n s ,

o f

fo r

o ffic e

a c c e p ta b le

n e g o tia t io n s

s ite

in

lo c a l

a n

h a n d le

F e d e ra l

a p p lic a t io n
a m o u n t

to

o ffic e

p ro p o s e d

p r e lim in a r y

to g e th e r

a

lo c a l

re n d e re d

b y

a n

in fo r m a tio n ,

o r

th e

p r o je c t,

r e q u ir e m e n ts .

F H A

a p p ro v e d

o f

th e

c o m m it t e e

m o rtg a g e e

to

th e

m u st
e ffe c t

a rra n g e d .

p r o c e s s in g
fo r

u p

b y

th e

p e r m itte d

th e

a p p lic a tio n

c o n s tr u c tio n

a t

b e e n

ch a r te r




le a s t

b e

F e d e ra l

a

p r o s p e c tiv e

to ta lin g

h a s

o f

p r e lim in a r y

th e

m a d e

A n a ly s is ”

lo c a l F H A

o f

b y

th e

th e F H A

p r o je c t ,

th e

c o m m it t e e

in c lu d in g

s h o u ld

stre e ts,

o b ta in

u tilitie s ,

b id s

o ff-s ite

e tc.

10 p e rce n t m a y
In su re

fo r m

fin a n c in g

is s u a n c e

c o m m itte e

in g

th e

o f

m o rtg a g e

s ig n e d

o b ta in e d

A n a ly s is .”

m o rtg a g e

b y

th is

a

is

re q u e st th e

b e

th e

s e r v ic e s

H o u s in g

im p r o v e m e n t s ,

in

to

o ffic e

o f

in s u r e d

o f

th e

F H A

$ 1 ,0 0 0

“ P r o je c t

co n tr a c to rs

th e

( a)

a

is s u a n c e

a ssu ra n ce

fo r

a n a ly s is

th e

o n

th e

su rv e y s,

a c c e p ta b ility

F e d e ra l

B a se d

a n d

o f

a n d

m o st a d v a n ta g e . W h e n

s h o u ld

s u b m itte d

a c c o m p a n ie d

th e

b e

th e

im p r o v e m e n ts ,

to

b e

in d ic a tin g

p e rm a n e n t

3.

p e r

p r o je c t.

la n d

D u r in g
fr o m

w ith

m u st

w ill

is

s it e s
th e

s e r v ic e s

P r e lim in a r y

g e n e ra l

file

e n a b le

E lig ib ilit y ,”

fo r

$ 1 .5 0

o f

o ffe r s

p r e p a r a tio n

p r e lim in a r y

to

a v a ila b le

w h ic h

A d m in is tr a tio n

th e

p o s itio n

a p p lic a tio n

co s t

th e

H o u s in g

fin d

to

m a te r ia l

“ R e q u e st

d e t e r m in e

in

T h e

a

a s

a r c h it e c t u r a l

th is

F e d e ra l

b e

a n d

a n d

tr a tio n
th e n

le g a l

c o m p le te d ,

W h e n

s h o u ld

a d v ic e

p e r io d

a d d it io n a l

9 0

p e rce n t

o b ta in e d

is s u e d .
a n d

H o u s in g
o f

T h e

o f

9 0

to

m e m b e rs
th e

su b se q u e n t to
c o o p e r a tiv e

b y -la w s

A d m in is tr a tio n

d a y s

a c c o m p lis h

o n

u n its

th e

9 0 -d a y
s h o u ld

to

th e

F H A

o f

p e r io d
b e

th e

th e

S u b s c r ip t io n

d w e llin g

g ro u p

s a tis fa c to r y

o f

th e

“ S ta te m e n t

A g re e m e n t fo r m s
p ro p o se d

a n d

a fte r

in c o r p o r a te d

p r io r

to

o f

E lig ib ilit y ,”

fo llo w in g :

th e

p r o je c t .

th e

u n d er

F H A

a p p ro v e d
T h e

C o m m itm e n t

a p p r o p r ia te

s o lic it a tio n

o f

b y

r e m a in ­

S ta te

m em b ers.

132

APPENDIXES
(b)

F u r n is h

sta te m e n t

o n

th e

F H A

in d iv id u a l p r o s p e c t iv e
w ill

b e
(

lo c a l

fo r m s

F H A
a n d

o ffic e

a

w ith

c r e d it

co o p e ra to r.

T h is

a

lis t

r e p o r t

o f

p r o s p e c t iv e

p re p a re d

lis t m u s t

b e

b y

a

m e m b e rs,

to g e th e r

s a tis fa c to r y

fu r n is h e d

b e fo r e

a

c r e d it

w ith

a

b u re a u

c o m m it m e n t

fo r

c r e d it

fo r

ea ch

in s u r a n c e

is s u e d .

c)

A r r a n g e

fo r

a n

a p p ro v e d

m o rtg a g e e

to

m a k e

a p p lic a t io n

to

th e

F H A

fo r

m o rtg a g e

in s u r a n c e .

