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UBC Theses and Dissertations

Housing co-operatives in British Columbia Constantinu , Marianthi 1970

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HOUSING CO-OPERATIVES IN BRITISH COLUMBIA by MARIANTKI CONSTANTINU B.A. University of B r i t i s h Columbia, 1 9 6 7 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n the Department of Community and Regional Planning We accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA August, 1 9 7 0 In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y o f B r i t i s h C o lum b i a , I a g ree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s tudy . I f u r t h e r agree tha p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . It i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . Depa rtment The U n i v e r s i t y o f B r i t i s h Co lumbia Vancouver 8, Canada Date ffugdt£dl&. /9 7Q i i i ABSTRACT Housing co-operatives consist b a s i c a l l y of people joining together as a corporation to provide housing through group act i o n f o r themselves. The corporation owns the housing project and each member owns stocks i n the corporation which e n t i t l e s him to l i v e in. a unit and share management of the project together with the other members. Housing co-operatives, when supported by adequate educa-t i o n , comprehensive organization and governmental assistance, can provide housing at lower costs than those of equivalent housing i n the private market. They are a widely-developed sector of housing i n La t i n American and European countries. They also e x i s t i n the United States .and various provinces of Canada. Their manifestation i n B r i t i s h Columbia i s very l i m i t e d and t h i s constitutes the main concern of t h i s t h e s i s . Such concern focuses on the hypothesis that the formation of housing co-operatives i n t h i s province has been retarded by the lack of s p e c i f i c p r o v i n c i a l or municipal p o l i c i e s regarding such co-operatives. This hypothesis i s supported by various cases, i n foreign countries and some Canadian provinces, where l e g i s l a t i o n f o r such type of housing caused d e f i n i t e and unprecedented a c t i v i t y i n the f i e l d . I t i s i v thus the conclusion of t h i s thesis that the f i e l d of housing co-operatives i n B r i t i s h Columbia would develop i f s p e c i f i c governmental l e g i s l a t i o n for such co-operatives were adopted and combined with improvements i n education and organization i n the f i e l d . TABLE OF CONTENTS Page ABSTRACT i l l CHAPTER I 1 Housing i n Canada Housing i n B r i t i s h Columbia Statement of the Problem The Hypothesis Limitations Concepts and D e f i n i t i o n of Terms Assumptions Methods and Techniques The S i g n i f i c a n c e of Housing f o r Planning CHAPTER i : 19 The Co-operative Movement Co-operative Housing In Sweden Co-operative Housing i n the United States Co-operative Housing i n L a t i n America Co-operative Housing i n Canada Co-operative Housing i n B r i t i s h Columbia CHAPTER III 3^ The Case of Swedish Housing Co-operatives The Role of Swedish Government i n Housing H.S.B. - Its Origins, Organization Financing and Achievements CHAPTER IV 51 The Basis for Successful Housing Co-operatives Lack of S p e c i f i c P o l i c i e s at the P r o v i n c i a l and Municipal Levels Testing of the Hypothesis A d d i t i o n a l Reasons for the Limited A c t i v i t y i n Housing Co-operatives i n B r i t i s h Columbia Page CHAPTER V 78 Conclusion Latest Developments BIBLIOGRAPHY 93 APPENDICES 99 TABLE OF ILLUSTRATIONS Page ILLUSTRATION NO. 1. Organization of the H.S.B ILLUSTRATION NO. 2. Financing of H.S.B. Projects under Construction 4-5 ILLUSTRATION NO. 3. Financing of H.S.B. Projects a f t e r Completion , ILLUSTRATION NO. 4. Cost Components of $18,000 House ... 53 ACKNOWLEDGMENTS For t h i s thesis, 'to Mr. Richard English and Mrs. S h i r l e y Schmidt, f o r providing e s s e n t i a l information, my thanks. to Professors Robert C o l l i e r and Brahm Wiesman, f o r continuous guidance during i t s writing, my apprecia-t i o n . to my mother, f o r patient acceptance of my frequent oxitpours of desperation, my gratitude, to my father, for u n f a i l i n g f i n a n c i a l support, i n t e l l e c t u a l stimulation and endless arguments on the benefits of higher education, my loving recognition. CHAPTER I HOUSING-IN CANADA M a n ' s most i n t i m a t e e n v i r o n m e n t i s t h e s t r u c t u r e w i t h i n w h i c h he r e s i d e s . I t n o t o n l y p r o t e c t s h i m a g a i n s t t h e w e a t h e r b u t s e r v e s as a r e p o s i t o r y f o r h i s possess ions and a p l a c e f o r r e t r e a t i n g f r o m o r g a t h e r i n g w i t h o t h e r human b e i n g s . I t has been r e c o g n i z e d t h a t t h i s s t r u c t u r e must p o s s e s s c e r t a i n c h a r a c t e r i s t i c s o f s i z e and s t r u c t u r a l , s o u n d -n e s s i n o r d e r t o c r e a t e a n e n v i r o n m e n t w i t h no d e t r i m e n t a l i n f l u e n c e s on M a n ' s h e a l t h , p h y s i c a l o r m e n t a l . These c h a r a c -t e r i s t i c s , a l t h o u g h t h e y v a r y be tween d i f f e r e n t c o u n t r i e s o f t h e w o r l d , (because o f d i f f e r i n g c l i m a t i c and c u l t u r a l c o n d i t i o n s ) have o f t e n been r e c o g n i z e d i n t h e f o r m o f d e s i r a b l e o r minimum h o u s i n g s t a n d a r d s . 1 Even t h o u g h N o r t h A m e r i c a r a t e s as one o f t h e a r e a s w i t h p a l o w e r p e r c e n t a g e o f p o p u l a t i o n i n c r e a s e i n t h e w o r l d , i t s x C h a r l e s A b r a m s , Man ' s S t r u g g l e f o r S h e l t e r I n an U r b a - n i z i n g ; W o r l d ( C a m b r i d g e , M a s s a c h u s e t t s and L o n d o n : M . I . T . P r e s s , 1964), p . 1. ^ A p p e n d i x A . 2 estimates of growth suggest that by 1975 i t w i l l be Inhabited by 2k0 m i l l i o n people, an Increase of from 1 9 5 0 . 1 Canada's forecasted population f o r the year 19?5 i s estimated at almost 2k m i l l i o n 2 . Since by land area Canada i s the second largest country i n the world, t h i s figure does not seem to be too alarming. But vast expanses of northern land i n t h i s nation remain unsettled due to t h e i r sub-arctic c l i m a t i c conditions, lack of transportation and other f a c i l i -t i e s . Thus Canada's population has located mostly i n urban settlements along the Canadian South and the P a c i f i c and A t l a n t i c costs; that i s , i n less than 1% of the land , which places the country among the most highly urbanized i n the k world. Canada's present urbanization pattern i s r e f l e c t e d by the f a c t that by 1980, 60% of a l l Canadians w i l l l i v e and work i n approximately twenty-nine major c i t i e s and one-third of the country's inhabitants w i l l be located i n e i t h e r Montreal, Toronto, or Vancouver.^ U n i t e d Nations, The Future Growth of World Population, Population Studies No. 28 (Department of Economic and S o c i a l A f f a i r s , p. 23). o Ontario Association of Housing Aut h o r i t i e s , Good Housing  fo r Canadians (Arnprior, Ontario: August, 196^). -^Economic Council of Canada, The Canadian Economy from  the I 9 6 0 's to the lQ70's (Ottawa, Queen's Printer, I967)• P» 3« ^Arthur J* R. Smith, Changing Urban Economic Patterns, Notes f o r Address to the F i r s t Canadian Urban Transportation Conference (Toronto, February 1969), p. k. ^Economic Council of Canada, op. c i t . 3 With such prospects ahead i t i s estimated that housing construction might be required to add,by I98O, over 2,000,000 new dwellings to Canada's e x i s t i n g (1958) stock of just over 5i000,000 dwellings. 1 This demand w i l l not only be created by the increase In the number of f a m i l i e s (which i n Canada ranges between 3^i000 and 38,000 per year)^ but also by factors such as diminishing numbers of fa m i l i e s i n shared accommodations (doubling up) and increase of non-family 3 households. In spite of such r i s i n g demands i t can be said that Canada's housing supply i s probably second, both i n quantity and adequacy to that of the United States.^ Of the present number of units available i n the country, only one-quarter are more than f i f t y years old and nearly one-half have been b u i l t since 19^5^ It has been estimated that during the University of B r i t i s h Columbia, School of Community and Regional Planning, Submission to the Federal Task Force on  Housing and Urban Development (Vancouver: November, I 9 6 8 ) , p. 2. p Wolfgang M. I l l i n g , Housing; Demand to 1970 • Prepared for the Economic Council of Canada, Staff Study No. 4 (Ottawa: Queen's Printer, 1965), p. 3> ^Appendix B. ^Background Papers f o r the Federal P r o v i n c i a l Conference on Housing and Urban Development, Housing; Policy. Problems  and P r i o r i t y (Ottawa: December, 1967), p. 1. Ibid. years 1966 and I967 housing demand exceeded housing a v a i l a -b i l i t y by 25,000 u n i t s 1 . In a country of approximately twenty m i l l i o n people, t h i s d e f i c i t might not seem excessive u n t i l i t i s compared with a number of other factors which ultimately reveal that most of the e x i s t i n g housing deficiency a f f e c t s a s p e c i f i c sector of the populations the low-income group. 2 These factors that have p a r t i c u l a r impact on the low-income sector of our population ares3 F i r s t , the decrease of vacancy rates created by the mentioned increase i n urbani-zation, family formation, non-family households and decrease i n doubling up. Second, the r i s i n g costs i n many sectors of the economy, such as land values and construction, bringing about r i s i n g housing costs. Third, the decline i n the a v a i l a -b i l i t y of mortgage funds from private sources. The two l a t t e r factors strongly tend to c l u s t e r the housing avai l a b l e i n the higher price ranges, leaving a v a i l a b l e , as we mentioned, few housing units with the price and q u a l i t y adequate to the lower-income groups of the population. -•-Ibid.. p. 2. 2These w i l l be defined i n a subsequent section. 3AS extracted from Background Papers fo r the Federal P r o v i n c i a l Conference on Housing and Urban Development, op. c i t . 5 HOUSING IN BRITISH COLUMBIA The Province of B r i t i s h Columbia r e f l e c t s the o v e r a l l Canadian picture. Its population stands at approximately two m i l l i o n inhabitants ( 1 9 6 8 ) and i s d i s t r i b u t e d so that seven out of ten people l i v e within 1 0 0 miles of Vancouver thus concentrating most of the housing needs within that area. Even i f reduction of doubling up and overcrowding, substandard accommodations and demolitions were to be omitted, the new dwelling units required annually between I 9 6 5 and 1 9 7 0 , i n the area of Metropolitan Vancouver, would amount to c. 7 , 0 0 0 annually 1. The I 9 6 I Census records of non-farm f a m i l i e s In B r i t i s h Columbia revealed that 3 1 * 7 $ of such f a m i l i e s received an annual Income under $ 4 , 0 0 0 , received between 4 , 0 0 0 and $ 7 , 9 9 9 and only 1? .3% received $ 8 , 0 0 0 and over 2. The average income f o r these f a m i l i e s was approximately $ 5 , 7 0 0 per year^. A family with such an income has approxi-mately # 4 5 0 a month fo r a l l expenditures. If i t i s accepted that families should not pay more than 20% to 25% of t h e i r 4 income for shelter , then the above family would have $90 to $112 monthly f o r i t s housing accommodation, an amount which M^. J . Audin, The Housing Si t u a t i o n i n Vancouver, a Brie f ins; f o r Volunteers, United Community Services (Vancouver; 1 9 6 6 ) , p. 4 . 2D.B.S. 1 9 6 1 Census of Canada, Economic Families (Cat. No. 9 8 - 5 2 4 , B u l l . S X - 1 0 ) . 5 I b i d . **As suggested by Central Mortgage and Housing Corporation. 6 reseach i n Vancouver's housing market has demonstrated to be quite i n s u f f i c i e n t , as discussed below. In 1961 the average monthly contract rent paid i n Vancouver was $75. In I966 i t had increased to $85 and continues to increase at present 1. Families, who due to t h e i r size generally demand larger r e n t a l u n i t s , are faced with r e n t a l accommodation whose price i s above t h i s average; a f a c t p a r t i c u l a r l y d i s t r e s s i n g f o r the $6% of the province 2 f a m i l i e s whose income i s below the #5??00 average . In the private ownership market the prices of houses have been r i s i n g constantly since 196^, l a r g e l y because of increased down-payments and high Interest rates-^. According to I968 records, the average price f o r a house i n the Vancouver area was $21,000 and there were v i r t u a l l y no nex* 1 k or second-hand houses being sold under $14-,000 . According to the opinion of the Appraisal Section of Central Mortgage and Housing Corporation i n Vancouver, a person seeking a 95% mortgage on a $14,000 house requires an annual income of at l e a s t $ 7 . 0 0 0 5 . 1M. J . Audin, op_. c i t . , p. 2k. 2D.B.S., 1961 Census of Canada, o_p_. c i t . ^Faculty of Commerce and Business Administration, Vancouver Housing Market, Seminar i n Governmental Urban Land P o l i c i e s , University of B r i t i s h Columbia, May 1968, p. 1. ^ I b i d , , p. 2k. ^Telephone interview with Mr. Gordon of that department. STATEMENT OF THE PROBLEM We can c l e a r l y see that B r i t i s h Columbia Is i n need of more housing and most of i t at price ranges lower than those offered by the current market. Up u n t i l now neither the private nor the public housing sectors have demonstrated an a b i l i t y to meet these requirements. The f i r s t one has tended to be progressively more expensive, while the second, so f a r , has proved unsatisfactory to many fa m i l i e s who have adopted i t and has car r i e d with i t a c e r t a i n stigma which makes I t undesirable to many ind i v i d u a l s who would other-wise consider i t f o r i t s price"'". For these reasons the private and public housing sectors as they stand now i n B r i t i s h Columbia, have, proved d e f i c i e n t i n meeting the housing demand of a large segment of the population. I t i s evident, then, that an a l t e r n a t i v e must be made ava i l a b l e , and one possible a l t e r n a t i v e i s the co-operative housing sector. Co-operative housing consists b a s i c a l l y of people getting together to provide housing f o r themselves by j o i n t action i n either building or financing or management and maintenance of t h e i r housing u n i t s . Such j o i n t action, when combined with the appropriate p o l i c i e s and organization, can create housing at lower costs. With t h i s p o t e n t i a l , co-operative M. J . Audin, 9_p_. c i t . , pp. i - i v . 