ICA Housing

CECODHAS

Cooperatives Europe
Housing

European Liaison Committee

for Social Housing

Application
of Co-operative Principles in Practice
21 cases of housing co-operatives
from 12 countries
Edited by
Hans-H. Mnkner

Marburg 2009

Mnkner, Hans-H. (Ed.):

Application of Co-operative Principles in Practice 21 cases of housing co-operatives in 12 countries
Hans-H. Mnkner. Marburg: Marburg Consult fr
Selbsthilfefrderung, 2009
ISBN 3-927489-56-5

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Preface

The cooperative movement in its history of 150 years experience has developed
in different forms of cooperative sectors in many countries of the world.
Housing cooperatives have nearly the same years of history to cover the basic
need of decent and affordable housing.
Today there are an increasing number of people all over the world looking for
sustainable and beneficial housing. Recent problems following the global
financial crisis and the consequences on mortgage conditions and on the housing
markets of many European countries, but especially on the USA show that many
of the current models of home-ownership are not working. Housing cooperatives
however, can offer great benefits to families in both developed and developing
countries that other alternatives cannot. Housing cooperatives offer affordable
housing, stakeholder participation and other social advantages to their members
and the society around them. Case studies from Europe and many other parts of
the world demonstrate that cooperatives are a sustainable way to house many
generations and accommodate populations with special needs, like the elderly.
In concrete terms, the present study and the examples, presented in this
publication, illustrate different ways to satisfy basic needs of housing and related
services. The collected case studies, commented by Prof. Mnkner, help to
improve the exchange of experience, which is very important for new and
already existing cooperatives. The Cooperative Section of CECODHAS and
ICA Housing have worked together on producing this publication. The
collection shows common elements of cooperative principles and different ways
of achieving the goal to serve the members.
The collection in this publication is not intended to be definitive. Online access
will inspire additional case studies. Therefore we encourage you to visit our
websites regularly for the publication of further case studies and other related
information about cooperative housing:
http://www.cecodhas,org/

http://www.icahousing.coop

We would like to thank Prof. Mnkner and the different housing cooperatives
and federations, who have actively contributed to this publication and we hope,
that the publication will show why cooperative housing should more widely be
used as an efficient way toward better housing and living. The housing
cooperatives will continue with their contribution to a more balanced and
sustainable society, which is even more important in times of economic
instability and social insecurity.
Berlin, Valencia and Washington, 3 December 2008

Claus Jrgen Hachmann

Vincente Diego Ramon

President of the Cooperative Section

of CECODHAS

former President of the Cooperative

Section of CECODHAS (2006 2008)

Michael Doyle
President of ICA Housing Cooperatives

Table of Contents
Part I

Introduction and Major Trends

1.

Introduction

2.

Major Trends

2.1.

Focus on members needs

2.2.

Social and societal responsibility of housing co-operatives

2.3.

Response to demographic trends

2.4.

More complex and diverse tasks

2.5.

Professional management

2.6.

Strategies for implementation of openness and transparency

in large co-operatives

2.7.

Information and education

2.8.

Co-operation with research facilities

2.9.

Co-operation among co-operatives

3.

