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Co-operative Housing: Members' Rights and Duties (view source)
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{{REVIEWEDPLS | reviewer = [https://citadellawyers.ca/silvano-s-todesco/ Silvano Todesco], Citadel Law Corporation|date= February 2018}} {{Dial-A-Law TOC|expanded = home}} | {{REVIEWEDPLS | reviewer = [https://citadellawyers.ca/silvano-s-todesco/ Silvano Todesco], Citadel Law Corporation|date= February 2018}} {{Dial-A-Law TOC|expanded = home}} | ||
A | A housing co-operative provides housing to its members. As a member of a co-op, you have a say in decisions affecting your housing, and rights and duties under the law. | ||
== | ==What you should know== | ||
===A housing co-op provides housing to its members=== | ===A housing co-op provides housing to its members=== | ||
A housing co-operative, or '''co-op''', is an organization incorporated | A housing co-operative, or '''co-op''', is an organization incorporated [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html under the ''Cooperative Association Act''] that provides housing to its '''members'''. Members purchase a share to join and elect directors to govern the co-op. | ||
Most housing co-ops in BC are non-profit co-ops with a '''rental''' (not equity) model of housing. The members are typically people who want to live in a mixed-income community where they have a voice and a vote in decisions affecting their housing. | Most housing co-ops in BC are non-profit co-ops with a '''rental''' (not equity) model of housing. The members are typically people who want to live in a mixed-income community where they have a voice and a vote in decisions affecting their housing. | ||
===The laws and rules that apply to co-ops=== | ===The laws and rules that apply to co-ops=== | ||
[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html Under the ''Cooperative Association Act''], a housing co-op must be organized and operated on a cooperative basis. The Act and [https://www.canlii.org/en/bc/laws/regu/bc-reg-391-2000/latest/bc-reg-391-2000.html the regulation under it] set out the framework for things like how co-ops are managed, general meetings, voting, and ending membership. | |||
The '''rules''' adopted by the co-op provide more detail on things like: | The '''rules''' adopted by the co-op provide more detail on things like: | ||
*the qualifications of members | |||
*the rights of joint members | * the qualifications of members | ||
*membership obligations to use co-operative services and to pay fees | * the rights of joint members | ||
*the transferability of members’ interest in the co-op | * membership obligations to use co-operative services and to pay fees | ||
*board of director matters | * the transferability of members’ interest in the co-op | ||
*financial matters (such as distributing surplus earnings) | * board of director matters | ||
*conditions and procedures for withdrawing or ending membership | * financial matters (such as distributing surplus earnings) | ||
* conditions and procedures for withdrawing or ending membership | |||
The board of directors can set other rules that are approved by the members at a meeting called to do that. | The board of directors can set other rules that are approved by the members at a meeting called to do that. | ||
A co-op’s '''occupancy agreement''' is like a lease. It sets out members’ rights and responsibilities as residents. | A co-op’s '''occupancy agreement''' is like a lease. It sets out members’ rights and responsibilities as residents. | ||
===A co-op is governed by its members=== | ===A co-op is governed by its members=== | ||
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Members can: | Members can: | ||
*attend, speak, and vote at general meetings where major decisions are made, such as changing policies and rules, setting housing charges, and electing directors | |||
*elect the directors, or run for election as one of the directors if they want to help govern the co-op | * attend, speak, and vote at general meetings where major decisions are made, such as changing policies and rules, setting housing charges, and electing directors | ||
*live permanently in their unit as long as they need the housing the co-op provides and accept membership responsibilities (if a co-op ends a person’s membership, the person must leave the co-op — if they don’t, | * elect the directors, or run for election as one of the directors if they want to help govern the co-op | ||
*use services provided by the co-op, at as close as possible to the actual cost | * live permanently in their unit as long as they need the housing the co-op provides and accept membership responsibilities (if a co-op ends a person’s membership, the person must leave the co-op — if they don’t, the co-op can apply to court for possession of the person’s unit) | ||