8 housing, and. more specifically housing co-operatives, can become one of the answers in today's struggle for agreeable and inexpensive shelter. Thus, the policies affecting such housing are worthy of careful examination. THE HYPOTHESIS The hypothesis which wi l l be tested in this thesis is that; THE ABSENCE OP SPECIFIC PROVINCIAL OR MUNICIPAL POLICIES FOR THE PROMOTION AND IMPLEMENTATION OF HOUSING CO-OPERATIVES HAS RETARDED THEIR FORMATION IN BRITISH COLUMBIA LIMITATIONS This thesis dees not deal with the "social-cultural" factors which encourage or discourage "co-operative move-ments". It is recognized that these are important constraints on the thesis and the research conducted here wi l l reflect these limitations. CONCEPTS AND DEFINITION OF TERMS 5.Housing, Policies_ This term refers to legislation passed by governmental bodies in the field of housing. Such a f ield falls mostly within provincial jurisdiction, according to Section Q2 of the B.N.A. Act." Ribli_c_Bodi.ess This term wil l be applied to those bodies or organizations whose operation is dictated exclusively by governmental policies originating at the federal, provincial Appendix C. or municipal l e v e l . Examples of such organizations are Central Mortgage and Housing Corporation (CMHC), housing commissions or government-appointed housing associations. Private bodiesj_ This term w i l l denote. bodies or organiza-tions whose operation i s b a s i c a l l y dictated by private p o l i c i e s and only regulated by governmental ones. Examples of these are Credit Unions, p r i v a t e l y organized housing associations and private c i t i z e n groups. Housing Co^ooeratives: * n t h i s section, i n order to c l a r i f y the meaning of co-operative housing, a l l the basic types of housing co-operatives s h a l l be defined and described. (I) Continuing Co-operative or Co-operative i n Perpetuity. In t h i s type of co-operative the member does not take i n d i v i d u a l t i t l e to his unit . He owns and controls the housing development as a whole through his membership i n the co-operative association. The association owns t i t l e to land and buildings, with the i n d i v i d u a l member holding equity i n the form of shares proportionate to the value of his u n i t . Such a member can leave the project by giving notice and s e l l i n g his shares back to the co-operative. The shares are then r e s o l d to a new member.1 In other words, the co-operative set-up i s continuous and no provision i s made for units to revert to i n d i v i d u a l ownership at any time. •'•Western Co-operative Housing Association, Famphlet No. 1, p. 2. ^Memorandum on Co-operative Housing, "A Review of the Present S i t u a t i o n i n Canada", The Co-operative Union of Canada, August 19&3» P» 3« 10 European co-operatives f o r housing belong, i n t h e i r great majority, to thi s type. In B r i t i s h Columbia such type of associations are registered as corporations under the Co-operative Associations Act of B. C. 1 Continuing co-operatives have a variety of arrange-ments by which members take payment of t h e i r shares, but there are two basic ones by which shares of a departing member are returned to the association and then resold to a new member. The two forms are the following: (a) Limited P r o f i t : Here, the member s e l l i n g the shares i s e n t i t l e d to t h e i r o r i g i n a l value plus a c e r t a i n mark-up according either to the r i s e i n prices i n the housing market during the period the shares were held or to a c e r t a i n f i x e d percentage of the value of the shares during that same period. Once t h i s i s done, the co-operative can r e s e l l these shares to a new member at a price corresponding to the f l u c t u a t i o n 2 of the housing market values or any other rate i t sees f i t . (b) Non-profit: In t h i s case the member leaving the co-operative receives just what he invested i n i n i t i a l cash. There i s no provision f o r increase i n value. When a new member i s Issued these shares they are redeemed to him at par, thus no p r o f i t ^Revised Statutes of B r i t i s h Columbia, i 9 6 0 , Ch. 77. 2 Western Co-operative Housing Society, A Study of the Member share Values i n Co-op Housing. Associations (Nana1mo: 1968). 11 Is i n v o l v e d . 1 I t i s important to note that, i n t h i s study, continuing co-operatives w i l l be considered as the only housing co-operative per se, since they are the only type which carry f u l l co-operative action both i n the ownership and admini-s t r a t i o n of i t s projects. For t h i s reason, the t i t l e "housing co-operative" (as opposed to co-operative housing) w i l l be 2 used to designate continuing co-operatives only , unless other-wise s p e c i f i e d . (II) T i t l e Co-operative or Condominium. Here the Individual has t i t l e and a separate mortgage on his unit, paying f o r the land owned by the condominium i n proportion to the value of his unit. He enjoys the use and shares the co n t r o l of the common areas within the development through a board or committee i n which a l l condominium members p a r t i c i p a t e . This type of occupant can obtain market value fo r his uni t when i t becomes necessary to s e l l . In t h i s Province, condominiums are registered as corporations under 3 the Strata T i t l e s Act of B. C. xTo the author's knowledge, t h i s type of co-operative has not been applied to Canada. •^''Housing co-operatives" i s used i n t h i s same manner i n CMHC publications. ^Statutes of B r i t i s h Columbia, 1°66, c. 46. 12 (III) Building Co-operatives. (a) Type I: Here the consumers take j o i n t action to have bu i l t , b y j o i n t financing, a series of homes. This type of bu i l d i n g co-operative i s simply a search f o r savings created by volume purchase and group c o n s t r u c t i o n 1 since ownership of the i n d i v i d u a l units reverts to the member of the co-operative on completion of the project and, at t h i s stage, the co-operative d i s s o l v e s . A v a r i a t i o n of t h i s type i s the b u i l d i n g co-operative which continues i t s existence as a condominium or as a true co-operative once completion of the units i s over. (b) Type I I : This second type i s often termed "do i t your-s e l f " , " s e l f b u i l d " , " s e l f help", or "mutual help" co-operatives because i t involves the member's labour. Its operation as a co-operative may terminate once construction i s completed or, here again, i t may continue to operate on a co-operative basis of eit h e r the condominium or continuing type. L o w . ~ i n c _ 0 E e _ ^ £ ° H P £ • The adequacy of a household's income f o r i t s needs, including housing, i s contingent upon a vari e t y of f a c t o r s . One of these i s usually the number of dependants supported by the income. Therefore, to place income i n categories according Western Co-operative Housing Society, l o c . c i t . t p. 2. 13 simply to t h e i r amounts might be u n r e a l i s t i c but perhaps necessary f o r the sake of i l l u s t r a t i o n . Since the great majority of housing units are occupied by f a m i l i e s , family incomes''" w i l l be examined. A recent study on the income data c o l l e c t e d i n the I96I Census of Canada defines low income families as "those fa m i l i e s whose incomes f a l l into those groups i n which, on the average, most of the income received must be spent upon essentials such as food, clothing and s h e l t e r " 3 The expenditure data avai l a b l e i n the year of the census suggested that a family of two with an income below $1,500 and f a m i l i e s of three, four, f i v e or more with income less than $31000, $3>500 or $4,000 respectively, had such expenditure 4 patterns . Inflationary trends and r i s e i n incomes have some-what affected these figures since 1961, but from them we could •••The I 9 6 I Canada Census defines family income as " a l l wage and salary income reported by family members of wage-earner f a m i l i e s , including the head's earnings" (Canada* Dominion Bureau of S t a t i s t i c s . Census of Canada, I 9 6 I , B u l l e t i n , Series 2.1-1D.) 2 j , T\T, Podoluk, Incomes of Canadians, Dominion Bureau of S t a t i s t i c s , Queen's PFinter, Ottawa 1968. ^ I b l d . , p. I 8 5 . (The per cent incidence of such income i n Canada's fa m i l i e s was 25«3^t i n B r i t i s h Columbia f a m i l i e s 21.3^» Ibid., p. 187.) 4 J. M. Podoluk, on. cit.', p. 185« 14 e s t a b l i s h , with some measure of certainty, that an annual income of $4,000 or less places a family within the cate-gory of low-income groups. This agrees with a frequently used c l a s s i f i c a t i o n of ' Canadian family incomes where the group of lowest Income Is that of families receiving $4,000 or less per annum1. This c l a s s i f i c a t i o n i s as follows: Category A — Under $4,000 per year. Category B — $4,000 - $7,999 per year. Category C — $8,000 and over per year. According to t h i s , at $8,000 of annual income a family i s regarded as belonging to the highest income category. I t i s i n t e r e s t i n g to r e c a l l , when confronted with t h i s f i g u r e , that recent l i t e r a t u r e on Canadian housing has pointed out that a family with an income of less than $8,000 per annum may have d i f f i c u l t y i n acquiring housing of adequate standards Exasperated a r c h i t e c t s i n B r i t i s h Columbia have expressed that "when a man needs a minimum income of $8,000 a year before he can buy his own home, then something must be wrong /with the housing f i e ld7" 3. I t Is then quite evident that when r e f e r r i n g to low-income fa m i l i e s i n connection with housing reference must Appendix E. -Appendix F. ^Barry Down, et a l . , "Operation Housing", Western Homes  and L i v i n g , Vancouver L i f e and About Town Publishing Ltd., Vancouver: February 1970, p. 22. be made not only to the group c l a s s i f i e d as low-income by the census of Canada 1 but to higher categories as well. Central Mortgage and Housing Corporation has defined a low income family as "a family that receives a t o t a l ... income that ... i s i n s u f f i c i e n t to permit i t to rent or buy housing accommodation adequate f o r i t s needs at the current market i n the area i n which the family l i v e s " . 2 This appears to be the most adequate d e f i n i t i o n of a low income family. Thus, i t w i l l be adopted i n t h i s study but accompanied by the f a c t that the l i k e l i h o o d of inadequate incomes f o r housing i s greater within the less-than-$8,000 per annum income category. ASSUMPTIONS The main assumptions i n t h i s thesis w i l l bes (1) Governmental bodies i n B r i t i s h Columbia are interested i n improving the e x i s t i n g housing s i t u a t i o n i n the province. (2) That these bodies are not averse to adopting p o l i c i e s which w i l l help to accomplish such purpose. METHODS AND TECHNIQUES The f i r s t step i n t h i s study w i l l be a b r i e f review of the development and contribution of housing co-operatives i n 1Supra, p. 14. ^Central Mortgage and Housing Corporation, Some Basic Questions on the Urban Renewal and Public Housing Provisions of"the National Housing Act, Ottawa, p.~~Xft. 16 d i f f e r e n t countries of the world, e s p e c i a l l y Canada. This w i l l be followed by an examination of the present s i t u a t i o n of housing co-operatives i n B r i t i s h Columbia. The next step w i l l involve the t e s t i n g of the main hypo-the s i s , that Is, the Inquiry i f housing co-operatives* development has indeed been retarded by the lack of s p e c i f i c governmental p o l i c i e s . For t h i s , the presumptions on which the hypothesis i s based w i l l be examined and the hypothesis i t s e l f w i l l be tested. The l a t t e r w i l l be c a r r i e d out mainly by observing the e f f e c t s which s p e c i a l governmental l e g i s l a -t i o n has had on co-operative housing i n a number of d i f f e r e n t cases, i n Canada and other countries. To t h i s w i l l be added a review of a d d i t i o n a l reasons f o r the retarded formation of housing co-operatives i n the province. As a concluding section, there w i l l be a series of recom-mendations f o r the advancement of housing co-operatives i n B r i t i s h Columbia. THE SIGNIFICANCE OF HOUSING FOR PLANNING "We cannot work fo r one house and f o r one family, we must work fo r the human settlement ... we must under-stand that basic unity of purpose and so t i e the house to the town and the town to the countryside"!. Housing i s , indeed, the indispensable element i n any human XC. A. Doxiadis, The Science of B k i s t l c s , Document R-GA 159, Doxladis Associates, A.thens, Greece, p. 11. 17 settlement and thus the man who deals with the complexities of human settlements, the planner, must invari a b l y involve himself with i t . He i s often the one who applies standards and regulations r e s t r i c t i n g i t s type or area of expansion. He establishes p o l i c i e s regarding i t s s e r v i c i n g and he f r e -quently holds the r e s p o n s i b i l i t y f o r making recommendations f o r i t s futiire development. This he does with the aim of improving Man's environment and accomplishing an optimum of qu a l i t y and quantity of housing f o r the people i n that environ-ment. But i n t h i s l a t t e r aim he does not stand alone, since, i n recent years, most nations of the world appear interested i n improving the housing conditions of t h e i r inhabitants, devising f o r t h i s end governmental p o l i c i e s which deal exclu-s i v e l y with the matter. 1 Canada stands among such countries. Its housing p o l i c i e s emanate from federal and p r o v i n c i a l l e v e l s and t h e i r aim i s to improve the quantity and qu a l i t y of shelter for the country's inhabitants. These p o l i c i e s are applicable i n the province of B r i t i s h Columbia but, as has been discussed, they have promoted mostly private and public housing, not co-operative. Co-operative housing, capable of supplying good q u a l i t y housing at lower costs than those i n the current market , i s Ibi d . , p. 4. Supra, p. 7. 18 of s p e c i a l i n t e r e s t to the planner as a method f o r improving the s i t u a t i o n of the entire housing sector. I t then follows that the planner with such an aim i n mind i s greatly dependant on governmental l e g i s l a t i o n or p o l i c i e s concerning t h i s form of housing, which makes t h e i r study a relevant subject to the f i e l d of Urban Planning. 19 CHAPTER II THE CO-OPERATIVE MOVEMENT The co-operative movement had i t s beginnings i n Europe, at the time of the In d u s t r i a l Revolution. In 1844 a number of f l a n n e l weavers i n Rochdale, England, grouped together to form a co-operative society f o r the d i s t r i b u t i o n of consumer goods and formulated s i x basic p r i n c i p l e s f o r t h e i r operation: open membership, democratic control, l i m i t e d i n t e r e s t on c a p i t a l , d i s t r i b u t i o n of surplus on the basis of patronage, business on cash basis and education 1. Prom then on, the method spread to a l l parts of the world and many areas of the economy, production, marketing, purchasing and investing. Towards the. middle of the nineteenth century the co-operative p r i n c i p l e s were applied to housing. The Scandinavian countries r e a d i l y adopted t h i s new ap p l i c a t i o n and among them Sweden developed one of the most comprehensive systems i n the f i e l d . 2 Ontario, Department of Planning and Development, Housing Branch, A Report on Co-ooerative Housing In Ontario (Ontario: 1958)', p. ~h~ p A Guide to Co-operative Housing: - Study Text f o r  Co-operative Home B u i l d e r s , Chapter II (St. Patricks College I n s t i t u t e of S o c i a l Action, Ottawa: 1953). p. k. 20 HOUSING CO-OPERATIVES IN SWEDEN Sweden, l i k e many other countries i n Europe, began to experience the dilemma of sharp increases i n inadequate housing and rapid urbanization by the time of the I n d u s t r i a l Revolution. This country introduced i t s f i r s t co-operative housing as early as 1880 but i t was not u n t i l the years between the two World Wars, when the government gave i t s support to the co-operative movement1, that such housing began to make contributions of any s i g n i f i c a n c e . The co-operative housing set-up i n Sweden i s dedicated to continuing co-operatives. The largest organization i n t h i s set-up i s the "National Association of Tenants' Savings and Building S o c i e t i e s " (otherwise known as HSB) and consists p of three d i s t i n c t bodies : the daughter society, composed of the owners of the co-operative housing project; the parent society (or l o c a l HSB) i n charge of acquiring land from munici-p a l i t i e s , i n i t i a t i n g projects, doing bookkeeping, banking, purchasing and supervising of the daughter society, and f i n a l l y a national o f f i c e where architecture, financing and planning are done fo r both s o c i e t i e s . Each member of the daughter Ibid. (The government offered to housing co-operatives mortgage loans covering 95% of construction costs at 3% i n t e r e s t . 2 I b i d . 21 society i s considered also a member of the parent one and has a r i g h t to vote f o r a board of d i r e c t o r s and el e c t delegates to the national o f f i c e s congress. Swedish co-operatives can not only obtain c r e d i t from state and municipal sources at reasonable terms but they also have t h e i r own bank. Swedish housing co-operatives have developed to the stage where they now account f o r 20% to 25% of a l l new r e s i d e n t i a l construction i n the country.^ CO-OPERATIVE HOUSING IN THE UNITED STATES In the United States, co-operatives i n housing began ^ 2 with trade unions sponsorship as early as 1926 . Ten years l a t e r these unions merged t h e i r e f f o r t s and formed the United Housing Foundation which to date has been responsible f o r 3 co-operative projects t o t a l l i n g over 15.000 dwelling units . Two a d d i t i o n a l groups sponsoring co-operative housing i n the United States are the Middle Income Housing Corporation i n New York City and the Foundation f o r Co-operative Housing which A Report on Co-operative Housing i n Ontario, op. c i t . , p. 7. J. F. Midmore, Report on Co-operative Housing, A Report Prepared f o r the Co-operative Union of Canada (Ottawa: I 9 6 2 ) , p. 41. Ibid., p. 43. 