First conclusions

Part II

21 Case Studies

Case 1 from Austria: Wohnbau Selbsthilfe, Bregenz

8
9
9

Case 2 from Canada Hugh Garner Housing Co-operative

13

Case 3 from Czech Republic, Housing Co-operative, Hlinsko

22

Case 4 from Estonia Co-operative Union

27

Case 5 from Germany Amaryllis Association and Co-operative

32

Case 6 from Germany: BBWo 1892, Berlin

38

Case 7 from Germany: Freie Scholle, Bielefeld

42

Case 8 from Germany: Vermietungsgenossenschaft Ludwig Frank,

Mannheim

48

Case 9 from Ireland: Newton Co-operative Housing Society

54

Case 10 from Italy: AUPREMA Co-operative, Milan

59

Case 11 from Italy: UNICA Co-operative Housing Society, Florence

65

Case 12 from Italy: Federabitazione

70

Case 13 from Portugal: CHE AS Sete Bicas CRL

82

Case 14 from Portugal: FENACHEs Youth Committee

88

Case 15 from Spain: LLOC NOU Cooperativa, Catalunya

93

Case 16 from Sweden: HSB brf Berget Vsterhanigen

97

Case 17 from Sweden: HSB stergtland

99

Case 18 from Switzerland: Wogeno, Zrich

103

Hachmann, Claus J.: High degree of Satisfaction of Co-operative

Members The Swiss Example

107

Case 19 from Turkey: Eryaman Gzelkent House Production

and Construction Co-operatives Union, Ankara

110

Case 20 from Turkey: Saygnkent Housing Construction

Co-operative, Bursa

124

Case 21 from USA: Nassau Gardens Cooperative Housing

Association Inc.

132

Part III

Summary and Final Conclusions

139

Part IV

Best Practices in application of

Co-operative Principles

147

Co-operative Principles of the ICA,

Housing Co-operatives, 1993

153

Further Reading

156

Useful Addresses

158

Alphabetical Index

161

List of Abbreviations

167

Part I

Introduction and Major Trends

1. Introduction
The publication is intended to illustrate the uniqueness of co-operative housing
as reflected in the application of the co-operative principles and the underlying
values in practice and to present cases of such best practice as sources of inspiration for progressive leaders and members of housing co-operatives.
After sending a questionnaire to member organisations, until February 2008 16
reports and case studies were received. In May 2008 this number stood at 20
cases and a last case was submitted after the design of the new book had been
presented at two meetings of Cooperatives Europe Housing and CECODHAS
in Paris in November 2008. Now a total of 21 cases serve as the basis of the
planned publication.
The 21 case studies which were submitted by member organisations to be included in the planned publication are:
Case 1 from Austria: Wohnbau Selbsthilfe, Bregenz Information of
new members by accompanying tenants when they move into cooperative dwelling deal with members the majority of which has migration background multi-cultural setting.
Case 2 from Canada Hugh Garner Housing Co-operative (1982) Environment protection, member participation, social change.
Case 3 from Czech Republic, Housing Co-operative, Hlinsko (1959)
member participation in rehabilitation of old housing stock.
Case 4 from Estonia Co-operative Union (1996) Education system.
Case 5 from Germany Amaryllis Association and Co-operative, multigeneration dwellings.
Case 6 from Germany: BBWo 1892, Berlin, housing co-operative for
senior citizens plus services.
Case 7 from Germany: Freie Scholle, Bielefeld, Holistic approach to cooperative decent living, democratic membership rights. Education,
training and information of members, advice for the aged on housing and
other matters.
Case 8 from Germany: Vermietungsgenossenschaft (tenants cooperative) Ludwig Frank, Mannheim successful model of social integration based on holistic approach, dealing with members having a multicultural background.
Case 9 from Ireland: Newton Co-operative Housing Society, near Dublin, role of national association developing local and district co-

operatives standard rules, rental and ownership apartments estate

management committees.
Case 10 from Italy: AUPREMA Co-operative, Milan, (1903) meeting
members needs, common ownership plus life-long irrevocable rental
contract also dwellings to be sold to members improve social life of
members constant information of members savings from members on
cost free accounts annual social balance sheet, co-operation among cooperatives, effective public relations.
Case 11 from Italy: UNICA Co-operative Housing Society, Florence,
(1972) large co-operative due to mergers, meeting members needs, creating lasting relationship of trust with members, certified quality management.
Case 12 from Italy: Federabitazione Italian Federation of social housing co-operatives, affiliated to the national Federation Confcooperative
Holistic approach, concern for the environment, combating climate
change and tackling fuel shortage.
Case 13 from Portugal: CHE AS Sete Bicas CRL (1975) Integrated
approach to meeting members needs, care for the elderly, partnership
with other organisations, innovative architecture, certified work system.
Case 14 from Portugal: FENACHE National Housing Association,
take action to improve the age structure of membership in housing cooperatives by Youth Committee.
Case 15 from Spain: LLOC NOU Cooperativa, Catalunya Closeness to
members, adjustment of dwellings to personal needs of members, especially of disabled persons, open membership, quality management, corporate social responsibility.
Case 16 from Sweden: HSB brf Berget Vsterhanigen (1971) local
housing association outdoor lightening of court yards - safety, beauty,
up-to-date standards.
Case 17 from Sweden: HSB stergtland Regional Tenant Owners Association information of members over internet, newsletters, study circles and information meetings annual evaluation by members plus
benchmarking strong role of HSB task of board: deliver what the
members want, code for board of directors work with member groups
market the advantage of membership, market what the co-operative builds
working together with other units of the co-operative system allows to
gain knowledge about working conditions in other co-operatives openness ear close to the members.

