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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
indebtedness
insurance
.............................................................
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
M e m b e r ’s d o w n
...........................................................
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
....................................................................
Mortgage
F i n a n c i a l status
30
33
....................................................................
Mortgage
C o s t to m e m b e r
...........................................................
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
aspects
............................................................... . .
......................................................................
56
.......................................................................
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
C h a p t e r VIII.—
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 ...................................................
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
b u ild in g .
h a s
a t
b een
le a s t
fa r
a tta in e d
to ta l
th e
h a v e
fa r
in
b a c k
g r e a t
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
th e
S in c e
II, h o w e v e r, th e re
I .—
o f
p re s e n t
s tu d y
as
e x c lu d e
su ch
s ig n ifi
r e s i
W o r ld
W a r
th o se
sh o rta g e .
S o m e
s u lte d , in
th e
C o n g re ss
o f
T o
le g is la t iv e
c lu d e d
d e ta ile d
th is
o f
b y
th e
T h e
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 .)
th e
Definition o f Terms
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 ,
s e r v ic e s ,
t io n
a s s o c ia tio n s
o n ly
if
p r o je c t
co n tr a c to r,
o f
th e
a s s o c ia tio n
a n d
(3 )
th e
w e r e
o r
p o lic ie s
d e t e r m in e d
a n d
o f
fr o m
th e
th o s e
“ c o o p e r a tiv e s ”
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
o r
s e ll
a s s o c ia tio n
c o o p e r a tiv e ),
th is
w e re
th e ir
k in d ,
fo r
th e
s u rv e y
a
w e r e
th e
th e
in it ia t iv e
od s
fe e .
com es,
s e llin g
re a l
e sta te .
W h e n
r ig h t
is
s o m e
u p
u s u a lly
m a y
b e
little
a s
b y
th e
c o n tin u e s
th e se
fo r m e d
its
fa c ilitie s ,
fo r
th a t
p u r
a s s o c ia tio n s ,
fe e -s im p le
a n y
v a lu e
o f
th e
t it le
99
a
to
b e
h o ld s
th e
to
In
th e
o w n e d
t it le
o r
th e
is
o f
a
u n it
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
th e
to
fo r
la tte r
a n d
b y
in
p a r tic u la r
n o ta b ly
a p a rtm e n t
e n tir e
fa c ili
s to ck
le a s e h o ld
y e a rs,
u s e .”
th e
c o m m u n ity
r e c e iv e s
r e c e iv e
a t
ca se
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
la tte r
th e
tr a n s fe r a b le
r e n e w a b le
2 1 /2
In
a rea ,
co m m o n
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
(w a te r -
c o m p le te d .
n e v e r
to
h o u s e s ),
o f b u s in e s s
in
c o n tin u e s
“ p e rp e tu a l
o u t
ow n ed
m e m b e r
d oes
a n d
T h e
th e
H e
th e
p la y g r o u n d
T h e
th e
th e
sev era l
fa c ilitie s
o r
b e—
b u t
v a r y in g
o f
In
r e a lto r
to
o c c u p ie s ,
r ig h t
is
is
m a y
d w e llin g .
d e
it
tie s
th e re
g o e s
m a n a g e
a ll-t h e -w a y
a s s o c ia tio n .
a ll-th e -w a y
d e v e lo p in g
r e c e iv e s
d w e llin g s
h e
o p e ra te
o n ce
o r
a s s o c ia tio n
a n d
c o -v e n tu r e
p ro p e r ty —
o r g a n iz a tio n
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
d w e llin g
th e
th e
m e m b e r
d id
o r i
o f
w e re
c o o p e r a tio n
o r g a n iz a tio n
to
stu d y
o f
b u y in g
p a rk
c o o p e r a tiv e
a ll
th e
a p a rt
s tip u la te d
In
th e
p u rch a se rs
to
n e w
In
r e a l-e s ta te
e v e n tu a lly
o r
h is
o r g a n iz a
b y
a
th is
o r
p ro p e rty
o rd e r
in
on e
c o m m u n ity
h o u s in g
in
w a s
p e c u n ia r y
a t
m e m b e r s h ip .
in d iv id u a l
(a r
e ith e r
th e
o r
p ose.
n o n p r o fit
d on a ted
T h e se
th e re b y
m a n a g e m e n t
o f
e n tir e
e x is te n c e
in it ia
o f w h ic h
T h e
la tte r
b u y e rs.
w e re
th e g ro u p
a
w h ic h
b u ild e r s
th e
th e
c o n tr o lle d
n o t
g in a lly
w a s
e t c .)
m e m b e rs
c o v e r
(1 )
w ith in
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
in
d e g re e
a s s o c ia tio n
a re
a
b e
h a d
a c t iv itie s .
c o n s tr u c tin g
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
m a k e
c o -v e n tu r e
a s
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
re p o rt.
In
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 la s s ifie d , in
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
a
o n
th e
n o
it
a s th e se
s p o n so r
c o o p e r a tiv e s .
in fo r m a tio n
th e
in
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
S ta te s.
m o v e m e n t,
b y
A g e n c y .
a c tiv ity
g a in
h o u s in g
th e
U n ite d
fin a n c e d
F in a n c e
se v e re
S ta te le g is la t u r e s a s w e ll a s in
th e
h o u s in g
H o u s in g
th e
re
u n d e rta k e n
t is t ic s ,
b y
a ls o
p r o v id e
o p e r a t iv e
w a s
s tim u la te d
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
th e
o f
in c r e a s e d
a n d
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
w a y
th e
co
(3 )
to
s u r v e y
o f
b e lie f
to
th e
c o o p e r a tiv e
a d o p te d
o f
a n
c o
d ep en d
c o -v e n tu re s .
th e
c o v
A ll
th e
d iffic u lty
g e n u in e ly
o r
o f
b e
c o o p e r a tiv e
“ m u tu a l”
g r o u p .
In
a lly
u sed
b u y
w a r
th e
to
d e s ig n a te
a ls o
s o -c a lle d
s io n
w o r d
n o t
fo r m e d
to
tu re s
b e ca u se
ra th e r
th a n
S o m e
on
th e
so m e
o n e
o f
in
th e
ste p
h o u s in g
J u ly
1 95 0 .
in
h e re
th e y
d e p re s
P u e r to
R ic o .
a s s o c ia tio n s
c la s s ifie d
o p e ra te
a s
A
a ls o
b u t
G o v e r n m e n t-b u ilt
a re
th a t
w e re
h o u s in g ;
as
c o -v e n
c o -v e n tu re s
th e
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
in
o r
o th e rs
a s
w e ll
(th e
as
th e
on
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
i.e .,
o f th e
m e m b e rs
h o m e s ;
h a v e
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
ty p e s
th e
o f
z a tio n
b o th
th e
in
c o m p le te d
p r o fe s s io n a l
a n d
la n d ,
a n d
th e
n a ry
th e
T h e
th e
a n d
a g e
o f
fie ld
te st
o f
its e lf
L a b o r
s iz e
a
in fo r m a tio n
o n
to
w a s
th e
p o in ts
to
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 ”
th e
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
its e lf
w e r e
a ls o
H o u s in g
F in a n c e
in
m a d e
C o r p o r a tio n ,
s a m p le
to
it
m a n y
th e
o f
d e ta ile d
lis te d .
M a n y
in
th e
w e r e
ca ses,
W h e re
a n d
w a s
B u re a u
re c o r d s
A d m in is tr a tio n ,
a n d
b e fo r e
in t e r v ie w e d
v is ite d .
in
p r e lim i
m a d e
fr o m
a s s o c ia tio n
w a s
A
th e
a b o v e
w e r e
th e
in c o m e
s e le c te d
o f
o f
in fo r m a tio n
b eg u n .
op e n e d
o w n
a n d
s c h e d u le
m e m b e rs
m o r tg a g e ;
fa m ily
o b ta in e d
p r o
o r g a n iz a t io n ,
th e
stu d y ,
m e m b e rs
th e
w a s
w h o
s p a ce
o b ta in e d
h ea d .
th e
to ta l
d w e llin g
p h a ses
fa m ily
in
th e
o f fin a n c in g th e
fu r th e r
th e
th e ir
liv in g
a ll
o f
a n d
u t ilit ie s ,
p e r
lo n g -te r m
o f
on
o f
a s
th e
ro o m s
co n s tru c
in to
s o u rce s
co u rse
a n d
la n d ,
fe e s ,
s a le s p r ic e
su ch
o f
o f
c h a r a c te r is tic s
o f
e n te r in g
fin is h in g .
In
a n d
r e p r e s e n ta tiv e
S ta tis tic s ,
a n d
to
o r g a n i
c o n s tr u c tio n ,
s p o n so rs,
a s s o c ia tio n
b y
d e s ig n e d
a ctu a l
h is to r y
d is
lo c a tio n .
a n d
fin a n c in g
th e
a n d
o f
a n d
a n d
w a s
fo r
v a r io u s
m e th o d
r e la te d
th e
th e
a c t iv e
co s t
a n d
m e m b e rs,
E v e r y
s e le c te d
th e
in v e s tig a to r s
on
stu d y
w e r e
ch o se n
g e o g r a p h ic
a m o u n t
p r o b le m s
th e
in
a d d it io n a l
c a r e fu lly
w a s
u n d e r
ite m s
m e th o d s
fo r m a tio n
a b o u t
41
d w e llin g s
p r o je c t ; th e
fo r m a tio n
s iz e ,
o r
c o n s tr u c tio n ,
th e
p r o je c t.
its
o f
s e r v ic e ,
to
a
m a te r ia ls
o th e r
r e la tio n
th e
o r
s c h e d u le
d w e llin g s ;
o f th e
on
d is s o lv e d
(b o th
o n
n u m b e r
c o n s tr u c tio n
co s t
le a s t
a n d
p la n n e d
th e
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
p r o je c t ;
th ese
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
o ffic e r s
h e re
o r
m e m
e ith e r
in t e r v ie w ,
s o lv e d ),
o f
t im e
o n
T h is
b a s ic
a b o v e
o f
T h e
m a il.
c o n s tr u c tio n
o th e r
is
v a r y in g
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
p ro ce s s
F r o m
v is ite d
p r o je c ts
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
v id e d ; th e
b u ilt
th e
p r o v id e d
1 55
in
th e
h o u s in g
n a m e
o f
c la s s i
b u y in g
th e ir
a ll
S TA TE S
c ir c u la r iz e d
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
o f
b u y
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
a
th e
b y
s m a ll
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
S ta te s
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
U n ite d
h o u s in g
m en t. In
h a d
a s s o c ia tio n s
U N IT E D
s tu d y
fir s t
th e
m e th o d .
T h e
T H E
th e
a ll-th e -
a p a rtm e n t,
IN
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
th e
d e s ig n a te
a n d
a ls o
(1 )
th o se
a n
is
in
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
m a in
s o c ia tio n s
th e
p a st
e m p h a s is
th 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
p r o v is io n
t iv e s
o f
A ll
in
in
a s s o c ia tio n s
E a s t
o f
th e
th e
w e r e
in
o f
th e
A lto g e th e r , 2 9
P u e r to
w e r e
a s s o c ia tio n s w e r e
S ta te s,
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
in s u r a n c e
A c t,
w e re
p e r io d
su ra n ce
to
to
th e
w e r e
th e
g r e a te s t
th e
th e
Y o r k
n u m b e r.
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
p e r io d
in c lu d e d
m o n th s
a d o p te d
m o r t
In
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
th e
la n d
d e v e lo p e d
$ 1 5 2
a n d
a v a ila b le .
o th e r
T h e
a s s o c ia tio n s
o f th e
d w e llin g
c ity
w a s
u n it
o f
c ia tio n
s o lv e d
fo r e
9 69
a t
2 0 ,5 2 5 .
In
w ith
w a s
le s s
d w e llin g s
fo r c e d
to
h a d
o f h o u s in g
th e
th a t
la w , a n d
$ 1 ,0 0 0
in
a n
a cre
s o c ia tio n s ,
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
th e
8
7
h o ld
p r o je c ts
a b o u t
to ta l
fr o m
T h e
th e
4 0
r e la tiv e
v a r io u s
ca ses
stu d y
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
h a d
la r g e s t
in c o r p o r a te d
fo r
to
a cre
th e
to
o f
a n d
o f
o r
v o lu n te e r
th e
th e
a nd
th e
A ll
w o r k
m o re
ra n g e d
in
S om e
fo r
p r o j
m a n y
m e m b e rs
w a y s.
fo r
$ 5 ,0 0 0 ,0 0 0 .
h o u s in g
o f
a s
a cre
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
la n d
th e
e x p e n d it u r e s
in
v a r io u s
o ff
th a n
a n
s tu d ie d
m o re th a n
a sso
n e a r ly
le s s
$ 2 ,9 9 9
$ 3 ,0 0 0
in v o lv e d
in
p e r
r e p o r tin g .
(s ite
p e rce n t
p r o je c ts
$ 2 5 ,0 0 0
th e
fo r
w a s
a n d
a n d
o f
n in e -te n th s
on
4 0
p e rce n t.
m a d e
th a n
g r e a te r
g r e a tly . C o s ts w e r e r e d u c e d
th e
c o n s tr u c tio n .
m e n t
la n d
a n
co sts
$ 1 ,0 0 0
2 0
m e m b e rs
o f
m u ch
co s t
d is tr ib u tio n
F in a n c in g
n is h e d
th e
p e rce n t,
ite m s
a p a rtm e n t
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
e c ts v a r ie d
th e
b e tw e e n
le s s t h a n
p r o c
q u it.
c o o p e r a tiv e s
o f
w e r e
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
th e
s ite )
p r o je c ts
b u ilt
o f
co o p e ra
tim e
p la n n e d ,
c o s t ly
a fte r
p la n n e d
a d d itio n ,
a cre
le s s
a ll
n e w
c o n v e n ie n tly
p e r
d e v e lo p m e n t
th e
a cre .
sew er,
c o s t lie r
$ 1 ,0 0 0
in c lu d e d ,
th e
th e tra ct.
co s t
th a n
co o p
p e r
w h e re
g e n e r a lly
on
th e
th e
b eca u se
d w e llin g s
b y
b y
o f
o c c u p ie d
th e
w e r e
a ll
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
th o se
u t ilit ie s
o th e rs, b u t
u n im p r o v e d ,
$ 1 ,6 0 0
c itie s
u sed
o u t
in c r e a s e d
in
m u ch
th e
in e x p e n s iv e
w a s
n e a r ly
a ll
la n d
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
a s s o c ia tio n s
o f
a n d
in
e a r n in g
in to
ca ses
fr o m
d e n s ity
th e
s u b d iv id e d
a p a rtm e n ts
$ 4 ,0 0 0
to ta l w e re
w e n t
e x p e n se s
o r
la r g e
to
w e r e
a d v a n ta g e
D e v e lo p m e n t
b y
th e
o f
a fte r
1 95 0 .
T h e
M o s t
h o u se s
th e
$ 2 ,0 0 0
fifth
E v e n
in
m e m b e rs
y e a r.
o f
a
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
p e r
m o st
w a te r,
Summary o f Findings
165
th a n
th e
b o d ie s .
c o n s is te d
o f
tw o -th ir d s
L e ss
o b ta in
a p p r o x im a te ly
T h e
in c o m e s
fe w
v e te ra n s ’
r e lig io u s
N a tio n a l
u n d e r
in
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
w a s
th a t
th e
F o r
la b o r
w ith
o v e r
to
T h e
2 -y e a r
a b o u t
o r
e r a t iv e .
T h e
S ta te ;
u n d e r
o r
a n y
r a c ia l
N e a r ly
b u ild in g
co s t
N e w
a n d
C o s t o f 'p r o je c ts :
s it u a t e d .
A tla n tic
h a d
in c lu d e d
b ra ck e t.
a n d
C o lu m b ia ,
w e re
1 94 9 .
la r g e s t
M id d le
(G r e a te r
in
la n d .
a p a rtm e n t
h a d
fa m ilie s
$ 5 ,0 0 0
th e ir
a ct
c o o p e r a tiv e .
c o o p e r a tiv e
o f
o f
a n d
th e
ly
th is
o f
la w .
sp o n so rs
T h e
a ct
o r g a n iz e d
c o o p e r a tiv e
g a n iz a tio n s ,
re p re
th e
h a d
g r o u p s
o u t s id e
co n
A tla n tic
T h e
c o o p e r a tiv e s
s p e c ific a lly
o f
w e re
D is tr ic t o f
in s u r a n c e ,
n o n p r o fit
m a n y
F e w
s k ir ts
m a jo r it y
m u tu a ls
th e
a s
p o r a tio n
co u n try .
re g a r d s
o p e r a t io n s
th e
in
re p re s e n ta
w h e re
in
th e
A ll o f
S ta tis tic s .
in c lu d e d .
Y o r k
fa r
b y
g ro u p s
m a in ly
u n it s ,
s ig n ific a n c e
M id d le
S ta te s, th e
R ic o
a c t iv ity
S ta te s
a rea s
to ta l
p r o je c t
o n ly
e n g a g e d
g r e a t
th e
th e
th e ir
h o u s in g .
U n ite d
o f
ty p e s
a p a rtm e n t
L a b o r
a s
b eca u se
little
v is ite d
T h e
C e n tra l
p r o p o r tio n s
a n d
o f
stu d y .
N o rth
th e
n e w
w e re
B u re a u
r e g io n s
sen ted
fo r
on
o th e r
th e ir
h a v e
u n d er
h a lf
w ith in
p r o p o r tio n
a n y
a s s o c ia tio n s
1 95 0
th e
o f
th e y
w a s
stu d y ,
th en
o p e r a tio n
a p a rtm e n t
s tr u c tio n
stu d y
c o m p le te d
S in c e
w ith o u t
3
S U M M A R Y
co n su m e rs ’
s m a lle r
fie ld
o r
d w e llin g s
th a n
o f th ese
a g o .
c o n s e q u e n tly
k n o w n
in
b u ild in g
c o o p e r a tiv e s
m a jo r it y
m a n y
in
sta g e .
d e ca d e .
s ta g e s , e ith e r
d w e llin g s
c o n s tr u c tio n
co v e re d
g r e a t
a t v a r io u s
fe w
a c t iv e ly
a p a rtm e n t
w a s
a
A N D
ev en
b y
n on m e m b e rs.
in s u r a n c e :
o f
th e
a n d
th e
m o n e y
o v e r
a
m o n e y
m o rtg a g e
M e m b e rs
w a s
fo r
fifth
fo r
th e
o f
th e
th a t
d o w n
s u p p lie d
b y
fu r
p u r
fo r
p a y
th e
4
C O O P E R A T IV E
m e m b e rs
o f
m u tu a ls ,
a n d
b e rs
o f
a ll-t h e -w a y
w h ic h
R a te s
o f
p e rce n t.
b y
th e
a s s o c ia tio n s
fin a n c in g
th e
a n d
m e m
b u ild in g
w e re
h a d
ra n g e d
th re e -fo u r th s
p a y in g
ra n g e d
a s s o c ia tio n s
p a id
4
p e rce n t
fr o m
w ith
5
th e
b u ilt
a rra n g e m e n ts
a s s o c ia tio n s
in te r e s t
A lm o s t
p e r io d s
a s s o c ia tio n s
th r e e -te n th s
th e c o -v e n tu r e s th e h o u s e s w e r e
in d iv id u a l
c e r n in g
t io n s
a p a rtm e n t
n e a r ly
th e
h ou ses. In
u n d e r
th e
H O U S IN G
to
3
th e
le s s .
4 5
4 5 -y e a r
re co rd .
fr o m
o f
o r
n o
co n
to
6
a s s o c ia
M o r tg a g e
y e a rs .
p e r io d
ects
v a r io u s
co v e re d
re a so n s, fe w
in
th e
s tu d y
m u
o f th e h o u s in g p r o j
h a d
r e c e iv e d
F H A
in
to
u s u a lly
th e
m em ber:
p a id
a
w a s
O n
jo in in g ,
m e m b e r s h ip
a s s o c ia tio n s
w h ic h
o r
th e
u sed
fe e
a m o u n t
to
c o v e r
th e
(in
w a s
m e m b e r
n e a r ly
$ 5 0
s o m e
o f
o r
h a lf
le s s ),
th e
in it ia l
le s s
th a n
ca ses
co s t
it
p e r
lo t
$ 1 0 0
to
ra n g e d
o f
to
$ 3 ,5 0 0
fr o m
p a y m e n ts
a n d
in d iv id u a l
m e m b e r
$ 4 ,0 0 0 .
In
$ 7 0 0
s u b d iv id in g ,
D o w n
th e
$ 3 ,6 4 0
in
h o u se s
o n
th e
to
p u ttin g
on
th e
th e
in
u tilitie s ,
$ 3 9 0
p e r
t io n s . T h e
c ia tio n s
ro o m
d o w n
in
fr o m
th e
th e
5
flo o r
w a ll
a n d
th e
4 0
o f
a s s o c ia
r e p o r tin g
p e rce n t
ca ses
co
w a s
a sso
o f
to ta l
a b o u t
10
w a te r
p o rch e s,
T h e
a
a tio n s
th e
to
2 -b e d r o o m
b u ild in g
a ll-t h e -w a y
$ 1 5 ,0 0 0 ,
$ 5 ,0 0 0
ra n g e
y e a r -o ld
t io n .
m o s t
fo r
a
w a s
T h e
fr o m
b e ca u se
o f
w a r
a
p r ic e
fr o m
2
w a ll
a n d
b y
o f
th e
(in
in
fr o m
s e lf-h e lp )
sa m e
a
2 5 -
n e w
to
to
s iz e
3 0 -
co n s tru c
h o u s in g —
w e re
$ 1 ,6 1 9
to
to
S ee
v a r ia tio n
liv in g
o r
a b se n ce
ta b le
b u ild in g
th e
sp a ce ,
co st
la r g e ly
o f
c o s t ly
30.
c h a r a c te r is tic s :
o n e -s to r y
in
o f
T h e
a v e ra g e
e ith e r
fr a m e
a n d
c ilitie s
w e r e
w a te r
In
e a ch
in
th e
in
H o t
g a s
w a te r
a ls o
g a r b a g e -in
a n d
la u n d r y
b a s e m e n t).
on e
o f
A ll
tw o
th e
b u ild in g s
fa
o f
th e
s to r ie s )
w e r e
o n e
o r
b u ild in g s
o f
m a s o n r y
c o n s tr u c tio n .