*withdraw from the co-op or transfer their share in it to another person with the consent of the co-op’s directors | * use services provided by the co-op, at as close as possible to the actual cost | ||
* withdraw from the co-op or transfer their share in it to another person with the consent of the co-op’s directors | |||
====Joint members==== | ====Joint members==== | ||
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{| class="wikitable" | {| class="wikitable" | ||
|align="left"|'''Tip''' | |align="left"|'''Tip''' | ||
Co-op members are not tenants, so the BC '' | Co-op members are not tenants, so the BC ''Residential Tenancy Act'' does not apply to them. If a person paying rent is not a member of the co-op, and the co-op or one of its members is the landlord, the ''Residential Tenancy Act'' may apply to those rental units. You should get legal advice if it’s not clear whether residential tenancy laws apply. | ||
|} | |} | ||
===Duties of co-op members=== | ===Duties of co-op members=== | ||
Members must follow the co-op rules, which are made by members. They must: | Members must follow the co-op rules, which are made by members. They must: | ||
The monthly payments co-op members make towards the mortgage, taxes, and operating expenses of the co-op are called | * follow the rules on parking, maintenance of the housing, and participation in the co-op | ||
* attend general meetings and meetings of any committee they belong to | |||
* make their payments to the co-op, in full and on time | |||
The monthly payments co-op members make towards the mortgage, taxes, and operating expenses of the co-op are called '''housing charges''', not rent. Some members pay a housing charge based on their income — usually, about 30% of their gross household income. Others pay a housing charge close to market rates. | |||
All money payable is a debt to the co-op. If a member does not pay, the co-op can put a '''lien''' (a charge) on the member’s shares. The co-op can also end a person’s membership for failure to pay. | All money payable is a debt to the co-op. If a member does not pay, the co-op can put a '''lien''' (a charge) on the member’s shares. The co-op can also end a person’s membership for failure to pay. | ||
===If members have a dispute=== | ===If members have a dispute=== | ||
Co-ops govern themselves. The '''rules''' and '''policies''' of most co-ops have procedures to solve disputes between members and between the association and members. Members should follow those procedures to solve disputes. | Co-ops govern themselves. The '''rules''' and '''policies''' of most co-ops have procedures to solve disputes between members and between the association and members. Members should follow those procedures to solve disputes. | ||
If that doesn’t work, members can seek help through arbitration or the court system. '''Arbitration''' is like court, but less formal. Arbitration decisions are final unless the co-op’s rules allow the decision to be appealed in court. | If that doesn’t work, members can seek help through arbitration or the court system. '''Arbitration''' is like court, but less formal. Arbitration decisions are final unless the co-op’s rules allow the decision to be appealed in court. | ||
If a co-op ends a person’s membership, the person cannot use arbitration to appeal that action — they must go to court, as explained shortly. | If a co-op ends a person’s membership, the person cannot use arbitration to appeal that action — they must go to court, as explained shortly. | ||
A person with a dispute who is no longer a member has six months after leaving the co-op to seek arbitration or go to court. | A person with a dispute who is no longer a member has six months after leaving the co-op to seek arbitration or go to court. | ||
===Ending a person’s membership=== | ===Ending a person’s membership=== | ||
Housing co-op evictions must follow | Housing co-op evictions must follow [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html the ''Cooperative Association Act''] and [https://www.canlii.org/en/bc/laws/regu/bc-reg-391-2000/latest/bc-reg-391-2000.html the regulation under it]. A co-op can end a person’s membership in any of the following cases: | ||
*if a person '''does not pay''' | |||
*if the directors believe a person '''violated a material condition''' in the occupancy agreement, meaning something fundamental to the agreement | * if a person '''does not pay rent''', occupancy charges, or other money they owe for using the premises | ||
*for '''conduct detrimental''' to the co-op, meaning seriously harmful behaviour | * if the directors believe a person '''violated a material condition''' in the occupancy agreement, meaning something fundamental to the agreement | ||
* for '''conduct detrimental''' to the co-op, meaning seriously harmful behaviour | |||
