Co-operative Housing Society: Features, Types and Registration Process

A cooperative housing society meaning includes cooperation and consent between numbers of people. Cooperative group housing society proves to be a sound system when members show a sense of community spirit and good fellowship, residents in independent houses miss out on this completely. 

Still, wondering what a Cooperative Housing Society is? This article will help you understand the concept of cooperative housing society meaning and more.

The Origin of Housing Cooperatives: What is a Cooperative Housing Society

The Bangalore Building Cooperative Society was the first of its kind in 1909 after the Britishers founded the Cooperative Societies Act in 1904 but had only been applied to credit societies of farmers. The first-ever model by law -Bombay Cooperative Housing Association in 1913 followed next.

The National Cooperative Housing Federation was formed as a common forum in 1969. Its main job is to assist housing societies in getting funds and general insurance, conducting research, and helping state-level cooperative housing federations.

The government intercession and rapid urbanisation have caused housing societies to receive multiple states and central level schemes. These provide loans and land development aid and revisions in cooperative housing laws that benefit small to medium housing societies. 

Importance Of Housing Cooperative Society

A cooperative housing society means to provide with you a healthy and secure living environment is a residential society. If you are an associate member, listed below are a few of the perks that you enjoy-

• Obtain a copy of the society's model bye-laws. The society's Secretary can provide you with this information.
• Examine the society's books for free, including books, registers, papers, the most recent audited annual balance sheet, the profit and loss account, a list of the committee members, a register of members, and the minutes of general, annual, or special meetings, among other things.
• In contrast to the initial member, who must give the society a three-month notice period, you can resign from the society at any time.
• Right to appoint a replacement in the case of death.
• Is it possible to register a formal complaint (along with the Original Member). The associate member has the right to seek redress from authorities such as the Registrar, Co-operative Court, Civil Court, Municipal Corporation, and Police, depending on the misconduct or offence that the associate member faces in the society (from co-residents, committee members, builder, etc.).

Types Of Housing Cooperative Society 

Primary housing societies at the individual and Apex Cooperative Housing Finance (ACHFS) are two types of cooperative group housing. Ninety-Two thousand housing cooperatives belong to ACHFS as per the housing cooperative profile dissertation on Shodhganga, out of which 31,000 housing cooperatives belong to State level ACHFS for getting financial aid. Following are the types of the housing society.

1. Ownership Housing Societies: The society keeps the land on a lease or freehold basis by institutions, and members own the houses.
2. Co-Partnership Housing Societies: This system allows flats to their members; these housing societies hold both land and building either on a leasehold or freehold basis. 
3. House Mortgage Societies: In house mortgage societies the members have to build a house independently. Society makes monetary arrangements for the same.
4. House construction or House building societies: The members acquire money from the organisation to build houses and live in them. The money spent is then recovered as a loan.

The above-given types of cooperative housing society are based on ownership.

Features Of Cooperative Housing Society

1. Unbiased

You are welcome to join a cooperative housing society irrespective of your gender, caste, and social status, political or religious beliefs.

2. Uncoerced Organisation 

Housing societies are uncoerced in their functioning, primarily based on the idea of self-help and self-reliance.

3. Democratic Ownership

Representatives or office-bearers of cooperative group housing society are chosen through a fair election process as co-operatives are people, people, and more people.

4. Autonomous and Independent 

Housing cooperative societies are self-regulated in all aspects as they are operated and governed by members.

5. Knowledge Imparting 

Cooperative group housing society trains and informs members of legal abidance, management, and benefits of community living so that influential roles are played.

6. Bilateral Means 

Paradigms of various local, national, and international structures become sources, enabling members to follow best practices and help them create a better living shape/condition. 

7. Equal Financial Contributions

Equal financial contributions are a must in a cooperative housing society, including maintenance. 

8. Legal Entity 

A registered cooperative is subject to local, national laws.

Documents Required For Registering A Housing Cooperative Societies

Take a note of the documents mentioned below for a hassle-free experience.

1. 7/12 document of the land or property card is extracted.
2. In the case of non-agricultural land, a certificate from the appropriate authority is required.
3. The order determining whether the Land Ceiling Act is applicable or not.
4. The competent authority has approved the construction layout.
5. Letter of approval to begin construction.
6. Construction work has been completed and a certificate has been issued.
7. If the land is taken for development, there will be a development agreement.
8. Landlord’s Letter of Power of Attorney.
9. Report on the land’s title search.
10. The registered agreement for the purchase of the unit, including the payment of the applicable stamp duty.
11. Certificate of Architect in Construction.
12. Members’ List
13. The Society’s Plan
14. Request for a name reservation

For a society to be registered, it must have at least ten members. However, by exercising powers under section 7, the government has approved a Housing society with fewer than ten members, subject to certain conditions. The signatures of 6% of the promoters who participated in the registration proposal are required for the registration proposal.