T h e
fin is h e d
in
c h e a p ly
o f
th a n
a s s o c ia tio n s .
s to r a g e
a n d
in te r io r s
a n y
T h e y
cu p b o a rd
s m a ll-to -m e d iu m
in
a n d
th e
o f
th e
p r o v id e d
sp a ce,
a
g a s
r e fr ig e r a to r , a n d h o t-
o u t s id e
m a jo r
T h e
a d d it io n
g a rd e n
to
w e r e
m e m b e r
lo o k in g
sp a ce,
In te r n a l
if
w a s
la r g e r
o r
(s u ch
th e ir
a
m e m b e r
m e m b e r s h ip ,
a
p r o v id e
a s s o c ia tio n
la r g e
th a t,
m u st
m e m b e r ’s
o n
r e
b y
th e
to
ta k e
m in o r r e p a ir s ,
d o o ry a r d
m u tu a ls )
th e
a n d
T h is
a n d
m u st
it
th e
fo r
is
a ll-t h e -
o r g a n iz a
m u tu a ls )
m e m b e rs
oth e rs
on e
o f
th e
o f
a d
a s s o c ia tio n .
to
a
w ith d r a w
o f
s p e c ifie d
g iv e n
In
th e
fr o m
c o -v e n
p e r io d ,
th e
th e
fir s t
o p t io n
on
th e
a ll-t h e -w a y
a s
(h o u s e s , a p a r tm e n ts , a n d
c o o p e r a tiv e
a n d
la r g e
n e w
w h e re b y
w is h
fo r
b e
o f a ll t y p e s
m e m b e r
o f
d w e llin g .
w ith ,
th e
p r o p o r tio n
s o c ia tio n s
b e g in
T h e
a s
d w e llin g s
s iz e .
o f th is t y p e
S h o u ld
h is
p r o v is io n s
s m a lle r
v a n ta g e s
a fte r
a p a rtm e n ts
h a v e
e x ch a n g e
e x te r io r
e x p e cte d
a n d
a r r a n g e m e n ts :
b u ild in g
g e n e r a lly
a n d
c a r r ie d
a n y .
a s s o c ia tio n s
tio n s
m a in te n a n c e , a n d
in te r io r
m u tu a ls
a s s o c ia tio n .
th e
in c lu d e d
k itc h e n ,
a n d
c a r e o f in t e r io r r e d e c o r a tio n
to
u s u a lly
th e
o f
h e ig h t
h ea ter.
p a ir s
th e
in
s e m id e ta c h e d
stru ctu ra l
m a y
u s u a lly
flo o r
(e x c e p t
a lm o s t a ll c a s e s ,
w a y
w e r e
o r
ty p e s
ra n g e , a
o f
C o m
e le v a to r s .
r o w
m in im u m
ty p e s
b a sem en ts,
r e fr ig e r a to r .
on
m u tu a ls
m o re
o th e r
h o t-
fu e l.
ra n g e d
p r ic e
s u p p lie d ,
b u ild in g s
o r
fo r
e ith e r
a n d
c a b in e ts
w e r e
a u to m a tic
fr a m e
h a d
a n d
a n d
p o p u la r
g a s
h o t-
ra n g e ,
H o t-a ir
o r
s to r ie s . T h e
ch u tes
th e
k itc h e n ,
g a s
b u ild in g s
a u to m a tic
tw o -s to r y
th e
m o st
o il
m a s o n r y ;
(u s u a lly
p o s tw a r
w e re
in
d w e llin g s
flo o r
h ea t
m o st
p r ic e
g a ra g e s.
12
c in e r a to r
th e
$ 3 ,6 5 5
to
ra n g e ,
in
$ 7 ,0 0 0
fe w
o th e r
fr o m
tu re s
p re s e n ce
fa c ilitie s .
a
th e
a s s o c i
c o -v e n tu r e s
fr o m
w id e
r e la tio n
C o n s tr u c tio n
th e
u n it .
a ls o
th e
c o m m u n ity
w a s
$ 1 2 ,6 0 0
c o s t in g
2 -b e d r o o m
in
th e
b u ilt
$ 1 ,0 0 0
to
m u tu a ls —
w a s
a m o n g
h ou ses,
a p a rtm e n t
b u ild in g )
h o u se s
h o u se
a m o n g
h o u se
a n
m o d e ra te ,
T h e re
o f
d e ta ch e d
a
F o r
d w e llin g
a s s o c ia tio n s r a n g e d
a n d
(fo r
$ 1 6 ,0 0 0 .
th e
o r
Ite m s
ro o m ,
th e
e ith e r
a p a rtm e n t
b r ic k
h a d
w e r e
o r
w o o d .
d w e llin g
r e fr ig e r a to r .
w ith
p a r a tiv e ly
a n d
th e
u t ilit y
a
h e a t
h e a tin g ,
in
c a b in e ts
h ea ter,
s o m e tim e s
in
p e rce n t.
F o r
a n d
w a te r
th e m u tu a ls ,
a p a rtm e n t
to
m a jo r it y
b u ild in g
a ll-t h e -w a y
p a y m e n t in
ra n g e d
co st, b u t
in
e t c .).
a v e ra g e d
a s s o c ia tio n s
in
o f
(in c lu d in g
d w e llin g s
th e
fr o m
m a jo r it y
$ 1 ,2 0 0
v e n tu r e b a s is , r e s p e c t iv e ly , $ 2 5 1
a n d
ra n g e d
m a s o n ry
in c lu d e d
In
co s t
S TA TE S
c o m b in a tio n
e x p e n se s.
T h e
U N IT E D
c o m m o n ly
a n d
su ra n ce .
C ost
T H E
T h e
w e r e
tu a ls .
F o r
IN
is
lo o k
to
fo r
o w n s
th e
th e
p ro p e r ty
a s s o c ia tio n
r e d e m p tio n
o f
th a t
h is
I N T R O D U C T I O N
e q u ity .
In
h a s
r e s p o n s ib ility
th e
so m e
a c c e p ta b le
to
ca ses,
th e
h o w e v e r,
o f
fin d in g
c o o p e r a tiv e ’s
th e
a
m e m b e r
r e p la c e m e n t
b o a rd
o f
d ir e c
to rs.
T h e re
m u la
is
o n
c o n s id e r a b le
th e
b a s is
o f
v a r ia tio n
w h ic h
th e
in
th e
e q u ity
fo r
is
to
v a r ie d .
In
(1 )
of
c o o p e r a tiv e s :
th e a s s o c ia tio n
ou sn ess,
o rd e r
th e y
T h e
o f
T h e
s tu d ie d
th e ir
p r o b le m s
w e r e
m a n y
a n d
a n d
s e r i
im p o r ta n c e
w e r e :
m a tte r
o f
o b ta in in g
fin a n c in g
a n d
w a s
o f
T h e
lo n g
b e in g
th a t
b e in g
w a s
tr y in g
t io n ,
b e in g
b y
a n d
V A ,
o r
in c r e a s e s
a n d
(3 )
a
in
a ll
th e
w a y ,
a n d
lo s s
r e s u lt
o f
a t
a
to
th e
th e
z o n in g
p ro ce sse d
o f
m a te r ia ls ,
h o u s in g
in
th a t
(2 )
o c
a b o v e
w e r e
fr o m
e ith e r
(2 )
p r ic e d
e ls e w h e r e
fa m ily
n eed s,
o f
a s s o c ia tio n
th e
o r
lo s t
to
p r ic e ,
w e r e
in v o lv e d
fin d in g
o u t r e la tio n s h ip s w ith
o r
r e g u la tio n s ,
on
th e
in
s u ita b le
o v e r c o m in g
u t ilitie s
M
s it e ,
o r
la n d
a d ju s t in g
in s ta llin g
a n d
w o r k in g
a r c h it e c t , c o n tr a c to r , a n d
A
R
5
Y
c o n s id e r
its
in c lu d in g
e ffe c ts
o f
a n d
w h ic h
th e
T h e
th e
o f
In
It
ca se
b u t
a ls o
th e
c o o p e r a tiv e s
p r o je c t
th e y
ca n
o f
c a r r y
a n
o f
tw o
a lw a y s
a n d
m o re
su ch
a ttra ct
o n ly
h a v e
p r ic e
a n d
o cc u rre d
in c r e a s e s ,
fie ld
fr o m
stu d y ,
1.
in
th e
fo llo w in g
C o m m o n
a d d it io n
a d v a n ta g e
w h ile
th e
a ll
to
in
th e
th e
h o ld in g
B e fo r e
th e
fo r
a
th e
r e a c h e d :
m e m b e rs,
h o u s in g ,
m e m b e r s h ip
a re
b e in g
c o m m u n ity
s ta r tin g
w e re
a m o n g
n eed
p r o b le m s
co n d u ct o f th e
2.
c o n c lu s io n s
in te r e s ts
th e
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
o n ly
to
o f
w h ic h
a n d
th e m s e lv e s
th e y
a re
su re
th e
h a d
b e e n
th e
a
h o u s
e x p e ct
r e la tiv e ly
th e
h ig h -
e x p e r ie n c e
p e r io d
s till
n e w
h ou ses
m u ltip le
th e r e fo r e
th a t
to
T h is
c o n tin u e d
s in g le
th a n
d u r in g
w h ic h
th e
T h a t
in
(2 )
a b le
p r o je c t.
s im p ly
ca n
p r o je c ts
a s s o c ia tio n s
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
th e y
T h e re
w e re
n o
a s s o c ia tio n s
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
p o in t
la n d ,
to
th e
d e v e lo p m e n t
co s t
a s
ite m s .
m a y
b e
th ese
fo r
th e
p r o b
in
la r g e
in
th e
o u t
th a t
s iz e
o f
A
b u ild in g
s a v in g s
o f
d o
p r o je c t.
c o n s id e r a t io n
m a tte rs
a s
u tilitie s ,
ro a d s,
r e a s o n a b le
m o re
n o t
a m o n g
w ith
su ch
s o b e r
c o u ld
in h e r e n t
a d v a n ce
co s t
th e ir
a n d
s tr iv e n
e x p e r ie n c e d
in c r e a s e
a c q u ir in g
a n d
fa ilu r e s
h a v e
s e lf-h e lp
d o w n -to -e a r th
c o u ld
c la im e d
h o w e v e r,
n e c e s s a r ily
th e ir
p r o b le m s
w h a t
in d u s tr y ,
n o t
s tu d ie d , th e
fo r
o f
P e rs o n s
b y
o f
(1 )
w h ic h
p r o je c t s .
d is c lo s e d
b een
p e rs o n s
s a v in g s
fa c ts
o r
set
a sso
fin a n c ia l
la r g e -s c a le
p r o je c ts
b r a c k e ts ;
M a n y
th e
a
c o o p e r a tiv e
n o t
a p a rtm e n t
fe w
e x p e n s iv e
le m a tic a l
o f
fo r
to
th e
a g e n c ie s
h ou ses
h a v e
Conclusions
b a s is
o f
ty p e
th e
fa c t o r s :
a s s o c ia tio n s .
th e
b y
c o n fin e
a n d
o f
e n tir e
la b o r .
O n
d u e
ey es
lo o k
r e la tiv e ly
h o w e v e r,
m a y
th o se
s iz e
in d iv id u a l
o u t
e ffe c t
p a id
ca u se
th e
s h o u ld
a
som e
la r g e ,
in g ,
m is t a k e s ,
b e e n
h a n d le .
A lth o u g h
w e re
m a y ,
th e
re c o rd
o p e r a t io n ,
h e lp .
C o o p e r a tiv e s
a
h a v e
in
m u st
in
s u ffe r e d
T h a t
a v o id a b le
o f
th e
u n s u c c e s s fu l
c o n tr o lla b le
s u ffe r e d
p u b lic
h a s
th e
in e ffic ie n t
m a y
n o t
e ith e r
h a s
th e
to
fr o m
r e la tio n s ,
c ir c u m s ta n c e s
3.
c o o p e r a tiv e s
g ro u p s.
p u b lic
in
s it u a t e d .
h o u s in g
r e s u lte d
su c
c o m m u n ity
o th e r
o f
d iffic u ltie s .
to
b e
o f
u n fa v o r a b le
fa ilu r e s
th e
o f
in e p t
o th e r
o f
b eca u se
h a v e
h o u s in g
th e
p la c e s
o th e r
o f
p ro s p e cts
a s
c o o p e r a tiv e
w ill
r e p u ta tio n
re c o rd
fa c to r s
r e a c tio n
p r o je c t
som e
m a y
a ll-r o u n d
su ch
p r e v io u s
a rea ,
th e
p r o je c t .
b u ild in g
n e ce ss a ry
fo r
a n d
r e s u lt in g
th e y
a s s o c ia tio n ,
o r
b e in g
a p p lic a t io n
b o u g h t h ou ses
p r o b le m s
r e a s o n a b le
th e
cess,
a re
a b ility
its
s e r io u s
g a n iz in g
M
s h o u ld
o p p o s i
w a s
co s t
o f
o f m e m b e rs
th ro u g h
L e ss
th e
im m e d ia te
in
fo r
b u ild e r
p ro ce s s e s
a b o v e , b e ca u se
c o n fid e n c e
c a r r y
U
b u ild in g
a sp e cts
o u t o f th e m a rk e t, h a d
as
p a y
a s s o c ia tio n
b o th .
o th e r
T h e
th e
la n d
ty p e s
w e re
a
c o n s id e r e d
T h e
w h ile
w h ile
w h ile
b e in g
a n d
(4 )
c o u ld
th e
a g e n c ie s
fin a n c in g ,
w a s
u n d e r
th e
n e ig h b o r h o o d
le n d in g
(3 )
w e re
m e m b e rs
o v e rco m e
la b o r ,
cu rre d
w h ile
th e
to
fo r
o r
w h ile
w h ile
so u g h t,
F H A
d e la y
b o u g h t,
th e
th e
ca n v a sse d
a n d
o f
in v e s tig a te d ,
w h ile
in s u r a n c e
p e r io d s
so u g h t
h o u s in g
w e r e
S
c ia tio n .
in s u r a n c e .
(2 )
D
in
P ro b lem s
b y
N
b e
red eem ed .
fa ce d
A
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
th e
th e
little
o r
th e
In
b u ild e r
It
is
a n y
b e
a ls o
fin a n c ia lly
h o w
o r
n o t,
a b le
th e
w a s
s a v in g s
a n d
r a is e
p a r t ic u la r ly
in d iv id u a l
w a s
th a t
in
g e n e ra l
n o
co m p a ra
o n ce
a
th e
4‘ s t e e r i n g
th e
e n te r p r is e
p la n s ,
a cce p t
a n d
ch a n g e s
th e
in
th a t
su ch
p la n s
r e q u ir e m e n ts
o r
h ou se
co n tr a c t
n o t
p la n s
w ith
to
d o
so,
if
to
th e
p e o p le
w h e n
a n d
on e
c o u ld
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
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
lie s
in
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
o f th e
th e ir
b e
th e ir
m o n th ly
C o o p e r a tiv e s
in
r e q u ir e d
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
H o u s in g
re s o u rce s
p r o je c t
m a k in g
b y
b e
C it y .
c o m p le te
m a ted
m ig h t
r e p u t a t io n
a
w h ic h
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
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
e n jo y e d
A ll-th e -w a y
th a t
m e n t
p ro v e
y e a rs
w id e s p r e a d
Y o r k
to
C o o p e r a tiv e s
m a n y
a n y
N e w
a
th e m
S T A T E S
A m a lg a m a te d
th e
c o o p e r a tiv e
b u ild
m e m b e rs
(fe w
u p
u n d er
d e s ir a b le ,
T h e
a s
b u ild e r s ,
d e s e r v e d ly
d em a n d
p la n s
v a r ia tio n s
s h o u ld
b lu e p r in ts ),
ju s t
p la n s
c lo s e d .
lo o k e d
fr o m
to
in
U N I T E D
th e
p r a c tic a l
h ou se
b e e n
g r o u p
o n ce
b e
h ou ses.
th e y
h ou se
o f
b u ild in g
m e m b e r s h ip
ca se,
a
m e th o d s,
fo r
sev era l
m e m b e rs
d e fe a t
h a d
o f
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
a s
b e
E
b u ild
7.
r e s u lt
a cce p te d
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 r o s p e c t iv e
a
te n d e n cy
to
b een
th e
o f
su re
g e n u in e
th e
a p a rtm e n ts, th e re
to
H
a n d
in t e r v ie w e d
A s
th a t
fr o m
o p p o r tu n ity
co m e
T
d w e llin g
p r o je c t
o f
b e
o f
a s s o c ia tio n s
g e n e r a l p la n s h a d
jo in .
m e m b e rs '
h o w e v e r,
c o o p e r a tiv e
in
p a rt
T h e
p a r tia lly
th e
h o u s e s ; in
to
m o d ific a t io n
tru e
a s
to ta l
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
o f
p e rso n s
p a r tic ip a tio n
co sts
g r o u p "
th e
th e
v a r ia tio n s
g r e a t
h a d
p la n n e d .
u n d e r s ta n d in g ,
v a r ia t io n
seem ed
lim ite d .
in d iv id u a l
t iv e ly
p r o je c t
e x te n t
e x p e r ie n c e ,
th e
th e
p u rp o s e
co o p e ra
I N
th e
p r o je c ts
s e le c tio n
so
a n d
d e m o c r a t ic
co m e
s h o u ld
th e
p la n n in g
h o u s in g
m e a su re
o f
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.
ca se
th e
h o u s in g
le a s t
n e v e r
o n e
(а )
o f
th u s
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
p la n
to
in
in
w a te r
sy ste m
d)
le m .
h a s
w e re
to
w ith
th e
o fte n
n o t
to o
in
u t ilitie s .
th e
T h is
m e th o d ,
th e
a t th is
a id
th e
w e re
lo n g
b y
to
fin d
fin a n c in g
th en
o f
n e x t
a n y
la r g e r -s c a le
fo r
s u b s t a n t ia l
o f
e)
d iffic u lty
n o t to o
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
so u rce s
la b o r
r e g io n a l
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 ,
u n io n s
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
ca ses
in
w e re
w h ic h
a v a ila b le ,
s a v in g .
T h e
in
a n d
p r ic e
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 re
ca se
o f
b y
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 .
o f
th a t
h e lp
in
ta in e d
fo r
T h e
to
c o m m u n ity
som e
as
T h e
c o o p e r a tiv e
sa m e
in
w e re
sp a ce
o f
c o u ld
o f
k e p t
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
fo r
o p e ra t
p r id e
w e re
a n d
lo a n -
a g e n cy
a c c o m p lis h m e n t s
in
a ll
sp a ce.
re d u ce d
o w n e d
in
N e a r ly
re d u ce d
w o r k
a d
s a v in g
v ir tu e
co sts
a n
s to ra g e
c o lle c tio n
c o o p e r a tiv e s
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
la n d
a n d
in s u r a n c e
e m e r g e n c ie s .
fa v o r a b ly
ra th e r th a n
to
c o o p e r a tiv e s
v o lu n te e r
lo ts
s u b s ta n tia l
th e
to
a m p le
c lo s e t
th e
n e a rb y
s e lf-h e lp .
m a in te n a n c e
B la n k e t
ite m .
h a d
a s
p a y m e n t s .3 B y
a n d
in
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
la n d
it.
a
a p p e a re d
a n d
v is ite d
th e
th e
fo r m e r
a ll-t h e -w a y
co sts
th ose
th e ir
ra w
co m p a re d
w ith
n o
sa v ed
o f
o f
b e e n
c e r ta in
c r e d it.
tra ct
p r ic e s
p r iv a te ly
th o se
d w e llin g s
T h e
a
h a d
o f
u n u su a l a m o u n t
s e r v ic e
on
th e re
w a s
th e ir
s u b d iv id in g
d a ta
d e s ig n
h a v e
u n d o u b te d ly
a n d
b a s is
th e
in
to
t a k in g
q u a lit y
s tu d ie d , t h o u g h
n u m b e r,
a p a rtm e n ts
th e
e x a m in e d ,
a n
b y
im p r o 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 build, houses has been in exist
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
L o n g -te r m
o r
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
p r a c t ic a lly
p o s s ib le
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
a n d
c r e d it
c o o p e r a tiv e
th e
o r
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
ce n tra l
fr o m
v a n ta g e
r e s u lts .
(
O th e r
b u ilt a n d
o p e r a tio n ,
a n y
th e
a m o u n ts
som e
p r o b
on e
L a ck
s a c r ific e
p e rce n t
m a jo r
t iv e ly
m o r tg a g in g
th e
th e
a ss o
h a d
F H A
o p e r a tio n
6 0 -8 0
O n
c o n s tr u c tio n
S om e
th e
o f
h ood .
a p p e a re d ,
a n
o b ta in e d .
p a y m e n ts
o r
th e y
o b ta in e d
fo r fe its
p e r io d
fe w
b eca u se
d iffic u lty .
a n d
is
d iffic u lt
th a t
o f
o f
co s t
s e w e r
A
T h is
m o st
a b le
g r e a t
ca re
d e v e lo p m e n t.
fin a n c in g .
b e
m a d e
p o in t
fo r
m e m
S u p p le m e n t a r y
in s ta lle d .
h o w e v e r,
a
ta k e
m u ch
b e
c o n s tr u c tio n
b e
r e q u ir e s
in
fr o m
to
th e m s e lv e s
fo r
a n d
ca n
if
e x p e d ie n t
th ese
c o u ld
d iffic u lty
o n ce
o b ta in e d .
d e fin ite
in d e p e n d e n t
to
e a s ily
h ou ses
a n d
fo u n d .
little
a s s o c ia tio n s
o n ly
re s o rt
b e
m it t in g
th e
la n d ,
la n d . M o n e y
fin a n c ia l
ca ses,
lo a n s
o f
a n
s ta lle d
g e t
M a n y
m o n e y
(in c lu d in g
if
C o n s tr u c tio n
m a n y
is
e x p en ses
w a s
e ith e r
o n ly
a n d
lo a n s
n eed ed
n o t
it
o f
p u t t in g
a re
c o u ld
th e y
su rv e y e d .
fu n d s
c ia tio n s
th a t
ca ses,
d o w n
fu n d s .
co m e
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
in v o lv e d
th a t
w h e n
d e v e lo p m e n t
fe w
m o st
a re
s m a ll
p u b lic ity ,
in v e s tig a tio n
D e v e lo p m e n t
o r
in c lu d e
in c o r p o r a tio n
c o m p a r a tiv e ly
c o o p e r a tiv e s
la n d
T h e se
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,
In
r e c o g n iz e
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 ,
a
v e te ra n s
fo r m a
th e
d es
n eed
fe lt
w ith
e x is te n c e
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
l e
1 . — A ctive cooperative housing associations and dissolved
associations, reported by typ e and location, J u ly 3 1 , 1 9 5 0
b
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 .
Dissolved
associations
with—
Active associations 1
Number reporting
Geographic
division
Total
known
NewEngland_______
Middle Atlantic______
East North Central___
West North Central---South Atlantic______
East South Central. _
West South Central
Mountain__________
Pacific____________
Puerto Rico________
4
55
32
8
3
36
4
3
2
11
2
7
8
13
2
1
155 133
6
7
6
8
1
2
3
2
1
3
2
33
45
3
4
18
1
1
3
(ta b le
1
6
8
1
1
2
3
2
3
5
4
9
5
1
a p p r o x im a te ly
h o u s in g
8
49
24
o r
1 9 2 0 ,s
to
th a t
co v e re d
ly
s u rv e y , n e a r ly
(ta b le
4 ,8 0 0
2 ).
1 2 ,0 0 0
m e m b e rs.
n e a r ly
m illio n
a ll
w e re
A p a r tm e n t
o f
w a s
T h e
th e
a
b
l
e
2 .
th e
c o -v e n tu r e s
r e c e iv e d
T
in
A n
b y
— N um ber,
th is
a lm o s t
a cco u n te d
in c o m e
th ese
h a d
o f
th e
fo r
o v e r
o f
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
1 95 0
in
m u tu a l g ro u p
c o o p e r a tiv e s
rest.
in
r e p o r tin g
a fte r
r e s p o n s ib le
b u ild in g s
m e m b e rs
ju s t
w h e n
a fte r
a p a rtm e n t
o ld e s t g r o u p , m a n y
N .
2 4 ,0 0 0
c o o p e r a tiv e
sta rte d
fa r th e
L a b o r
a s s o c ia tio n s
T h e
o r g a n iz a t io n
Membership and Income
th e
3 ).
e x is tin g
w e r e
d u r in g
n is h
O f
th e
c o o p e r a tiv e
1Includes associations inpreconstruction stage.
in
o f
o r g a n iz a t io n s
Proj
ect
not
com
pleted
j
Co- Pero
ct
ven co
m
part Mu tures pleted
Houses A
ments tuals
3
50
30
7
13
4
13
9
14
3
United States__
M o st
All-the-w:aycooper■atives
Total
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
Total
known
associa
tions
Status and type of association
Membership, 1950
Total associations
reporting
Associa
umber
tions
Number ofNp
rojects reporting
Total
members
Business done, 1949 1
Average
member
ship
Associa
tions
reporting
Amount
Active
All-the-way cooperatives:
Associations building houses:
Construction stage reached____ ____
In preconstruction stage_____ _
Apartment associations:
... _
_
Buildings completedor in construction___
In preconstruction stage_____ ___________
_
__ _
Mutuals:
With purchase contract_____ _ ___
__ ______
Without purchase contract,, ________ __ _
_
Co-ventures:
Building houses, construction stage reached:
With community facilities____ ____
.