22 operates over the entire n a t i o n 1 . To these must be added the North American Students Co-operative League which, operating under voluntary management, works f o r the establishment of co-operative housing f o r students. L e g i s l a t i o n r e l a t i n g s p e c i f i c a l l y and s o l e l y to co-operative p housing was enacted by the U. S. Congress i n 1950 . Following the enactment of t h i s l e g i s l a t i o n ( B i l l 231) , co-operative housing developments increased sharply. In the 1950 to i 9 6 0 decade, over 300 co-operative projects were b u i l t i n the U. S., 3 housing 100,000 people . Assistance i s also given by the Federal Housing Administration of the U. S. which of f e r s a id i n l e g a l matters, supervision In construction, membership and functioning of co-operative housing projects. CO-OPERATIVE HOUSING IN LATIN AMERICA Latin American countries have u t i l i z e d co-operative housing, l a r g e l y , i n areas of slum eradication, providing rbld., p. 46, (These foundations and corporations charge fees for t h e i r advisory services but are s e l f -supporting, non-profit organizations). p Ibid., p. 47. (This l e g i s l a t i o n enables co-operatives to get insured loans kp to 97% of the value of the property for a period of f o r t y years), 3 A Report on Co-operative Housing i n Ontario, op. c i t . , p. 10. .23 housing f o r people of very l i m i t e d means. Most of i t i s of the "mutual-help" or " s e l f - h e l p " type of housing co-operatives 1, where members labour i s Involved. It i s usually government-sponsored and follows the pattern of non-profit continuing 2 3 co-operatives upon completion of construction . Many of these co-operative projects have been successful i n c r e a t i n g pleasant communities, giving to t h e i r members a higher standard of housing than they would have ever been able to obtain on t h e i r own . Their advantages are not only i n terms of monetary savings due to personal labour f o r the co-operative members, but also In terms of the educational and s o c i a l experience they o f f e r to them. Among i t s . main disadvantages are the lengthy educational and organizational preparations of the members, as well as the complicated trans-actions necessary to vrork out the accurate share of "sweat" equity of each p a r t i c i p a n t . ^Supra, p. 12. fcSupra, p. 10. ^Alfredo Salomon Aquino, Las Coooeratlvas de Vlviena Como  Una Solucion a l Problema Habitaclonal de E l Salvador, Unpub-l i s h e d Thesis, Universidad Central de E l Salvador (San Salvador; 1968) . IL The author v i s i t e d s i t e s , which accommodated a t o t a l of 700 u n i t s , i n San Salvador, E l Salvador. In them " s e l f -help" had been implemented and t h e i r construction standard and upkeep seemed to be of a considerably good q u a l i t y . 24 CO-OPERATIVE HOUSING IN CANADA1 Even though the co-operative movement i n Canada i s strong i n f i e l d s such as consumers' and producers' markets, insurance and financing, i t i s very weak i n the f i e l d of housing. By I968 i t was roughly estimated that Canadian co-operative housing ..amounted to a t o t a l of 15,000 u n i t s . The eastern provinces of the country, which had been the f i r s t to adopt co-operatives i n t h e i r economy, were also the f i r s t to use them i n housing. "Self-help" busilding co-operatives were the type f i r s t used and, at the time, they provided r e l i e f to the poor housing s i t u a t i o n which followed the depression of the 1930's. The other v a r i a t i o n s of co-operative housing were not t r i e d i n the country u n t i l the following decades. I t should be noted that a considerable percentage of the co-operative housing i n Canada i s composed of student housing. At the end of I 9 6 7 , nine campuses i n s i x provinces enjoyed completed co-operative projects. At the same time four a d d i t i o n a l projects were under construction and eight 2 new ones i n the planning stage . The largest project of i t s type i s Rochdale College i n Toronto, which houses 850 students 3 i n an eighteen-storey high-rise building . ^This discussion w i l l include co-operative housing of a l l types. 2 'Ibid. , p. 11. 3 I b l d . , p. 13. 25 Organizations, f o r Co_02erative_Housing_in Canada_ At the P r o v i n c i a l Levels: In spite of the l i m i t e d a c t i v i t y on co-operative housing i n t h i s country, organizations concerned with such housing have been established i n many provinces. Province-sponsored organizations exclusively dedicated to co-operative housing have been established, during the 1 I960's, i n Manitoba and Saskatchewan , In the former province, the organization has been responsible f o r the creation of "Willow Park". This i s a project of two-hundred town-house uni t s , b u i l t by a contractor i n the same way as other housing 2 but owned and operated co-operatively by i t s occupants . Up u n t i l I968 i t stood as the only continuing co-operative housing development of i t s type i n Canada . The co-operative p r i n c i p l e s were f i r s t applied to Canadian housing i n the province of Nova Scotia. This began with the e f f o r t s of the Extension Department of St. Francis Xavier University, at Antigonish, which sought modification of the Nova Scotia Housing Commission Act (passed i n 1932) so as to 1 I b l d . o ^Appendix G. Jk. F. Laidlaw, Canadian Register. "Why Not Co-op Housing?", Co-operative Union of Canada, I 9 6 8 . 26 Include l e g i s l a t i o n f or co-operative housing 1. In 1953 t h i s Housing Commission drew up agreements with the federal govern-ment which divided the r e s p o n s i b i l i t i e s f o r co-operative housing between the two powers — federal and p r o v i n c i a l . Under t h i s agreement and with the aid of educational programs, courses and information on co-operative housing provided by St. Francis Xavler University, the province acquired some 2 1,500 homes i n the decade following the government agreements . They are, i n the i r majority, single dwellings b u i l t co-operatively by member labour which reverts to private ownership once t h e i r mortgage i s paid o f f . Following the pattern of Nova Scotia, Prince Edward Island established a Housing Commission i n i 9 6 0 . Federal-p r o v i n c i a l agreements and co-operative housing projects s i m i l a r to those of Nova Scotia have developed since, with the excep-t i o n that a smaller percentage of the l a t t e r have been of the "s e l f - h e l p " type. Ontario has seen the creation and d i s s o l u t i o n of various housing co-operative bodies such as the Co-operative Builders Federation and the Co-operative Building Society. In spite of unstable organization, the province acquired 1,200 homes The Nova Scotia Housing Commission Act was aimed to en-courage lim i t e d dividend housing. The a l t e r a t i o n s proposed by the University at Antigonish requested that co-operative housing groups be recognized by the Act as l i m i t e d companies. ( J . F. Midmore, l o c . c i t . , p. 5^). 2 J . F. Midmore, l o c . c i t . , p. 56. 27 during the 19^5-55 decade 1. E f f o r t s f o r more stable and encompassing organization have been under way since the mid -1960's. In the Province of Quebec, La Federation de Co-operatives d'Habitation i s the p r o v i n c i a l body which integrates the various l o c a l co-operative housing groups. It provides them with services i n t h e i r accounting, standardization of methods, f i n a n c i a l and technical advice. These l o c a l co-operative groups supplied the province with over 6,000 units , 2 by 1962 . Mortgage financing f o r these was ava i l a b l e through p r o v i n c i a l government subsidies which are a c t u a l l y a v a i l a b l e 3 to a l l types of housing i n Quebec . At the Federal Levels: U n t i l the mid-1960's, co-operative housing i n Canada suffered a severe drawback: the lack of a c e n t r a l , national organization. Without i t the various groups throughout the country had no opportunity to meet to discuss common problems 4 and benefit from each others experience . Moreover, up to that time, no assistance had been avail a b l e to housing J. F. Midmore, l o c . c i t . , p. 49. 2 A Report on Co-operative Housing In Ontario, op. c i t . , p. 41. 3 J . F. Midmore, l o c . c i t . , p. 5 8 . 4 J . F. Midmore, l o c . c i t . , p. 69. 28 co-operatives to do research or seek advice i n management1. Then, between the years 1965 and 1968, two organizations at the national l e v e l were formed. The f i r s t of these c a r r i e s no s p e c i f i c name and operates 2 under the National Labour Co-operative Committee . It con-s i s t s of a promotional and advisory service f o r housing co-operatives. It i n i t i a t e d i t s a c t i v i t i e s by providing such service to several co-operative housing groups under 3 formation across the country . The second of these national organizations has been established under the name of Co-operative Housing Foundation . Its functions have not been prec i s e l y defined as yet, but they generally aim at the promotion and mobilization of the co-operative and non-profit sectors of housing. This Foundation made i t s f i r s t s i g n i -f i c a n t move i n A p r i l of 1969 when i t proposed to C.M.H.C. p o l i c i e s f o r the encouragement of l i m i t e d dividend, non-profit Ibid. p Under the joint sponsorship of the Canadian Labour Congress and the Co-operative Union of Canada. (Brief ,on  Housing, op. c i t . , p. 13)• 3 I b i d . ^ J o i n t l y sponsored by the Canadian Labour Congress, the Co-operative Union of Canada and the Canadian Union of Students. (Ibid.. p. 14). 29 and co-operative housing projects. Yet, i n spite of t h e i r e f f o r t s , both of these organizations have made very l i t t l e impact on the f i e l d of housing co-operatives i n Canada. CO-OPERATIVE HOUSING IN BRITISH COLUMBIA In B r i t i s h Columbia, co-operatives ex i s t i n the f i e l d of consumers and producers market, insurance, financing (cre d i t unions) and, recently, i n housing. Around 1958 the f i r s t formal attempts were made, by members of the B r i t i s h Columbia Co-operative Union 1, to 2 e s t a b l i s h co-operative housing i n the province ; but, due to lack of leadership and c e r t a i n p o l i t i c a l opposition,' these attempts were not c a r r i e d through^. A r e l a t e d step forward which would a s s i s t co-operatives was made i n the f i e l d i n 1966 when B r i t i s h Columbia passed under i t s statutes the Strata T i t l e s Act, aiming to Mainly by Mr. R. Noble, who contemplated the e s t a b l i s h -ment of three d i f f e r e n t co-operative projects. (Information obtained from Mr. R. English, Director of Western Co-operative Housing Soc i e t y ) . 2 *"A mention exists about a p r i v a t e l y - i n i t i a t e d co-operative housing project, i n 1953- by employees of a large company i n B. C. The name of the company or the lo c a t i o n of the project are not given. (A Guide to Co-operative Housing, l o c . c i t . , p. 1 0 ) . 3 Information obtained from Mr. R. English. 30 "... F a c i l i t a t e the Subdivision of Land and D i s p o s i t i o n of T i t l e Thereto" . The act defines the regulations which nnist be f u l f i l l e d f o r the formation and operation of a condominium housing project, describes procedures such as the d i v i s i o n of land into s t r a t a l o t s , the holding of common property, the rig h t s and duties of the s t r a t a corporation and the by-laws applying to the development. In such a manner i t not only regulates the creation and operation of condominium housing but c l a r i f i e s i t s meaning and serves as a guideline to those d e s i r i n g to form one. Before t h i s act was passed there was a n e g l i g i b l e number, of housing developments which followed 2 a condominium pattern , whereas i n the short time since i t has been enacted over a dozen such projects have been erected or are under way i n the province . The only other kind of co-operative housing which i s methodically being developed i n B r i t i s h Columbia i s the con-tinuing type — the one on which th i s study w i l l focus., It can s a f e l y be stated that the manifestation of continuing - LSubtitle of the Strata T i t l e s Act, B. C. Statutes, 1966, c. 46. 2 To the author's knowledge, there were only two projects which were b u i l t and operated on p r i n c i p l e s s i m i l a r to those of condominiums. They were registered under the B. C. Societies Act and were held by the Teacher's Federation. (Information obtained from Mr. Bentley, Teacher's Federation). -^Information obtained from the Vancouver Land Registry O f f i c e , Survey Department. 31 co-operatives i n t h i s province i s very l i m i t e d . The largest part of i t , by f a r , has been undertaken by Western Co-operative Housing Society. The other a c t i v i t i e s i n the f i e l d are, to the author's knowledge, a small co-operative formed by Simon Fraser University students, the plans of the University of B r i t i s h Columbia Graduate Students Associa-t i o n f o r i n i t i a t i n g a co-operative housing project i n the Endowment Lands and a recent co-operative formed by a labour union. We_tern Co -02era t ive_Housing_Soc_ety_ This body, founded i n I966, introduces i t s e l f ass "a non-profit agency formed by major c r e d i t unions and consumer co-operatives i n B. C. to promote and develop housing projects which are intended to be owned and co n t r o l l e d by t h e i r occupants on a co-operative democratic basis. Labour- unions and other interested non-profit agencies are e l i g i b l e for member-ship. The Board of Directors are experienced businessmen and nolicy makers and they serve without fee" 1 "The sponsors of Western have not and w i l l not r e a l i z e any p r o f i t on t h e i r investment. Western I t s e l f charges only i t s actual expenses to bring the project to completion. I f the estimated costs exceed actual costs, the sur-plus i s returned to the consumer. Western's development costs are now estimated at 10* to 11% of the t o t a l project — some 10;? lower than the private development market" . Western Co-operative Housing Society, Pamphlet No. 3$ Nanaimo, I 9 6 8 , p. 1. 2 I b i d . 32 The projects undertaken by Western Co-operative Housing Society can be seen i n Chart No. I . 1 Simon Fraser University Students. A small group of approximately t h i r t y students from t h i s University have purchased j o i n t l y two large houses i n New Westminster (607 Queen's Street) and Incorporated them-selves as a co-operative registered under the corresponding Act of.B. C. This was done by private students' i n i t i a t i v e . The houses are s a t i s f a c t o r i l y run with what seems to be a 2 maximum of democratic control . Uniyersity_of B r i t i s h Columbia^ The Graduate Students Association of the University has been considering, for almost a year now, the construction of a co-operative town-house development on a 23-acre s i t e i n the Endowment Lands. The project i s to be c a l l e d Acadia Camp II and i s to house married students with or without c h i l d r e n . A design of the actual development has been submitted and discussions f o r the purchase of the land are under way with the Minister of Lands and Forests . ihe information on the chart was obtained from Mr. R. English. i n f o r m a t i o n obtained from James Harding, resident of the co-operative and Simon Fraser University Sociology student. •^Information obtained from John T i l l e y of the Graduate Student Association. Western Co-ooerative Housing Society - Projects Location Stage Amount of land purchased Type and number of units Port Alberni Abbotsford Nana1mo Sidney Saanich Duncan Completed (Feb. ' 6 9 ) Starting A p r i l ' 6 9 S t a r t i n g May ' 6 9 Under con-s i d e r a t i o n Under con-sid e r a t i o n Under con-si d e r a t i o n Vancouver Under con-(S.E. Sector) si d e r a t i o n 7 . 5 Acres 4 . 3 Acres 2 . 0 Acres 0 . 5 Acres Not f i x e d 16 Acres 6 . 