Case 18 from Switzerland: Wogeno, Zrich, (1981) Tenants buy-out

vertical integration, house associations (Hausvereine), information of
members via internet.
High Degree of Satisfaction of Cooperative Members The Swiss Example by Claus Jrgen Hachmann, President of Cooperatives Europe Housing
Case 19 from Turkey: Eryaman Gzelkent House Production and Construction Co-operatives Union, Ankara Housing projects initiated by
co-operative union, earthquake resistant construction, water and energy
management, holistic approach to members needs, land development.
Case 20 from Turkey: Saygnkent Housing Construction Co-operative,
Bursa Satellite township housing co-operative with own social, cultural,
sports and entertainment facilities for higher quality of life, co-operation
with research institutions for improved construction methods suitable for
regions threatened by earthquakes, high technology standards, internal
telephone system, central heating system, secure and healthy environment,
green areas and forestation.
Case 21 from USA: Nassau Gardens Co-operative Housing Association
Inc. (1979) professional management firms versus self-management in
the absence of supporting structures of co-operative housing federations.

2.

Major Trends

When studying the submitted materials, nine major topics emerge:

2.1.

Focus on members needs

Emphasis has to be laid on the main object of co-operative societies, which is to

meet members needs (Sweden); combination of self-interest and co-operative
solidarity by combining models of common ownership with the possibility to
acquire individual property of dwellings (Italy, Ireland), common ownership
with irrevocable life-time rental (Italy, AUPREMA), revitalise old buildings
(Germany, Czech Republic), provide suitable infrastructure (Germany, Sweden,
Turkey).
Co-operatives work in three promotion cycles.
Internal cycle: co-operatives promoting members needs (main object);
external cycle: co-operative relations with employees, business partners
and customers as prospective members;
general promotion: Concern for the community and for the environment.

Success of co-operatives in all three fields can be measured by promotion plans

and promotion reports, improvement plans, bilan socital and social audit (annual social balance sheet Italy).
2.2.

Social and societal responsibility of housing co-operatives

Social and societal responsibility of housing co-operatives is included as number

7 in the list of co-operative principles of the ICA: Extended solidarity beyond
the membership group, if the members so decide; protection of the environment
(Canada, Italy, Portugal); saving energy (Germany, Italy, Turkey); creating new
social structures (Canada, Germany); improving the social life of members (Italy); practicing corporate social responsibility (Spain).
2.3.

Response to demographic trends

Demographic trends force housing co-operatives to adjust their business policies

and services to new needs. Ageing members with few or no family ties are
threatened by isolation (implementation of co-operative values of solidarity and
caring for others). Need to attract young persons as members to secure the basis
for future work. Action has to be taken to familiarise children and young persons
with the advantages of co-operative housing and to offer venues for active participation. Practices in this regard documented in case studies are:
Establishment of day-care-centres, neighbourhood centres and mobile
service teams for old members (Germany, Freie Scholle; Portugal), offering ways to overcome isolation and loneliness, Together rather than
alone, joint use of facilities where people from different settlements can
meet and come to know each other: infiltration method (Germany,
BBWo 1892; Ludwig-Frank Co-operative).
Running a clinic for out-patients and for not self-sufficient patients as a
daughter society (Italy, AUPREMA), a health centre (Turkey, Eryaman
Co-operative), a health service (Canada), dementia projects (Germany,
BBWo 1892; Freie Scholle).
Care for the disabled, offering barrier free dwellings (e. g. Germany,
Amaryllis; Freie Scholle; Spain).
Offering a day-care-centre for members children, mothers and children
groups (Germany, Freie Scholle; Ludwig-Frank Co-operative), Kindergarten facilities (Italy, Portugal, CHE AS Sete Bicas; Turkey, Eryaman Cooperative).
Operating facilities for young persons, e. g. a youth association and disco
(Turkey, Sayginkent Co-operative), aided homework (Germany, Freie
Scholle), offering a students hall of residence (Italy, UNICA and Federa-