If the land is supplied by the government or a government undertaking agency, a guarantee letter is required.

• If the land is under trust, the Charitable Commissioner must sign a certificate stating that there are no objections.
• In the case of non-agricultural plots, a certificate from the appropriate authority is required.
• In addition to the above criteria, it is required to complete the relevant papers as instructed by the authorities in their circulars while registering SRA/SRD and MHADA authorised Co-operative Housing Societies.
• Application for Society Registration (A form)
• A table containing societal data (B Form)
• Members’ information is listed in a table (C Form)
• Members’ Statements of Accounts (D Form)
• Notarized Guarantee letter from the society’s Chief Promoter on Rs. 100 stamp paper.
• Notarized Guarantee Letter from the Builder and Promoter on Rs. 100 Stamp Paper.
• Members’ Affidavit (Affidavit of Minimum 10 Promoters)
• The Commissioner, Cooperation and Registrar, Co-operative Societies and Maharashtra State, Pune have approved two copies of the Society’s bye-laws.
• After obtaining authorization for reservation in the District Central Co-operative Bank, proof of the promoter member’s bank balance (deposit of each share of Rs. 500 and admission fee of Rs. 100) is required.
• The registration cost for the Housing Society of the Backward Class is Rs. 50/- if a challan of Rs. 2500/- is placed in the Government Treasury.
• In addition to the above-mentioned documents, a Layout Plan and Zone Certificate from the competent authority indicating the area in which the land is located is necessary for Tenant Ownership Housing Society.

Government Policies and Legislations for Cooperative Housing Societies

Cooperative housing societies are an important part of many countries' housing infrastructure, and governments have put in place policies and legislation to support and regulate them. Here are some examples of government policies and legislation for cooperative housing societies:

1. Cooperative Housing Societies Acts: Many countries have specific laws that regulate the formation, management, and dissolution of cooperative housing societies. These acts usually outline the requirements for membership, the functions of the society, and the legal framework for its operation.
2. Tax incentives: Governments may provide tax incentives to encourage the formation of cooperative housing societies. These incentives may include exemptions from property taxes, income taxes, or other fees.
3. Financial assistance: In some countries, the government provides financial assistance to cooperative housing societies to help with the costs of construction or renovation. This assistance may come in the form of loans, grants, or other subsidies.
4. Planning and zoning regulations: Governments may have specific planning and zoning regulations that encourage the development of cooperative housing societies. For example, they may designate certain areas as suitable for cooperative housing, or provide density bonuses for developments that include cooperative housing.
5. Tenant protection laws: Governments may have laws that protect tenants in cooperative housing societies. These laws may outline the rights and responsibilities of tenants and landlords, and provide mechanisms for dispute resolution.
6. Environmental and sustainability regulations: Many governments have regulations aimed at promoting environmental sustainability in housing, and these may apply to cooperative housing societies as well. For example, governments may require certain energy efficiency standards or green building certifications for new cooperative housing developments.
7. Social housing policies: Governments may have policies aimed at increasing the availability of affordable housing, including cooperative housing societies. These policies may involve funding for construction or renovation, subsidies for low-income households, or other incentives.

Advantages and Disadvantages of Cooperative Housing Society

Listed below are the advantages and disadvantages of the co-op housing society to help you gain more information –

Advantages

• Co-ops might be a less expensive housing choice in some instances. They are typically less expensive per square foot than condos in the same neighbourhood, and they come with fewer closing expenses.
• Even if owners aren't developing equity, a future sale of a unit can result in huge financial advantages. This is especially true in a high-cost home market for a long-term investment.
• Co-ops sometimes have more social "connectivity" than massive condo buildings, which can be beneficial in big cities were getting to know your neighbours is difficult.

Disadvantages

• Even if you disregard property maintenance chores outside your unit, you'll still be responsible for your share of these costs, which could be significant.
• When it comes to taxes, co-op owners have a totally different financial situation than homeowners with mortgages, who may be able to take advantage of preferential tax deductions.
• You may receive a large assessment bill for half of the cost if the board approves a significant project or new amenities.

What is the Procedure to Become a Member of a Housing Society?

