Cooperative housing in the U. S. : a model for success

The rapidly accelerating cost of housing in the United States demands that alternative forms of homeownership be examined. Cooperative housing is one alternative form of homeownership which has a history of success in Europe, particularly in Scandinavian countries. In spite of the dramatic need for U.S. housing alternatives and the well-defined benefits of cooperative ownership, the U.S. cooperative housing movement continues to experience only limited growth. If the concept of cooperative housing is to become more widely accepted in the U.S., existing housing cooperatives must demonstrate their success. What factors contribute to the success of a housing cooperative and what elements are necessary for its stability? These particular questions were investigated through case studies of three cooperatives noted for their success. Interviews were conducted with members of each cooperative, its management, and its Board of Directors.

The comparative evaluation of each of the cooperatives studied reveals certain common factors inherent in the structure of a successful housing cooperative. These common factors include: technical assistance, location, financing, the Board of Directors, management, member participation, education, relationship to the larger community, and cooperation with other cooperatives.

Success in cooperative housing demands a realistic appraisal of the economic and financial risks and returns, a recognition of priorities, clearly defined and consistent leadership, an organized approach to decision-making, and a collective desire to accomplish mutual goals through cooperation, dedication, and mutual effort.