__
Houses constructed by association..
____
..
Houses not constructed by association _ .. ...
l
Without community facilities________ ..
Houses constructed by association...
|
J
Houses not constructed by association
In preconstruction stage only _____
_ ..
Total...... ..... ................ ........
.
.
6
1
5
5
5
200
60
40
60
3
$47,20£
44
39
50
38
2
4,605
191
121
34
1
1,533,711
18,450
26
25
25
25
8
8,799
3,103
352
388
13
1,932,105
39
12
13
13
14
13
12
1,422
685
119
53
4
7
239,887
149,669
5
3
16
5
3
16
5
3
16
270
49
1,165
54
16
73
2
114,330
22
4
130,932
155
133
146
128
20,549
161
68
4,166,289
8
8
8
6
828
136
/
33 l
7
17
7
17
7
17
21,682
21,194
240
70
2
12,515
41
32
32
30
3,704
123
2
12,515
6
11
1
6
8
1
6
8
1
96
Dissolved
Co-ventures, project completed______
Co-ventures, project not completed:
Some constructionaccomplished____
No constructionaccomplished
...
. __
\
/
Total___________ ______ _______________________
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’s existence.
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
th e
g a v e
o u t
o p e ra te d
o f
o r
th e
p r o je c ts
a lm o s t
th e
fin a n
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
th e
In
p r io r
th o u g h
u n til
H O U S IN G
co o p e ra
e ith e r
o r
ev en
p r o je c t.
m o ra l
sta rte d
p r o je c t
c a r r ie d
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
in g
C oop
N on
e r a tiv e
p r o fit
L im ite d
R e g u la r
d iv i
corp o
dend
r a t io n
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
a c t iv e
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 .
29
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.
w e re
1 9 2 7
th e
A m e r ic a
fo r m e d
A m o n g
th e
s p o n so re d
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
so r.
a s s o c ia tio n ,
A
o r g a n iz a t io n s
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
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
a n d
th e
lo c a l
o f
(C IO )
in
lo c a l
o f
m o ra l
C IO
b y
th e
a
a fte r
th e
o f
N o n 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
lo c a l
on e
a ll-t h e -w a y
th e
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
fin a n c
to
h a d
th e
d id
th e
ite m s
m o st
fo r
n o t
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
5
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
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 ,
th e
o f
s it e
th ese
a n d
u n d er
a
ch a se
o r
e q u ip
title
p u r
to
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
p u rch a se d
F o u r te e n
a rra n g e d
la y -o u t
th e ir
s e lv e s .
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
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
ca ses
4
d e
th e
co n stru cte d
fo r
o th e r
d ir e c tly
th e
p re p a re
a ll
ca se
o th e r.
p u t
a ll
b u ild in g s
w h ic h
la n d ,
th e m ;
a rra n g e m e n ts
th e
sto p p e d
E ig h t e e n
c o o p e r a tiv e s
la n d ,
th e
fr o m
b o u g h t
m en t.
th e
h ou ses
T h e
o f th e
H o w e v e r,
sp o n
m a n u
stru ctu re s.
a ls .
a
th e
e re cte d
1 9 2 0 ’s,
m a jo r
th e
h a d
Stages at Which Cooperation Was Used
b o u g h t
In
b o u g h t
s u p p o rt
an d
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
a s s o c ia tio n ’s
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
A llia n c e . V a r io u s
th e
o r
th e
on e
A m v e ts
c ity
th e
a
a n o th e r
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
M e a tcu tte rs
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 )
s ig n e d
th ir d —
p r o je c t
b u ild in g
a n d
b y
U N IT E D
fa ctu re rs
th e
N a tio n a l W o r k e r s
o f
th e
ou t
O th er
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
O n ly
in
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
M u t u a ls
m en ts
com
p le te d
Som e con
N o con
s tr u c tio n
s t r u c t io n
S i t e s e l e c t i o n _____________________________ __________________ _________________
86
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
....................
_
o f d w e l l i n g s __________________ ________.
25
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
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
1
2
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 .
15
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 _________ ____________ __________________
3
2
tio n s
P r o je c t n o t c o m p le te d
P r o je c t
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
th a t
p r o je c t
fa r
7
n o t
a
b o u g h t
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
w e re
th e
c o n s tr u c tio n
b u t
ev en
lo a n
c o u ld
S ix
n o
fa r t h e r .1
on
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
o b
w ith
la y -o u t
m a te r ia ls
d is
w e re
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
w o u ld
b e
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.
p la n s . O n e
b u ild in g
o p t io n
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
o f
th e
o f b u y in g
a
o n ly
th e
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
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
r e p o r tin g
h a d
th e
h a d
le a s t
th e
h a d
h a d
co n stru cte d
m a te r ia ls
a ll t h e
b u t
a s
th e y
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
la b o r
m e m b e rs
o r g a n iz a t io n s
th ese
g a v e
h a d
se co n d
o f
to
th e
fir s t
fa m ily ,
th e
v o te
c o u ld
w ife ,
a n d
b e
in
s p lit
tw o
fa m ily
h a d
v o tin g
tw o
a n d
th e
o th e r
to
fr o m
In
N e w
Y o r k
th e
th e
c o o p e r a tiv e
th e
g re a te s t
p r in c ip le
in
a ll
o f th o se
o r g a n iz e d
to
on e
o th e r
a s s o c ia tio n s
lim it e d -d iv id e n d
s p e c ifie d
t im e s
th e
in
m o n th ly
la w
r e g u la r
c o r p o r a tio n
ca u se
w a s
la w
a llo w e d
p r o x ie s
(a c c o r d in g
fa m ily )
m e n ts
th e
th e
r e p o r tin g
$ 2 ,0 0 0
th e
In
a n d
T h e
it
a
r e q u ir e m e n t
o f
th e
la w ;
th e
m o st
th a t
th e
S ta te .
th a t
h e
o f
g o o d
o f
th e
o f
u p p e r
w e r e
la b o r
a n d
w e r e
g o o d
b e
w h it e
h ea d
ra ce ,
S ta te s.
W h e re
u s u a lly
to
o r
th e
o f
a
o r
o f
m o n e y
th e
w a s
o th e r
r e q u ir e m e n ts
th e
m u st
o r
p r o v is io n s
w a s
a
th e
o f
b e
m e m b e r
g iv e n ,
r e s id e n ts
o f
w e re
m e m b e rs,
o f
t io n s . O n e
e c t)
tw o
th e
lim its
ca se s
o f th e se
w o u ld
in c o m e
In
N e g ro e s.
a n d
tw o
so.
F o u r
m e n t
n in g
th e re
s u b s is te n c e
le s s
th a n
(a
$ 7 2 0
$ 1 ,2 0 0
P u e r to
a n d
o r
m o re
R ic a n
$ 3 ,6 0 0 ,
s in g le
T h e
su rv e y
fo r
A t
A n
in
w r it
m e e tin g .
o f
le a s t
a n d
th a t
lim ita
p r o j
a n n u a l ca sh
$ 2 ,6 0 0 .
a s s o c ia tio n )
r e s p e c t iv e ly .
th e
to
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
in
th e ir
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
b y la w s ,
m e m b e r s h ip .
in c lu d e d
a n d
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
b o u g h t
r e n o v a tio n
a n
w e re
th ese
a d d it io n a l
h a d
m e m b e rs
it
h o u s in g
th a n
o f
b u ild in g s .
m en ts
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
o th e r
w e r e
(a
w e r e
a ll
T w o
th e
tio n s
o n ly
a
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
o n ly
M a k e -U p
a s s o c ia tio n s
b u ild
a p p lic a n t
o th e r
a
in
$ 5 ,0 0 0 .
c itiz e n
to
in
8
p a y
tw o
lim it
p a y m e n ts
p r e fe r e n c e
v e te ra n s
O n ly
s p e c ific
fr e q u e n t,
to
o r
c h ild r e n
lo w e r
o f
7
m o n th ly
$ 3 ,5 0 0 ;
th e
m a k e
a c c e p ta b le
ch a ra cte r,
set
a n d
r e s id e n t
O th e r , le s s
b e
th e
th e
lim it
th a t
to
a
o f
m e m b e r s h ip
w e r e
a b le
h e
o f
fo r
in
th a t th e m e m
d w e llin g .
$ 3 ,6 0 0
tw o
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
in
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
b e
o f
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
o f
u n d er th e
s p o n s o r in g
M e m b e r s h ip
b e r 's
d e v ia
ty p e s
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
b e
o th e rs
v e te ra n s.
in g
u n d e r
a
v o te s.
c o n s titu te 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 n d
m e m b e r s h ip .
n a tio n
ch a n ce ;
p re fe re n ce
th e
a n 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
r e s p o n s ib le
in c lu d e d
in
fo r
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
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
in
b y
a n d
th e
in
B u r e a u 's
m e m b e r s h ip
o f
c o m p le te
o b
on e
o f
p u p ils
b y
h o u s in g
p e r
p r o je c t
th e
m a x i
F iv e
o r
p e r
in
lo s s
o f
m a n y
fr o m
ca ses,
e v e n tu
ch a n g e
n u m e ro u s
a
in
th e
a s s o c ia
to
w e re
th e ir
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
co m p o se d
on e
c lo s e d
co n v e rte d
D e c is io n
in
th e
m o v e .
th e
a s s o c ia tio n .
h a d
r e p r e s e n tin g
In
a m o n g
w a r , p a r tic u
b een
to
T h e ir
tu r n -o v e r
o f
c o m p le te d
u ses.
a cce p te d
h a d
o r
w a n tin g
fa m ilie s
te n a n ts
a n d
a b o v e
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
o c c u p y in g .
o n ly
ca ses.
a
o cc u rre d
a fte r
o p e r a t io n
fa m ilie s
ta k en
co m
e m p lo y in g
u s u a lly
c o o p e r a tiv e
m e m b e rs,
o f
b e r s h ip
a n d
o f
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
ca m e
II.
In
S ta te s
M id
p r o fe s
w o rk e rs .
d re w
a th ir d , th e
a n d
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
G o v e rn m e n t
a s s o c ia tio n
c iv ilia n
w e re
O n e
fr o m
g ro u p s,
c o m p o s itio n .
g ra d u a l
s tu d y , little
co m p o se d
o f th ese h a d
m e m b e r s h ip
fo r m e d )
w h ite -c o lla r
U n ite d
w a s
w h ite -c o lla r
a
W a 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
o f a n o th e r
ca m e
p lo y e e s
fo u r th
o f
fe w
s k ille d -w o r k e r
p r o je c ts
v e te ra n s
in
m u tu a ls
e m p lo y e e s
F o rc e s.
p r o je c ts
fo r m
ca ses, a n d
c o n s id e r a b le
(e x c e p t th o se
e m p lo y e e s ,
n o te d
o r
e a rn e rs
d ir e c tio n .
o f m o st o f th e
w o r k e rs
p e a c e tim e
to
w e re
m e m b e rs
a n d
th e
p ro p e rty
2
1
1
1
o th e r
b y
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
o p p o s ite
c o s t o f h o u s in g .
a s s o c ia tio n s
B o th
th e
tu r n -o v e r
o f th ese
if
a n ts
t io n s .
w e st
in
A rm e d
c u r ta ile d
o th e r
n e w
c o m p o s itio n
w a r
th e
d iffe r e n t
a m o n g th e lo w e r -in c o m e
o f
tre n d
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
R e c r u itin g
th e
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 ..
/
In
fa m ilie s
l
p r e c o n s tr u c tio n
sta g e
p e r s o n s ._ )
T o t a l , . .............................................. ......
_
_
.fa m ilie s
l
p e r s o n s ..
43
/
50
14
5
3 .3
3 .6
2 .9
4 .2
3 .4
76
571
514
397
5
3
8
0
(i)
0
/
1 ,3 9 4
484
l
3 .6
25
326
3
3 .0
1 0 ,2 3 1
13
l
3 .7
3 .4
2 .5
)
890
374
90
34
3 .9
4 .0
3 .7
3 .8
3 .1
7
303
146
740
159
37
2 .7
3 -5
3 .5
3 .3
4 .0
4 .4
30
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
2.0
/
0
(!)
2 ,9 4 7
3 .4
2
326
( !)
)
1 ,9 8 9
4 .0
3 .5
35
0
)
)
l
/
22
4 .8
129
3 .7
\
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
.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
.f a m ilie s
\
/
p e r s o n s ..
T ota l
______________
1
6
\
/
person s. .
7
.fa m ilie s
___________
\
p e rs o n s -_ /
/
0
tr o u b le
r e c o g n iz e d
u e
a fte r
in
l
3 .4
3 .5
3 .4
/
1 ,4 6 7
771
310
l
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
co rre sp o n d e d
tr ib u tio n
th e
F a m ily D ata
g ro u p s
to
o th e r
stu d y ,
133
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
105
14
4 .0
2 .5
261
2.8
2
2 .5
2 .5
4 .0
6
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
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
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
th e
w ith
m o re
in
in
co n s tru c
in c o m e
a s s o c ia tio n s
d is
th a n
to
g ro u p s.
A m o n g
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
)
)
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
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
a p a rtm e n t
a s s o c ia tio n s
e a rn ed
a n d
a
in c o m e s
in
b e tw e e n
th e
N um ber
S ta tu s a n d ty p e o f
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
m u tu a ls
y e a r.
w e re
a s s o c ia tio n s .
b e rs
fo r
a b le
e a rn e d
th e
T h e
s m a lle s t o f
M o re
w h o m
th a n
a
th e
th ir d
a n n u a l-in c o m e
o f
m e m b e rs
th ree
ty p e s
o f
th a n
g r o u p s
$ 3 ,0 0 0
o f
th e ir
m e m
A c tiv e
d a ta
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 :
o f
th e
o th e r
w e re
a s
in
th is
in c o m e b r a c k e t. T h e
in
1 94 9 .
m a n y
a s
In
5
n on e
. _
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 ___________________________ ___
_
1
..
_
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
I n p r e c o n s tr u c tio n s t a g e .
a s s o c ia tio n s
c o n s is te d
o f
fa m ilie s
ce n t
$ 3 ,0 0 0
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
_________________________
to
O ver
50
50
years
years
10
4
129
28
91
4
813
109
623
81
16
6 ,8 6 7
3 ,4 9 4
2 ,9 6 5
408
__
21
1 ,3 3 2
484
738
3
200 112
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 _____
34
34
years
m a k
T o ta l.
in g
U nder
p e rce n t
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
rep ort
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
fa m ilie s
in g
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
11
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
Associa
tions
reporting
Total
acres
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.
Land held
Status and type of
association
19
P R O JE C TS
Allocated for
community
purposes1
Associa
Acres
tions
reporting
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
Active
th o se o f a rc h itec ts.
All-the-way cooperatives:
Mutuals with purchase contracts___
Associations in preconstruction stage- Co-ventures:
House projects—
With community facilities__
4
22
24
3
312.4
110.3
4,171.8
104.4
4
s25
6
‘9
52,818.5
105.9
<531.3
20
360.0
4
20.8
93
8,154.6
38
576.6
(>)
10
67.8
(»)
128.0
T h e h o u se -b u ild in g co o p era tiv es th a t had site
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
Associations inpreconstructionstage- -
site p la n n er
ch a rg ed
at th e
ra te
of
$70
p er
house*
Dissolved
Project not completed:
8
667.2
52
513.5
7
9
950.0
625.0
66
e63.0
24
2,242.2
8
76.5
1Not including streets or sidewalks.
*In apartment associations, the community facilities are usually inside the buildings
and do not take up landspace.
*Not includjng 1association owning 1 city block, exact area not reported.
‘ Not including 2 associations holding option on 118 acres.
1Community facilities operated by separate associations, organized for the purpose.
*As intended inoriginal plan.
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
e
9 .
— Active housing associations holding
classified acreage
Acres held
Houses
Apart
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 and over,
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
Co-ventures
In pre- Construe In pre
Mutuals construc tionstage construc
tionstage reached tionstage
Less than 1.0--
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
Number of active associations
All-the-way cooperatives
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.
24
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
r
e
5 .
H O U S IN G
IN
T H E
U N IT E D
S TA TE S
— Part of golf-course site of Bannockburn Cooperators’ co-venture project, Glen Echo, Md.
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
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
m em bers
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
Rooms completedor
under construction
Number of dwelling units
Status and type of association
Number
of asso
ciations
reporting
Total
units
planned
Units
completed
or under
construc
tion
Units
planned
for next
12
months
Number
Number of units in
of asso
reporting
ciations
associa
reporting
tions
Number
of rooms
Active
All-the-way cooperatives:
Associations building houses___ _______
Apartment associations______________
Mutuals with purchase contract_______
Mutuals without purchase contract______
In preconstructionstage...... ...................
Co-ventures:
Building houses, construction stage reached:
With community facilities:
Construction by association_____
No construction by association__
Without community facilities:
Construction by association ___
No construction by association__
Associations inpreconstructionstage. ____
Total_____ _________________
5
38
25
8
7
234
5,262
9,627
5,141
3,215
95
4,412
9,627
5,141
12
13
1,948
1,140
604
389
5
3
14
270
213
49
44
1,445 ________
130
28,331
20,525
5
35
23
5
95
4,017
8,701
3,771
556
15,827
35,502
16,304
274
73
12
8
471
242
2,442
1,256
54
3
370
4
3
203
44
980
152
2,199
95
17,544
73,019
27
850
548
Dissolved
Co-ventures, project completed___
Co-ventures, project not completed:
Some construction...... .........
No construction...................
Total.______ ________
8
969
965
6
828
4,251
7
15
2,434
3,530
436
6
341
1,586
30
6,933
1,401
12
1,169
5,837
23
TH E PROJECTS
ACTIVE
THOUSANDS OF UNITS
All-the-Woy Cooperatives
0
5
10
15
House-building associations
Apartment associations
Mutual 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:
Apartments
2
3
16
14
1
3
1
5
Type of dwelling:
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
12
38
33
33
8
7
1,322
10,288
2,938
1,249
915
50
'386
4,412
4,412
214,548
1,251
965
>386
95
95
1No data for 1 association with 50 units.
Dissolved associations
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
2,868
9,041
3,898
940
133
159
198
399
64
357
463
4
200
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
12
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___________________ . . .
_ -
25
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
592
11
2
(3)
2,181
825
836
.01
(0
.01
.02
.02
(0
$0.03
1.15
$1,426
1,109
.01
0)
0)
.04
1,285
439
.03
(3)
.04
(3)
711
1,179
.05
746
.03
(0
.01
.02
.02
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)
1,021
1,426
(l)
.01
.03
4One association had its land donated.
5Includes off-project costs,
8Not reported separately.
05
.01
(!)
.02
.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
ments
Co
ventures
Houses
2
2
2
1
1
2
1
4
1
4
3
1
1
2
2
1
1
1
1
1
2
4
5
All-the-way
cooperatives
Apart
ments
Coventures
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 5 .
e
29
F IN A N C E S
— Cost of housing 'projects, by item
Active associations
Dissolved associations
A ll-the-w ay cooperatives
Co-ventures
Item
Houses
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....................
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
Cost
Per
cent
$ 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
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
Per
cent
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
v o lu n te e r
a n d
its
d e
w o r k
b y
th e
o v e r a
m e m b e rs,
c o m m u n ity
th e
h o u s in g
s iz e
co sts
o f
a t
th e
th e
p r o je c t,
tim e
th e
th e
on ,
th e
a m o u n t
a n d
co st
o f
a n d
d w e llin g s
a s id e
fo r
c o m m u n ity
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
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
th e
en d
o f
W o r ld
in v o lv e d
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
in c r e a s e
in
th e
to ta l
th e
th e
ra n g e
o f
a p a rtm e n ts,
o f
th e
o ld
w e re
y e a rs
a g o
p u rch a se d
th ese
o ld e r
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
p r o je c ts
th e
s m a ll
co s t
th e
w h o se
o r
e re cte d
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
a n d
o f
a
th e
a
b
l
e
1 6 .
—Number of housing projects with specified total cost
y e t
ta b le
p r o je c t
m o st ca ses th e
g iv e s
a n
in
term s
costs
sh ow 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 .
a s s o c ia tio n s
p r o je c ts
le s s
th a n
b u ild in g
in v o lv in g
$ 2 5 ,0 0 0
Diss<lived
associ ations
T o ta l cost
A ll-th e-w ay associations
Houses
Apart
m ents
C o
ventures
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
s till
a
Active associations
( J u ly -O c to b e r
T h e
th e
p r o j
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
th e
o f
costs
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
w ith in
b eca u se
N um ber of projects of—
d is tr ib u tio n
ects
fe ll
a s s o c ia tio n s
w e re
p r o je c t.
A
h a lf
$ 1 0 0 ,0 0 0 -$ 5 0 0 ,0 0 0
o f
m ea n t
co s t
c o s t in g
a s
T
s u b s ta n tia l
a v e ra g e —
a fte r
r a p id ly
y e a r
a b o v e
set
co s t
o f
h ig h
e n g in e e r in g
w a s
b u ild in g s
o f
ra th e r
a n d
d o lla r s .
p re p o n d e ra n ce
c o n s tr u c tio n
fa c ilit ie s ,
a r c h it e c t u r a l
le v e l
p r o je c t
co st
c a r r ie d
fo r
m illio n
A m o n g
o f
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
th e
96
r e p o r tin g ,
ects
a c t iv e
th e
a n d
a g g re g a te
e x ce e d e d
TH E
a n d
w a s
$ 5 ,0 0 0 ,0 0 0
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
r e v ie w
n o t
th e
T h e
fix e d
s u b co n tra cts —
o f
in
th e
a p a rtm e n t
fe e .
In
tw o
o f
in s p e c t th e
s a v in g s
th e
A ll
b u t
T h re e
$ 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
C o-ventures, project com pleted___________ ________
Co-ventures, project not com pleted:
-—
Some construction_______________ _
N o construction___________ ______
-
2
3 ,6 3 0 ,4 3 8
1 ,8 1 5 ,2 1 9
7
7
3 2 ,9 1 6 ,9 8 5
3 6 2 1 ,0 1 3
3 4 1 6 ,7 1 2
3 8 8 ,7 1 6
T o ta l__________________________________________
96
8 2 ,7 8 9 ,3 3 8
8 6 2 ,3 8 9
o f
C on tract P ro v isio n s
o f tw o
fix e d -fe e
b a s is .
O n e
in g s to b e s h a re d
tra cto r.