bitazione), running training courses on co-operative subjects together with

a school (Switzerland, WoGeno) and an officially recognised training system (Estonia; Portugal, FENACHE), running a co-operative university
(Italy, UNICA), organising a Youth Committee (Portugal, FENACHE),
give young persons access to dwellings (Spain).
Operating a cultural and sports club and a travel agency (e. g. Italy, AUPREMA; Turkey, Saygnkent Co-operative)
Offering affordable housing together with the city council (Ireland, Germany, Ludwig-Frank Co-operative).
2.4.

More complex and diverse tasks

With their tasks becoming more complex and diverse, housing co-operatives
cannot meet their objectives alone. One way of dealing with this problem is to
join forces with neighbouring co-operatives (horizontal integration) or in cooperative federations (vertical integration) co-operation among co-operatives
(see also infra 2.9.). In addition, co-operatives may need professional partners in
technical fields, e.g. schools for access to students (Switzerland, Wogeno), or
support of the city government and of professional social services when offering
new members in dwelling units an initiation programme (Austria, Wohnbau
Selbsthife). In this regard, housing co-operatives follow the general trend towards multi-stakeholder organisations (e.g. Austria, Italy, UNICA; Spain).
To organise training on housing co-operative subjects for students, cooperation
with schools is vital (Switzerland, Wogeno). To run a day-care-centre for members children needs the support of specialists (Germany, Freie Scholle; LudwigFrank Co-operative; Turkey, Eryaman Co-operative; Saygnkent Co-operative).
When organising health services for members, it is indispensable to collaborate
with medical professionals and public health services (Italy, AUPREMA).
Initiation programmes on co-operative living for new members in new housing
units with the aim to create a favourable social climate within the unit can be
carried out by discussing housing regulations with officials of the city government and with specialists from an institute for social services before they are
agreed upon (Austria, Wohnbau Selbsthilfe; Germany, Ludwig-Frank Cooperative). Such initiation programmes are especially important for groups of
members/tenants with a culturally mixed background. They allow to know each
other better, to communicate and to learn how to avoid conflicts or how to cope
with conflicts which cannot be avoided (Austria, Wohnbau Selbsthilfe). Operating savings schemes for members requires collaboration with a bank (Italy, AUPREMA; Switzerland; Turkey, Saygnkent Co-operative).
Housing co-operatives can enter into a wide spectrum of additional activities
requiring special management skills like operating a resort village in Tuscany

(ITALNORGE) with Italian and Norwegian owners or operating a foundation to

support international solidarity projects (Italy, AUPREMA).
2.5.

Professional management

Growth by merger requires co-operatives to reconsider their board structure and

their member-relations management. The overriding objective of a housing
co-operative is to establish a long term relationship of trust with members and to
exclude speculative transactions. With a large and growing membership group
and area of operation, co-operatives have to develop strategies to maintain
closeness to their members even over a growing distance. Examples show how
this can be done (Switzerland; Sweden; Italy, UNICA).
In times where news on corporate fraud and wrongdoings dominate the headlines, co-operatives can show their difference by implementing the values of
openness and transparency in their operations and by using the new media for
information of and two-way communication with their members (Sweden).
Member-relations management can take many forms:
Assessment of members and prospective members needs by running a
special observatory to analyse demand for dwellings in the region and for
screening applicants before admission to membership (Italy, UNICA).
Encourage (especially young) tenants to form house associations in their
unit to administer the house together in line with the by-laws of the cooperative society, live together in the co-operative way (Switzerland,
Wogeno) and encourage active member participation in various other
forms (Canada, Germany, Freie Scholle; Spain).
Market the advantage of becoming a member (Sweden).
Advance information and familiarisation program for new members (Austria; Ireland; Sweden).
Giving members a role in overseeing the programmes of their cooperative (Canada), carrying out annual evaluation of efficiency/ effectiveness by the board with regard to the co-operative enterprise as well as
by members with regard to their local estate (Sweden).
Operating a savings scheme used to finance undivided property dwellings
with savings accounts free of charge receiving interest at a market rate
in 2006: 100 m. (Italy, AUPREMA).
Implementing the idea of influencing day-to-day life of members living in
a Tenant Owned Apartment (Germany, BBWo 1892; Freie Scholle; Sweden, HSB stergtland).