You should look at a co-op’s rules and occupancy agreement to see if they say what behavior will harm the co-op and cause it to end a membership. | You should look at a co-op’s rules and occupancy agreement to see if they say what behavior will harm the co-op and cause it to end a membership. | ||
A co-op must first give notice of the problem to the person and give them a chance to correct it. A motion to end a person’s membership for one of these reasons needs approval by 75% of all directors in a meeting called for this purpose. The co-op must give the person notice of the directors’ meeting, and let them appear and speak at the meeting. | A co-op must first give notice of the problem to the person and give them a chance to correct it. A motion to end a person’s membership for one of these reasons needs approval by 75% of all directors in a meeting called for this purpose. The co-op must give the person notice of the directors’ meeting, and let them appear and speak at the meeting. | ||
A person whose membership is ended has the right to a refund of what they paid for their shares, minus any money they owe to the co-op. When a co-op ends a person’s membership, the person’s occupancy agreement also ends, so they can no longer live in the co-op. | A person whose membership is ended has the right to a refund of what they paid for their shares, minus any money they owe to the co-op. When a co-op ends a person’s membership, the person’s occupancy agreement also ends, so they can no longer live in the co-op. | ||
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{| class="wikitable" | {| class="wikitable" | ||
|align="left"|'''Tip''' | |align="left"|'''Tip''' | ||
If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, | If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, [https://clasbc.net/ the Community Legal Assistance Society may be able to help]. | ||
|} | |} | ||
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The person can appeal to the members at the next membership meeting and continue as a member until the appeal is heard. But first, they must notify the directors they plan to appeal. And they must do this within '''seven days''' of when they are notified of the directors’ decision to end their membership. | The person can appeal to the members at the next membership meeting and continue as a member until the appeal is heard. But first, they must notify the directors they plan to appeal. And they must do this within '''seven days''' of when they are notified of the directors’ decision to end their membership. | ||
If the members confirm the directors’ decision, the person can apply to the BC Supreme Court to rule that the termination of their membership wasn’t justified — because the co-op violated principles of natural justice or its decision was not reasonably supported by the facts or authorized | If the members confirm the directors’ decision, the person can apply to the BC Supreme Court to rule that the termination of their membership wasn’t justified — because the co-op violated principles of natural justice or its decision was not reasonably supported by the facts or authorized [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html under the ''Cooperative Association Act'']. | ||
{| class="wikitable" | {| class="wikitable" | ||
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When the occupancy agreement ends, the person’s membership also ends. They must then leave the co-op. But they can appeal, as described earlier. | When the occupancy agreement ends, the person’s membership also ends. They must then leave the co-op. But they can appeal, as described earlier. | ||
If an evicted member does not pay what they owe to the co-op, the co-op can sue them. Claims for $5,000 or less | If an evicted member does not pay what they owe to the co-op, the co-op can sue them. Claims for $5,000 or less [https://civilresolutionbc.ca/ go to the Civil Resolution Tribunal]. Claims above $5,000 and up to $35,000 [http://www.smallclaimsbc.ca/ go to Small Claims Court]. Claims above $35,000 [https://www.bccourts.ca/supreme_court/ go to BC Supreme Court]. | ||
== | ==Who can help== | ||
===With more information=== | ===With more information=== | ||
The '''Co-operative Housing Federation of BC''' website features [ | The '''Co-operative Housing Federation of BC''' website features [https://www.chf.bc.ca/resources/model-rules-2/ model rules] and information for those living in a housing co-op. | ||
* Call 604-879-5111 (Vancouver) or 1-866-879-5111 (toll-free) | |||
* [https://www.chf.bc.ca/ Visit website] | |||
If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, the '''Community Legal Assistance Society''' may be able to help. | If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, the '''Community Legal Assistance Society''' may be able to help. | ||
* Call 604-685-3425 (Vancouver) or 1-888-685-6222 (toll-free) | |||
* [https://clasbc.net/ Visit website] | |||
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