T h e
o f
th e
c o n tr a c to r ’s
a n d
on 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
su b co n tra cts
its
fa ilu r e ,
so
fa r
n o t
o f
o r
r e v ie w
th e
s h a r in g
th ree
w e re
oth e rs
p r o v id e d
fo r
co n tr a c to r
th e
o f
fo r
a
sa v
a n d
th e c o n
th e
a s s o c ia
in
w e re
little
m u ch
th e
la tte r
o r
m o re
T w o
s a v in g s ,
s h a r in g
o f
r ig h t
a n d
b o o k s.
th e
A ll
in s p e c t io n
th e
a
w a te r
in g
trees,
In
fo rm e d
th e
a n d
a ll
la n d ,
in g s .
th a t
3 ,0 0 0
In
h is
th e
lin e
o f p r ic e
c o s t-p lu s
o f
co s t
o f
a r
th e
ca u ses
th e
h ou ses
th a t th e y
w a s
in v o lv e d
m e m b e rs
in
b e h a lf
th e ir
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
r ig h t
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.
ca se
a
fix e d -
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
h a d
th e
in
h a d
“ e s c a la t o r ”
c o n s tr u c tio n ,
u tilit ie s ,
fin is h in g
b e rs
o f
a n
o n e
s e lf-h e lp
sy ste m
th e a s s o c ia tio n
T h e
c o n n e c tio n s ,
p r o
o f b o o k s,
s h a r in g
co n tr a c
a s s o c ia tio n s
co -v e n tu r e
o r g a n iz a t io n s
w a te r
a
a s s o c ia tio n .
a g re e m e n ts
s u b co n tra cts
in
fo r
su b co n tra cts.
s e lf-h e lp
a c t iv e
s tr u c tin g
in g
n o
a n d
fo r
in s id e
set
b e
su rv e y
fix e d -fe e
b u rd en .
o r
e x c a v a tin g
s a v in g s
th e
th e
th e
o f
h a d
fin a l
m u tu a l
S u r v e y in g , c le a r in g
o f
o n ly
in
m e m b e rs ’ m ea n s
th e
a ll-t h e -w a y
in s p e c t
s p e c ifie d
to
th e
th e
a ssu m e
a p a rtm e n t
a n d
e ith e r
th e
S e lf-H e lp b y M e m b e r s 3
v id u a l
th e
a n d
a s s o c ia tio n
c o n t r a c t o r ’s
o f
fo r
a b o v e
d itc h , b u ild in g th e
s u b co n tra cts.
s h a r in g
g a v e
s u b co n tra cts
b e tw e e n
r e v ie w
p r o v id e d
on
b o ok s.
O n e co n tr a c t g a v e
to
th ese
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
th e r ig h t to r e v ie w
th e
fo r
b y th e c o o p e r a tiv e
o th e r
t io n
A m o n g
a ll-t h e -w a y
a s s o c ia tio n
o f
co n tr a c to r
p ro v e d
a
b o o k s.
h a d
th a t
re
fo r
th e
c o n s tr u c tio n
a ls o
th e
b u ild in g h o u s e s .
p r o v id e d
fiv e
fo r
d is s o lv e d
ra n g e m e n t
th e
h ou ses
th e
r e v ie w
w ith
O n e
p r o te c tin g
A lt h o u g h
to or throughassociation
fo r
a s s o c ia tio n
c o u ld
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.
co n tra cts
a ll
p r o v id e d
o th e r
p ro ce e d e d
a n
a lth o u g h
p r o v id e d
in s p e c t io n
tw o
th e
in
in
p r o v id e d
a s s o c ia tio n s
O n e
w a s
T h e
g a v e
in c r e a s e s .
fo r
Dissolved
b u ild in g
a n d
o f
c o n tr a c to r ’s
fo r
co n tra cts .
c la u s 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
in c lu d e d
th em ,
a ls o
co n tra cts
tw o
on e
th a t h a d
Active
4
29
25
22
it
a n d
d is s o lv e d
s a v in g s ,
fe e
A ll-th e-w ay cooperatives:
Associations building houses____ ____________
Apartm ent associations. _ _
__________ _____
M u tu a l associations________
----------- C o-ventures_________________________________ ______ __
to
co n tr a c t
ca ses
s h a r in g
o f
Average
cost per
association
T o ta l
cost
a g re e d
a s s o c ia tio n s
r ig h t to
A ll
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
t o r ’ s' b o o k s , a n d
Num ber
of asso
ciations
reporting
Status, and type of
association
fo u r
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
ST A T E S
co n tr a c to r
co n tra ct.
T
o f
in c lu d e d
p o r tin g
p r o j
1 7 ).
U N IT E D
co n tra cts
o th e r
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
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.
m em b er, w h en
c o m p le te d ,
“ p e rfo rm a n ce ”
to
h a d
to
g iv e
m o rtg a g e to
3 See also p. 72 fo r disadvantages o f self-help.
in
COST A N D
su re
th a t
h ou ses
h e
o f
w o u ld
th e
a s s o c ia tio n s ,
o w n e r
ca sh
as
in
tr ib u te d
h is
a
h ou se
se co n d
la b o r ,
tim e
sh a re
in
o n
h is
h ou se.
In
on e
m a n -d a y s
ea ch ,
d o in g
th e
e x c a v a tio n
a n d
la y in g
In
th e
c o -v e n tu r e
w a s
th e
a lo n e
r o o f,
H o w e v e r,
la b o r
g e th e r
on
w o r k
e t c .)
on e
a s
w h ic h
o r
a
w e re
c o n s is te d
s e lf-h e lp
an
c ia tio n ,
on
o w n
h o u r.
a n d
in
w o rk
p a id
d o n e
th e
D e fin ite
a
m on th ,
w eek
u n til
o ccu p a n cy .
on ce
th e ir
m e m b e rs
th e ir
o w n
18
th e
on
o f
fir s t
b y
m e m
w e re
k ep t.
e x e h a n g e -o f-
th a t
ea ch
on
A n o th e r
w o rk e d
th ey
h is
a sso
m o s tly
th a t
fo r
w e re
b a s is ,
a n y
s h o u ld
be
r e q u ir e d
su ch
w eek ,
w e re
o r
w e re
a s s o c ia tio n s
a n d
on
la n d
A
th ir d
th e
as
4
20
h o u rs
c le a r a n c e
to
th ro u g h
c o -v e n tu re s
50
p e r
w h ic h
in g ,
p e rce n t
h o u s e ;
a ll
o f
g r a d in g ,
b e r s ;
$ 1 ,5 0 0
a n d
on
th e
to ta l
a n d
h a d
h ou se
a ll
th e
m em b ers.
t im e
th e
h ou ses
on
th em
a n d
on
th e
$ 1 0 ,0 0 0 .
on
h o u s e ;
b een
th e
h ou ses
e s tim a te d
$ 2 ,0 0 0
$ 3 0 ,0 0 0
$ 3 ,5 0 0 ,
A n o th e r
h a v in g
th e
p r e lim in a r y
a n d
e s ti
m e m b e rs ’
b y th e
v a r io u s ly
ea ch
e t c .)
p u m p
b y
s e lf-h e lp
w e re
$ 2 ,0 0 0
b y
d on e
s a v in g
w o u ld
th e
w a te r sy ste m .
$ 7 ,0 0 0
th a t
th e
b y
in
w o r k
d on e
tw o
to
th e
r e s p e c t iv e ly ,
b u ilt b y
o f
40
$ 3 ,0 0 0
ca ses
(la n d
b y
a t
in
c le a r
m em
on
s e lf-h e lp ; a n d
a
a
h ou rs
re a d y
a
fo r
th a t,
som e
in
re p o rte d
S a v in g s
o f
a n d g r a d in g
c o m p le te d
la n d
th e
s a v in g
c o o p e r a tiv e s , o n e
sa v ed
c o m m u n ity
a
c le a r in g
w e re
w a s
o f
re p o rte d
in te r e s t
th e
e s tim a te d
a ll-t h e -w a y
$ 2 ,0 0 0
b u ild in g
c o m p le te d ,
d w e llin g s
on
w o r k
th e
th a t
b r id g e
h ou ses
m o re
A m o n g
m a ted
at
m em
h ou rs
a s s o c ia tio n s
ea ch
q u ota
w h e re
c a lc u la te d
p r o v id e d
th e
h ou ses
g ro u n d s
su ch
ra te.
65
S ev era l
to
w a s
m em b ers
lo c a l
o f
th e
2 ,7 5 0
mere Home Owners, Youngstown, Ohio.
to
e q u ita b le
d on e
m em b ers
h o u rs
fillin g t h e ir w o r k
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
la b o r
o f
b y
p u t t in g
la b o r ;
w o r k
e s tim a te d
th e
sh o w e d
a
p r i
d on e
m o v in g
o f
c o m m it m e n t s
o w n
m e m
g r o u p
in s u r e
u s in g
p o o le d -la b o r
ea ch
b y
u tiliz e d
to
to ta l
som e
b e
m e m b e rs
o f
o th e r
la b o r
th e
b ea m s,
h ou ses,
d w e llin g s ,
fo r
b y
on
In
s e lf-h e lp
h om es
to
m e m b e rs’ h ou ses.
cu rre n t
m em b ers
h ou ses
a
w h ic h
o w n
o f
h e a v y
h om es, n o
It w a s
w o rk
o th e r
th e ir
lin e .
in
o w n
d is tr ib u tio n
a s s o c ia tio n
w o u ld
o w n
a ll
m e th o d , v o lu n ta r y
$ 1 .2 5
b e r
th e ir
m o st
d on e
k ep t,
th e
on e
o f
e x cep t
th e s e w e r e fin is h e d . In
a n d
In
w a te r
r a is in g
fe w
c o n tr ib u t io n
la b o r
to ta l
w o r k
sp en t
th e ir
to o
w a s
w h e n
re co rd s
on
in
co n
a s s o c ia tio n ,
th e
th e
a s s o c ia tio n s
in
a n o th e r g ro u p
b e rs
a ll
t im e
on
(s u c h
s ix
p o o le d
ca ses
w h o
e s tim a te d
g ro u p ,
d on e
a lth o u g h
m a n
an
th e
g r e a tly .
w o r k
m a r ily ,
o n
in
o r g a n iz a t io n s , th e
b e r s ’
o n e
p u t
th e
p a y a b le
th o se
31
oth e r
c o m p le te d
o f
4 0 0
v a r ie d
w a s
on
tw o
fa v o r
m e m b e rs
w o rk
w o r k
In
m o rtg a g e ,
th e
o th e r
h a d
o f
m em b ers.
ea ch
e x e cu te d
o r
d o
o th e r
F IN A N C E S
im p r o v in g
th a n
h ou ses
in
fu l
s till u n d e r
c o n s tr u c tio n .
S a v in g s
th ro u g h
collective
h e lp :
N o
o v e r -a ll fig u r e c a n
sa v ed
b y
s e lf-h e lp
o p e r a t iv e s
h a d
o r
k e p t n o
jo in t
and
M ost
re co rd s
w a s o n ly
s e lf -
as th e to ta l
a c t iv ity .
a ccu ra te
p o in t, a n d a n y fig u r e g iv e n
e ffo r t
b e c ite d
on
c o
th is
a n e s tim a te .
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
o b ta in e d
b a se
th e
fo r
a n
a g a in
b a rra ck s
a n d
b u y
d o in g
w e re
w e re
on e
w iv e s
th en
S om e
a
a n d
t im e
a t
a
s tr u c tio n ,
th a n
th e
th e
h o w e v e r,
in
b y
th e
d is m a n t lin g
h a v e
n a ils .
in v o lv e d
fig u r e .
th e
s a v in g
o f
lo n g
in to
w a s
in te r e s t
a n d
a
b o u g h t
S o
g o t
lo s s
p u rch a se
to
th e ir
o u t th e
a s s o c ia tio n
th a t
a n d
c o o p e r a tiv e
m o d e ra te
iy 2
fo r
p r io r ity
m en
to
th e
a ir
s u r p lu s ,
lin e
a
p u llin g
p ro v e d
v e r y
as
in
m em b ers
th e
w e re
w ith
W h e n
s a le
ea rn
T h u s, on e
b e fo r e
“ fr o z e n ”
fo r
to
w iv e s
c o u n te r b a la n c e d
m o n e y
u p
“ b e e ,”
v e n tu re s
e la p s e d
h a u lin g .
a b le
th e
p r o je c t
s h ip y a r d ,
s ta n d in g
A ll
lo s s , n o t a s a v in g .
lu m b e r
p u t
th u s
h e ld
e n tir e
th e
tu rn s
b u ild in g .
b u ild in g
th e
o b s o le te
m em b ers to o k
d a y s
th e
b ea m s
fr o m
m em b ers
STATES
m ore
on
b y
a
co n
th e
co s t
o f
sto ra g e .
M a n y
c o -v e n tu r e s
d is tr ib u tio n
h a d
sy ste m .
sy ste m s w e re e x p e cte d
in g s
in
th ese
th e
lo n g
e a r n in g s
m u n ity
(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).
a
p a y m en ts
n ess,
fe rre d
th e
o f
c le a r in g ,
$ 1 0 ,0 0 0
w h e re
g r a d in g ,
tre e
m em b ers
p la n tin g
h a d
a n d
d on e
tre n ch
S ev era l
V a r io u s
u sed .
o th e r
O n e
p u rch a se
a s s o c ia tio n
o f
b o u g h t tre e s
a t
a
v e r y
o b ta in
m o n e y -s a v in g
lu m b e r
th o u sa n d
fe e t
fo r
th ir d
lu m b e r
w e re
$69
$80
a t
a
to
$90.
m a d e
n eed ed
b o u g h t
p e r
$80
b e rs
h ir e d
to
th e m s e lv e s .
a
B u rea u
jo in in g
o w n
$95 ,
on
$40
to
th e
on e
ca se
c o o p e r a tiv e
d u ced
th e
$60
w a s
p er
s e llin g
p e r
V a r io u s
p r ic e s
on
h a u le d
a ll
s iz e .
it
s iz e s
o p e ra to r
th en
to
th ou sa n d
fo r
ra n g ed
T h e
th e
th e
m em
p r o je c t
fe e t,
s u ffi
o f
to
to
In
a c tiv itie s )
in
a s
th e ir
o r
w h en
th e
O th ers
ill
p re
71/0
m o re
w h o le
su ch
co s t
p e r a cre
th e
a n d
h a d
s a v in g s
c e r ta in
ca ses
a s s o c ia tio n ,
lo s s
th e
w e re
in
th e
a
b e
b e ta k en ,
th a t
w e re
to ta l
in
re
o f
co n tra cts
co n s tru c
a n d
co s t
co st
p r o v id in g
w o u ld
b e tw e e n
d iv id e d
co n
su b sta n
p r o je c t
co n tra ct
p r o fits
w a s
m e t.
d u r in g
e s tim a te d
a s
th ey
o th e r, p a rt
th u s
s a v in g s
w h o se
to
to
a s s o c ia tio n
c o n tr a c to r ;
p e rce n t
th a n
c o n s tr u c tio n
h a d
fr o m
la n d
lo w
T w o
r e m a in d e r
w a s
b y
a d
co st
u n u s u a lly
a d v a n ta g e
e ffe c te d
sh a red
w a s
fo r
la n d .
tra ct h a d
g o o d
o f
g o o d
lo t
d e v e lo p m e n t
o b ta in e d
b o u g h t
p e r
ch a rg e d
ta x -d e lin q u e n t
to
b e
u n u s u a lly
a v e ra g e
ev en
$ 1 5 ,0 0 0 ,0 0 0 ,
b y
th e
im p r o v e m e n ts
a n y
a n y
m a d e
th a t
a s s o c ia tio n s
O n e
n e a r ly
a n d
to
u sed
o u ts ta n d in g
p r ic e
n et
$ 1 3 8
tra cto r.
th a t
o f
co m
b e
b e h in d
o f
th e
w h ic h
o f
w e re
b o rn e
to
u n e m p lo y m e n t
b e lo w
b u y in g
th e
cost
t ia l.
u ses
fo r
r e fu n d s
o th e r
r e s u lt
so
e x ce ss
S om e
t io n
as
re se rv e
fa m ilie s
n eed ed , b eca u se th e
s o ld
fo r
p r a c t ic a lly
s a w m ill
lu m b e r
a n d
it
h ou ses.
s m a ll
d e p e n d in g
tru ck
s o c ia tio n s
a b le
b y
w h e re b y
th e
a
w a s
m ill)
w h en
jo in t
an d
la n d
in c lu d e d .
p r ic e s
F o re s try
c e r ta in
r e tir e m e n t
p lo ts ,
w e re
c a b le ,
r e g io n a l
its
th e
o f
A n o th e r
t im e
fo r
fr o m
F o r
e le c tr ic
s a v in g s
th o u s a n d ;
fr o m
a n d
th e
h a d
fo r
S ta te
p r ic e .
fr o m
(w h ic h
A
th e
n o m in a l
w h o le s a le
lo c a lly
a rra n g e d
lu m b e r
fr o m
e x p e d ie n ts
in te n d e d
su ch
a s s is t
a s s o c ia tio n s
in
c o n s id e r a b ly
w a s
w o rk .
a
fo r
a
su ch
s u b s ta n tia l s a v
p a tro n a g e
in to
w a te r-
sto ck .
“ b u y s ”
m in im u m
fr o m
to
as
a n d
V a r io u s
fo r
th e ir
e x p e n s iv e ,
re p o rte d ,
p a y m e n t
s u r p lu s
“ c u s h io n ”
p r o v id e
to re tu rn
ru n .
w e re
p u rp o se s,
m em b ers, fo r
to
A lt h o u g h
e q u a lly
be
5
y2
b e
COST A N D
tw e e n
a s s o c ia tio n
p e rce n t
o f
w o u ld
th e
p r o je c t
stu d y
w a s
w e re
a n d
g o
to
h a d
m a d e,
e x p e cte d
on
c o o p e r a tiv e ,
on ce,
r e c e iv e d
a r c h ite c t
a n d
fr o m
to
10
a
th e
b y
v o lu n ta r y
a
o f
$ 32 0
th ir d
ca se
w e re
m a d e
in
fo u r th
a
to
to
$ 51 0
$ 33 0
u n d e r
o f
a
co st
$ 100
o f
$ 500
p e r
10
o r in
p la n
In
h ou se
to
S o m e
a s s o c ia tio n s
h a v in g
c o r p o r a tio n
d iv id e n d
ta in
T h e se
a re
a n d
s a v in g s
b la n k e t
ty p e s
d id
in
p e r
o f la w s
a ccru e
th e
to
a n y
sa m e
In
(lim ite d
b ro u g h t
a n d
on
th ro u g h
m e th o d , h o w e v e r ; s im ila r
a v a ila b le
in te r e s t
m o rtg a g e .
ta x a tio n
n ot
in
o r g a n iz a t io n
w o u ld
a n d
o f
u re
to
a cce p t
a s s o c ia tio n
tio n
in
th e
v a r io u s
c e r
la n d .
th e
c o
a d v a n ta g e s
in c o r p o r a te d
to
O th er Sources o f Savings
th e
s e r v ic e s
te cts,
o f
v id e d
a t
o f
d is tr ib u te d
e n g in e e r s ,
O th ers
on e
o r
in c lu d e d
e q u ip m e n t
sa v ed
b y
b u ild in g
fo r
th e
q u a n tity
h e a tin g
a n d
a p p lia n c e s ,
r e ta il
p lu m b in g
g a rd e n
t o o ls ,
m en t
n eed ed
fo r
so u rce s w e re
r e lie d
th e
h a d
s tr u c tio n ,
b u ilt;
u p on
n e ce ssa ry
m u tu a ls
p o r tin g
n o
o n ly
th e y
d id ,
o il,
a n o th e r
o f
b u ild
th e
lo a n
w a s
p a y a b le
to
m o v a
w a s
a n d
b u y in g
ite m s
as
a ls o
a n d
c lu b s
fu e l
a u to m o b ile
100
a n d
th e
th e
to
th e
a s e lf-h e lp
th e
n u m b e r
O th e rs
c o o p e r a tiv e s '
re p o rte d
r e c e iv e d
t a c it
n o
o r
fo r
V a r io u s
a n d
o v e rt
d is c o u r a g e m e n t
d o w n
w e re
h a d
to
a
th e
a lr e a d y
re
p a y m en t,
c o n s tr u c tio n
c o o p e r a tiv e .
fu r n is h e d
on
th e
r e s id in g
in
In
a
th e
th e
th ir d
th e m e m b e rs
to
m o rtg a g e
s u c c e e d in g
b o th
In
m o n e y
sep a ra te
ea ch
m e th o d s w e re
on
A m o n g
h ou se,
a s s o c ia tio n
h ou se
b e in g
o r g a n iz a tio n
d id
th e ir o w n
a ll
c o -v e n tu r e
a rra n g e d
o f th e
fo r
h o u s e s , lo a n s
6 ca ses b y
in d iv id u a l m e m b e r s
th e m o n e y
o v e r to
o f
th ese
fr o m
c e r tific a tio n
a
th e
in
fu n d
tio n s
b y
th a t
tu rn e d
on e
tir e s .
u sed
th ose
o u t th e b u ild in g
o b ta in e d
th en
th e
b y
w h ic h
th e
p e rm a n e n t
s in g le
lo a n
in
th e
m o n e y
p a y m e n ts
le n d in g
w a s
m a d e
In
d ir e c tly
m a ster
n e g o tia te d
h ou ses
in d iv id u a l a r r a n g e m e n ts
o p p o s itio n .
w ith in
th e fra m e w o rk
o f th is
th a t
su p
a s s o c ia
to
th e
b y
c o
th e
a sso
w e re
m a d e
c o m m it m e n t .
fin a n c e d
a
m a d e
c o m m it m e n t
a n d
m e m b e rs
in to
w e re
tw o
th e
a s s o c i a t i o n 's
w a s
a
co o p e ra
p u t
a g e n cy
fin a n c in g .
a n o th e r
th e
w a s
c ia tio n
w e re
co n
A m o n g th e 4 a ll-t h e -w a y
a
b u t
T h e
o r
a s s o c ia tio n s
th e
a s s o c ia tio n ,
g ro u p —
c a r r ie d
p lie d
fin a n c in g ,
o th e r
1 8 ).
la n d
p r o je c ts
23
on e
co n tra ct.
a s s o c ia tio n s .
fo r
se a rch
m e m b e rs
fin a n c in g .
o il,
Financing of Projects
th e ir
h o u s e s ; a
m e m b e r
p a r t ie s
—
fiv e
th e
p a y
p e rce n t.
o b ta in e d
o p e r a t iv e , a n d
In
th e
s it u a
d o w n
(ta b le
s u p p ly
m em b ers
fir s t
to
co m m o n
su ch
o f
th e
h o w e v e r,
e ith e r
th e
d ir e c tly
th e
seed,
(th ro u g h
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
t iv e ; in
o f
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
fu r n itu r e ,
m e m b e rs )
fr o m
lo c a l
in
a n d
s u p p lie d
e q u ip m e n t,
p u rch a se
g a s o lin e ,
th e y
la n d
c o n s tr u c tio n ,
w h o
g ra ss
c r e d it
m a k e -u p
F o r
o f
w a s
p u rch a se s
a n d
a n d
h a v e fig u r e d
la r g e ly
m em b ers.
a n d
d e p a rt
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
to
in te r r a c ia l
a ll s e e m
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
c o m p le tio n , u n w illin g n e s s
o f
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
th e
d e c is io n .
b u ild in g
fa ll
th u s
in
its a b ilit y
e s ta b lis h e d
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
c o n fid e n c e
T h e
b y
th e
fo r
o f p ro p o s e d
ig n o r a n c e
r is k
fe e s
in d e fin ite ly
sta n d a rd
v a lu e s ,
d w e llin g .
ra te s
th a t
m u n ity
b o th
a rra n g e m e n t,
n e a r ly
fe a r
o f
s a v in g ,
o f h ou se
w a itin g
o f lo c a l a c c e p ta n c e
la c k
th e ir
a
k ep t
a t
c o n s tr u c tio n .
to
co n tra ct
s a v in g
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
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
b
l
1 8 .
e
H O U S IN G
IN
TH E
STATES
—Sources of funds for purchase of land, construction, and down payment
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
6 5 .1
1 0 0 .0
A m ou nt from—
Num
ber of
associa
tions
Other report
sources
ing
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
Active
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
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
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
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
Dissolved
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
In
th e
th ir d
fin a n c e
b y
w e re
to
g e t
w h e n
p e rm a n e n t
th e y
e ffo r t
d id
w e re
b e
r a is e d
s ta g e , th e m e m b e r s o b ta in 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
fin a n c in g
m a d e
$ 6 0 0 ;
fr o m
a
c o -v e n tu r e
ea ch
h e
lo c a l
m e m b e r
th en
on
th e
p e rce n t,
a n d
p e rm a
lo a n s
le n d in g
in c lu d in g
m a d e
fo r
to
b u ild in g
T h e
a n ce
co m p a n y ,
fin a n c
fr o m
w h ic h
c o
In
a ll
a ll
o f
b ers.
la w ,
7
th e
u n d er
a
co m p a n y
a t
a n d
4
a s
b y
d o w n
th e
P u rch a se
co m
lo a n
o f
v a r ie d
b y
th e
m en t
o f
p a id
th e
o f
so u rces,
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
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,
an
n e w e r
th e
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 .
b a n k s
u n io n .
r e q u ir e d
o f
p a y m e n t
1 94 9
fr o m
p r o je c ts
e x ce e d
th e
c o -v e n tu r e s ,
v a r ie ty
Y o r k
p e rce n t
r e q u ir e d
d ow n
m o st
n ot
rest
p a y
r a is e d
c o m m e r c ia l
w a s
3 3 %
c o u ld
a
a p a rtm e n t
m en t
o f
lo a n
o f
h ou ses
th e
c r e d it
o p e r a t in g ,
fin a n c in g
a
a
p a y m e n t
w h ic h
a
d o w n
a s s o c ia tio n s ,
w e re
th e ir
h a d
lo a n
p r o je c ts
m o rtg a g e
th e
fr o m
a n d
th e
a p a rtm e n t
m e m b e rs
b u ild in g
U n til 1 9 4 9 th e N e w
co n stru c
m a d e
o f
th e
m e e t th e
b a n k s,
a n d
d o w n
T o
A m o n g
o b ta in e d
lo c a l
w a s
h is
th e
c o n s tr u c tio n
th ro u g h
co st, th e
b o rro w e d
s a v in g s
th e
a n o th e r
as
fo r
c o o p e r a tiv e .
sou rces.
w e re
th e
th a t
th e
on
fo r
r a is e d
lo n g -te r m
o th e r
a n d
on
to
w a s
th en
a
a cted
o b ta in e d
d a ta
o b ta in a b le
th is
d ir e c tly
w h ic h
28
a sso
u n d er
w h ic h
o b ta in e d
tru s t
w e re
in
P e r m a n e n t fin a n c in g :
m en t
w h ic h
w a s
v a lu e .
ca ses
a s s o c ia tio n s ,
cen t
d is s o lv e d
its
a ll fiv e
on e
in d iv id u a lly .
p le te 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
fin a n c in g
to
th e
V A
a ll-t h e -w a y
c o m p le te d .
ex ten d
fu ll
to
co n s tru c
p r iv a te
a s s o c ia tio n s
n o t
A
on e
c o n s tr u c tio n
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
its fir s t f e w
b a n k s
o f
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
h a d
steads
m a d e
a n d
h a d
of
bought
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
projects
no
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
for
of the
total
previously,
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
All-the-way cooperatives:
Associations building houses. _
Apartment associations_____
Mutuals with purchase contracts.