2.6.

Strategies for implementation of openness and transparency in large

co-operatives

Working with a certified Quality Management Manual and Corporate

procedures ISO 9000:2001 (Italy, UNICA, Federabitazione) and other
forms of certification (Portugal; Italy, UNICA; USA)
Code for Board of Directors (Sweden, HSB stergtland)
Offering an information-quarterly and a web site (Austria, Wogeno; Italy,
AUPREMA).
Two-way communication with members (e. g. Italy, AUPREMA).
Have a close ear for the members and see the task of good information
to everybody, members, customers and employees (Sweden, HSB stergtland).
Presenting a social balance sheet (Italy, AUPREMA, Federabitazione).
Serve as partner in the development of new co-operatives (Sweden, HSB
stergtland).
Write in local papers on the activities of the co-operatives (Sweden, HSB
stergtland).
Making a film and publishing books on the co-operative (Italy, AUPREMA)
2.7.

Information and education of members, elected office-bearers,

employees and the general public:

Use of new media for information and two-way communication.

Develop special programmes for initiating new members into life in a
housing co-operative (Austria).
Elaborate an office manual, computer manual and note books (USA), provide guides for the use of co-operative facilities (Italy, Federabitazione;
Turkey, Saygnkent Co-operative).
2.8.

Co-operation with research facilities for improving construction,

housing and technology standards

The special case of buildings in regions threatened by earthquakes (Turkey), but

also new technology for the environment-friendly use of energy and use of modern communication techniques (Germany, BBWo 1892; Freie Scholle; Italy,
AUPREMA; Portugal, CHE AS Sete Bicas).

2.9.

Co-operation among co-operatives by vertical integration with special

reference to the role of secondary co-operatives (unions or
federations)

As incubators, promoting new primary housing co-operatives (Irland)

and projects, e.g. satellite towns (Turkey, Saygnkent Co-operative),
as innovators, introducing innovative architecture (Portugal, Turkey),
earthquake-resistant technology, flexible design of flats (Germany), energy saving systems (Canada; Czech Republic; Turkey), holistic approach
to social, medical and ecological problems, providing facilities for information, education and training (Germany, Freie Scholle; Ludwig-Frank
Co-operative; Italy; Portugal, Turkey).
introducing norms and standards or propagation of the application of
existing standards (e. g. certified quality management, Italy, Portugal,
Spain), good governance (board standards, Sweden, HSB stergtland),
rules for the use of apartments, introduction of estate management committees (Ireland), building phase committees (Spain), rules for initiating
new members into the co-operative community (Austria).
Problems encountered in places where no co-operative housing federations/unions exist are illustrated by the case from USA.

3.

First Conclusions

The case studies illustrate in different ways, and especially in case 17 from
Sweden it is clearly expressed, what the planned publication wants to show:
How to assess and meet members changing needs.
How to become the best full-service tenant-owners association, cooperative or federation.
How to market the advantage of becoming and remaining a member and
how to market what the co-operative society builds and what gives it its
unique character as a self-help organisation.
In the case study of Saygnkent Housing Construction Co-operative (case 20)
this idea is expressed as follows: Creating a housing co-operative that is better
and more perfect than the others. Another slogan is decent living in housing
co-operatives (case 7 from Germany, Freie Scholle).
Hans-H. Mnkner, Marburg, November 2008