6 Acres 80 townhouse units ; (24 completed) 30 townhouse units 15 units (townhouses) 30 u n i t s , senior c i t i z e n s ' apartments High-rise and town housing High-rise, town housing and s i n g l e -family units A p p e n d i x I. 3 3 Source of financing Approximate price of land (•3) C.M.H.C. and 3. C. Central Credit Union C.M.H.C. and Abbots-ford Credit Union C.M.H.C. and B. C. Central Credit Union Not known yet Not known yet 3 7 , 5 0 0 3 0 , 0 0 0 14 ,000 2 0 , 0 0 0 Approximate •mortgage 3 6 9 , 0 0 0 4 7 5 , 0 0 0 c. 1 6 0 , 0 0 0 Major problem encountered C.M.H.C. repeatedly refused the loan ap p l i c a t i o n s . C.M.H.C. turn e d d own loan request. None Zoning approval for s i t e / Option f o r land purchase. Not known, yet Not known yet 3k CHAPTER II I THE CASE OF SWEDISH HOUSING CO-OPERATIVES Housing co-operatives i n Sweden are often referred to i n the l i t e r a t u r e concerning housing to i l l u s t r a t e b a s i c a l l y thati f i r s t , for housing co-operatives to be successful there are e s s e n t i a l requirements which must be f u l f i l l e d , among them governmental assistance and comprehensive organi-zation. And second, that successful co-operatives can indeed provide s a t i s f a c t o r y housing at low costs. In reviewing these co-operatives we w i l l focus mainly on the r o l e which the government of Sweden had i n a i d i n g t h e i r formation and on the highly regarded pattern of organization of t h e i r most successful body, the H.S.B., which i n i t i a t e d and continues to promote t h e i r s i g n i f i c a n t success and p r o l i f e r a t i o n . THE ROLE OF SWEDISH GOVERNMENT IN HOUSING In the years immediately following World War I, the c i t i e s of Sweden were faced with a grave housing s i t u a t i o n . F i r s t l y , t h e i r population had been increasing continuously due to the a t t r a c t i o n by i n d u s t r i a l i z a t i o n . Secondly, housing construction had stagnated since 1914, the beginning of the f i r s t World War; and t h i r d l y , a period of great i n f l a -t i o n had developed at the end of that war. 35 Confronted with such a s i t u a t i o n , the Swedish govern-ment at the time (the S o c i a l Democratic Party) was Impelled to assume a d i r e c t r o l e i n the housing f i e l d . Thus, i n May of 1917 i t began a program of subsidies for the construc-t i o n of apartment houses 1. However, i n 1921 the Swedish economy experienced a d e f l a t i o n which created favourable conditions f o r speculative building and thus housing construc-t i o n began to r i s e again. With t h i s turn of events, the governmental subsidy program was dropped i n 1923 and govern-ment a c t i o n i n housing was reduced to the improvement of mortgage c r e d i t f a c i l i t i e s , Gradually t h i s new governmental policy was expanded and reinforced. In 1930 a semi-public i n s t i t u t i o n f o r the issuing of f i r s t and second mortgage loans was established by the government under the name of the State Housing Loan Bank. Individual c i t i e s were authorized to make mortgage loans and i n 1933 the Royal Commission on Housing and Re-development was established. This Commission o f f i c i a l l y formulated the Swedish housing p o l i c y and through i t the S o c i a l Democratic Government began a program of loans and grants for the construction and improvement of r u r a l dwellings Wendt, P. P., Housing Policy - The Search f o r Solutions, I n s t i t u t e of Business and Economic Research, University of C a l i f o r n i a Press, 1962, p. 64. 2 I b l d . t p. 65. 36 and housing f o r large f a m i l i e s , mostly under the form of co-operatives 1. Under t h i s arrangement, housing co-operatives accounted f o r approximately 10% of urban r e s i d e n t i a l con-s t r u c t i o n i n the 1924-1934 decade 2. The outbreak of World War II brought about a shortage of materials, a rapid r i s e i n building costs and Interest rates with a consequent decline i n housing production. The housing deficiency created was worsened i n Swedish c i t i e s by the additi o n of Norwegian and Danish refugees who f l e d from t h e i r occupied countries. Faced once more with an increasingly severe housing shortage, the government took steps i n 1942 to provide mortgages f o r construction of new housing and to control rents. I t provided governmental t h i r d mortgage loans at low intere s t rates to public, co-operative and private b u i l d e r s . It also recommended that m u n i c i p a l i t i e s contribute 20% of supplementary loan subsi-3 dies needed f o r housing projects within t h e i r boundaries , The e f f e c t s of these governmental measures were quickly f e l t . Housing construction doubled over the previous year and continued to r i s e during the subsequent years. L i v i n g Since co-operative housing i n Sweden belongs to the continuous co-operative type, the terms housing co-operatives and co-operative housing are, i n t h i s case, synonimous, 2Wendt, P. F., op. c i t . , pp. 6 5 , 66. 3 I b l d . . p. 6 8 . 37 conditions had also improved. In the early 1910's more than 75$ of Sweden's urban population l i v e d i n crowded homes with two or more persons per room; by 1944 t h i s percentage had dropped down to t h i r t y 1 . The postwar housing p o l i c y i n Sweden was dictated within a general p o l i t i c a l and economic program drawn , . 2 by the nation's S o c i a l Democratic Government i n July of 1944 . The aims of t h i s p o licy were b a s i c a l l y the following J to eliminate the housing shortage, to r a i s e the housing stan-dards, to s t a b i l i z e the b u i l d i n g Industry at a high l e v e l of production and employment, to replace substandard housing and to r e h a b i l i t a t e overcrowded c i t y areas . The means through which these aims were to be achieved involved the measures and p o l i c i e s adopted i n the 1930*s and l94o*s as well as a d d i t i o n a l ones which allowed the government to assume d i r e c t control over the planning, financing and con-s t r u c t i o n of dwelling units . For t h i s purpose the Royal Housing Board was created i n 1948 with the s p e c i f i c function of co-ordinating the e f f o r t s of national and l o c a l a u t h o r i -4 t i e s i n the housing f i e l d , 1 I b i d _ , pp. 64, 68. S i l k , L., Sweden Flans f o r Better Housing, Duke University Press, North Carolina, 1948, p. 59. 3 I b l d . , P. 7k. 4 Wendt, P, F., op. c i t . , p. 68, 38 The postwar Swedish program f o r housing has thus consisted b a s i c a l l y of d i r e c t assistance to housing i n the form of planning, co-ordination and subsidies. These sub-s i d i e s belong to two basic categories, 1) subsidies for builders, such asi ( i ) Mortgage loans and intere s t rate subsidies j ( i i ) C a p i t a l grantsj ( i i i ) Subsidies to municipalities and non-profit builders to provide old-age homes, 2) loans, subsidies and grants to the housing consumer 1. H.S.B. - ITS ORIGINS. ORGANIZATION, FINANCING AND ACHIEVEMENTS Ori.gl.ns. The Swedish co-operative housing movement began as early as the 1880's, but i t consisted of i s o l a t e d , indepen-dant groups who joined t h e i r f i n a n c i a l resources to provide s u f f i c i e n t funds for the construction and operation of t h e i r housing. When t h i s was accomplished, they had no further i n t e r e s t i n subsequent b u i l d i n g projects. Under such an arrangement, no permanent sponsorship for co-operative housing could be expected to develop and t h i s did not occur ^ b l d . , p. 77. 39 u n t i l 1923, when the f i r s t Tenant Savings and Building Society (Hyresgasternas Sparkassa och Byggnadsforenlng), otherwise known as H.S.B., was conceived. A seri e s of e f f o r t s led to i t s creation. During the f i r s t World War, the high speculation i n private r e a l estate increased housing rentals very sharply. Persons i n the lower income brackets found i t almost impossible to meet the required rent payments. As a protest against them, a large group of tenants i n the c i t y of Stockholm formed the Stockholm Tenants Union, whose main aim was to promote the building of well-constructed sanitary and yet inexpensive dwellings-*-. Gradually, s i m i l a r unions were formed i n major Swedish c i t i e s , and i n 1922 a l l these unions combined into a national society. This society began a bu i l d i n g program by using the surplus funds from a l o t t e r y i t had arranged. However, t h i s l o t t e r y program was vetoed by o f f i c i a l s a f t e r the f i r s t project was completed 2 and the society was dissolved , By 1927, when the housing s i t u a t i o n had worsened, t h i s same group of tenants brought f o r t h once more t h e i r old plan of providing housing f o r themselves through a compre-Alm, U,, Co-operative Housing i n Sweden, Royal Swedish Commission, E s s e l t e , Stockholm, Sweden, I939t p. 15. 2 Aim, U., o_p_ c i t . , p. 16. 1 40 hensive organization. Through t h e i r e a r l i e r f a i l u r e they had r e a l i z e d that i n order to succeed they needed a firmer organization which would include a s p e c i a l building and management committee. With t h i s i n mind, they outlined the organization of the Tenants Saving and Building Society, or H.S.B,, and In 1923 the f i r s t 1 of these s o c i e t i e s was formed i n Stockholm , In the following year, a s i m i l a r society was formed i n Gothenburg and gradually others followed i n various Swedish i n d u s t r i a l c i t i e s . In 1926, aiming to protect t h e i r common interests 2 these s o c i e t i e s formed a national H.S.B. as s o c i a t i o n , Organization, I l l u s t r a t i o n No. 1 describes c l e a r l y the organization of H.S.B. and the r e s p o n s i b i l i t i e s which are a l l o c a t e d to each organizational l e v e l . Let us explain these i n more d e t a i l . The National H.S.B, society i s the policy-making body fo r the H.S.B. movement. I t deals with public a u t h o r i t i e s and provides a variety of services to i t s a f f i l i a t e d mother and daughter s o c i e t i e s . Among such services are 1 I b i d _ 2Midmore, J . F., op. c i t , , p. 33. How the H S B is organized The 'National HSB Society At the formation of a l o ^ l .CoipetatiVe Building Society it helps with legal advice and/Get^m bi orjraniWion. It later assists in the placing of loaryranj/ supervises. theNjctiviiies of the local societies. It also boya hnildinu maiemls at\ho!esa!e prices for local units andyfuns i t / own lumber mills ancrsAipply houses. It also has a SjtVings Bund for/meinbersund aellsNliuilding Loan Certificates/It is oyned cooperatively b\ all the rival societies HSB Goteborg HSB llalmo HSB Stockholm HSB Norrfcoping HSB Div. stader They credi tions ties, the VIother Soc collect sav , help obta Later they manage thi jurchase of eiies ngs from n building take care sale or ex supplies, su rr. embers and pi ites and mana c f the accounts :hange of apaitmenls h as fuel, at nee loans for b lildin ;e the building opera-of the dauehte soeie-and a: sist in vholesale rate; 17 st. 14 st. 46 st. 8 st. 103 st. Daughter Societies or Management Foundations For every cooperative building there is a separate Daughter Society or Management Foundation. A Daughter Society represents the members as owners of the building and it attends to the details of the management. F.very Daughter Society and Founda-tion is an economic and legal unit, managed by a committee elected by its members. I l l u s t r a t i o n No, 1 - Organization of the H.S.B. 'Aim, U,, op. c i t . , p. 19. 42 the planning, designing and estimating for new projects , For t h i s purpose, i t s s t a f f includes engineers, a r c h i t e c t s , I n t e r i o r decorators and many other s p e c i a l i s t s i n the f i e l d of b u i l d i n g . Among the services i t provides to the daughter s o c i e t i e s are included: assistance i n negotiations with municipalities and contractors, l e g a l advice and services on property management; an audit service f o r the members of these s o c i e t i e s , as well as a college for the t r a i n i n g 2 of personnel f o r housing co-operatives , The functions of mother H.S.B. s o c i e t i e s are to promote membership, accept savings of members, purchase s i t e s and arrange tfche financing and bui l d i n g of the housing project by contractors. When the projects are completed they are turned over, on c e r t a i n terms, to the daughter s o c i e t i e s , A new daughter society i s organized f o r each project. In every c i t y which builds H.S.B. houses there i s such a mother society and these mother s o c i e t i e s are i n turn, as mentioned e a r l i e r , d i r e c t l y responsible to the national 3 H.S.B, , A daughter H.S.B. society i s formed by the tenant shareholders moving into a new housing project. Their Midmore, J . F., op. c i t . , p. 33. 2 I b l d . , P. 3«V 3 I b l d . . pp. 12-33. <+3 society automatically becomes a member of the mother society which sponsored i t . These members elect t h e i r own board of d i r e c t o r s , except f o r one d i r e c t o r who i s appointed by the mother H.S.B. He i s assigned there because at t h i s stage the property i s j o i n t l y owned by the mother and daughter society" 1". The members of the daughter society own t h e i r homes with a l l the r i g h t s which t h e i r membership into t h e i r co-operative gives them and are f u l l y responsible for t h e i r management. The occupant of each housing unit pays a yearly fee which i s usually considerably lower than r e n t a l 2 of corresponding accommodation i n the open market , This fee i s reduced each year i n proportion to the amortization of the mortgage loans. When i t i s reduced to approximately one-half the o r i g i n a l amount, the members are considered to have f u l l co-operative ownership of t h e i r u n i t s . Financing of_H_ S._B_ The financing of H.S.B. projects comes from a number of d i f f e r e n t sources. As I l l u s t r a t i o n s No. 2 and 3 indicate, these sources are b a s i c a l l y : the H.S.B. organization i t s e l f , the government and private i n s t i t u t i o n s . 1 I b i d _ , p. 33. 2 Aim, U e, op. c i t . , p. 2 3 . The money owned by H.S.B, and used f o r i t s projects comes from the savings which i t s members deposit i n i t s Saving Fund or i t s so-called Building C e r t i f i c a t e s . These investors and depositors receive i n t e r e s t on t h e i r money from H.S.B, at a rate which i s s l i g h t l y higher than that paid by banks and other savings i n s t i t u t i o n s 1 . This money is used f o r the building of the project. A d d i t i o n a l money 2 during the building stages i s obtained from banks , When the project i s f i n i s h e d i t i s mortgaged on regular terms and with the money thus obtained the loans acquired f o r building purposes are paid o f f . This f i n a l mortgaging usually consists of f i r s t , second and t h i r d mortgages. The f i r s t and second mortgages are obtained from banks while the t h i r d one i s usually provided by the government, the municipality or H.S.B. i t s e l f i f the funds are a v a i l a b l e ^ . Ten per cent of the c a p i t a l invested on a new H.S.B. project i s made up of the advance payments made by the prospective tenant members. Once they occupy the project t h e i r annual payments gradually amortize the mortgages. Parts of these payments are also used to b u i l d up various Ibid., p. 24. 2 I b l d . , p. 25. 3Ibld„. p. 2 6 . *5 Financing of H.S.B. Projects Advance Poy inents by Pros-pectlve Tcnonny-j Building credit from bonks wllh additional credit Irom the National Cooperaiive Building Society, m i m m While a cooperative house is being built. I l l u s t r a t i o n No, 2" The Tenants' Own Investments Third Mortgage loan from me Government, or . City, or the Notional Cooperative Society )% Second Mort-fiage toon from nsuronce Com-ponyorGovern-ment supported Building Credit Corporation j First mortgage loan from Bank or . Insurance Company , - ^ V v i , ' When the cooperative house has been finished. I l l u s t r a t i o n No, 3' Aim, U., op. c i t . , p, 26. "Ibid.. p. 27. 