Co-ventures_____ ____ _ _
1
Original
amount
$367,900
27,020,155
23,474,036
230,384
9
19
3
Total_______ __ __ .
Total___
32
51,092,475
Less than 15
years
15 years______
20vears
25 years__
30 years _
Over 30, but
under 35 years
40 years __ __
45 years .
rates
of
interest
Present
amount
$367,900
20,845,279
23,147,180
99,000
44,459,359
22.8
the
paid,
finance
in
relation
to
a r r a n g e m e n t
for
a n d
each
T h e
the
type
period
current
m e n t
w a s
rates
at
the
concluded;
record,
the
of
association.
the
mortgage,
of association
interest
rates
of
standing,
in table
paid
generally
time
the
they
and
T h e
also
0 1
3
4
1
1
]
4
5
l
1
3
6
1
11
3H \____
4
3
3
9
25
3
2
31
41
2
3
4
4
5
1
1
\
m
1
2
1
7
1
9
2
1
4
5
51
24
1
3
1
I
houses
s e e m
the
in t h e
at 3
to
all o f t h e
study
the
These
w e r e
higher
the
s a m e
terms—
agreement
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
the
rates
mutuals.
regardless
construction;
1950.
or
interest—
1.4
57.0
y2
paid
W e s t b r o o k
received
percent
wh i c h
the
have
apartments
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
1948
paid
than
did
one-half
of
1
percent
m o r e
interest
20.
reflect
m o r t g a g e
m a y
the
are
3V2
projects (i.eMbuilt under the Lanham Act, that were earmarked for
postwar mutual purchase at the time that they were built).
2Puerto Rican project.
*Second mortgage.
4 Originally; now 5 years.
5 Mortgage carries no time limit.
mutuals,
Per
cent
paid
12
4
1 Westbrook
of
m a d e
1
3
3 \____
3)/2 )
3
3K
4
3H /
\
2
1
\
3
Total___
4
w h i c h
5 /
1
in 1 9 4 8 b o r e
in
1
x2
1
Period of
mortgage
the
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
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 mortgage
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
Mutuals
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
rate as u n d e r
reversed
financed,
P H A ,
a n d
in 1949.
one
one
paid
paid one-
h a l f p e r c e n t less.
Seven
ous
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
fund.
T h e
life
a n d
a
insurance
public
company,
a
of original
one
each
this
point
with
specified rat e s
types
of interest
of
financed
is s h o w n ,
association,
in
for the
table
at
dif
for
h a d
three
the
their
the
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
monthly,
data
mortgages
m a d e
four
N o
the
blanket
O f
level-payment
p a y m e n t s
quarter.
operative,
of
21.
the
their
o f this t y p e t h e
e m p l o y e e s ’ retire
m o r t g a g e
on
m a k i n g
three
a m o u n t
ferent
a
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
852,000
L eg a l situ a tio n :
$73,000
153,384
4,000
425,973,428
*230,384
1 Includes mortgage for one association recently refinanced at 3%
A percent interest.
*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
(except
practically
get
intention
to
either
of
a b a n d o n
U n d e r
against
venture
both
being
their
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
for
25
years
at
5
small
for
N o n e
5 years
of
co-venture
1948
A c t
in
a n d
the
an
a n d
the
h a d
T w o
been
the
quainted
mortgages
of
the
h a d
apartment-house
refinanced
at
a
absence
O n e
m u t u a l —
a
lower
h a d
refinanced
the
units,
its
mortgage,
included
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
w e r e
of
deal
special
with
m a c h inery
cooperatives,
an d
f e w
with
T h e
F H A
associations
procedures,
w e r e
re
a n d
una c
inexperienced
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
cooperatives
i n s u r a n c e . 101 H o w
replac
to 4 0
lending
so.
subsistence-homestead
blanket m o r t g a g e
individual
did
National
of
to
ing the P H A
to t h e
m o r t
rate
nized
project—
w a s
m o r t
been
co m m i t m e n t ,
interest.
majority
a m e n d m e n t
specifically
insurance.
atives.
gages
it
individual
sec
equally
refinanced.
co-ven
one
at 4 y 2 percent.
the
cooperatives
b e c o m e
5
ceived
o n d
or
apart
mortgages,
percent
co
starting w i t h
organization
to o b t a i n
insurance,
in
r e g u l a t i o n s 11 t o
running
a
the
at
ever,
t w o
for
financing
all-the-way
plan
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
m u t u a l s 9 ). I t
co
H o u s i n g
project;
for
impossible
mortgage,
Early
held
authoriza
cooperatives
w e r e
gages
h a d
legal
for
Associations
possible for m e m b e r s
outstanding
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 ) .
11 The F H A regulations covered Section 207 as a whole, but not
paragraph ( f ) — cooperatives— specifically.
38
COOPERATIVE HOUSING IN TH E UNITED STATES
T h r e e
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
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
of
submits
a
a
1).
“the
sponsor
cooperative
statement
the
issued, t h e
a g e m e n t
a n d
group.”
m e t h o d
“provides
the
critical
sponsor
struction
are
expert
stages.”
do
a s s u m e d
receipt
F H A
the
w a s
with
insurance.
the
carried
on
association,
These
O n e
of
con
reversal
in
wh i c h
3
guaranties
h a d
a
a
h a d
T h e
these
tion h a d
or
a
Three
h a d
F H A
$768,000.
F H A
V A
guaranty
A s s o
lenders
h a d
also
guaranty,
the
7
F H A
on
not
a
V A
but
before
91
insurance
in
a
individual
report
third
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
315
a nd
gave
A n o t h e r
on
with
not
also h a d
$175,000
c o m
insurance
A
going
on
of these
h a d
insurance.
a total o f $2, 4 9 9 , did
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
dwellings
mortgages
insured,
m o r t g a g e
for
projects,
90-percent V A
000.
the
h a d
not
re
m e m b e r s
commitments.
of
Financial Status
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
re
insur
m e m b e r .
these,
dwellings,
F H A
houses,
under
(whose
National
of
dissolved
their
of
in
per
rentals c h a r g e d
co-ventures
5
the
insurance
the
coop
this
the
$3,207,100.
Federal
O n e
the
insurance.
A m o n g
O f
pleted
a
the
w a s
total a m o u n t
units w e r e
of
cases.
18
a n d
the
F H A
on
planning,
building
t w o
only
1,280
a m o u n t
bought
m a n
k n o w - h o w
it is a
in
mutuals,
h a d
then
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
for
that
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
b y
skill a n d
the
ciation)
not
the
the
projects),
dwellings,
(5
neither
a m o u n t
of $1,200
through
the
one,
g u a r a n t y for $60,000 b a c k e d b y
organizes
to
In
total
(4
the
coverage.
co
has
U p o 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
according
insurance
F H A
of
“cooper
advertises
the
f r o m
project
a n
(issued
A m o n g
ar
the
of
a n d
with
organization,
the recognized
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
F H A
T h e
of
F H A
p r o j e c t is b u i l t , a n d
erative
the
aggregate
cases,
eligibility.
control
In
for
cases
for
builder
is o b t a i n e d ,
ported.
ance
the
insurance.
units
or
individual
a p a r t m e n t
F H A
veterans’ groups
of the two.
received
of
for
the
the
h a d
apply
cooperatives
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
a
of
that
T h e
insurance
the
n u m b e r
crystallized
definition
o f eligibility
group),
m e n t
of
or
such
a
F o u r
ects)
issued
to
w e r e
m a n y
as
the
w a s
benefiting
w a y
in
In
a nd
to deal w i t h
under
initiative
to
u p
others
a
plans
m e m b e r s
A
p.
statement
ative
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,
13 Such sources could be drawn upon only with the assurance tha>t
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
lake
surplus
improving
its
the
bills,
for various
A m o n g
kind
of
on
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
24,312
41.0
23.2
to
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________________
22,291
7,378
803,668
14,580
6,880
656,671
22.7
65.4
93.2
81.7
*Deficit.
statement of latest business year—usually 1949 or early 1950.
but
one
f lat
is
M o s t
w a s
on
N o n e
re
said
no
both
T h e
that
its
deprecia
both
of
land
of
In
old
p a y
at
to
$3,040.
est-priced
lot
in
associations,
f r o m the m e m b e r
about
a
dues
the
latter
$500.
the
re
of
the
$25,
any)
the
n o w
n e w e r
a n d
one
m u s t
be
includ
a n d
other
associations
a m o u n t
included
of the
nearly
a m o u n t
did not exceed $5 0
of
usually
joining,
In
$1,
asso
associations,
the cost
initial
of
associa
m e m b e r
of
(if
project.
on
cost
procedure,
one
the
or
price
reporting
a n d
T h e
cents,
A m o n g
n e w
T h e
the
is
cost
be
a n d
on
plus
of 2 5
r o o m
$10,
fee
to
a p a r tment
the
time
the
twelfth
exceeded
price,
fee.
the
fee
applied
apartment
the
in
charges
charges.
original
m e m b e r s h i p
ranged
associations.
co-venture
per
asso
varied
organization
the
on
this
association,
are
the
charged
m e m b e r s h i p
a m o u n t
the
a m o u n t
to
charges,
$1
in
their
levy
a n d
m o n thly
the
housing
fee;
the
part
m e m b e r s h i p
total
do
fee
m o s t
a m o u n t
one
the
reporting
but
applied
of
of
of
joining
Three
a
prepared
the
fee,
share
a n d
charge
In
1 From financial
7)
paying
time.
deficit w h e n
the
respectively.
regardless
$20
in
also require
$2,
quired
a
31,600
222,818
been
m e m b e r s h i p
shares
development.
ing
a
the
m e m b e r ’s
f r o m
138,919
87,172
of
11.5
1.5
17.5
8.5
Dissolved
(No.
to
T h e
1923.
short
a
order
off.
of
for
associations,
.6
in
h a d
a
in
h a d
c o m p a r a t i v e l y little
two-thirds
impose
$200.
19.4
5,040
727
built u p
t w o
h a d
mortgage.
sho w i n g
deficits,
no
time
24.6
6.0
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
210,405
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.
Project not
completed
All-the-wayassociations
Co
oject
venture Prcom
a
s
s
ocia pleted
Apart
Mu
Houses ments tuals tions
Amount required
ofnew
members 1
T h e
before
house
No
Some
con
con
struction struction
cost
Number ofassociations charging sp<ecifiedsueas
1
21
1
2
2
42
1
1
3
6
3
62
3
2
1
1
32
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
built
just
after
a n d
1
2
2
1
2 /____
\
2
l
)
8
7
14
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
w a s
tirely b y
53
a
w a r
$6,050;
the
of
the
$10,000.
No charge._ ___
$1________ .
$5____ ________
$10_________ .
$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
Dissolved associations
Active associations
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
rooms,
required.
In
are
the
data,
$200
the
40
d o w n
percent.
f lat
In
per
p a y m e n t
In three n e w
be
case
w a s
the
a n y
a r r a n g e m e n t
ment.
to
the
in
through
enable
f r o m
cussed above.
T h e
ranged
$2,500.
for
w h i c h
t h e m
to
12
the
to
d o w n
before
In
no
p a y m e n t
in
h a d
m e m b e r s
the
though
considerably
u p
to
cost,
the
O n e
association
m e n t
d o w n
to b e
w a s
it
w a s
transferred.
b y
h a d
a n y
r o w
to m e e t
in
building
than
a
In
each
terms
w a s
w h e n
N o n e
of the
source f r o m
a n d
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
completed,
the
group
of
the time
the
f e w
w a s
10
required
b y
b y
completing
in t h e
lowest a m o u n t
p a y m e n t
approved,
w h e n
required
succeed
higher
completed
a n y
sponsored
Y o r k
m a k e
not
ranged
f r o m
projects,
p a y m e n t
did
their
drawn.
N e w
d o w n
that
w a s
c o n s t r u c t i o n started,
projects
g roup
T h e
there
respectively,
lease w a s
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
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
com
associa Project
com pleted,
tions pleted
seme con
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
b y
he
the
m e m b e r
m o v e d
closed, a n d
the
b y
a
w h i c h
In
quired
the
b y
he
varied
but
average
in
for
the
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
1
1
2
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
15 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.
$1,380
of the m e m
that
$650.
$469
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
$251 $3,640
Number of associations with specified requirement
installments
m a k e
reported that s o m e
Average amount
required___ _ ___ $3,500
required
association,
the date the association took
N o
dissolved
their
joined a n d
the
the
n e g o t i a t e d p r i v a t e loans.
the
pleted
cases
required,
the
(2
requiring
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
$455
p a y m e n t to b e m a d e .
in, w h e n
project.
wh i c h
or
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
of
mutuals,
the
w e r e
a n d
the
m o n t h
in
the
the 20-year tax
the
the
w a s
m o r e
mutual.
very
the
m o d
average
built
organizations.
m e m b e r s ’ aver
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
2.00 3.20
5.00 9.15
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
the
less
fixed
in
older
m e m b e r
o w n
are
E v e n
ing
houses,
units,
r o o m
Y o r k
law)
the
in t h e a p a r t m e n t s
their
per
sion.
reporting
N e w
real-estate
lowest-cost
the
of the
in
paid,
included
of
one
w e r e
limited-dividend
on
per
the
p a y m e n t s
be
25).
because
of
of v a r
carried,
any)
b y
15
of
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
35.84
3.84
9.83
8.86
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
11.20 9.49
7.69
8.09
48.90 48.18
2.72
2.96
4.20
4.35
.92
.95
1.88 .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
7.12
6.86
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
6.01 6.77
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
52.75
2.57
8.69
u .82
H1.14
ui.17
70.54 H30.22 n34.34 “ 32.84
1948
*Water, 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. 11
6.10 6.66
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
6.21
6.21
6.21 }
6.21
/ $5.78
$8.83 $13.28 $14.42 \
11.98
8.53
6.11
3.75
93.25 106.99 10 9.20
1.96
1.99
1.75
4.50
.87
1.97 22.53
.62
8.00 1.95 1.83
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
7Heat, electricity, gas, water, and trash and sewage disposal.
8Electricity and water.
9Water and sewage disposal.
10Gas, water, and sewage disposal.
11Includes charge of 25 cents for community-activities fund.
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 11___________
Association No. 16 12.......... ..........
Association No. 17 12................ .
$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
of
f r o m
preceding
the
adequacy
for
entailed
in
insurance.
di f f i c u l t
to
meeting
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
16 S o m e of the associations claimed that maintenance w a s seri
ously neglected and only minor repairs made.
17 Hearings before House Committee on B a n k i n g and Currency
(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
employment,
fund
u p
in
up,
a
also,
association,
for the
replace
a f und
to c o v e r
in
collection
during
the
intention
being
to a b o u t
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.
purchase
of
F H A
A
$250,000.
special
services
6 times
residents.
set a s i d e
expenses
depended
such
vacancy
percent of the m o n t h l y
equaled
costs
as 5.27 p e r
repairs
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
733.75
1036.50
1 Associations Nos. 1, 4, 7, 9, 10, and 15 correspond to associations of same number
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 members.
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
18
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
others
for
w h i c h
w e r e
a
continuing
expense.
In
take
be
incor
if t h e y
repre
one
25
to 3 2
In
of
the
necessity
for
case,
the
on
the
w a s
w a s
to
left
be
to
the
explained
board,
to
the
but
the
s a m e
put
the
matter
to
vote
if
t w o
cases
“a n y
a n
assessment
necessary
anything
purpose”
voted
b y
the
m a y
(1
for
a n y
unusual
as
(1
w h i c h
b y
5
years
(two
associations),
another,
w a s
40
their
purposes
only
for
for
(7
or
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
u p
the
m o r t g a g e
but
could be
F e w
a
or
the
be
the
m e m b e r s ’
30
amortized
to
mortgage.
the
over
if d e s i r e d .
e x t e n d e d to 2 0
been
tracts. I n 3
m o s t
cases,
plan.
out
financed
years,
In
in
but
another
for
25
years,
10
separate
(two
of amortization
w e r e
off i n
g one
primarily
also to o b t a i n
trying
to
get
25.
out
into outlying sec
because
adequate
space
of
lower
cost,
for individual
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
o f t h e h o u s e s b u ilt b y t h e all-the-
w a y
a n d co-venture associations building houses.
T h e
smallest
lot
reported
4 acres.
feet, 7 0 x 1 5 0 ,
132x169,
of
a n d
under
on
years
individual
the
projects,
the
the
sup
con
ran,
in
level-payment
one
across
feet)
the
w a s
60x100
feet
a n d
I n o t h e r c a s e s lots w e r e
75
to 80x600,
132x225
co-ventures
the w h o l e
V i e w e d
seen
behind
lot.
giving
length
the
the
E a c h
onto
f r o m
is
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
I n a self-help a s sociation t h a t h a d
t w o
paid
have
land,
dwellings.
years.
associations s u c h m o r t g a g e s
for
period
m e m b e r s
years
association).
con
of the co-venture associations could
h a d
the
15
(one
Land Space
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
years
lot 1 0 0 x 4 3 2 feet, o n w h i c h
as
m e m b e r ’s
for not
sooner,
could
available
association
to r u n
25
association).
w a s
of
I n five a s s o c i a
What the M em ber Gets fo r His M oney
houses,
period
the
for m a i n
Method and Period of Amortization
information
of
c o m m o n l y
associations),
in w h i c h
years,
O n e
Little
w a s
paying
period
associa
maintenance
(1
w e r e
Their
association.
a n d
indebtedness
150,
tenance
the
In
levied
association),
on
running f r o m
m e m b e r s
plan.
m o r t g a g e
that of the
70x1 4 5
struction e x p e n s e
amortization
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
the largest w a s
tions),
obtain
situation
association),
m e m b e r s
to
the
desired.
be
h a d
periods
mutuals
of
vided for m o s t
other
the
in t h e
assess
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,
as
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
19 O n e acre equals 43,560 square feet.
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
i
3
4
4
3
17
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
ments
completed
2
3
1
10 but under 15___ _____
100but under 200________
Ground space covered:
Less than 25 percent_______
25 but under 50 percent____
50 but under 75 percent____
75 percent and over...........
1 Information
2
C)
(>)
1
(>)
(>)
(*)
(*)
(')
w e r e
one
9
5
3
1
1
1
1
1
1
2
4
1
(>)
(‘)
(■)
(*)
5
10
7
1
5
7
5
2
2
1
11
1
C1)
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
s o m e
in
build
Those
or
a
cases
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
perhaps
materials used
veneer,
one
associations,
heating
under
combination
cement
the
the
co-venture
built
all b u t
all
o w n
constructed
Other
h a d
its
later,
w e r e
ually
in
In
dwellings
t h e m
ings
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 .
a n d
20
on e
2
w e re
o f
w e re
a sso
b r ic k
a n d
stu cco .
T h e
to
w h ic h
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 ,
n e w
a n d
b u ild in g s
a u to m a tic
h a v e
b y
ch u tes
s to ra g e
(e x c e p t
e le v a to r s ;
th e
on
ea ch
o f
n on e
o f
2
flo o r ,
A ll
o f
o ld
H ou ses
A p a rt
m en ts
th e
P u r
N o p u r
chase
chase
con
con
tra ct
tra ct
tu r e s
n ot
com
ect
com
p le t
p le te d ,
som e
con
ed
s tru c
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
P r o j
C oven
la u n
s to r ie s )
th e
M u tu a ls w it h —
a s s o c ia tio n ,
lo c k e r s .
on 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
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
veneer an d
a p a r tm e n t b u ild in g s , m a t e r ia ls
T h e
w o o d , b r ic k
c o n s tr u c tio n
t e r io r w a lls
a s
th o se
a ll-t h e -w a y
u sed
th e
m o n ly
u sed
W h e re
a n d
T h e re
fin is h in g s
th e
tile
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
W a ll a n d
c e m e n t b lo c k s .
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
o f th e m u tu a ls
b y
th e ir
v e n e e r, a n d
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 ll fr a m e
_
_______
C e m e n t b l o c k _______
S t u c c o ____________
a n d
n o
b a th ro o m s
h a d
sh o w e r
as
w e ll
878
526
127
1 ,4 8 9
2 ,0 0 0
245
__
_
873
385
490
20
10
3 ,7 4 0
11
450
100
22
351
144
224
166
6
.
W o o d flo o r s :
F irs t flo o r . _
S e c o n d f l o o r _____________
3
2 ,6 8 7
1 4 ,1 3 1
1 ,5 0 0
581
12
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
747
O t h e r f l o o r s _________ _____ _
717
S te e l jo is t a n d
con crete
._
231
179
268
4
227
flo o r s :
F i r s t f l o o r __________________________
S econ d flo o r ...
1 ,2 8 1
795
T h i r d f l o 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 ,5 9 5
S te e l jo is t a n d c o n c r e t e .
1
36
42
4 ,0 7 4
(3)
(?)
2 5 ,8 8 1
O t h e r ___________________ ___________ _
4
732
401
166
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
4
S h ow er ov er tu b
57
3 ,3 2 6
481
5
69
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 . _______ _
25
18
C e r a m i c . .................... .....