V .
w ill

W h e n

is s u e

is s u e d ,

V I.

th e

s h ip

o f

c o r p o r a t io n ’s

fo r

th e

fo r

th e

th e

m o rtg a g e
in s u r a n c e

a tto rn e y

tr a n s a c tio n

b a la n c e

th e

t im e

fo r
fo r

in s u r a n c e
o f

th e

s h o u ld
s u b m it

a n d

p re p a re
th em

to

is

fo u n d

m o rtg a g e
a ll

le g a l

th e

a c c e p ta b le ,

lo a n .

A s

so o n

d o cu m e n ts

F e d e ra l

th e
a s

lo c a l

th e

n e ce ss a ry

H o u s in g

F H A

o ffic e

c o m m it m e n t
fo r

c lo s in g

A d m in is tr a tio n

is

th e

c lo s in g

r e v ie w .

T h e

th a t

a p p lic a t io n

c o m m it m e n t

m o rtg a g e

a tto rn e y

A t

th e

fir m

th e

in s u r e d

o r d e r

a

o f

o f th e

r e q u is it e
th e

c lo s in g

c o o p e r a tiv e

p r o je c t .

In

c lo s in g .




ca sh

a m o u n t
o f

d o w n
o f

th e

lo a n ,

c o r p o r a tio n

p r o je c ts

o f

th e

p a y m e n t

ca sh

m a y
if

m u st
“ s a le s

r e q u ir e d

b e

th e

p r o je c t

to ta l
t y p e ,”

o f

a v a ila b le

a t le a s t

is

o f

90

h o w e v e r,

ea ch

fo r

m e m b e r m u st n o w

th e

th e

o f

th e

“ m a n a g e m e n t

p e rce n t
100

c lo s in g

o f

th e

p e rce n t

t y p e ,”

n u m b e r

b e

lo a m

o f

m e m b e r s h ip

o n

h a n d

in

tr a n s a c tio n .
th e

m e m b e r­

u n it s

p la n n e d

is

r e q u ir e d

a t

Appendix D.— Experiences of a M utual
T h e
a n

fo llo w in g

e x a m p le

o f

a cco u n t, ta k en

w h a t

som e

o ffic e r s

fr o m
h a d

th e
to

re p o rt
co n te n d

o f

th e

o ffic e r s

w ith ,

ev en

o f

on e

w h e n

m u tu a l

n o

a s s o c ia tio n ,

s p e c ia l

p r o b le m s

g iv e s
w e r e

e n co u n te re d .

The final days of September of 1948 were hectic days for our attorney, for the ............... , and for the
officers of the association. Here is what took place:
1. Last-minute changes in many of the documents had to be made by request of FH A . This involved re­
writing, retyping, and reassembling without regard to Saturdays, Sundays, and late hours.
2. Forty-eight hours before the deadline, the bank required a series of further changes in documents to
satisfy its interests.
3. Seventy-two hours before the deadline, the title insurance company raised a whole series of questions
which had to be cleared up:
(а) Unpaid mortgages against portions of the property.
(б) Mining rights for coal, gas, and oil running under our property.
(c)

Rights of way owned by utility companies which might pass over our property.

( d ) A discrepancy between our survey of the property and the Government’s legal description, even though
the Government’s engineer made the survey for us.
( e ) Proof of tax payments by the PH A.
( /)

Proof of no violation of zoning laws.

4. Insurance coverage had to be negotiated and arranged for to satisfy F H A and the bank.
5. Revisions in the inventory and chattel mortgages had to be made.

6. Arrangements to take over the delinquent rents, by our paying these rents, had to be made.
7. The bank had to be satisfied as to all arrangements because this bank furnished the funds and then
sold the mortgage to t h e ............... bank.

8. The mortgage and title had to be substantially rewritten, because of the confusion over the survey of
the property.
All these matters were taken care of primarily because of the determination and hard work of our attorney.
Three days prior to the deadline, the closing conference was called off by Government officials but the association
insisted on proceeding, confident that the obstacles would be overcome.
On the night before the deadline, a major obstacle was erected when the banking representatives insisted
on three tax-reserve accounts— one for a school tax, one for city tax, and one for county tax. This move would
have forced an immediate outlay of three times as much as had been budgeted by the officers of the association.
W e presented an alternate plan providing a single tax reserve adequate to meet all tax payments when due.
After long debate, this was finally accepted.
On the final day, new problems arose with the local bank. There, again, the work of our attorney suc­
ceeded in solving this last problem and the purchase was completed.
It is not really possible to fully describe the 8-month period during which the association worked toward
the purchase of the project. The help and cooperation of a large portion of the members made possible the defeat
of many hostile groups and the solution of extremely intricate problems. Our thanks to Mr................... . a regional
director of the F H A , must be expressed. He was not only cooperative, but gave valuable advice and guidance.
The final several days were the most difficult since so many problems and so many different interests and
groups were involved. However, the success finally achieved justified the work done, the patience shown and the
cooperation achieved.




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133