46 funds such as a reserve fund, a rep a i r fund and money f o r improvements which may become necessary. Types of Housing B u i l t by H.S.B. H.S.B, concentrate on the construction of apartment houses. I t r e s t r i c t s construction of detached s i n g l e -family units to farming d i s t r i c t s and small communities. The reasons f o r t h i s are various. During the years of the second World War, the Swedish government encouraged the construction of apartment houses i n the lar g e r c i t i e s of the country by means of subsidies and land use p o l i c i e s . Apartments were considered as the best s o l u t i o n to the housing problem. The long and severe winters i n Sweden demand high expenditures for f u e l , . Both f u e l and maintenance costs are higher i n a single-family unit than i n multi-family u n i t s 1 . Foundation costs are also another consideration: these costs are r e l a t i v e l y high owing to the character of the Swedish s o i l and climate but t h e i r r e l a t i v e expense i s reduced when applied to multi-family u n i t s . Also, concentration of the population i n apartment houses close to the centres of work was considered desirable In view of the Swedish climate and the lim i t e d Wendt, P. F., Housing Policy - The Search f o r Solutions, op. c i t . , p. 92, **7 transportation means a v a i l a b l e . For t h i s reason, during the 194o's and 50's, the government zoned most of the land area i n close proximity to c i t y centres f o r apartment dwellings, H.S.B. builds i t s apartment houses on four d i f f e r e n t budgetary l e v e l s and they are usually c l a s s i f i e d as "A", "B", "C" or "D" types 1, "A" type apartments constitute the majority of c i t y apartment houses. They are said to be of high q u a l i t y and the units vary i n si z e from one room and bath with kitchen-ette to f i v e rooms and kitchen. For a unit of t h i s type, the i prospective tenant member must pay an i n i t i a l membership fee which amounts to 10% of the t o t a l value . "B" type houses are b u i l t on less expensive land and are not as c o s t l y as "A" type houses. Their si z e ranges from one room and kitchen-ette to three rooms and kitchen. For a "B" house the advance contribution required from a tenant i s only 5% °f the value, and the annual payments required are also lower than i n "A" 3 houses , " C M houses are those erected on land obtained from mu n i c i p a l i t i e s on e s p e c i a l l y favorable terms. Apartments i n these houses are given to c a r e f u l l y chosen tenants a f t e r con-s u l t a t i o n with the c i t y a u t h o r i t i e s . No down payment or Childs, M., Sweden-The Middle Way. Yale University Press, New Haven, Connecticut, 1966, p. 53. 2 U l l a , A., op^ cit,., p. 34. 48 advance deposit i s required f o r "C" type houses 1. "D" houses aire b u i l t only f o r large f a m i l i e s with low Income, Local a u t h o r i t i e s usually give free or. inexpensive s i t e s f o r the b u i l d i n g of these houses. The rents required by the f a m i l i e s 2 occupying them vary with the number of c h i l d r e n , Unfortunately s p e c i f i c figures on the current production of these d i f f e r e n t types of houses could not be obtained, but 1962 data shows that.at such a date H.S.B, counted with a t o t a l of 1,800 co-operative housing projects of a l l types 3, Swedish Co-operative Housing i n the i960'3. The decline i n the construction trade brought about by the outbreak of the second World War l e f t over 40$ of Sweden's bu i l d i n g trade workers unemployed. In an attempt to r e l i e v e such a s i t u a t i o n , the labour unions of the country decided to create t h e i r own b u i l d i n g enterprise and i n 4 November 1940 they formed the Svenska Riksbyggen , Its chief purpose was to create housing projects f o r co-operative ownership and conduct propaganda f o r more house b u i l d i n g . Aim, U., op. c i t . . p. 3 6 . 2 I b i d . ^Midmore, J . F., op. c i t . , p. 3 3 . ^"Svenska Riksbyggen, pamphlet, University of B r i t i s h Columbia, Architecture 425 , 1969, p. 1, 49 In the middle 194o's, i t extended i t s a c t i v i t i e s to the construction of r e n t a l units i n c o l l a b o r a t i o n with governmental a u t h o r i t i e s 1 . Svenska Rikbyggen operates under a form of organization s i m i l a r to that of H.S.B., namely a national a s s o c i a t i o n , d i s t r i c t o f f i c e s and l o c a l s o c i e t i e s , but i n addition to planning and con-t r i b u t i n g to the financing of i t s projects i t also 2 c a r r i e s t h e i r actual construction . Through i t s c o n t i -nuous b u i l d i n g a c t i v i t i e s , Svenska Riksbyggen has become Sweden's second largest organization f o r co-operative housing. By I967 i t had completed 120,000 housing un i t s , the majority of which were owned by co-operative groups. 3 The Swedish co-operative housing f i e l d s t i l l retains a number of Independent s o c i e t i e s who provide housing f o r themselves but, as has been observed, H.S.B, and Svenska Riksbyggen are by f a r the largest contributors to t h i s f i e l d . By 1966, co-operatives were b u i l d i n g over one-fourth of the housing i n the country \ Up to that year 1 I b i d i L 2 l p i d , , PP. 3-5. 3 I b l d . p. 8. **Ibld., p. 2. 50 Svenska Riksbyggen and H.S.B. had produced a t o t a l of 250,000 units f o r co-operative ownership 1. The e f f o r t s of these s o c i e t i e s combined with those of the government, f i n a n c i a l investors, the private and the public housing f i e l d have given Sweden a well-balanced housing market, In i t , the consumers are offered a d i v e r s i t y of types and sizes of housing units and a v a r i e t y of possible forms of tenure. The success with which Sweden has handled i t s housing problem stems la r g e l y from the creation of such a d i v e r s i t y i n i t s housing f i e l d . "'"Ibid, p. 5 1 CHAPTER IV The hypothesis of t h i s research paper states that: THE ABSENCE OF SPECIFIC PROVINCIAL OR MUNICIPAL POLICIES FOR THE PROMOTION AND IMPLEMENTATION OF HOUSING CO-OPERATIVES HAS RETARDED THEIR FORMATION.IN BRITISH COLUMBIA. It c a r r i e s with i t two presumptions. F i r s t , that housing co-operatives can be successful and are therefore a desirable sector of the housing market which should be promoted by p r o v i n c i a l and municipal p o l i c i e s . Second, that s p e c i f i c p r o v i n c i a l or municipal p o l i c i e s f o r housing co-operatives are not present i n such governmental l e v e l s of B r i t i s h Columbia. (A) THE BASIS FOR SUCCESSFUL  HOUSING CO-OPERATIVES Housing co-operatives are successful when they can provide the housing consumer with housing of s a t i s f a c t o r y standards at lower costs than those of equivalent housing i n the private market. For this success, housing co-operatives must be supported by three e s s e n t i a l elements: namely, (a) education, (b) organization, and (c) governmental a s s i s -tance. Let us see how each of these contribute to the success of these co-operatives. (a) Edu cati_on In the formation and operation of a housing co-operative the c o l l a b o r a t i o n of a l l i t s members i s e s s e n t i a l . Consequently, 52 a l l such members must be well Informed about the l e g a l and organizational commitments they enter into and how they must f u l f i l l them. Even i f a small percentage of them f a i l to meet these commitments, the co-operative runs a r i s k of f a i l u r e . Education of t h i s general nature should extend to p o t e n t i a l members of these co-operatives, who are i n f a c t a l l housing consumers interested i n acquiring housing at lower costs than those of the private market. Such under-taking would involve the co-operation of any o f f i c i a l bodies (public or private) interested i n improvement of the housing f i e l d . They must inform the housing consumer of the existence and nature of t h i s f i e l d of housing which n a t u r a l l y implies that they themselves should be well informed. (b) Organization^ Adequate organization of the housing co-operative associa tions i s e s s e n t i a l for the successful creation and operation of t h e i r projects. It has been observed that organization i n t h i s f i e l d i s most successful when i t incorporates i n d i -v i d u a l co-operative associations under a hierarchy of c e n t r a l bodies 1. These bodies have as t h e i r aim to a i d the creation Their presence i n the HSB system of Sweden (under the form of the National O f f i c e and the Parent Societies of l o c a l co-operatives) has been responsible f o r the creation of successful housing co-operatives f o r over f i f t e e n years. (Supra, p. ) 53 and operation of housing co-operatives. They also make savings possible i n the costs of the i n d i v i d u a l housing projects. The composition and functions of these bodies w i l l be expounded i n a l a t e r section of t h i s study. When undertaking a housing project the co-operative association can achieve a lower expenditure on land and on-site costs as a r e s u l t of i t s mass buying power and i n addition lower costs i n maintenance of the project through sharing of expenses and u n i f i e d management. In a survey c a r r i e d out by the National Research Council i n 1967, the cost components of housing i n t h i s country were studied and i l l u s t r a t e d i n a house with a s e l l i n g price of ^lS.OOO1. Their d i s t r i b u t i o n was the following: Cost components of $18,000 house. I l l u s t r a t i o n No. 4 A. T. Hansen, "A Cost Study of a Typical Bungalow", Canadian Builder, National Research Council, Ottawa: Nov. I 9 6 7 , p. 85. 2 IMA' 54 This breakdown reveals that s i t e - c o s t b u i l d i n g represents approximately 60$ of the f i n a l s e l l i n g price and the remain-ing 40$ consists of land costs, s e r v i c i n g , p r o f i t overhead and various f i n a n c i a l charges. I t has been noted that a cost reduction i s possible on land costs, s e r v i c i n g and s i t e -cost by building through the co-operative action of the housing association. But savings i n p r o f i t overhead and various f i n a n c i a l charges are only possible through the help of the aforementioned c e n t r a l bodies and governmental a s s i s -tance. These c e n t r a l bodies generally provide housing co-operative associations with l e g a l assistance and handle t h e i r r e a l estate transactions at a very low cost. This reduces the l e g a l fees and r e a l estate commissions involved i n the creation of the p r o j e c t 1 . These bodies have also proven successful i n obtain-ing governmental assistance f o r housing co-operatives. (c) Governmental_Assistance. Assistance from governmental l e v e l s has been an e s s e n t i a l element i n a l l cases of successful housing co-operatives 2 throughout the world . Such assistance usually takes the These c e n t r a l organizations are often i n charge of creating housing co-operatives from t h e i r very I n i t i a l stage, carry them to completion, surrender them to the associations and continue to provide guidance and assistance even a f t e r such surrender. 2 Such as i n Sweden, U.S.A., La t i n America and some parts of Canada. (Suora, pp. 20-24.) 55 f o r m o f f i n a n c i a l a i d . I n some c a s e s i t a d o p t s an i n d i r e c t f o r m , s u c h as d r a w i n g o f l e g i s l a t i o n w h i c h g i v e s h o u s i n g c o -o p e r a t i v e s a l l t h e b e n e f i t s o f l i m i t e d d i v i d e n d h o u s i n g o r s u c h as r e s e r v i n g l a n d e x c l u s i v e l y f o r h o u s i n g c o - o p e r a t i v e p r o j e c t s . I n o t h e r c a s e s i t c a n t a k e a d i r e c t f o r m o f r e d u c -t i o n o r pos tponement o f t a x a t i o n o r government l o a n s o r mor tgages a t l o w i n t e r e s t . (d) Summary, of_Elements_ o f _ S u c c e s s f u l H o u s i n g C o - o o e r a t i v e s _ . The f o l l o w i n g I l l u s t r a t e s i n t e r a c t i o n o f t h e s e e l e m e n t s i n c r e a t i n g s u c c e s s f u l h o u s i n g c o - o p e r a t i v e p r o j e c t s . The s p o n s o r s h i p e n j o y e d by c o - o p e r a t i v e h o u s i n g i n Nova S c o t i a i n v o l v e s , as has been b r i e f l y e x p l a i n e d 1 , t h e Nova S c o t i a H o u s i n g C o m m i s s i o n and t h e F e d e r a l and P r o v i n c i a l g o v e r n m e n t . They o p e r a t e as f o l l o w s . The f e d e r a l government i s r e s p o n s i b l e f o r 75% o f t h e f i n a n c i n g o f t h e c o - o p e r a t i v e p r o j e c t and t h e p r o v i n c i a l government f o r 25% o f i t . T h i s f i n a n c i n g i s a d v a n c e d t o t h e H o u s i n g C o m m i s s i o n (a c e n t r a l body f o r c o - o p e r a t i v e s ) w h i c h t h e n b u i l d s t h e p r o j e c t . When t h e p r o j e c t i s c o m p l e t e d t h e C o m m i s s i o n , t o g e t h e r w i t h C . M . H . C , s e l l s t h e p r o j e c t t o t h e c o - o p e r a t i v e a t c o s t and i s s u e s a 2 b l a n k e t mortgage a t l o w i n t e r e s t i n f a v o u r o f t h e C o m m i s s i o n . J . F . M i d m o r e , l o c . c i t . , p . 5^. 2 R e p o r t on C o - o p e r a t i v e H o u s i n g i n O n t a r i o , I n c . c i t . , P. 15-. 56 This means that once the project i s f i n i s h e d the Commission operates as a mortgagee only. With t h i s o v e r a l l arrangement, p r o f i t overhead and other f i n a n c i a l charges involved i n the a c q u i s i t i o n of housing i s d r a s t i c a l l y reduced f o r the co-operative members. Another example. In the United States a project generally c a l l e d Co-op City has been undertaken by the United Housing Foundation (U.H.F.) 1, which i s a c e n t r a l body fo r housing co-operatives. I t w i l l house about 50,000 people i n 15,382 units and It w i l l be a true housing co-operative i n perpe-2 t u i t y , with no i n d i v i d u a l ownership of units allowed . The savings achieved i n the erection of t h i s project were noted i n a comparison between Co-op City and a s i m i l a r l y financed, modest cost housing project. The r e s u l t s wei*e as f o l l o w s 3 : Brand X Co-op City L i v i n g Room 173 f t . 2 226 f t . 2 Bedroom 130 f t . 177 f t . Kitchen 56 f t . 59 f t . Dining 0 112 f t . Foyer 0 60 f t . Cost/apt. unit $36,000 $18,000 Parking/car $ 6,000 $ 1,400 ^ D . S. Brown and R. Venturi, "Co-Op City - Learning to Like I t " , Progressive Architecture, Reinhold Publications, Feb. 1970,' p. ~b6~. 2 I b l d . 3 I b l d . 57 Such comparison has been admitted unfair to a c e r t a i n extent since the two projects faced d i f f e r e n t constraints, but when through these differences Co-op City provides almost twice the space at about half the cost, then some of them should be investigated"". Those involved i n the project have admitted the following: "What makes UHP's projects possible are the 90 per cent loan at 5»2 per cent provided the 50 per cent, 30 year tax abatement granted by the City of New York. But these are aids a v a i l a b l e to and used by other non-profit housing groups. The Co-op system which provides, through equity, the remaining 10 per cent of costs also provides to the community cohesion that d i f f e r e n t i a t e s UHP projects from either public housing or upper income highrise housing and keeps t h e i r turnover low".^ A large saving i n the construction of Co-op City has come from the fac t that UHF i s i t s own general contractor. By avoiding an outside general contractor, a saving of 6% on contract fees of $265 m i l l i o n was achieved. In addition, materials for the project were bought d i r e c t l y from suppliers and subcontractors and. at quantities which allowed great reductions. (e) Other Advantages__of Housing Co-ogeratives. In a housing co-operative the members control the organization and occupy the housing. They are, i n a r e a l Ibid. Ibid., p. 68. 