B a th ro o m
154
67
flo o r s :
A s p h a l t _____________
10
_______
. . .
4 ,1 6 3
2 ,5 4 8
8 500
7 461
2 ,5 5 6
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
. . . .
11
C o m p o s i t i o n _________ . . .
b a th ro o m
1 ,8 2 0
2 ,4 4 5
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 ________________________
4 ,1 4 5
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
_.
______________
.
_________
O t h e r _________ ___________
e q u ip p e d
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
ro o m s
w e r e
h o t-w a te r
in fr e q u e n tly
h e a ter.
fo u n d .
In
U tility
sh ort,
th e
3 ,4 3 4
2 3 ,6 5 4
301
100
118
1 ,9 9 6
8 1 ,9 9 9
442
345
48
857
12
36
. . .
I n s u l a t io n in —
W a l l s _________ __________________
r e fr ig e r a to r ,
15
57
C o n c r e t e _________ ___
64
F l o o r ___________
15
C e i l i n g ________________ . . .
78
B a s e m e n t ____________ _______
425
7 2 ,5 7 2
933
3 ,0 0 3
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 :
78
I n d i v i d u a l p l a n t s _____________
s to r ie s ,
4 ,1 6 3
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
c lu d e d
th e
“ g re e n to w n s ” ; th a t
m a n y
a tta ch e d
s to r ie s .
(r o w )
p r o je c t
d w e llin g s
a ls o
o f
in
tw o
C o a l ___________________________
36
O i l ......................................................
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 —
m en ts
P u r
N o pu r
chase
chase
con
con
tra ct
tra ct
not
P r o j
C o-
ect
ven
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 le t e d ,
com
tu res
com
8 46
con
4 ,2 3 5
2 4 ,9 8 1
is 7 2 0
« 1 ,9 9 9
166
451
. . -
4 ,2 3 5
11 3 , 9 7 6
18 1 4
.
( 3)
8 129
8 75
( 3)
101
25
18 7 4
d w e llin g s
5
_
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
_
77
14
G a r b a g e -d is p o s a l u n it o r
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
500
8 32
4 .2 7 1
6 .5 5 7
8 46
4 .2 7 1
6 .5 5 7
___
L a n d s c a p i n g _________ _
166
o n ly ,
on
th e
a n d
A
la r g e
o th e r
u n d e rto o k
fa c ilitie s . In
w a s
tw o -th ir d s
m o re
m en ts
a
_______
P a v e m e n t o f s t r e e t s ..
a n d
v en tu re s.
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
th e
s ix th
T h e
sq u a re
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
th ir d
fig u r e
co st a b ou t
th a n
is
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
a g o.
F o r
Y o r k
lim it e d -d iv id e n d
set
on
th e
b o th
tors
65
419
in
T h e
315
50
22
401
61
a p a rtm e n ts
th e
ra n g e
th e
costs
3 .8 8 9
429
340
25
3 .8 8 9
720
390
67
1 D a t a a v a ila b le fo r 13 p r o je c t s o n ly .
as
3N o d ata.
b u t
5 S la te .
c o n s tr u c tio n
s a le s
co s t
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.
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
p r o je c ts
ro o m s
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
a s s o c ia tio n s ,
p a y m en ts
292
300
.
______
.
6390
222 ,2 4 0
S t o r a g e l o c k e r s _____
.
m e m b e rs.
h a d
a v e ra g e
( 3)
889
« 1 ,4 9 9
114 , 1 3 3
23 1 , 5 4 2
in c in e r a t o r
c o o p e r a tiv e s
r a is in g
( 3)
43
b lin d s
F ir e p la c e
( 3)
2o 5 0
( 3)
_
W a s h in g m a c h in e ._
U tility r o o m
b y
c o m m u n ity
( 3)
( 3)
.
th e
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 :
4 c u b ic fe e t
to
g e n u in e
th e re b y
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 .
.
th e
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
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 b sen ce
c o o p e r a tiv e s
w e r e
som e
p le t
ed
A ll
co sts
th e
to
w a ll c a b in e t s
o r
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
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
__________________________________________________
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 .
________________________________
i $ 2 .0 7 -1 1 3 .2 9
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
___________ __________ __________
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
i
L ow
__
_
___________________________________
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 .
• L ow
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
1 4 .4 0
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 .
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
a s s o c ia tio n .
th e
m u tu a ls ,
on ce
p ected
fo r
to
p r o v id e
h is
ta k es
o r a t io n ,
p lo y e e s
v id e s
te r io r
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
m a jo r
T h e
fa c ilitie s ,
fo r
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
c r e d it
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
a n d
e x te r io r
in te r io r
fo r
flo w e r s .
a re
th a t
ca re
ta k es
e x te r io r
g a rd e n
a n d
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
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 3 .3 8
1 3 .0 1 -
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
o f
4 L ow
3 6 .7 7 -
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
th e
-
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
m em bers.
w h at he could get. The requirem ent o f sale at
p roject
charges
included
in
its
a 5-percent "c o n
Tw o others had built up a "h o u sin g
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
e
3 1 .
— Library in Amalgamated
Apartments, Bronx, N. Y.
59
A R R A N G EM EN TS
Cooperative
F
i g
u
r
3 2 .
e
— Administration building at Victory Park,
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
1
3
11
4
12
1
2
2
4
1
1
3
1
1
1
2
4
Other recreational or social:
Community building or clubhouse
3
4
1
Commercial:
1
2
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,
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
Majority.
1
Operational:
Administration or maintenance
12
1
o f p a rticip a tio n , as f o llo w s :
n u rse ry
F
3 3 . — Community
building at Naylor Gardens,
mutual project o f Veterans Cooperative Housing
Association, Washington, D. C.
i 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 .
a ro u sed o p p ositio n fr o m th e esta te o w n ers.
in
la r g e
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 e
3 2 . — Number of permanent family-type dwelling units
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
Number of dwellings sold to—
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
Programunder which
units were built
Mutual
owner
ship
corpora
tions
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
Govern
ment
Indi
In
vidual vestors agencies Total
owner- (non- andnonprofit
occu
occu
pants pants) organiza
tions2
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
Public war housing____________ 38,385 11,474
Defense Homes Corp ___ _____
757 3,054
Subsistence homesteads and green680 3,123
towns________________ ___
0
United States Housing Act 4_. ____
69
Total. ______ ______ _ 9,822
I
17,720
3,405
4,599
1,328
86
24,592
8,496
0
0
21
692
3,824
761
8,004
2,127
37,673
1Excludes units soldfor use off the site.
2Excludes mutual ownership corporations.
3Includes 4,050 units in projects originally designated for mutual housing.
4Excludes limited-dividendcorporation projects.
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
Minimum Maximum Interest
down amortiza
te
payment tionperiod (pera
rcent)
(percent) (years)
Effective dates
F igure
— Two
types o f apartment
at Greenhelt, Md.
36.
t
January 23, 1945-May 3, 1946____
______
May 4, 1946-April 17, 1947______ ________
April 18, 1947-August 26, 1947 4___
August 27, 1947-May 3, 1950___
_______
Mav 4, 1950-April 22, 1952_______________
(2)
35
310
W
10
10
(2)
(2)
40
525
(«)
25
25
(•)
3H
4
4
4H
1“Westbrook projects” received special terms not shown here. Term sales were
authorized only when adequate private financing was not available.
2“Appropriate terms in the light of local financing practices and the necessity for
prompt disposition.”
3Plus net earnings during operation by mutual under sales contract.
4Terms in Wagner-Ellender-Taft Bill (S. 1592) which passed the Senate April 15,
1946.
‘ Amortization bythemutual (but not its members) might beextendedupto40 years
under the “Equity Reserve Plan.”
*Cashonly; terms grantedonly by exceptions made by the Administrator.
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*1
0 n ow p ro v id es, th a t co n su lta tio n s be
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.11
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 ).
10 Third Annual Report,
(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
in
th e
is o la tio n
w ith in
b u ild
an
to
it
fa c ilitie s
th e
sa m e
a rea
th e
ro a d
p r o v id e
sy ste m .
b u ilt
a n d
a
In
to
a s s o c ia tio n ,
p u t
in
th e
o f
a b le
tre n ch .
It
to
T h e
h a d
o f
a
s u r fa c e
$ 5 ,0 0 0
O n e
to
fr e e ,
a n d
o w n e r,
th e
th e
h a d
it
in to
10
fo r tu
m ile s
to
B y
ic e
w a s
th e
in
v ie w
(7 7 ).
w a te r
w h o
s in c e
d ig
th a t
F e w
o f
th e
a s s o c ia tio n s
tim e
m e m b e r
a fte r
w ith
sn ow
a n d
w in te r .
sy ste m
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
th e
co n
n u m b er
a b le
n o
w ith
u n u su a l
p a r
u t ilit ie s .
u tility
p r o b
co n stru cte d
it
in
o f
th e
y e t
p r o je c t .
w o rk .
n e v e r
p ro v e d
p a tie n c e
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
to
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
fa m ilie s ’
n ot,
ca ses
H e
h a d
d e s ir e s
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
n e v e r
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
a n d
co n tra cto r.
b u ild in g
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
w a s
h ill,
n o
A r c h it e c t s
a r c h it e c t o r
d en t
th e
h a d
c o o p e r a tiv e s
e ith e r
e x c e p tio n
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
fo r
it
in s ta lle d
a ls o ,
th e
R e la t io n s
s a v in g s
p r o je c t
in
p r o je c ts .
th e
sy ste m
h a d
p ro p e rty .
m u tu a ls ,
s e ll
ed g e
w e re
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
a n d
h e a tin g
a p a rtm e n t
its e lf
ro a d
in
T h e
tic u la r
e x p e cte d
fo r
th e
ing Association, Denver, Colo.
la tte r
m a c h in e
u sed
fo o t in g s .
to
s u b d iv is io n .
d ig
la te r
h a d
o f th e
d itc h in g
37 .— Dwellings at project o f Mile High Hous
i g u r e
th e
$ 1 9 ,0 0 0 .
S ta te s n o t o n ly
It
F
co n stru c
ro a d
co st
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
in v o lv e d
o f a
to
su m
p u rp ose.
a s s o c ia tio n
n e c tio n s
h ou ses
sh a re
a ls o
ste e p
a t
lie u
o f a n e ig h b o r in g
u n d er
th e
h a d
h o u r s ; th is
w a s
a s s o c ia tio n ,
fr e e
48
lin e .
b o u g h t
its
$ 2 2 ,0 0 0 .
m em b ers
w a te r
p a id
a v a ila b le
u t ilit y
t e le p h o n e
b u t
h a d
th e
a n d
t e le p h o n e
th e
sy ste m ,
a s s o c ia tio n
p ip e s
g e t
M o u n ta in
h o u se
ea stern
to p
to
se w e r
th e
se rv e d
le n g th ,
in s ta ll a w a t e r -
o f
w h ic h
fo r
in
to
h a d
h ou se
(in
th e
d e
te r r a in
a d d itio n
a s s o c ia tio n
th e
d e v e lo p e r
m a c h in e
a ccess
co st
costs
d iffic u lt
co st
8 -in c h
p u rp o se ,
ste a m
in it ia l
h illy
b u ild in g
o w n
a s s o c ia tio n
m ad e.
a
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
a
m ile s
th e
b o n d )
A n
(th e
In
e q u ip m e n t, c o s t in g
t io n
it
r a is e d
c a u s in g
o r g a n iz a t io n
o rd e r
s ta t io n
b e p osted
th e
w a te r-
lo t,
th e
1 .3
to
p r o je c t.
h a d
w a ter, an d
r e q u ir e d
th e
a
d e v e lo p m e n t
th e
w a s
se w e r
p e r
tra ct.
p r o je c t,
ca s h , w ith in
T h is
in s ta ll
o f
in
2
b u ild
d e v e lo p m e n t
b eca u se
$ 2 0 ,0 0 0
la y
to
w e ll, b u ild
w ith d r a w
T h e
o f
th e
a n o th e r
A
a
e x p e n d itu r e s
lo t).
in g r e s s
d is tr ib u tio n
s e r v ic e
h a d
s in k
$ 1 ,3 0 0
e s tim a te d
p e r
a d d itio n
to
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,
in
$ 3 0 ,0 0 0 .
s tre e ts
In
h a d
m e m b e rs
$60 0
v e lo p m e n t
to
b y
h a d
A n o th e r
a n d
a n d
sy ste m .
co st
o f
a ls o
re
co o p e ra
co n tr a c to r
W h en ,
su d
72
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
cre a se
tio n
in
p r ic e
d e c id e d
W h e n
th e
co n tr a c t
a
n o t
w ith
a
in
th e
a
A s
o p e r a t iv e ’s
th a t
a
th e
th e
c ia tio n
b u t
r ig h t
n o t
su ed
o f
la tte r
se co n d
w h ile
s ta rte d )
c o n tin g e n c y
so
co n
th e
c o
im p a ir e d
o ffic e r
h a v in g
th is
w ith
T h e
o f
th e
fo r
a sso
$ 1 ,8 0 0
th e
fo r
in
o r g a n iz a t io n
T h e y
w ith
th e
T o
h a d
re p o rte d
th e
in
e rr o rs
c o r r e c t
r ie d
to
on
a n d
th e
a fte r
its
T h e
w e re
d a y s
n u m e ro u s
o f
c o s t-p lu s
th e
th e ir
co s t
th e
to
co n
S om e
p la c e s
in
th e
S om e
la b o r
r e la tio n s h ip s .
s u ffe r e d
d e la y s
a n d
S e v e ra l
th e re
n o
w a s
T h e
to
th e
fin a n c in g
b u ild e r
d iffic u lt
O n e
tim e
a ll-t h e -w a y
its
fu r th e r
o b
th e
n o
r e m a in e d
w e re
la b o r
d is c o v e r e d
on
th e ir
n e c e s s a r ily
fin is h e d .
s h e lte r
th e
w e re
o w n
e x
in
s m a ll
o r g a n iz a t io n
th a t
a sp ects
to
th e re
th e
w e re
o ccu p a n cy .
m o re
fa r
fo r
u n til
th e
it
a
th e
h a d
w a s
fa m ily
p o in te d
d is fa v o r
v a lu e s .
fr o m
th ese
fa c to r s
c o u ld
o r
g a ra g e
a lo n g
ra n
to
a re
h a d
w h en
sta te s,
as
a ls o
th e
ca se
h in d e r e d
u n d e s ir a b le
to
so
liv in g
a g a in
p e r
A ll
th ese
to
m a k e
lik e ly
re g a r d
th e
b u ilt,
th e
co o p e ra
a s lo w e r in g th e lo c a l t o n e a n d
In
fin a n c in g ,
“ le d
u n til
p e r m it
th e
b u ild in g .
ou t,
b e
fo r
ou t a fte r
re so u rce s
n e ig h b o r s
fu ll
m u st
d esp e ra te
p r o v id e
o f
th a t,
h a d
o f th is
th e
a s s o c ia tio n ,
o b ta in in g
fin a n c in g , a s t h e u n it s a n d t h e ir o w n e r s
to
o f
a ll th e
p e r io d
b a sem en t
to
r e s u m p tio n
p ro s p e ro u s
a ll
h ou ses
sh ed
m o n e y
a n d
th e
th e
e n o u g h
S o m e tim e s
p a id
a n d
lo n g
fa m ilie s
o c c u p y in g
b a sem en t
q u a rte rs
th in g s ,
ca ses,
w a s
p r a c t ic a lly
a
b e fo r e
som e
d w e llin g
m itte d
jo b s —
e la p s e
In
p ro p e rty
re g a r d
a re
u se
com m e n te d
d o in g
h o m e s—
w a g e -e a r n in g
t iv e w it h
a s s o c ia tio n s
in
m e m b e rs ’
p r o je c ts
w a s
a s s o c ia tio n
m e m b e rs
a sso
in c o n v e n ie n c e s
in
u n io n
u sed
u n io n
th e
h e ld ,
s e lf-h e lp m e th o d s .
“ ca r
in
sev era l
w e re
tra d e s.
T h e
re p o rte d
In
m e m b e rs ’
u n io n s ’ o b je c t io n s .
s e lf-h e lp
d is a d v a n ta g e o u s
o v e r -a ll
o th e r
th e
th e
c o o p e r a tiv e s
c e r ta in
th e
o p e r a t io n .”
w e re
“ s h e ll.”
th e
ou t,
in t e r p o s e
o p p o s itio n
to
A fte r
th re sh e d
la b o r
u se
m e th o d .
th e
h ou ses.
a
Self-Help as a Disadvantage
g a rd e d
p r o b le m s
to
to
o b je c t io n
tr ie d
m e e tin g s
w a s
o f th e
its
b u ild in g
th a t
p r a c tic e s
th e ir
u n io n
b u ild e r h a d
d e tr im e n ta l
g ro u p s
o b je c t e d
w o u ld
w h e re
c o m p le te d
a rra n g e m e n t
p a id .
o f
w a s
Relations with Labor
F e w
it
in
la n d
w e re
on
p r o v id e d
w o rk .
o v e r th e
th a t
h a d
le a v in g
th a t
c o n tr o l”
b ills
w a s
c o u l d n ’t m e e t
c o m p le te d
u n io n s
m a tte r
th a t
h o u s e ;
s e v e ra l v e te r a n s ’ c o o p e r a tiv e s th e m e m b e rs
w o r k
c o n s tr u c tio n
r e p o r t e d , a ls o , th a t th e
o v e r
In
t h a t , u n d e r its
tr o u b le s ,
a ll t h e
th ro u g h
th e
n o t
a sso
a b o v e
w h en
o w n
u n io n s .
r a is e d
c h a n g e o f la b o r , h o w e v e r .
s in c e
th e ir
h is
w a s
so.
re g a rd e d
w o r k
on
O n e
e x p e r ie n c e d
e x c h a n g e -o f-la b o r
w o r k
th e
a d a m a n t
c o n s is te n tly .
a t
a s s o c ia tio n
lo o s e
s lip p e d
th a t,
H is
p r ic e d
a n o th e r c ity .
“ v e r y
th e
d id
co n tr a c to r, co sts
u n s a la b le
a d d
g e ttin g
a s s o c i a t i o n ’s
w ith d r e w ,
o b ta in e d
a le n d e r in
c ia tio n
a n y
c o n s tr u c tio n
d e
W ith
w a s
w h ile .
d w e llin g s
a n d
d is s o lv e d
p r o je c t
r e s u lte d
h is
sta te d
in c r e a s e d
th e re fo re
w o r th
la r g e
fr o m
to
b on d .
q u a lit y ,
h im
lo n g
e v e n tu a lly
co n tr a c to r
g o o d
a s s o c ia tio n .
a n d
h e
d iffic u ltie s ,
t r a c t o r h a d file d lie n s
A
th e
d iffic u lty
c o o p e r a t iv e -u n io n
w h ic h
$ 8 0 ,0 0 0
(ju s t
so s h a r p ly th a t th e m e m b e rs
in tr in s ic
its
m a k e
w e ll w o r t h
d on e,
a s s o c ia tio n
th e
d o in g
jo in t
o r
s tr ik e s .
h a d
lo c a l b u ild in g -tr a d e s
c o n tin u e d
w o r k in g
ca se,
a g re e d
u n d e rw e n t
a s s o c ia tio n
th ese
re sp e ct
A n o th e r
to
c o s t-p lu s c o n tr a c t w ith
r is e n
on e
je c tio n ,
b o o k s ).
b u ild in g -t r a d e s
c o o p e r a tiv e s
p a r t ic u la r ly
co n
co n tr a c to r
tr y in g
b een
e ffic ie n tly
th e m .
n o
m e m b e r ’s
th a t
p a y m e n t
a s s is ta n c e
o f
r e la tio n s h ip
c ia t io n ’s
U s u a lly ,
a n o th e r
co n tr a c to r
s m a ll
w a s
w ith s ta n d in g
a s
c ity -w id e
s o m e d iffic u lty w it h
s a fe g u a r d s
s till
S TA TE S
s e lf-h e lp
p o o le d -la b o r
(s h a r in g o f s a v in g s ,
a s s o c ia tio n
its
a s s o c ia tio n ’s
A n
tw o
d is r e g a r d e d
c o -v e n tu r e
la y s
o r
ca m e
d a m a g e s.
A
c a u g h t in
a n d
u rg e n t,
th e
th e
r e s is te d
th e
th e
th e
U N IT E D
(in
w a s
w ith
in s p e c t
o n ly
c lo s e
$ 1 ,8 0 0
th e
p o w e r
se v e ra l
to
s e r v ic e s .
to
T H E
o f
w a s
th e o th e r s h a d in c o r p o r a te d
a n d
h is
a s s o c ia tio n , n o t th e
co n tra ct,
la c k e d
co v e r
a s s o c ia
IN
a g re e m e n t
fe e
s itu a tio n
b a r g a in in g
th ir d
tra cto r,
th e
to
th e
th e
co n tr a c to r,
fr o m
co n tra ct
w ith
re a d y
p e n a lty
o f a w ith d r a w a l b y
t r a c to r ).
w a s
se con d
fo r
a s u b s t a n t ia l in
p e r c e n t),
c o n tin u e
w ith d r e w
lie n
c lu d e d
to
4
a s s o c ia tio n
s u d d e n ly
file d
(a b o u t
H O U S IN G
in
c o s t ly
fin a n c ia l
tu rn ,
r is k s .
h a s, th e
d e la y s
a n d
w e r e
L a ck
o f
r e
o f
c o o p e r a tiv e
e x p e d ie n ts
in
o u r c a s e .”
A n o th e r
d iffic u lty
fo r
s e lf-h e lp
a s s o c ia tio n s
PR OBLEM S
(in
w h ic h
th e m e m b e rs
th e m s e lv e s )
su ra n ce
is
fo r
th e
th a t
se ts
a
le a s t o n e
co m e
w h o
th e
as
th e
d a te
c a s e , h o w e v e r , th is
a n
a rra n g e m e n t
to
b u ild
o f
th e
w e re
p e r fo r m in g
b eca u se
in
th e y
h a v in g
s till
d iffic u lty
o v e r
w a s
th e
co n tr a c to r
in s id e
b e lie v e d
th e
p u r
b e
fin is h in g
a n d
fo r
p ro ce sse s.
fe itin g
T h is
Problems o f Finance
F in a n c in g
g re a te st
p e o p le
w e re
w h o
a n d
p r ic e
th e
b o n d
th e
a s s o c ia tio n
h o p e
b a n d in g
to
b e
r a is e d
in g
to
fo r
c o v e r
a tto r n e y ’s
a b le
tr a c t
th a t
b e ca m e
a ll
o f
v e r y
c ir c u la r s
fe e ),
o f
to
in
a
fo r
n e x t
n eed
fo r
fu n d s
t io n
o r
h a d
d e s c r ip tiv e
m a
o p t io n
o f
on
a n d
(in c lu d
a n
s m a ll
a v a il
ex p en ses
E v e n
w ith
c o m m itte e s
su ch
co n
p u rp o se s
w e re
S o m e
oth e rs
o r g a n iz a t io n s
H o w e v e r,
th e
la w
A ll
a s s o c ia tio n s
o n ly ,
in
a s s o c ia tio n
th e
in
su ch
on e
m o n e y
so
r a is e d
F a r
W e st
o r g a n iz a tio n s
a u th o r ity
in itia l e x p e n d i
re p o rte d
a u th o r ity ,
on
o p e r a t in g .
S ta te
fo r
s iz e .
la r g e ly
w e re
g e ttin g
fo r fu n d s n e e d e d
g ra n te d
a n d
in
b y
v a r y in g
c a p ita l-s to c k
d iffic u lty
O n e
fin a lly
th e y
in c o r p o r a tin g
fo r
s it u a t io n
o f
d ep en d ed
u n d e r w h ic h
p r o v id in g
e x p e r ie n c e d
th is
fe e
p ro ce d u re
S ta te
t o s e ll s t o c k
m et
m e m b e r s h ip
th e
tu res.
th a t
b u t
h a d
fo r
to
b e
it
w a s
1
y e a r
p la c e d
e scro w .
