Forming and Running a Housing Co-Op

Understanding the Key Elements

A co-op is a corporation that is governed by the co-op act of the province or territory where the co-op is located. Most housing co-ops in Canada are not-for-profit corporations. As such members are not entitled to distribute dividends or share in the profits of the co-op.

As a corporation, housing co-ops must:

1. file an annual return to their Province/Territory;

2. have meetings; and

3. elect a board of directors.

In a co-op, decisions are made democratically by the members. A majority of the members must support a decision for it to be approved. Therefore:

• when we speak of co-op obligations to its members we are speaking of the collective membership of the co-op; and
  
  
• when we speak of member obligations to the co-op we are speaking of the obligations of an individual member to his or her co-op.

As member-run organizations there are several ways that the members become involved with the co-op. This section provides an overview of their main responsibilities as a group. Specific details for each Province and Territory are provided in the Provincial and Territorial Fact Sheets.