58 sense, t h e i r own landlords. This makes t h e i r type of housing superior to the r e n t a l type i n a number of d i f f e r e n t ways 1. F i r s t , i n a co-operative there i s a sense of ownership and r e s p o n s i b i l i t y which occupants as mere tenants do not have. Second, co-operative members j o i n t l y enjoy the r i g h t of making a wide range of decisions concerning t h e i r housing develop-ment, o r d i n a r i l y made by landlords or private owners. Third, the co-operative member enjoys much greater security of tenure than does a tenant whose security often depends on the whims of his landlord. Fourth, the co-operative provides i t s own system of "rent control", which i s supervised by the members themselves; there i s no i n d i v i d u a l owner to surprise them with a wudden r i s e i n rates as i t often occurs with rented accommodation. Co-operative housing also holds advantages over private ownership housing i n that i t may be much easier to return shares to a co-operative association than to s e l l one's property to advantage on short notice, i f the need to move a r i s e s . Moreover, such transfer does not involve l e g a l and agent fees as i t does i n the case of private property. In a large co-operative project, f a m i l i e s may move with no d i f f i c u l t y from one unit to another as they grow or decrease Most of these points have been extracted from B r i e f on Housing, op. c i t . , p. 3« 5 9 i n s i z e , a process which i s f a r more complicated i f they hold i n d i v i d u a l ownership of a house. Housing co-operatives also present to t h e i r owners a number of disadvantages. These s t a r t with the long process of s e l e c t i o n , i n s t r u c t i o n and co-ordination of the members and continue with the hours spent i n discussion f o r adoption of resolutions, which, by being decided by vote of majority, inevitably leave a d i s s a t i s f i e d minority. In a co-operative project the members, through t h e i r p a r t i c i p a t i o n i n the association, come i n closer contact with each other than do occupants of most other types of housing. This can be seen as a force forming a community with common inte r e s t s and l i t t l e a l i e n a t i o n , but i t may also be viewed as an i n s t r u -ment with defies and l i m i t s i n d i v i d u a l privacy and r e s o l u t i o n . Perhaps a combination between the two i s possible, depending largely on the association members themselves. (f) Housing Go-operatives as_a_Beneflt_to Part_cular_Populatlon Grou_s_ There are population groups who can p a r t i c u l a r l y benefit from housing co-operatives. Among them are the much discussed group of middle-income fa m i l i e s whose incomes are above the public housing l i m i t but below the figure needed to buy a house. A second group i s students who, as has been proven by e x i s t i n g examples, can enjoy many advantages from co-operative residences 6o either i n or o f f campus. The next group which would benefit from the use of such co-operatives i s a large proportion of the population i n the northern communities of t h i s country — namely, Indians, Metis and Eskimos, whose ex i s t i n g housing conditions are among the-worst i n Canada^. If accompanied by adequate sponsorship and leadership, housing co-operatives could o f f e r these people improved housing with many economic and s o c i a l benefits . Housing f o r the ever-increasing numbers of senior c i t i z e n s has been given considerable attention by both p r i -vate groups and governmental bodies. Their e f f o r t s have been responsible f o r the construction of over 1 ,?00 s e l f -contained units exclusively dedicated to the housing of 3 such age groups , yet the demand continues and the supply must be increased. The Co-operative Union of Canada suggests that such a s i t u a t i o n would be greatly improved by the use of housing co-operatives i n the following two ways: "by co-operative organizations, preferably i n con-junction with other community groups, sponsoring limited-dividend projects, and ... through senior c i t i z e n s ' co-operatives which the occupants them-selves w i l l own and manage".^ The Challenge of Growth and Change, Economic Council of Canada, F i f t h Annual Review, Queen's Printer, Ottawa, I 9 6 8 , pp. 121, 122. 2Appendlx J. 3M. J . Audln, op. c i t . , " p. 10. ^ B r l e f on Housing, op. c i t . , p. 19. 61 Such procedures could also enjoy the benefit of provincial legislation since the Elderly Citizen's Housing Aid Act provides for a one-third grant to: "a regional district , municipality, or non-profit corporation incorporated for the purpose of pro-viding homes for elderly citizens, to assist in the construction or reconstruction of low rental housing units for elderly citizens of low income who are unable to purchase adequate accommodation according to their needs".1 (B) LACK QF SPECIFIC POLICIES FOR HOUSING  CO-OPERATIVES AT THE PROVINCIAL AND MUNICIPAL LEVELS (a) Lack_of Specific_Pollcies at_the_Provincial Levels C.M.H.C._and_the_Co-operative As_ociat_ons_Act_ The Housing Act of British Columbia is , basically, a piece of complementary legislation to the National Housing Act (N.H.A.)". It authorizes the provincial government to draw up agreements with the federal and municipal governments for the purpose of constructing federal-provincial public housing projects and defreaying the cost of urban renewal projects-'. Thus, under such an arrangement, the basic legisla-tion pertaining to housing in British Columbia is to be found in the N.H.A., which is administered by Central Mortgage and 1 B. C. Statutes, Elderly Citizens' Housing Aid Act, Sec.(2). 2 M. J. Audin, loc. c i t . , p. 6. 3 Ibid. 62 Housing Corporation (CMHC). This most important and comprehensive single piece of Canadian housing l e g i s l a t i o n mentions co-operative housing i n i t s 7 t h and 8 t h sections. In them i t authorizes CMHC to insure loans to approved co-operative associations. CMHC does not make d i r e c t loans to co-operative housing unless the co-operative group provides written evidence that i t has been refused an MHA loan from at le a s t two private 1 lending companies . This does not represent unique t r e a t -ment f o r co-operative housing since such MA provisions 2 apply to other forms of i n t e r p r i s e as well . In other words, a l l the benefits of NHA and the services of CMHC are availab l e to co-operatives but they are not singled out for s p e c i a l treatment. For a housing co-operative group to be o f f i c i a l l y recognized i n th i s province i t must be registered under the 3 Co-operative Associations Act . This Act gives a general d e f i n i t i o n of co-operative enterprise and the general p r i n -c i p l e s under which i t i s to be organized, operated and administered. I t applies to a l l forms of co-operatives i n CMHC, NHA Co-operative Housing Loans (Pamphlet 9 0 5 2 / 6 6 ) , Ottawa. 2 M. J . Audin, l o c . c i t . , p. 11. ^Revised Statutes of B. C , i 9 6 0 , Ch. 7 7 . 63 the province and consequently.presents no s p e c i f i c a t i o n s f o r any p a r t i c u l a r types, including housing co-operatives. Housing co-operatives involve complexities of r e a l estate property taxation, administration and sharing of costs which are not common to other types of co-operatives. A clear and de t a i l e d l e g a l d e f i n i t i o n of these complexities Is necessary. This would also a i d f u l l understanding of the l e g a l nature of these co-operatives, (b) Lack_of Speci_f ix„.Poli.ci.es at_the_Kun_ici ipal__Levelj_ In the search for actions and p o l i c i e s f o r housing co-operatives at the municipal l e v e l the following w i l l be examined: ( i ) The Municipal A.ct and the Vancouver City Charterj ( i i ) P o l i c i e s f o r housing co-operatives adopted by various municipalities i n the province; ( i i i ) A s p e c i f i c case of housing co-operatives and the City of Vancouver, (i) The Municipal Act and the Vancouver C i t y ^ h a r t e r ^ Chapter 255 of the P r o v i n c i a l Statutes comprises the Municipal Act of B r i t i s h Columbia. In i t , the powers and duties of a l l municipalities of the province, except those of the City of Vancouver, are designated. Among them are many which, d i r e c t l y or i n d i r e c t l y , a f f e c t the f i e l d of housing. Such as zoning powers (s p e c i f i e d i n s. 702-710), land subdivision regulations (s. 711-713). b u i l d i n g regulations (s. 714-723), assessment and taxation (s. 367-434) and powers for a c q u i s i t i o n and disposal of r e a l property (s. 464-476). 64 Yet, nowhere i n t h i s Municipal Act are there s p e c i f i c provisions pertaining d i r e c t l y to housing. The cost and supply of shelter of either the public, private or co-operative type appear to be beyond the concern of t h i s Act. The Vancouver City Charter lar g e l y resembles the Muni-c i p a l Act i n both purpose and content but, as the name implies, i t i s l i m i t e d to the c i t y of Vancouver. The sp e c i f i c a t i o n s of t h i s Charter which a f f e c t housing are again s i m i l a r to those presented i n the Municipal Act (zoning, taxation, etc.) but i n addition to these, City Council i s given authority to deal d i r e c t l y with the housing supply^. r Section 330(n) of the Act gives council the power to make by-laws: "fo r e s t a b l i s h i n g and maintaining, either within or without the c i t y , homes for the aged, i n f i r m or disabled persons" 2. Section 193 also s p e c i f i e s that council has the power to undertake housing developments. Sections 306(i) and 330(k) also authorize council to deal with the standards of f i t n e s s for habitation. 2 Vancouver City Charter, Section 330(m). 65 ( i i ) Pollcles_for_Housi_ng_Go-operat_ives_ln M u n i c i p a l i t i e s of _Brltish_Columbla. In order to discover the existence of any action or p o l i c i e s for co-operative housing i n d i f f e r e n t municipa-l i t i e s of t h i s province, a survey was c a r r i e d out. A l e t t e r was mailed to several municipal or c i t y administrators of B r i t i s h Columbia and i n i t a reply to the following question was requested: Does your c i t y , m u n i c i p a l i t y / d i s t r i c t or region o f f e r any s p e c i f i c p o l i c i e s f o r housing co-operatives? 1 I t was mailed to a random sample of B r i t i s h Columbia s e t t l e -ments with a population of 10,000 or more people? namely, the following: Vancouver, New Westminster, Burnaby, V i c t o r i a , Nanaimo, Port Alberni, Prince George, Dawson Creek, Kamloops and Penticton. Only s i x r e p l i e s were received and they o r i g i -nated from the following: City of Vancouver, City of Nanaimo, City of Dawson Creek, City of New Westminster, Municipality of Burnaby and City of V i c t o r i a . A l l of the answers were negative, s t a t i n g very c l e a r l y that they had no s p e c i f i c p o l i c i e s regarding housing co-operatives 2. Appendix K. 2 The City of V i c t o r i a added to i t s reply that Its Council i s i n favour of non-profit housing organizations but i s experiencing d i f f i c u l t y i n providing active aid to them. 66 ( i i i ) Housing Co-ooeratlves and the City_of Vancouver: A, Spec^f^c _Ca.se In May 1968 representatives of the B. C. Co-operative Union and Western Co-operative Housing S o c i e t y 1 appeared he fore the "Special Committee Re. Housing" of the City of Vancouver, requesting that c i t y land be made ava i l a b l e to Credit Unions and co-operative housing groups according to the following s p e c i f i c a t i o n s : (a) that the land be "made available by lease, or by sale at the assessed value for general _ purposes plus 10% f o r l i m i t e d dividend housing" ; (b) that the land being made available by lease or by sale at the assessed value f o r general pur-poses plus 20%, f o r co-operative housing subject to the co-op being a bona f i d e co-operative, pursuant to the Co-operative Act of the Province of B r i t i s h Columbia and on the conditions that no i n d i v i d u a l may share his share i n the co-op at a p r o f i t " 3. After insuring that no l e g a l complications would a r i s e i n s a t i s f a c t i o n of these requests, the Committee s e t t l e d f o r a f i v e - to eight-acre s i t e within the c i t y which could be made avail a b l e for the requested purpose. When such a s i t e was selected i n the south-east sector of the c i t y , the Mr. R. J. Boutelier and Mr. R. B. English. 2 S p e c i a l Committee Re. Housing Minutes, May 8 t h , I 9 6 8 , Vancouver City H a l l records. 3 I b l d . 6? Committee put the question of i t s a v a i l a b i l i t y f o r co-operative housing before c o u n c i l 1 . Based on the argument that co-operatives should compete with other developers i n submitting bids for the c i t y property, council defeated 2 the recommendation . Nevertheless, public protest to Council's action arose and the United Church of Canada (Vancouver Southern Presbitery) requested a reconsidera-3 t i o n of the decision . Complying with the request, c i t y c o u n c i l reviewed the issue and a f t e r a number of a l t e r a -t ions f i n a l l y approved the Committee's recommendations . This municipal action i n aid of housing co-operatives i s unique i n B r i t i s h Columbia. However, i t has been an i n d i v i d u a l r e s o l u t i o n f o r a p a r t i c u l a r case, not a general p o l i c y . The system of land tenure, the r i g h t to speculate i n land and make p r o f i t out of i t are among the strongest forces behind the r i s i n g cost of housing i n t h i s country. 1 I b l d . 2Mr. R. D. English suggested that an a d d i t i o n a l reason f o r the r e j e c t i o n was councilmen's u n f a m i l i a r i t y with housing co-operatives. •^Council Minutes, May 8 t h , 1Q68, Vancouver City H a l l Records. Appendix L. 68 Some governmental intervention could salvage at l e a s t some of the land from such a speculative system. Land assembly provisions exist i n the National Housing A c t 1 but action at the municipal l e v e l must make the f i r s t move i n any u t i l i z a t i o n of them. (C) TESTING 0? 'THE HYPOTHESIS The most s a t i s f a c t o r y method of te s t i n g the hypothesis of t h i s study would consist of introducing s p e c i f i c p o l i -cies for housing co-operatives at the p r o v i n c i a l and municipal l e v e l s of t h i s province and witnessing t h e i r e f f e c t on such a f i e l d . But t h i s , f o r obvious reasons, cannot be done. Instead the test w i l l be l i m i t e d to obser-vations of the e f f e c t which s p e c i f i c l e g i s l a t i o n f o r co-operative housing has had In various cases where i t has been adopted. Housing co-operatives were attempted i n Sweden as early as 1880 but the f i e l d did not undergo any s i g n i f i c a n t 2 development u n t i l the years between the two World Wars . During those years the government offered i t s support to such co-operatives by.granting them mortgage loans covering National Housing Act, Part I I I . Supra, p. 20. 69 95%. of construction costs at ji i n t e r e s t 1 . Such govern-mental support, together with e f f i c i e n t organization, has helped Swedish housing co-operatives become one of the 2 most popular housing solutions of that country . In 1950, U. S. Congress enacted B i l l 231 which dealt with co-operative housing. This l e g i s l a t i o n enables co-operatives to get insured loans up to 97% of the value 3 of the property for a period of fo r t y years . P r i o r to the enactment of this B i l l , housing co-operatives' a c t i v i t y k was limited to a few sporadic e f f o r t s by trade unions . In the decade following the enactment of B i l l 231» an unprecedented increase i n co-operative developments occurred. Over 300 co-operative projects were b u i l t , housing 10,000 people"'. In the mid-1930's, co-operative housing i n Nova Scotia was placed under a s p e c i a l section of the Housing Commission Act of that province. This marked the beginning of co-operative housing for Nova Scotia but noticeable a c t i v i t y i n t h i s f i e l d was not reached u n t i l the Housing Commission St. Patrick's College I n s t i t u t e of S o c i a l Action, A Guide to Co-operative Housing, op. c i t . , p. 4 . 2 'Supra, p. 21. 3 J . P. Midmore, Report on Co-operative.Housing, op. c i t . , p. '+7. ^Supra, p. 21. A Report on Co-operative Housing i n Ontario, o_p. c i t . , p. 10. 70 and.the Federal Government drew up agreements for d i r e c t 1 assistance to co-operative housing . Under such govern-mental sponsorship 1,500 co-operative homes were b u i l t i n Nova Scotia between 1953 and I963. In Ontario, a law permitting and d e f i n i n g condominium p ( T i t l e Co-operative) was passed on September 1, I967. According to the Toronto Daily Star, the influence of t h i s act has been such that now, a new condominium begins or f i n i s h e s almost every week and there are an e s t i -mated 151000 units of condominium housing under construction or about to s t a r t i n the Toronto area3. In I966 B r i t i s h Columbia passed the Strata T i t l e s Act, aiming to "... F a c i l i t a t e the Subdivision of Land i n Strata and the D i s p o s i t i o n of T i t l e Thereto" . The act defines the regulations which must be f u l f i l l e d f o r the formation and continuation of a condominium housing project, describes procedures such as the d i v i s i o n of land into s t r a t a l o t s , the holding of common property, the r i g h t s and duties of the s t r a t a corporation and the by-laws applying to the develop-ment. Before t h i s act was passed there was a n e g l i g i b l e ~*~Supra, p. 2 3 -2 Supra, p. 3 2 . % h e Toronto Dally Star. July 5. 