E x p e rien ce w ith L en d ers
In
w ith
so m e
ca ses
c o m p le te ly
a n d
a
th e y
h a d
a s s o c ia tio n s ,
b o th
fir s t
o f
1F H A
fin a n c e
ta in e d
a n
s e c tio n
fin a n c in g
b een
s u c c e s s fu l
th e ir
a n d
u n a b le
tra ct,
in
to
th e
n e v e r th e le s s
officials advise, h owever, that as individuals, they c a n obtain
b y la w
(a c t u a lly
h a d
a ll-
fin a n c
w a s
costs,
it
co n tra ct
its
a b o u t
a p p lic a
4 0 ”
th en
m o d e rn
h ou ses,
p o lic y
a ll
to
th e
le n d
o b ta in
its
fir s t
w e re
h ou ses
on
E v e n tu a lly
6 0 -p e r c e n t
o f
s till
o f r a c ia l n o n
m o rtg a g e s
g ro u p .
s ty le
a n d
m e m b e rs
fin a n c e
th ose
it
u n in s u r e d
as
a
lo w in g
h is
c o o p e r a t iv e .2
p r o c e d u r e :
la n d
ra n g e d
h ou se
a
h e
w a s
fo r
w a s
ch a ra cte r
A
o f
h ou ses
w a s
p la n n e d
T o
m a k e
th e
co st
th e
th em
b e y o n d
In
a
o b
m o rt
t it le
to
b u t
fo l
p a id
fo r
th e n
a r
w h en
th e
g a v e
th e
a s s o c ia tio n
w a y
th e
c o o p e r a tiv e
w a s
th e
a d o p te d
a fte r
w h e n
th e
F H A
w o u ld
m e m b e rs’
r e t a in e d .
a p p lic a t io n
b eca u se
h a v e
rea ch .
th e
p la n
a n oth er,
c o m p le te d ,
a d d itio n a l
n e c e s s a r ily
h e
fin a n c
th e
h e
b e lo w
h ou se
it ;
on
th is
c o n fo r m
th e
o b ta in
a d o p te d
fin a n c in g ,
r e je c te d
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
th em
fo r
to
th en
a s s o c ia t io n ’s
th e r e fo r e
m o n e y
ce d u re
it.
th e
s e lf-h e lp
fin a n c in g
g iv e n
c o m p le te d
o n
u n a b le
It
W h e n
in d iv id u a l
q u itc la im
o f
a s s o c ia tio n
in t e r r a c ia l b a s is w a s
d e v e lo p m e n t
insurance u n d e r Section 8, Title I of the H o u s i n g Act.
a n
in g
on e
d e v e lo p in g
w e re
h a d
“ b y
e x tre m e
a ll-th e -w a y
on
T w o
a n
g a g e .
m o rtg a g e
r e s o lv e .
b e
fix e d -fe e
p la n n e d
o f its
o v e r -a ll
fin a n c in g
s till
th e
th e
se co n d
fa c e d
w e re
to
h ou ses.
r e je c te d
fin a lly
to
c ia tio n
c o o p e r a tiv e s
c o n s tr u c tio n
p r o b le m s
b e ca u se
It
a
to
fo r
p r o d u c tio n .
r is in g
c o o p e r a tiv e
o f
o f
d is c r im in a tio n
w h it e ).
th u s
a s s o c ia tio n
o f
b e
h a v e
s o m e b e c a u s e it w a s a c o o p e r a t iv e ,
b eca u se
a r c h it e c t u r e
lo n g e r
n o t o b ta in
o th e r
n e g o tia te
fin a n c in g
A n o th e r
a
S ta te
fo r
n o
w o u ld
ou t
In
a s s o c ia tio n
m u ltip le
v ie w
o f
th e
m e m b e rs,
o f
T h e
g r o u p
in g a g e n c ie s —
n e ce ssa ry .
a s s e s s in g
to
b u t
it
fin a n c in g .
b u t
sta rte d
in
a ll-t h e -w a y
o th e rs
m o n e y
a g g re g a te .
fo r
its
O n e
g ro u p ,
b e t t e r q u a lit y
s ta rt
h o st
th e
o ffic e r s
in it ia l
a b le
in c o r p o r a tio n
ta k e
la n d , a n d
b y
b e
h a d
fin a n c in g ,
c o u ld
b u t c o u ld
b a s is .
w o u ld
to g e th e r.
th e
co sts
la r g e
s e r v ic e s
tr ib u te d ,
A t
th a t
th e
c o o p e r a tiv e s
a
on
M o st
u rg e n t
o f g e ttin g
h a d
c o o p e r a tiv e
w h e th e r,
m id d le -in c o m e
a n
a d v a n ta g e s
d o u b tfu l
o f
th e r e fo r e ,
in d iv id u a l
th e
h o u s in g
w a s
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
re p o rte d .
lo w e r
In itia l f u n d s :
te r ia l,
b lo c k
o f th e
th e
b y
w ith o u t
jo in e d
co m m o n
h o u s in g
in g
a lm o s t
s tu m b lin g
p e rso n s
w h o se
a n d
w a s
th e
a fte r
a d d i
it
c o n s tr u c tio n
c o n s tr u c tio n
b y
b y
o f
th a t
lo n g -te r m
o b ta in
th a t
th e -w a y
g ro u p s
s e c t io n s ,
on
d on e
re p o rte d
fin d in g
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
“ s h e lls ,”
in
s e c t io n s .
c o m p le te d
In
a t
d iffic u lty
tio n a l
c o m p le t io n .1
w ith
th e
F H A
n o
h ou se
m a d e
o f
p e r fo r m a n c e
fo r
b y
o th e r
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
c o o p e r a tiv e s ,
w a s
p oses
to
im p r a c tic a b ility
th em
ca n n o t fu r n is h
a re
O F
d w e llin g s .
m ea n t
v e r y
s lo w
fo r
ty p e
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
to
d w e llin g s .
t iv e
th a t
b a s is
le n d in g
e n co u n te re d
d e fin ite ly
o ffe r e d .
in g ,
w e n t
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
sou rce s.
D e la y s
in
p r o c e s s in g
in
b e ca m e
tru ste e
a n d
b e a r
g ro u p
r e la tiv e s ,
t it le s
re
co o p e ra
“ a t
le a s t
w a s
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
on
T H E
a s
a
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 )
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
sa m e
th e
fin a n c in g
m o rtg a g e
th e
A
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
in
le d ,
e x tr e m e ly
a
h a d
in
re a ch e d
c o o p e r a tiv e
b e ca u se
le n d in g
it
is
th e
c o o p e r a tiv e
o f
F H A
S e c t io n
o f
th e
w a s
T h e
fo r
in
a n d
a n
p r o je c t
ro u g h
te r r a in
d id
an
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
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.
a ll
o fte n
th e
la c k
o f
a m o n g
ou t
in
o f
th is
p ie c e m e a l
w a y
to
th e
c o n n e c tio n
v a r io u s
r e
th e
a s s o c ia tio n s
its
p r io r
In
d e la y s
e x p e r ie n c e
p ro ce d u re s,
m a n y
th e
m a n y
o b ta in in g
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 u n ity
p ro p o s e d
W h ile
n o t g o
th e
a n d
d e la y s
fin a n c in g
a s s o c ia tio n s
d iffic u lty
th e
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
its
to
w ith
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 p p li
th e
w a y .
e x p e r ie n c e d
o f
u s u a lly
w e r e
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
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
th e ir
p la n s
b eca u se
ju d g e d
r e la tio n
b y
th e
b y
th ese
u n d e r
a n
a m p le ,
w ith
fo r
a fte r
th e
S p e c ia l
in
a n d
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 .
c o m m u n ity
a
to
w a y s id e .
w e re
on e
o f
n e a r ly
3
in
b y
d iffic u ltie s
a n d
co
d iffi
a p p ro a ch
c o o p e r a tiv e s
fin a n c in g
th e
o ffic ia ls
c o m m itm e n ts .
o f
tu r e p la n n e d
th e
th e
in s u r a n c e
F H A
m u ltip lic ity
th e
cre a te d
in d iv id u a l
h o u s in g
o b ta in in g
o f
o f
b y
p r o b le m s
r a c ia l c o m p o s itio n , b o th
in
co s t
u n d e r w r itin g
d e v e lo p m e n t.
b y
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
a ls o
th e
e n co u n te re d
fo r
r e je c te d .
w e r e
ra th e r
h o u s in g
T w o
a p a rtm e n ts , d a ta
in
w h o le .
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
a
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
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
p a y m e n t
ta in
d id
V A
c o n s u m in g
s p o n s o r ’s
a n d
d ite
a n d
In
fin a n c in g
o r
tim e
p r e v a le n t
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
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
ch a rg e s
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
o th e r
c a r r y in g
fin a lly
re
th e
( w h o
fo u r
th e
a n d
d is c o u r a g e m e n t
b e r e je c t e d
th e
c o
a s s o c ia tio n
s im p ly
e v e n tu a lly
a
IN
c o o p e r a tiv e -
on
a n y
w a s
S in c e
as
w ith
a p p lic a tio n
w a s
u n
o r g a n iz a
m e m b e rs
o th e r
a s s o c ia tio n
in d e fin ite ly ,
g iv in g
d e la y s
Its
r e je c te d , n o r
T h e
th e
a p p lic a t io n
a g e n c ie s .”
le n d
w e r e
o f
fu n d s
sta rte d
T h e
lo a n
c a r r ie d
b y
s ta b ility .
u p
h a d
co -v e n tu r e ,
its
le n d e r s
ty p e
o b ta in
g iv e
it
a s
th e ir
n o t
to
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
sta te d
In
to
re s p e ct
to
“ if
p r o je c t s
on
t io n
s t a n d a r d s .”
M u ch
o f
A c t
o f
fo r
o th e r
e x p e r ie n c e
a n d
tio n
in c lu d e d
c o o p e r a tiv e s ,
b y
2 1 3
th e
in g
in
1 950
in
fa c t
fo r
re p o rte d
tu rn e d
th a t n o n e
in
t io n ,
v io la
h a d
e la p s e d
y e a rs
h a d
s e co n d
sa m e
o f
th e
u n d er
th e
a fte r
a u th o r ity
u n til
4
y e a rs
a fte r .
w ith o u t
th e
en a cted
a d o p tio n
a
th a t
u a lly ,
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
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
a n d
w e r e
th e
th e
so
tim e
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
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
fo r m e d
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
c r e d it b y
In
in
fo r
3
in
w h ic h
o f
th e
o v e r
r e s p e c t iv e ly ,
to
th e
fo r
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
c a s e s a ls o in c lu d e d
o f
n o t
fo rm e d
th e w a r
b u ild in g .
First unit completed—
Before
1946
1943
Association formed—
Before 1941___________
1945__________________
1946__________________
1947__________________
1948__________________
1949__________________
1950__________________
Total
m o st
e x is te n c e
h a d
J u ly
th e
a t
o f
1
b een
1 9 5 0 , fo r
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
tw o
w a s
1949
1950
1
2
3
2
2
1
2
1
3
11
9
9
2
26
1950
Project not
completed
July 1950
2
1
4
2
1
5
1
Last unit completed—
1943
or
before
First unit completed—
Before 1943_______
_
1946 ________________
1947__________________
1948__________________
1949__________________
1950__________________
1946
1947
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
No units
completed
July 1950
1948
on e
u n it
in
1947
6
6
b een
y e a rs, a n d
w ith
fo r m a tio n
b u ilt its
o n e
Item
o cc u
h a d
a s s o c ia tio n s
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
e la p s e d
y e a rs, o n e
th e ir
fin is h e d
in
34.— Interval between form ation o f association and
completion o f first unit, and between first and last units
Total
th e
th re e
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
a ll-t h e -w a y
u n it
t im e
a sso
In
able
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
in te r v a l
n o t
a s s o c ia tio n
o r
s it e .
fu lfillm e n t
51
th e
fir s t
c o m p le te d
y e a r
b e fo r e
th e
u rg e n t
fo r
th ese
th e
sta g e s
p a tie n c e
e v e n tu a l
sh o w s,
d a te
In
o n
a n d
a s s o c ia tio n s ,
th e
p a n cy .
r is e
r e s u lts
c o o p e r a tiv e .
3 4
b e tw e e n
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
6
sh o w s
th e
th e ir
th e
lo n g
34
o f
r e m a in d e r
la s t
c o n s tr u c tio n
t io n
S ec
th e
e la p s e d .
d u r in g
s u b s t a n t ia l
p ro g ra m
b e fo r e
o f
c o o p e r a tiv e s
th a t
a s
th e
y e a rs
d iffic u ltie s
in
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
2
la te r
p ro ce d u re s, a s
p a rt
c o m p le te d
u n til
s u r
fo u r
th re e
o f
c o o p e r a tiv e s
th e
N e v e r th e le s s , m a n y
th e
h a lf
y e a r
y e a rs.
c o m p le tio n
c o m p le te d
th e
o f
o f
1
2
th e p r o je c t, fo r
c ia tio n
in
ca se
ca se
b e tw e e n
w ith in
w ith in
th e
th e
u n its in
so
fiv e
in
in
T h e
v a l
d on e
a n d
H o u s in g
in
o f th e
th o u g h
r e s u lte d
in s u r a n c e
u n u su al
co n te m
fa c to r s
s p e c ific
s im ila r
in s u r in g
o th e rs
in te r r a c ia l
b een
p r o v is io n s
1 9 4 9 . A p p a r e n tly
p ro v e m e n t
in q u ir y
w h ic h
p a ssa g e
th e H o u s in g A c t o f 1 9 5 0 .
1 94 8
a n
a n a ly z e d
w h ic h
im p le m e n tin g
a s s o c ia tio n s
m o rtg a g e
75
C O O P E R A T IV E S
c ia tio n s
th e
in s u r in g
tw o
A d m in is tr a
h a v e
b e fo r e
1 948,
s p e c ia l
in
th e
o cc u rre d
th e ir
th e b a s is o f d e fic ie n t p la n s ,
lo c a tio n , o r
v e y
H o u s in g
o cc u p a n cy
d o w n , it h a s b e e n
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
u n a c c e p ta b le
F H A
a n d
in
w ith
th e
in te r r a c ia l
o f
c o n d itio n e d
in s u r a n c e ,
O F
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
w e re
d ra w n .
fr o m
o th e r
(fo r
A
a
p e r
b u ilt
a ls o
sq u a re
n o te d
p a r t ly
fo o t
fo u n d
fo o t,
its
$ 8 ,0 0 0 -$ 1 0 ,0 0 0
to
n e a r ly
th e
a b o u t
th e
p la n s
its
1 7-
th e
fr o m
r is in g
to
e x p e cte d
A n
$ 4 .7 5
to
$10 .
$ 1 0
p e r
h ou se
o f
$ 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.
B y
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
w e re
th e r e fo r e
m e m b e rs
o f
th e
th e
r e g io n , to
a
to
t im e
y e a rs
p e r io d
b e
th e
la te r ,
o f
a b le
m e m b e rs
w ith
to
in
th e
co v e r
th is
fa m ilie s
a s
c in d e r
a
b lo c k s ,
a
in
h o u s in g
a d d it io n a l
th e
th a t
th a t
p r o je c t.
fo r
n eed s
h is
o u t
on .
co st.
d o
so
M a n y
o f
th e
O n e
A
o f
h a d
n o t
th e
lo w e r
h a d
b e en
c o n s id e r
a n d
(w h ic h
h o u se s )
m a in
to
e x p re sse d
h a d
a b le
to
h a d
b een
a
p r o v id e
m id d le -in c o m e
its
h a d
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
g r o u p
it
r a is in g
u n a b le t o
w e n t
s iz a b le
fa ilu r e
w e re
o f
d r o p p in g
t im e
o p in io n
w h o se
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
o f
ca ses,
th e
o r
fu ll
v id e
a
to
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
co n se q u e n t
fin d
n ew
w h o
h a d
u n a b le
o v e r th e
c o n tin u e ,
o f
th e
to
p r o j
O th ers
b e rs.
In
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
ca u sed
th e y
u s u a lly
a s s o c ia tio n s
o f
in te r e s t
fo u n d
o r
a tte n d a n ce
p e o p l e 's
a t
e x
m e e tin g s
a ssessm en t
w a s
O th e r
g r o u p
o f
th e
co o p e ra
h a d
p r o je c t
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
e s p e c ia lly
p la n
r e c r u it
w id e
a
to
co m
s u ffic ie n t
flu c tu a tio n s
d u e
b e in g
o f th e
p la n s ,
etc.
p la n n e d
In
fa r
p a rt,
a n d
fo r m a tio n
o f
d iffic u lty
th e
th e
to
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
b o o k s
a s
m a k e
th e
o f
s h a r p ly
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
o r
th e
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
in s u r a n c e ,
o u t
e ls e w h e r e .
fu n d s
th e
e x p e r ie n c e d
r e m a in e d
in
b y
la g b e tw e e n
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 )
w a s
fin a n c ia l r e
im m e d ia te ly
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
lo n g
it
th e
m e m b e rs w e re
w ith d r a w .
it
e n co u n te re d
d ro p p e d
m e m b e r s h ip
o f
th e ir
fin a n c in g
u s u a lly
h a v e
th e
o f
re s o u rce s
p a rt,
th a t th e
p o te n t
o b ta in in g
o p p o r tu n ity
ca se,
fa m ily
h a r d s h ip s
a s s o c ia tio n s
m e m b e rs
h a d
o u t
th a t ch a n g e d
tu r n -o v e r
a s s o c ia tio n
w a s
In
in
r e
u n a v o id a b le
la r g e
b e y o n d
a ls o ,
o th e r
c o n s tr u c tio n
m e m b e r s h ip .
m e m
c a r r y in g th e p r ic e o f th e h o u s e
c o o p e r a tiv e . T h u s , a n y
a n
on
In
th e
th e y
a n d
e a rn e r
d r a in s
illn e s s ,
in
tu r n -o v e r
tra n s fe rre d
w a g e
d e la y s
som e
th e
g e n e ra l
th e
o f
to
b y m e m b e r s ' r e a liz a tio n
h a d
a n d
th a t
fo r
$ 10 .
p u rch a se
its
c a r r y
w a s
su ch
co sts w e r e
re a s o n s :
Membership Problems
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
sou rces,
o f
p r e s s io n
w e r e
w h ic h
p e o p le ,
u p
In p e rh a p s th e m a jo r
fr o m
n o t
2 0 0
o f
tim e .
s im ila r
S o m e
c o u ld
to
m e m
a s s o c ia
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
fo r
o n e
s ig n e d
th e
c o o p e r a tiv e
fille d .
th a t
100
$ 1 0 0
o n
on e
s te a d ily
q u ota
w a s
th ose
th e
le s s
fig u r e , it w a s
a s s o c ia tio n s
ou t.
so a n d
w ith
ity
m o re
fa m ily ’s
o f
a s s o c ia tio n s
in c r e a s e d
so m e w h a t
th e
u se
fir s t
a t
o f
h a d
M e m b e r s h i p t u r n -o v e r :
p r o h ib itiv e .
ta sk
w e re
fr o m
re p o rte d
b u ilt
h a d
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
c ity , d e a th
m o st
th e
p r o p o r tio n
w ith d r a w
th e
t iv e s
r is in g
fr o n te d
m o n e y
20
th e
b e
th e
in s te a d .
T h e
la n d ,
to
th ese
th e ir
w h e n
fo r ,
o f
m e e tin g s
a ttra cte d
o f
p a id
fu ll
m a k in g
m a k e
c a lle d
p r o o f
T h e
100
a n d
H o w e v e r,
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
u n e m p lo y e d
r e lia b le
r e g u la r ly
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
h ou ses
co st
$ 1 0 .5 0 .
u p
s e lf-h e lp )
co sts
r a is in g
h a d
th a t
S TA TE S
m a te r ia l.
a n d
h ou se
to
little
t io n
d u r in g
g o n e
b y
o ffe r e d
b e r s h ip
p a y
c o n s tr u c tio n ,
sq u a re
U N IT E D
fa ta l
$ l,0 0 0 -$ 3 ,0 0 0
th a t
T H E
r is in g
n o t
re p o rte d
th e
IN
e m e rg e d .
c o u ld
c o s t in g
h ou se
o f
w a s
fin a lly
w h e n
th a t its c o s t s h a d
h ou se
th ir d
w h ic h
th a t
w e r e
o f
$ 7 .3 2
s a id
v is e
b u t
o f
a n tic ip a te d
p e r io d
th e
a ll,
a s s o c ia tio n
co -v e n tu r e
m o n th
in
fo r
fig u r e
h o u se s
th a n
ro s e
th e
a fte r
m o re
O n e
m e m b e rs
a t
A s s o c ia tio n
ca u g h t
s e r io u s
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
e n t a ils
c o m m it t e e s ,
o f
th e
a
r e c r u it
d r a in
c o n s u m in g
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
th e se
le s s
th a n
a ls
th e
a
w a s
F o r
th ir d
a n d
J u ly
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 a s
m u tu
th e
w ith
ra te
w id e ly
o n ly
a
in
a
o n ly
12
9
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
Number of members at—
Type of association
g o n e
Beginning
High point
July 1950
610
5,459
2,954
195
5,402
2,426
127
1,003
1965
1,123
271
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
o v e r
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
tu r n -o v e r
fo r
w e re
tu r n -o v e r
a m o n g
th e
a p a rtm e n ts.
n e a r ly
2 5 0
u n it s
tu rn -o v e r
70
fo r
p e rce n t
w a s
u s u a lly
p e rce n t
a fte r
a p a rtm e n t
its
p e r
a
p u rch a se
th e re
r e s u lt
a n d
a ll 2 2
o b ta in e d
T h e
ev en
o f
21
h a d
w h o le
y e a r ;
d e a th
o f
a
th e
O n e
20
y e a rs '
ca u se
th e
O n e
th a t
a
th a n
w a s
cu ssed
7 .7
w a s
h a d
lo s t
p r o b le m
w ith
o r
la n d
th a t.
th e
le g a l
a b ility
le ft
to
c a r r y
b eca u se
fo r
red eem ed .
s ta b le ,
fu n d s .
s till
s ix -
m e m b e rs
In
In
b u t
on e
b eca u se
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
c is io n
t im e
a m o n g
T h is
w a s
b e fo r e
th e
o n ly
fin a l
th e
m e m b e rs,
costs,
sta g e s,
b eca u se
a
o f
in
tr y in g
g r e a te r
tru e
u sed
e t c .,
a s
a t
b lo c k
w ith
a lr e a d y
le a s t
la c k
o f
o f
th e
a s s o c i a t i o n 's
a n d
c o u ld
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
th e
a n d
a s s o c ia tio n s
w e re
a n d
d is a g r e e m e n t
a g a in s t
th e
p r o j
e x p e r ie n c e d
co n su m e d
fu n d s
c a r r y in g
w a s
in
th e
u rg e n t
th e ir
e s p e c ia lly
a r c h it e c t
a s s o c ia tio n ,
o f
1 0 -
g r o u p
som e
lo s t
a s s o c ia tio n s
in
w ith d r a w in g
m e m b e r s h ip
a n oth er,
a
o f
a
c o n s id e r
h o u s in g .
th e
ca se
a d v ic e ,
r e c e n tly ,
w e re
ca se
sta g e s,
sh a res
o f
b e g a n ,
A n o th e r
d e la y ,
th e
h a d
tu r n
e x p e r ie n c e d
p e r c e n t;
p u rch a se ,
In
s ix
s m a ll
d u r in g
70
a b o v e .