Conditions for membership entrance under Rule 19 of the Cooperative Act -

• To become a member of a particular society, a person, society, or corporation must apply in writing on a stipulated form.
• The approval of the Managing Committee is required for membership applications, followed by the approval of the Annual General Body Meeting.
• Any member who wishes to join must adhere to the rules and regulations outlined in the Act, Rules, and Bylaws.
• Aside from the individual, the company firm Trust competent Authority should also have to meet the aforementioned terms and conditions.
• Along with the membership application, a resolution on providing rights must be attached.

Procedure For Cooperative Housing Society Registration

First General Body Meeting

The cooperative housing society registration procedure is easily understandable. Listed below is a detailed summary of how to get it done -

First General Body Meeting

The Chief Promoter (maybe the builder) is appointed by the promoters, who are members co-signing the registration application before the Registering Authority, during the first general body meeting (before registration) under Societies Model Bye-law 3(iii) (xii).

At this meeting, appropriate motions are passed, such as creating a bank account in the proposed society's name and gaining authorization to reserve the society's name. It is mandatory for SRA/MHADA certified societies to videotape their initial meeting.

Registration Request Form

The first step is to reserve the Society's proposed name. A proposal for the same should normally be backed by society resolutions and the signatures of at least 10 Promoters who attended the meeting.

The registrar approves the name and authorises the opening of a bank account. The Chief Promoter is responsible for collecting Share Capital and Entrance Fees from all promoters and depositing them at the bank branch designated by the Registrar.

The amount placed cannot be withdrawn without the permission of the Registrar until the society is registered or its registration is denied. Within three months of receiving a Letter of Reservation in the proposed society's name, the Chief Promoter must submit a registration proposal to the registering body.

Step-by-step Guide on How to Register a Cooperative Housing Society

Why Should You Opt For a Housing Society?

There are several reasons why one may opt for a housing society:

1. Affordability: Cooperative housing societies are often more affordable than buying a house or apartment on your own, as the cost is shared among the members of the society.
2. Access to amenities: Housing societies often offer amenities such as playgrounds, community halls, and sports facilities that may not be available in individual homes.
3. Shared responsibilities: In a cooperative housing society, maintenance and repair costs are shared among the members of the society. This means that the burden of maintaining the property is not solely on one person, making it more manageable and cost-effective.
4. Community living: Living in a housing society provides an opportunity to be part of a community, fostering social interactions and a sense of belonging.
5. Security: Housing societies often have security measures in place, such as gated entryways and security guards, providing a safer living environment for residents.
6. Legal protection: Cooperative housing societies are governed by legal regulations and have bylaws that protect the rights and interests of members. This provides a legal framework for dispute resolution and ensures that all members are treated fairly.

Maharashtra Cooperative Housing Society

The Maharashtra Cooperative Societies Act, enacted on January 26, 1962, offers a comprehensive framework for cooperative society registration, membership, and adoption of duties and privileges across Maharashtra. The Maharashtra government adopted an ordinance revising the Maharashtra Cooperative Societies Act on February 13, 2013, as required by the centre. The changes went into effect on February 14, 2013.

A housing society's goal, according to the Maharashtra Cooperative Societies Act, is to provide open plots, flats, and apartments to its members, as well as common amenities and services.

Cooperative Societies in Big Cities

All metropolitan cities now have cooperative societies to make their living experience much more comfortable. Given below are a few housing cooperative examples in India in the big cities –

List Of Housing Cooperative Societies in Bangalore

• Central/State Government and Public Sector Housing Co-Operative Society Ltd
• Banashankari Co-Op Housing Society
• IT & ITES Housing Co-operative Society Ltd
• Mico Karmikara Balagada Housing Cooperative Society Limited
• BDA cooperative Society

List Of Cooperative Group Housing Societies in Delhi

• Delhi Cooperative Housing Society
• Maharishi Dayanand Cooperative Group Housing Society Ltd.
• The Jag Jiwan Cooperative House Building Society Ltd.
• Kunj Vihar Co-operative Group Housing Society
• Sunny Valley Co-operative Group Housing Society Ltd.

List Of Cooperative Housing Societies in Chennai

• Chennai Anna Nagar Co-Operative Housing Society Ltd
• Bharath Lajhna Multi State Housing Co-operative Society Ltd
• Chennai Metropolitan Cooperative Housing Society
• Kodambakkam Co-Operative Housing Society Limited
• The Modern Metrocity Co-operative Housing Society Ltd 

The Cooperative Housing Society stands with a sense of camaraderie, fellowship and socialisation legalised under the law making it safe and easy for the members. Now that you have understood the workings, the pros and cons of living in a Cooperative housing society, let us help you find your dream home. Head to NoBroker and let our executive guide you and find a house that best suits you and your needs. Click the link below to find a house for any budget on NoBroker, you even save on brokerage!    

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