196°. p. 4 l . 4 The Toronto Dally Star, OP. c i t . , p. 41. 71 number of housing developments i n B r i t i s h Columbia which followed a condominium patt e r n 1 , whereas i n the short time since i t has been enacted nearly a dozen such projects have been erected or are under way . In t h i s province the f i e l d of housing co-operatives 3 i s as yet, as was observed , f a r from developed. The e x i s -tence, quantity and development of housing co-operatives i n B r i t i s h Columbia i s affected by a great number of f a c t o r s , some of which w i l l be discussed i n a forthcoming section. They vary i n Importance but they are l a r g e l y interconnected. L e g i s l a t i o n stands among them as the one factor capable of turning i n d i v i d u a l , sporadic e f f o r t s into a consistently organized and progressive housing movement. Such l e g i s l a -t i o n does not e x i s t i n t h i s province and consequently even the e f f o r t s of i n d i v i d u a l associations or of a c e n t r a l body for housing co-operatives, such as Western Co-operative Housing Society, are hindered. Thus, the development of housing co-operatives i n t h i s province i s retarded. To the author's knowledge there were only two apart-ment buildings, both i n Vancouver, which were registered under the B. C. Societies Act. They were both held by the Teachers' Federation. 2 Information obtained from the Vancouver Land Registry O f f i c e , Survey Department, June 1969. Supra, p. 31. 72 (D) ADDITIONAL RPASONS FOR THE LIMITED ACTIVITY • IN HOUSING CO-OPERATIVES IN BRITISH COLUMBIA (a) Canadian_A_t_tudes_Tovmr_s_Hou£lng^. It has often been stated that the housing i d e a l sought by the average Canadian family i s the private ownership of a single dwelling on i t s own plot of l a n d 1 . Any deviation from t h i s norm i s considered less d e s i r a b l e . Because of t h i s , the Canadian family may see ownership of a house through co-operative membership as demeaning. Moreover, the majority of co-operative housing projects take the form of multiple, c l u s t e r or town hoiising and the Canadian, who usually conceives a desirable house as one with a l l four of i t s sides exposed, shys away from such projects. (b) Lack_of a Prov^nclal_Organ_zatl ion. B r i t i s h Columbia presents, i n addition to lack of p r o v i n c i a l p o l i c i e s , no u n i f i e d , provinclally-sponsored structure for co-operatives. It has l e f t t h e i r i n i t i a t i o n to bodies such as Western Co-operative Housing Society, p r i v -ate c i t i z e n s and student groups. The power of these organizations to a t t r a c t co-operation from the governmental l e v e l s i s very l i m i t e d . Thus, the status QUO of housing co-operatives i n t h i s province i s perpetuated. J. F. Midmore, Loc. c i t . , p. 166. 73 (c) Reluctant Financing. As we have already mentioned, C.M.H.C. w i l l make d i r e c t N.H.A. loans to a housing co-operative only i f the co-operative group provides written evidence that i t has been unable to obtain such a loan from at lea s t two private lending companies. Private bodies such as chartered banks, l i f e insurance companies, t r u s t and loan companies lend money to housing co-operatives under eithe r private or N.H.A. conditions. They do so i n B r i t i s h Columbia but often with a ce r t a i n degree of r e l u c -tance, l a r g e l y because the success of t h i s type of housing 1 has not as yet been "tested" i n t h i s province. An N.H.A. co-operative housing loan and Its insurance are bound by a number of conditions, some of which act as deterrents to the formation of these co-operatives. Among them we have the following : (a) 80% of the family housing units of. the project must be occupied by shareholders of the co-operative association upon completion of construc-t i o n . This forces the co-operative to secure an 80% occupancy of i t s project before i t i s ac t u a l l y completed, (b) The co-operative group must be able to produce evidence Opinion expressed by Mr. R. D. English. p Complete statement of these rules given i n N.H.A., Co-operative Housing Loans, op. c i t . 7k that i t has spent time i n appropriate study. (c) The applicants must be members of a co-operative group which has been established for at l e a s t s i x months. This l a t t e r r u l e might be unnecessary or excessive i f the previous one i s f u l f i l l e d . I t may prove e s p e c i a l l y hindering i n cases where the co-operative group i s i n urgent need of housing. These observations reveal that f i n a n c i a l a i d f o r housing co-operatives i s available i n t h i s province but i t i s c l o s e l y regulated and often r e l u c t a n t l y a v a i l a b l e . (d) Lack_of information. The Extension Department of St. Francis Xavier University i n Antigonish, Nova Scotia, has undertaken, since the mid-1930's, a program to inform and educate community people i n the meaning and functioning of co-operative housing. This s t i l l continues today and by 19^2 i t had been involved with the construction of 1,500 houses i n that province 1. In Ottawa, Ontario, the Central Administrative Board, a body aiding co-operative groups on the l o c a l l e v e l , promotes and d i r e c t s an educational program on t h i s type of co-operative; i t also o f f e r s advisory service and encourages the organization of new groups. Between 19 k 8 and 1958 i t contributed to the r e a l i z a t i o n of 1,200 units of co-operative housing of a l l 2 types . •'•J. F. Midmore, on. c i t . , p. 5^-p Report on Co-operative Housing i n Ontario, op. c i t . 7 5 . The cases of these two provinces are not meant to insinuate that the information and education programs are the only factors responsible for t h e i r progress i n co-operative housings they are only brought up here to i l l u s t r a t e the possible power of such programs. In B r i t i s h Columbia there i s no body which i s , to any s i g n i -f i c a n t extent, disseminating advertising or providing education on co-operative housing to the general public. Western Co-operative Housing Society makes i s o l a t e d attempts at a d v e r t i s i n g and disseminating information i n the areas of B r i t i s h Columbia where i t undertakes the development of a project, but these attempts do not reach f a r beyond the group which eventually forms the co-operative. Lately, t h i s Society has been t r y i n g to reach public groups through community meetings and through the United Community S e r v i c e s 1 of Vancouver but t h e i r e f f o r t s have been too recent to produce any acknowledgeable feedback. Neither i s the general public reached by C.M.H.C. Their p r o v i n c i a l o f f i c e s o f f e r two small pamphlets t i t l e d Co-op Housing i n B. C. (a three-leaf fold-out) and Co-operative 2 Housing Loans . These two pieces of l i t e r a t u r e do indeed Information obtained from Mrs. S. Schmidt of Western Co-operative Housing Society. 2 "Co-op Housing", as used i n these t i t l e s , denotes co-operative only. 76 provide basic information on co-operative housing but they are a v a i l a b l e on request? i n other words they reach people who already know about the existence of co-operative housing, they do not serve to introduce the f i e l d to the general public. When thi s lack of information extends to public o f f i c i a l s the issue becomes aggravated. These are often men i n charge of passing l e g i s l a t i o n capable of a f f e c t i n g t h i s type of housing to a great extent; i f they do not understand i t s advantages, disadvantages, operation and implications, they might be unable to take, i f any, adequate decisions i n r e l a t i o n to i t . I t should be obvious that i f housing co-operatives are to advance any further i n t h i s province, dissemination of information on i t s nature i s badly needed. (e) No_Need for Co-ooerative_^Housing_Unt^l__Recently_. An argument frequently repeated, when the question os lack of co-operative nottsing in t h i s province a r i s e s , i s that B r i t i s h Columbia simply did not have the need f o r 1 t h i s type of housing u n t i l the present decade . The v a l i -d i t y of such argument may be supported by an e a r l i e r """Opinion expressed by Mr. R. J. Boutelier, Mr. R. D. English and Dr. H. P. Oberlander (U.B.C. School of Community and Regional Planning). 77 1 d i s c u s s i o n i n t h i s p a p e r t w h e r e i t was i l l u s t r a t e d t h a t B r i t i s h C o l u m b i a ' s demand f o r h o u s i n g a t l o w e r c o s t s t h a n t h o s e o f f e r e d b y t h e c u r r e n t p r i v a t e m a r k e t h a s now r e a c h e d u n p r e c e d e n t e d d i m e n s i o n s . C o n s e q u e n t l y , t h e p o s s i b l e a l t e r -n a t i v e s f o r t h e s a t i s f a c t i o n o f t h i s demand h a v e b e g u n t o be e x p l o r e d r e c e n t l y — one o f t h e s e n e w l y c o n s i d e r e d a l t e r -n a t i v e s - b e i n g c o - o p e r a t i v e h o u s i n g . 1 S u p r a , p p . 4-7. 78 CHAPTER V CONCLUSIONS If housing co-operatives i n t h i s province are to move forward, a l t e r a t i o n s to the e x i s t i n g procedures which a f f e c t them seem necessary. Based on the findings of t h i s study, a number of these a l t e r a t i o n s have been drawn and w i l l be recommended here. Some of them have already been suggested by experts i n the f i e l d and apply not only to t h i s province but to the country, as a whole. They deal with three general r e q u i s i t e s desirable i n housing co-operatives, namely organization, education and l e g i s l a t i o n . These three are, i n e f f e c t , the elements necessary f o r the success of housing co-operatives b r i e f l y reviewed i n an e a r l i e r section of t h i s study. ± Organization_ The organizational pattern for housing co-operatives which has demonstrated as most e f f e c t i v e and i s viewed by many countries as a model worthy of being copied i s the 2 3 H.S.B. pattern of Sweden . J . F. Midmore suggests that •••Supra, p. 37-38* 2Supra, p. 18. 3 J . F. Midmore, l o c . c i t . p. 81. 79 Canada could imitate such a successful arrangement by-se t t i n g up a plan composed o f J (1) a national co-operative housing federation. (2) c e n t r a l co-operative housing s o c i e t i e s . (3) l o c a l co-operative housing associations. In t h i s "the central co-operative s o c i e t i e s formed by c r e d i t unions, trade unions and co-operatives, would be the middle t i e r of a th r e e - t i e r organization. Above would be a Canada-wide federation of centrals; ^ below would be the l o c a l housing co-operatives" Each l o c a l housing association would, at the time of organi-zation, become a member of the c e n t r a l . The ce n t r a l would, then accept r e s p o n s i b i l i t y f o r the l o c a l u n t i l the l a t t e r becomes " s e l f s u f f i c i e n t " and no longer requires the a s s i s -tance of the former. The c e n t r a l co-operative housing s o c i e t i e s i n t h i s scheme are viewed as having the following functions: (1) To analyze housing needs in. t h e i r area and determine where co-operative a c t i -v i t y might a s s i s t ; (2) To es t a b l i s h objectives for various types of co-operative housing a c t i v i t y to be applied i n t h e i r area; (3) To plan and promote co-operative housing a c t i v i t y generally; ^Memorandum on Co-operative Housing, l o c . c i t . , p. 9' 80 (4) To plan and contract f o r bui l d i n g . The centrals should complete the bui l d i n g function, including f i n a n c i a l planning and arrangements, dealing with public bodies and a l l other necessary tasks. This would include dealing with l o c a l o f f i c e s of C.M.H.C. (5) To form housing co-operatives from i t s associate members when building i s com-pleted. The ce n t r a l may also buy exi s t i n g housing f o r s i m i l a r transfer to co-operative ownership. 1 A comparison between the composition and functions of Western Co-operative Housing Society and those of a ce n t r a l society, as described above, c l e a r l y i d e n t i f y the former with the l a t t e r . This recognition bears an important implicationj that i s , that B r i t i s h Columbia already o f f e r s some of the basic organizational elements f o r the i d e a l development of housing co-operatives — namely, a c e n t r a l society and l o c a l associations. The addition of a national co-operative housing federation to these would leave the province with the recommended organizational set-up for housing co-operatives, but such a federation i s not as yet in existence. At the national l e v e l , two bodies concerned with co-operative housing already e x i s t . They are, as has been J. F. Midmore, l o c . c i t . , pp. 7 8 - 8 0 . 81 1 mentioned , the co-operative housing advisory section of the National Labour Committee and the Co-operative Housing Foundation. They are not formed by any amalgamation of c e n t r a l co-operative housing s o c i e t i e s and thus do not f u l f i l l the r o l e of a co-operative housing federation. Yet, a mutual reorganization and combination of funtions between these two bodies together with any existing, c e n t r a l s o c i e t i e s across Canada could give r i s e to the mentioned federation. J. F. Midmore describes such a body as: "a non-commercial organization. With i t s members i t would formulate and p u b l i c i z e national co-operative housing p o l i c i e s . I t would represent the co-operative sector of the housing economy to the federal gov-ernment, to Central Mortgage and Housing Corporation .and to appropriate national organizations".~ From the facts and arguments presented, we can say that for the progress of housing co-operatives i n B r i t i s h Columbia and i n the r e s t of Canada i t i s recommended THAT A NATION-WIDE CO-OPERATIVE HOUSING FEDERATION BE FORMED BY THE AMALGAMATION OF EXISTING ORGANIZATIONS FOR HOUSING C0-OPERATIVES AT THE NATIONAL AND PROVINCIAL LEVELS. Supra, p. 39 ' J . F. Midmore, l o c . c i t . , p. 81. 82 Education Under the general heading of education for housing co-operatives the following are included: (a) dissemina-t i o n of information on housing co-operatives to the general public and public o f f i c i a l s , and (b) i n s t r u c t i o n and guid-ance to housing co-operative groups under formation, (a) Information: Some of the detrimental e f f e c t s which housing co-operatives suffer through lack of information have already-been discussed. The ignorance of the a v a i l a b i l i t y of such housing at the private l e v e l n a t u r a l l y brings with i t a lack of demand; at the public l e v e l i t creates reluctant co-operation. An improvement of th i s s i t u a t i o n can be brought about by systematic dissemination of information to the public and public o f f i c i a l s , and thi s can be accom-plished through bodies such as the e x i s t i n g voluntary housing groups i n the province, C.M.H.C. and l o c a l u n i v e r s i t y bodies. Organizations of a voluntary nature, who are s p e c i f i c a l l y concerned with the housing s i t u a t i o n of l o c a l groups and oommunities, exi s t i n thi s province. The most developed of these groups are located i n the Vancouver area and among them are: the Vancouver Housing Association, United Com-munity Services, the Federation of Senior C i t i z e n s Housing 83 Projects and the 3. C. D i v i s i o n of the Community Planning Association of Canada 1. If these organizations were to become equipped with extensive information on housing co-operatives they could d i s t r i b u t e i t systematically to people i n the community and public o f f i c i a l s i n both written form (advertized on public media or mailed to i n d i v i d u a l homes) or i n open discussion meetings where experts i n the f i e l d of housing co-operatives would be present f o r questions and explanations. In Fart V of the National Housing Act, C.M.H.C. i s directed, among other things, to "cause steps to be taken f o r the d i s t r i b u t i o n of information leading to the construction of more adequate and improved housing accom-modation" 2 Our discussion up to now has, hopefully, revealed that housing co-operatives can be c l a s s i f i e d as adequate housing accommodation; nevertheless, i t has been observed that the information i n thi s f i e l d , which i s d i r e c t l y d i s t r i b u t e d by 3 C.M.H.C, i s very l i m i t e d and availa b l e only on request . In complying with the c i t e d Part V of the National Housing Act, C.M.H.C. could enlarge the aforementioned stock of M. J . Audln, op. c i t . , pp. 13-21. p National Housing Act, Part V. 3 'Surra, p. 41. 