O th e r
th a t
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
a s s o c ia
w a s
v e r y
lo n g
d iffic u lty
th e ir
o r,
te n a n ts
a
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
1
w ith d r a w a l
e x c e p tio n
o f
o f
o p e r a t io n ,
h ou se.
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
th e
in
n o t
h a d
d e ta ch ed
y e a rs.
p r o je c t
w a s
th e
tu r n -o v e r
e x p e r ie n c e , b u t its p r e -c o n s t r u c
n eed
m o re
o f
p e rce n t.
th e
o f
re p re
m e m b e rs.
p e rce n t
o f
o f
a b o u t
o th e rs
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
Last known membership figure.
T w o
a b le
p r a c tic a lly
a b o u t th e
Total______________
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
72
3,193
636
Dissolved
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
Project completed. ___ ____
Project not completed:
Some construction_______
No construction. . . . _____
1
th e
o u t
o v e r
Active
All-the-way:
Houses____________
Mutuals__
Co-ventures. _ _______ _
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
o f
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
n u m b e r
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
p e rso n s
1 95 0
a s
o f
fo r
w id e s t
th e
le a s t
w h o le
te ll
T h e
o f
lim ite d
in
in d ic a tio n
a s s o c ia tio n s
b e ca u se
1 ,7 0 0
m e a n s
sh o w
th e
th e
a b o u t
h a v e
fo r e c lo s u r e
m e m b e r s h ip
m a in ly
d w e llin g s
o t h e r w is e
a s s o c ia tio n s
a v a ila b le .
s h o w e d
p o in t,
s h ip
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 .
in
fe e s ,
w h ile
s till
b e
n o te d ,
n o m in a lly
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
A
s u rm o u n te d
t im e
ex ce e d e d
a
s e r ie s
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
o f
D e la y
th e
a n d
r e a c h in g
re a s o n
w a s
th e
o f
th e
a
in
b e e n
n o
to
s e r io u s
(u s u a lly
to
m u ch
m o re
m e m b e rs
p r o b le m .
w h ic h
o f
a s s o c ia tio n s
o f
o n e
p u r e ly
fo r
s till
in
in te r e s t
(b e
th a n
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
a s s o c ia tio n
b u ild in g
tiv e s
h ou ses
w e r e
o n ly )
:
th e
re p o rte d
D is a g r e e
h ou ses,
h a v e
p r o je c t s
o f
th e
a n y
p r o je c t ,
w a s
b e ca u se
(n o n m e m b e r s
lo w e r
w e r e
stu d y
s p o n s ib le
fo r
B o th
th a n
w h o se
th o se
o f
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 .
w e r e
s till t o o
in
th is
n e w
co o p e ra
A ll
o f
th ese
a t
th e
t im e
u n c o m p le te d
to
re sp e ct.
in d iv id u a l
h a v e
In
h o m e o w n e rs
fa ce d
th e
co
w e r e
re
m a in te n a n c e .
th 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
e ith e r
o r
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'
o p in io n .
e x
d is s a tis fa c tio n
a m o r tiz a tio n )
w e r e
A l
m e m b e rs.
ou s
a ffo r d .
b a s is .
Operating Problems
in d i
u n it
a m o u n ts
c a r e fu lly
re n te rs
a n d
p a y m e n ts
w a s
o n e
som e
m o n th ly
th e
re n ta l
th is
m e m b e rs, th e
a lla y e d
w e r e
p a y in g
th e
C o n tr o v e r s ie s
w e r e
d iffe r e n c e s
ca u se s
b y
p e r
G e n e r a lly ,
c o u ld
th e
r e g u la tio n s )
co n stru ct
n o t
th e re
In
c o o p e r a tiv e
c o u ld
d o
w a s
h o u s in g
c o n tr o v e r sie s:
a
th e
ca ses.
z o n in g
d e c is io n
c o s tin g
sta g e
th e
o v e r
a lth o u g h
fo llo w in g
o f
la w s u it
m a tte r
A m o n g
tw o
m u ltifa m ily
o f
a m ic a b ly ,
r is e
fir s t
tu rn
r e s p e c t iv e ly .
c o n s tr u c tio n
m e m b e r s h ip
m u ch
b e e n
p e rce n t,
th e
su b se q u e n t
th e
m e m b e r s h ip
in a b ilit y
w ith d r a w in g
n o t
a
b e ca u se
o v e 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
M em b ersh ip
w ith in
th e
th e
v id u a l h o u s e s
th e
a n d
th e
m o n th ly
on
re a so n
e n tir e ly
th e re
m o n e y .
3 0
it
ca u se
u n h ou sed
th e y b e e n
10,
2 5 ,
s im u lt a n e o u s ly .
s till
h a d
c h ie f
e re ct
th e ir
c ir
a t th is p o in t h a d
a s s o c ia tio n s
in
th ir d ,
a lm o s t
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
w h a t
u n til,
b e e n
th o u g h
p la in e d
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
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
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
h a s
co sts.
a m o n g
o r
th e
m a x im u m
th e
b e e n
in s u ffic ie n t
o ld e r
a s s o c ia tio n ,
o ld
a
la w s ,
lim ite d -
r e n ta ls . F o r
o f
r e p o r tin g
th e
c o lle c tiv e ly ,
v a r io u s
som e
O n e
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
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
th e
m u tu a ls .
d iv is io n
o n
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
n o
s e r io u s
tw o ,
h o w e v e r,
a n d
w e re
v e r y
a b o v e
a
lim ita tio n
tr o lla b le
O th er
e sta te ,
th e
m a in te n a n c e
in c o m e
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
p a rt
fu e l,
th e
a s
little
th o se
ta x e s,
m a in ta in
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
in t e r e s t ; c o lle c tin g
(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
m en ts
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
in d ic a te s
re a l
in
fix e d
rea 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
(c )
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 ,
a s
b y
a t
la r g e
a s
th e
t im e
b y la w
th e
th e
b y
th a t
m e m
p u t
th e
g iv e
w h en
b e
d is a d v a n ta g 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
v is ite d ,
th e
it
o f
th e
m u ch
r e c o g n iz e d
to
in
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 .
a n d
d e p r e s s io n s
b y
b o th
fille d
o cc u p a n cy
d iv e r s e
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
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
A m a lg a m a te d
o v e r
T h e
th e
2 .9 4
a n d
e r a l,
th e
a n
A
a s s o c ia tio n .
a n d
to
e v ic t
w h e n
w o u ld
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
k e e p in g
in
to
a re
s e llin g
ra th e r
th ree
(1 )
m em
te n a n ts
p la c e s
b e e n
a cu te,
lis ts .
to
a n d
fr o m
S e v
p la n
fo r
w h e n
th e
d iffic u lt.
In
v ie w
c o n s tr u c tio n
n o t
a r is e n
in
a n d
a p p e a r
to
to
T h is
o f
w a s
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
su ccess,
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
v a ca n cy
in
th e
D iffic u lty
a
h a s
w h o
o n ly
e v ic te d
7 48
n o
d oes
(s m a ll)
e x tre m e
in
if
o n
th is
d is p o s s e s s e d
A
b e g u n
r e fu s e d
a s s o c ia tio n
on e
q u a rte rs
In
p r o b le m .
A n o th e r
w a s
h a v e
v a ca n cy
a re
h a s
le s s
a s s o c ia tio n
tr y in g
b e
b e ca m e
v a ca te.
a n d
In
in
a t
o p e r a t io n
w a itin g
v a c a n c ie s
d e g re e s
a cce p t
h a d
o f
r e s id e n ts
m e m b e rs,
o f
h a d
th e m
a lr e a d y
s itu a tio n
O n e
h a v e
r e s tr ic tio n s
n o t
th e
o w n e r.
a s
s it u a t io n .
p e r io d
o f
h a v e
r e s id e n ts
v a r y in g
w a y s.
to
ca n
fr o z e n
a n n u a l
sh o rta g e
h o u s in g ,
te n a n cy
o f
o f
d u r in g
s u b le t t in g
(3 )
“ M e m b e rs
a
o f
w o u ld
th e
h a d
im m e d ia te
w ith
w e r e
v a ca n c y
g r o u p
M o s t
s it u a t io n
cu rre n t
w h ic h
a n d
a
m a jo r it y
fin a n c in g
a
2 3 -y e a r
h o u s in g
p o s s ib ility
b e
in
a s
h o w e v e r,
th e
th e y
r e a s o n a b le
re n ts
p r o je c t s
m e e t.
th e
h o u s in g
o f
to
th e
w ith
w h o le
m u tu a ls
s it u a t io n
w h e re
u n a b le
p e rce n t.
w a s
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 :
th e
o n ly
a s
th e
is
b e ca u se
a p a r tm e n t a s s o c ia tio n s
fa ce d
th ir d
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
m e m b e rs
1 92 0 ,
a lte r n a te
w ith
O n e
n e w
y e t b e e n
d en ts. A
m e m b e rs
p o w e r s
e ls e w h e r e
n o t
is
its e lf
le a v e
r a t e s .”
c o n tr o l.
V a c a n c ies
b u ild in g
lo w
to
w h e re
th is
d ir e c tio n .
th e
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
(n e a r ly
b o a rd
th e
p e rm a
a v e ra g e
th e
p r o je c t
to
th e
u n it ).
a
th e
so
on
a u th o r ity
s u b m is s io n
p r o v is io n
te m p o
(b )
(a n
a t
o f
d is tr ib u
if
p r o p o r tio n
T h e
a
th em
u n it
w a s
th is
co s t
s u rv e y
y e a rs,
set
n o
s m a ll
s e r io u s .
c o n s id e r in g
a
a
a
d o u b le
p e r
h a d
a t
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
co s t
b o a r d
in te r io r
n e g le c t
w a s
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 ,
ou t,
tw o -b e d r o o m
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
re n ts
o th e rs
r e g u la tio n s , m a y
s e w e r
w ith
n o t
h e a v y
fu tu r e .
p r o je c t —
p r o je c t
its
in
m o n e y
m a k e
c ity
A n o th e r—
p e rsu a d e
som e
p ro ce s s
m a d e
th e
e v ic te d .
b y
th e
th is
b e
p r o b le m .
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
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
m e m b e r ’s
th a n
ca u se s
a ls o
p o se s
t iv e
w h ic h
w h a te v e r
la r g e r
A lth o u g h
s a le s
(u s u a lly
ca u se
a n d
th e
p r o b le m
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
n e v e rth e
th e
w i th
p u r c h a se
to o k
o v e r
th e y
d id
la n d
o w n
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
A ls o ,
to o k
re p o rte d
a
o r
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 m p a r is o n
o th e r
t io n
fr o m
o f
c o u ld
w o r k in g
w ith
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
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
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
th e
fr o m
c o n tin u e
o n
p r o je c t s .
m a n y
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
o n ly
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
S om e
h a d
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
a
to
d o
h a d
to
h a d
o f
(b y
o r
th e
P H A
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
s a le s
p u r c h a se
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
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
m a n a g e m e n t
a g re e m e n t,
p r o b le m s
n o t
o f
so.
b e e n
e a rm a rk e d
d en ts,
p r o je c t s
g re a te r.
w ith o u t
m u tu a ls
T h re e
o f
s it u a t io n , a n d
c a p a b le
b e co m e
M u tu a ls
n a lly
m in i
o c c u r
H o w e v e r,
m e n t io n e d )
o b ta in
s p e c ia l
a
o r g a n iz a
th e ir
m ig h t
m a tte r
a s s o c ia tio n s
p u rch a se
a n d
d e fa u lts
a s
as
fe w
little
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
la r g e
su ch
is
w ill
th e
co o p e ra
e n co u ra g e m e n t
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
h a d
N e g r o
p u rch a se d
In
o f
G o v e rn m e n t.
a g e n c ie s
m u tu a ls .
m e a su re s
m o re
th e
(w h ic h
so m e
“ e x c e lle 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
th e
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
o f
su ch
O b t a in in g
m u tu a ls
r e n ta l b a s is .
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
o f
A g e n c y ).
o f
th e
s m a ll
a n d
o f
n o t
(a lr e a d y
F u r th e r , th e q u e s tio n
its e lf.
h a v e
m e m b e rs —
m e e t
h o s tilitie s ,
m u tu a ls
w ith
th a t
p o lic y
o ffic ia ls .
p r e s s io n —
w a y s
th e
a
le g is la t io n ,
A g e n c y
H o u s in g
T w o
a d v ic e
p ro s p e ct
th e
tra d e
d id
n o t
th e
w in
o f th is
s a le s
o f
e x p e r ie n c e
re p o rte d
fr ic t io n .”
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
le a s e
fr o m
to
A d m in is tr a to r
G o v e rn m e n t
m u m
tio n s
so
a
p r o b le m s
in
F in a n c e
r e la tio n s
a s s o c ia tio n
w ith o u t
fo r
th e
h o w e v e r,
th e ir
O n e
to
u n io n s
in
h o u s
in
a b le
t e r m in a t io n
o f
w ith
g r o u p s,
tr o u b le
p r o b
o b ta in in g
th e
d e c is io n s
th e
b e ca u se
th e
N a tio n a l
B e
w e r e
r e c o m m e n d a t io n s ,3
th e
p r o je c t.
u n d e r
p u rc h a se )
ch a n g e s
r e p la c e d
fr o m
p a y m e n ts
h a v e
fr o m
a n d
co o p e ra
e n tir e
o f
a n d
c e r ta in
s o lv e d
H o m e
r e a d y -m a d e
n o t
a c q u is itio n ,
a r c h ite c ts
fe w
b e
a n d
a g r e e m e n ts :
m u tu a ls
o f
r e fle c te d
to
H o u s in g
in c o m e ,
th e
th e y
It
m e m b e rs.
to
s p e c ia l
h a d
c o n g r e s s io n a l
s itu a tio n
p r o je c t
in
a p r o
w a ite d
p e r io d
r e s u lt in g
a
o th e rs
v a r y in g le n g th
th e
a m o n g
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
th e
d e v e lo p m e n ts ,
le m s
y e a rs
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
in
so u rce s,
th e
8
w ith
to
fin a n c ia l
M u tu a ls
to
co n tr a c t.
o p e r a t in g
a g re e m e n t,
m a in ly
Special Problems o f Mutuals
in g
v is io n a l
in te r e s t
su ch
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
m u s t
p r in c ip a l
m a k in g
te n a n ts.
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
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
o f
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
p r o je c ts
B e llm a w r ,
N .
u n til
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
s h ip
th e
fr o m
ju s t
fr e e z e
g r o u p
ch a se
p r ic e
h a d
its
in te n d e d
o th e r
o c
a d jo in in g
co n tr a c ts
th e
th ir d
to
M d .)
“ fr e e z e ”
so
t in u e .
th a t
T h e
m u tu a l
a
s o c ia l
e x c e p tio n
w a s,
V e te ra n s
ca u se
a s
w e r e
w ith
m e m b e r s h ip ,
s it u a t io n
F H A
a s
o f
th e
w h e n
th e
fr o m
th e
is s u e d
p u r
th re e
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 ,
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
m o n th s
th e
w h a te v e r
v a lu a tio n
th e
th e
m e m b e rs
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 .
is
re
in
a
p r ic e s
A s
d o w n
a m o u n t
b e
fr o m
th e
m e m b e r ’s
th e
r e q u ir e m e n ts
u p o n
th e
to
b e in g
p r ic e s
p a y m e n t
n e ce ss a ry
to
la g .
Reasons for Failure
m o st
a s s ig n e d
c a r r y
o r
o f
op en
cre e d ,
a
ca ses
fo r
o u t
th e
its
n o
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
in d ic a te s
a n d
fa c e d
p r o je c t
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
so m e
b y
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
te re d
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.
th o se
p r in c ip le
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.
b y
th is
g r e a te r—
ra ce
9
th e re fo re ,
c o v e r
(a
a g a in .6
o f
b a sed
m u ch
a n d
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
fin a lly ,
b y
a re
co n
p r o je c t
im p r o v e d
b e
o f
s tr ic te r
r e la te d
a n d
p r e fe r r e d
ir r e s p e c tiv e
n o t
in
w e r e
th e
fo r
v a lu a tio n s
s till
a n d
p a y m e n ts
m a y
th e
n e g o tia t io n s
R o c h d a le
T h e
d o w n
ca se
on e
o f
G r e e n b e lt ,
th e
c o n tr o ls
g r e a te r
in s u r a n c e .
s tu d y
p r ic e s ,
d is
m a jo r ity ,
a n d
fin a n c in g
s itu a tio n .
la r g e r
m e m b e rs
fix e d -p r ic e
g iv e n
Other Problems
lin e
a
th e
in
t ig h t e n e d
m ilita r y
—
r is in g
m a d e
re p o rte d
a s s o c ia tio n
in
b e g u n
o f
m e a n
th e
d iffic u lty
(w h ic h ,
lik e lih o o d
a n d
“ fr e e z e ”
e x p e r im e n t
H o u s in g
o f
b id s
re
h a d
th e
d iffic u lty
d e c r e a s in g
a n
th ese
a rea , a n d
th e
so
w ith o u t
W is .,
h o w e v e r,
p u rch a se
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
v ie w
o f
p e r io d ic a lly ,
o cc u rre d .
b u y
tw o
(G r e e n d a le ,
b u ilt
m id -1 9 3 0 ’s .5
In
in
o f
c o o p e r a tiv e s
t im e
fir m
o f
p r o
a s
th e
o f
s ite
a
it
p o lic y
fin a n c in g
g r e a te r
th e
g e t
g r e a te r
th e
a ll
T h e
m a te r ia ls ,
to
in
th e
lo s s
v is e d
m u tu a l o w n e r
a s s o c ia tio n s
in c lu d e d
o f
th e
d e c is io n
o b ta in in g
a t
a ll
A m o n g
w e r e
th e
P r o b le m s
a b le
th o rn y .
p o lic y
su ch
a b a n d o n e d )
co m
a lm o s t
b e in g
A
in
b e e n
a s s o c ia tio n
fo r
o p tio n
th e
s it u a t io n
a n
s it u a t io n
th e
o n ly
b een
c e r ta in
in
6
in
tim e
h a d
a n d
fo r
w h ic h
w h e n
K o r e a n
8
in
th a t
h a d
a n ta g o n is m
s tr u c tio n
In
o f
“ g r e e n to w n s ”
ca se ,
P H A
its
th e
d iffic u lty
s o ld
I n c lu d e d
th e
re a ch e d
b e g in n in g .
e x e r c is e d
b e
p u b lic
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
s e n t in g
a m o r tiz a
P H A
A t
sa m e
o f
th e ir
e ith e r
b y la w s
p o lic y .
in c id e n t a lly ,
o cc u rre d .
T h e
b e lt,
T h e
g r o u n d
p r o je c ts
h a d
o f
n o
b y
p o rte d
r e s u lts
M a y
th e ir
o p e r a tin g
p r o b
A c t ,4
a s s o c ia tio n s
in
te rm s
in
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
th e
W e s tb ro o k
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
2 11
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
th e
ta b u la tio n
th e
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
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.
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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
APPENDIXES
90
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.
DOCUMENTS AND FORMS USED
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91
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
by the FH A .
92
APPENDIXES
( /) 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.
A
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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.
A
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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.
S e c t io n
DOCUMENTS AND FORMS USED
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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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APPENDIXES
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.
A
r t ic l e
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.
S e c t io n
DOCUMENTS AND FORMS USED
95
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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APPENDIXES
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.
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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.
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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
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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,
t it le
such
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 )
and
(a )
fre e
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,
U n it e d
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
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
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
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
m e m b e r s h ip
o t h e r w is e
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
or
sp e c ific
w r it t e n
c o m p la in t
d ir e c to r
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.
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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 ..................
D O C U M EN TS
A N D
FORM S
USED
123
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,
D O C U M E N T S
A N D
F O R M S
USED
125
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
B.
1. Name of employer..............................................................
1.
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..................
6.
Life insurance record:
1. Total amount in force $. .
2. Cash surrender value $ .............
3. Dividend accumulations $
4. Outstanding loans on policies $
126
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 $. . .
D O C U M E N T S
A N D
F O R M S
USED
127
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
r t ic l e
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.
128
APPENDIXES
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
r t ic l e
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
r t ic l e
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
r t ic l e
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
r t ic l e
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
r t ic l e
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
(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
s e r v ic e s
M e m b e r s h ip
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
th e
o r
to
le g a l
a
g r o u p s
w h o
o r
h a v e
a c q u ir e
a m o n g
E a c h
m e m b e r
fo r
h is
in c lu d e d
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
a g re e d
p r o je c t.
a c c o m m o d a tio n s
in c o r p o r a to r s ,
c o o p e r a tiv e
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
o r g a n iz a t io n a l
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
o w n
in
o r
th e
p e rs o n s
a tto rn e y s
o ffic e r s
in te n t
o f
o n
th e m s e lv e s
u se
m u st
a n d
a ls o
n o t
p r o je c t.
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
in
c o v e r
p a r tic ip a tin g
h a s
o f
g r o u p s
n o t
to
fo r
I t
is
p la n n in g
a n d
r e n d e r in g
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 n e
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
o f
s ite
th in g s )
c o o p e r a tiv e
in v o lv in g
th e ir
c o n s is ts
s u ita b le
p r o fit
p r o fe s s io n a l
fo r
a
o th e r
c o n s tr u c tio n
p o r a t io n s .
g r o u p
se cu re
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
W h e n
th e
th is
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 ”
P r io r
p re se n t
th a t
th e
r e lia b le
A ft e r
th e
F H A
in g
a
la w s
w ith
S ig n
p e r io d
h a s
o f
h a s
o f
b e e n
th e
T h e
th e
lo c a l
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
m a k e
F H A
m u st
s p e c ia l
fe e
th e
b e
o f
th e
b y
th e
p la n s .
A d m in is
ch a rg e d
w ill
b y
th e
sta g 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
is s u e
th e
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
th e
F H A
“ S ta te m e n t
o f
to ta l
co s t
to
c o n d itio n s
a n
is
su rv e y s,
w ill
flo o r
H o u s in g
e s tim a te
o ffic e
e s tim a te
fr o m
a n
A tta ch e d
E lig ib ility ”
s ta te m e n t
o ffic e ,
s p e c ific a tio n s ,
to
a v a ila b le .
s h o w in g
N o
fo u n d ,
o p tio n s
A d m in is tr a tio n
“ S ta te m e n t
re q u e ste d
A d m in is tr a tio n
H o u s in g
is
fo r
ty p ic a l
F e d e ra l
p r e lim in a r y
F H A
a
in s p e c t s u c h
s ite
a n d
th is
fo r
to
p la n s ,
th e
p r o je c t.
in
o ffic e
a c c e p ta b le
n e g o tia t io n s
s ite
o f
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
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
th e
a p p lic a tio n
c o n s tr u c tio n
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.
is
u p
b y
th e
p e r m itte d
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
a
fo r m
fin a n c in g
10 p e rce n t m a y
In su re
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
is s u a n c e
c o m m itte e
fo r
a n a ly s is
th e
o n
th e
co n tr a c to rs
th e
( a)
B a se d
su rv e y s,
a c c e p ta b ility
F e d e ra l
is s u a n c e
a ssu ra n ce
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
a n d
th e
im p r o v e m e n ts ,
to
b e
b e
p e rm a n e n t
3.
p e r
in d ic a tin g
to
D u r in g
fr o m
$ 1 .5 0
p r o je c t.
la n d
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
w ith
m u st
w ill
fo r
file
e n a b le
E lig ib ilit y ,”
in c lu d in g
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
a n d
F e d e ra l
b e
a n d
c o m p le te d ,
tr a tio n
th e n
le g a l
la n d
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
c lo s in g .
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
a n d
in s u r a n c e
o f
th e
s h o u ld
p re p a re
s u b m it
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
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.
i t U. S. GOVERNMENT PRINTING OFFICE: 1952 — 210072
133
@FedFRASER