84 information and advertise i t s existence to the public. In addition, i t could urge and a s s i s t the voluntary housing groups i n obtaining s i m i l a r information. Because of i t s governmental status, C.M.H.C. can reach and hold the attention of public o f f i c i a l s more e f f e c t i v e l y than any other body concerned with housing. By putting t h i s power into e f f e c t , C.M.H.C. could extend complete and accurate information on housing co-operatives to a l l public o f f i c i a l s who are connected with the housing f i e l d i n the province. Naturally, C.M.H.C. should begin such a move by ensuring that i t s own managerial personnel i s f u l l y informed on the subject, (b) Guidance: It has been observed that the Extension Department of St. Francis Xavier University, i n Nova Scotia, has long ago undertaken the education of groups interested i n obtaining r e l a t i v e l y inexpensive shelter by a co-1 operative method and that t h i s e f f o r t has payed o f f with the production of badly needed housing. The U n i v e r s i t i e s i n B r i t i s h Columbia could undertake a s i m i l a r endeavour by providing information on housing co-operatives to interested persons, by holding i n s t r u c t i o n courses on organizational, Supra, p.4o. 85 l e g a l and managerial d e t a i l s involved i n a housing co-operative project and by o f f e r i n g the services of fac u l t y and s t a f f experienced i n the subject to housing co-operators. A l l of these u n i v e r s i t y services could well be performed i n association with the c e n t r a l co-operative housing society of the province. "Co-operatives can expand only as f a s t as understanding of co-operative p r i n -c i p l e s i s developed" 1 Such understanding can only be reached I f these p r i n c i p l e s are presented and explained. This leads us to the following recommendation: THAT C.M.H.C, THE UNIVERSITIES, THE VOLUNTARY HOUSING GROUPS OP THIS PROVINCE, COMBINING EFFORTS WITH THE LOCAL CO-OPERATIVE HOUSING SOCIETY, PUT FORWARD TO THE PUBLIC AND PUBLIC OFFICIALS INFORMA-TION AND EDUCATION ON HOUSING CO-OPERATIVES. L e g i s l a t i o n The l e g i s l a t i o n changes which could improve the s i t u a -t i o n of housing co-operatives i n t h i s province f a l l mainly His Brother's Keeper: The Story of Co-operatives i n B r i t i s h Columbia. The B r i t i s h Columbia Co-operative Union. 86 within two categories: (a) land, and (b) exclusive p o l i c i e s f o r hoiising co-operatives. (a) Land: The Report of the Federal Task Force on Housing and  Urban Development, presented i n January of 1 Q 6 Q , had as i t s aim ' "to examine housing and urban development i n Canada and to report on ways i n which the federal government, i n company with other l e v e l s of government and the private sector, can help meet the housing needs of a l l Canadians and contribute to the develop-ment of modern, v i t a l c i t i e s " 1 . Based on i t s findings, t h i s report put forward a number of recommendations i n the f i e l d of housing and urban development, among them some dealing with the issue of land, such as the following. F i r s t , that m unicipalities or regional governments follow a continuing policy of acquiring, s e r v i c i n g and s e l l i n g a large part or a l l of the land required f o r urban growth 2 within t h e i r boundaries . Second, that the federal govern-ment should make d i r e c t loans to municipal or regional governments to a s s i s t them In assembling and s e r v i c i n g land 3 for urban growth. In the discussion preluding these Report on the Federal Tqsk Force on Housing and Urban Development. Queen's Printer: Ottawa' January 196°• Introduc-tory l e t t e r by the Minister of Transport; to the Prime Minister. 2 I b l d . , p. 43. 3 I b i d . 87 recommendations It i s also suggested "that the short-term loans granted to municipalities f o r land assembly be converted to long-term debenture thereby permitting lease rather than sale of the land" . If such a proposition were implemented i t could greatly benefit the housing f i e l d f o r a number of reasons. Land i n the hands of private enterprise i s , i n most cases, land i n the speculative market. As has been mentioned previously, the cost and i n f l a t i o n a r y trend of housing on such land cannot be d e l i b e r a t e l y c o n t r o l l e d . I t i s only on land which has been removed from t h i s system, such as municipally-owned land, where i n f l a t i o n can be c o n t r o l l e d 2 and lower-cost housing be b u i l t . Government-owned land could not only be purchased but also leased by housing co-operatives f o r the estimated l i f e t i m e period of the project 3 or f o r a shorter but renewable time . This could further reduce the cost of such housing. M u n i c i p a l i t i e s or regions could accompany such arrangements with s p e c i a l considerations (such as reduced lease rates and land s e r v i c i n g at cost) whenever s p e c i a l groups of population were involved (old-age "''Shirley Schmidt, Report on the Hellyer Task Force, prepared f o r Western Co-operative Housing Society, Vancouver, 1969. 2 Appendix M. 3The same could also be done by other types of housing. 88 pensioners, students, Indians). In t h i s manner they would be a c t i v e l y contributing to solve the housing problems of lower-income groups re s i d i n g within t h e i r boundaries. From these arguments i t i s recommended THAT WITH FEDERAL ASSISTANCE, REGIONAL OR MUNICIPAL GOVERNMENTS OF BRITISH COLUMBIA SHOULD, AS REQUIRED, ASSEMBLE AND RESERVE FOR SALE, OR PREFERABLY LEASE, PORTIONS OF THEIR L A N D TO HOUSING CO-OPERATIVES. (b) Exclusive P o l i c i e s f o r Housing Co-operatives: We have already stated that l e g i s l a t i o n i s not the main factor i n f l u e n c i n g housing co-operatives, but i t i s an i n d i s -pensable one i f such a housing f i e l d i s to prosper to any degree 1. The main l e g i s l a t i v e forces capable of a f f e c t i n g housing co-operatives i n t h i s province l i e i n the National Housing Act and the P r o v i n c i a l Statutes. Each of these w i l l be discussed separately. The National Housing Act: In order to a c t i v e l y aid the co-operative housing f i e l d , the National Housing Act should adopt a s p e c i a l sec-2 t i o n f o r housing co-operatives . The f i n a n c i a l assistance available to such co-operatives through t h i s act should be Supra, p.37. S h i r l e y Schmidt, op. c i t . , p. 1. 89 Included i n such a section. As was observed earlier-*-, the present terms f o r such assistance state a number of condi-tions which hinder the formation of housing co-operatives. Some al t e r a t i o n s may be necessary, among them the following: (a) Elimination of the 80% occupancy requirement upon comple-tio n of construction of a project; (b) Shortening of the time period f o r which the co-operative group must be estab-l i s h e d before i t can apply for a loan. Such a period should, be inversely proportional to the time which the group has spent i n relevant study and preparation f o r t h e i r co-operative undertaking. At present, the minimum requirement i s six months. (c) Advancement of d i r e c t loans by C.M.H.C. i n a si m i l a r fashion to those given to lim i t e d dividend housing 2 corporations .for some projects such as those located i n urban renewal areas or where lower-cost housing i s badly needed. With these comments as a basis, i t i s recommended THAT A DISTINCT SECTION FOR HOUSING C 0-0 PEE. AT IVES BE INCLUDED IN THE NATIONAL HOUSING ACT AND WITHIN SUCH SECTION SPECIAL TERMS OF FINANCIAL ASSISTANCE FOR THESE CO-OPERATIVES BE STATED. Supra, p. 40. National Housing Act, Section 1 6 ( 2 ) . 90 Pr o v i n c i a l Statutes: The power of exclusive l e g i s l a t i o n f o r co-operative housing was observed e a r l i e r i n the e f f e c t s of B i l l 231 i n the U. S. and the Strata T i t l e Acts of Ontario and B r i t i s h Columbia 1. Reaffirming the importance of t h i s type of l e g i s l a t i o n , the Co-operative Union of Canada asserts: "Interest by government at the p r o v i n c i a l l e v e l can make the difference between some degree of performance and none at a l l " 2 Combining these observations with the f a c t that t h i s pro-vince o f f e r s no exclusive l e g i s l a t i v e act f o r housing co-operatives, the following recommendation i s put forward: THAT TO THE BRITISH COLUMBIA STATUTES BE ADDED AN ACT WHICH WILL DEFINE THE REGU-LATIONS, DESCRIBE THE PROCEDURES, THE RIGHTS, DUTIES AND BY-LAWS INVOLVED IN THE FORMATION AND OPERATION OF A HOUSING CO-OPERATIVE PROJECT. Or a l t e r n a t i v e l y : THAT TO THE EXISTING CO-OPERATIVE ASSOCIATIONS ACT OF THE 3. C. STATUTES, A SECTION BE ADDED WHICH WILL DEFINE AND DESCRIBE THE LEGAL SPECIFICATIONS EXCLUSIVE TO HOUSING CO-OPERATIVES3. Supra, pp. 36-37. 2 Brief on Housing, op. c i t . , p. 12. -'Such as c i t y by-laws and taxation on land and improve-ments. Applicable to the project owned by an association. 91 1 LATEST DEVELOPMENTS Shortly a f t e r completion of the f i r s t stage planned (summer of 19^9) the housing co-operative i n Port Alberni went into bankruptcy. The causes for t h i s are s t i l l under 2 i n v e s t i g a t i o n . This precipitated a d i s s o l u t i o n of Western Co-operati\*e Housing Society (W.C.H.S.). By September of 19^9, negotiations were under way for a new organization f o r housing co-operatives which would replace W.C.H.S. I t i s said that i t s aims and set-up w i l l be very s i m i l a r to those of W.C.H.S. and i t w i l l even take upon i t s e l f to complete some of the developments started by i t s predecessor (such as the project i n the South-East sector of Vancouver and the project i n Abbotsford). Two of the former d i r e c t o r s of W.C.H.S. w i l l be involved i n the new organiza-t i o n for housing co-operatives and most of the bodies which were members in the former organization w i l l also be so i n the l a t t e r . The date f o r the o f f i c i a l establishment of t h i s new organization i s not known but i t i s hoped that i t w i l l be i n action by 19?0. We can only hope that i t w i l l become the '"Most of the information on these developments was obtained from Mrs. S h i r l e y Schmidt of Western Co-operative Housing Society. 2 The Vancouver Province, Sept. 5» 19^9• 92 strong, i n f l u e n t i a l and u n i f i e d body which the f i e l d of housing co-operatives i n t h i s province needs to move forward, Conc_us_ion_ We have seen that through housing co-operatives the province of B r i t i s h Columbia and the re s t of the country could off e r t h e i r lower Income population housing owner-ship which i s more within th e i r economic reach than that ava i l a b l e to them i n the private market. But t h i s o f f e r i s d i f f i c u l t u n t i l s p e c i f i c governmental p o l i c i e s join the e f f o r t s of private and co-operative organizations i n the aid and promotion of housing co-operatives. Only then w i l l housing co-operatives have a hope of emerging as a .significant and propitious form of housing. 93 BIBLIOGRAPHY Public Documents B r i t i s h Columbia, Co-operative Associations Act of B.C., Revised Statutes of B.C,, I960, . c. 77. B r i t i s h Columbia, E l d e r l y C i t i z e n s * Housing Aid Act, Revised Statutes of B.C., i 9 6 0 , s. 2 . B r i t i s h Columbia, Housing Act, Revised Statutes of B.C., c. 183. B r i t i s h Columbia, Municipal Act, P r o v i n c i a l Statutes, c. 255. B r i t i s h Columbia, Vancouver City Charter, P r o v i n c i a l Statutes, c. 55. Canada, Central Mortgage and Housing Corporation, Canadian Housing S t a t i s t i c s , Ottawa: Economics Research Department, March, I 9 6 5 . Canada, National Housing Act, 195^, Ottawa: Parliament of Canada, United Nations, The Futiire Growth of World Population, Population Studies No, 28, Department of S o c i a l A f f a i r s , 1958. Books Abrams, Charles, Man's Struggle f o r Shelter i n an Urbanizing World, Cambridge, Mass.: M.I.T, Press, 19657 Childs, Markis, Sweden: The Middle Way, Yale University Press, New Haven and London, I966 e d i t i o n . 94 Dhalla, K. N,, These Canadians, "A Source Book of Marketing and Socio-economic Pacts", Ontario: McGraw-Hill, I 9 6 6 . Hojer, K a r l J . , S o c i a l Welfare i n Sweden, The Swedish I n s t i t u t e , Ahlen & Akerlunds Boktryckeri, Stockholm, 1 9 k 9 . Royal Swedish Commission, S o c i a l Welfare i n Sweden, New York World's F a i r , 1939. S i l k , Leonard, Sweden Plans f o r Better Housing, Duke University Press, Durham, North Carolina, 1948. Wendt, Paul F., Housing Policy - The Search f o r Solutions, I n s t i t u t e of Business and Economic Research, University of C a l i f o r n i a Press, 1962. Wirth, Louis, "Urbanization as a Way of L i f e " , Paul K. Hatt and A. J. Reiss (eds.), C i t i e s and S o c i e t i e s , I l l i n o i s : The Free Press, Glencoe, 1957. A r t i c l e s and Periodicals Brown, D. S. and Venturi, R., "Co-op City-Learning to Like I t " , Progressive Architecture, Reinhold Publications, Feb. 1970. Davis, T. L., "Co-operative Self-Help Housing", Law  and Contemporary Problems, Vol, XXXII, Duke University School of Law, May 1967. Doxiadis, C, A., The Science of E k l s t i c s , Document R-G.A.159. Doxiadis Associates, Athens, Greece, I 9 6 3 . Down, Barry, et a l , , "Operation Housing", Western  Homes and Li v i n g , Vancouver L i f e and About Town Publishing Ltd,, Vancouver, February 1970. 95 Hansen, A. T., "A Cost Study of a Ty p i c a l Bungalow", Canadian Builder, National Research Council, Ottawa, Nov, 1967. Laidlaw, A. P., "Focus on Co-operative Housing", Ontario Housing, Ontario, June 1964, Laidlaw, A, F,, "Co-operative Housing i n Canada", Canadian Labour, Vol, 11, No, 3 , March I 9 6 6 , Liyan, S,, "A Co-op Approach to Housing Problems i n L a t i n America: The Example of C h i l e " , E k i s t i c s , Doxiadis Associates, Athens, March I 9 6 6 , Time Weekly Magazine, "The Housing Crunch of the A f f l u e n t Poor", Canada E d i t i o n , Toronto, November I 9 6 8 , The Vancouver Sun, June 22, I968, Reports Aim, U l l a , Co-operative Housing i n Sweden, Royal Swedish Commission, Esselte, Stockholm, Sweden, 1939. Amyad, R., Self-Help Housing, Master's Thesis, School of Community and Regional Planning, University of B r i t i s h Columbia, Vancouver, 1967. Audin, M, J . , The Hoiislng S i t u a t i o n i n Vancouver -A B r i e f i n g f o r Volunteers, U.C.S., Vancouver, T96T: Barrow, M,, Federal Housing P o l i c i e s and the Developing  Urban Structure, C o n f l i c t s and Resolution, Master's Thesis, School of Community and Regional Planning, University of B r i t i s h Columbia, Vancouver, I967, 96 Canadian Council on Urban and Regional Research, Background  Papers f o r the Federal-Provincial Conference on Housing and Urban Development, "Housing Policy, Problems and P r i o r i t y " , Ottawa, December, I 9 6 7 . Central Mortgage and Housing Corporation, Some Basic Questions  on the Urban Renewal and Public Housing Provisions of  the National Housing Act, Ottawa. Central Mortgage and Housing Corporation, N.H.A. Co-oneratlve  Housing Loans, Pamphlet 9^5 2/66, Ottawa. Grauer, A., Housing - A Study-.Prepared for the Royal Commission on Dominion-Provincial Relations, Ottawa, 1939. Economic Council of Canada, The Canadian Economy from the 1960's to the 1970*s. Queen's Printer, Ottawa, 1967. Economic Council of Canada, The Challenge of Growth and Change, F i f t h Annual Review, Queen's Printer, Ottawa, T 9 S 8 . Federal Government, Report on the Federal Task Force on  Housing and Urban Development, Queen's Printer, Ottawa, Jan. 19%9~> I l l l n g , W., Housing Demands to 1970, A Study prepared f o r the Review of the Economic Council of Canada, Queen's Printer, Ottawa, 1964. Inter-American Housing and Planning Center. Self-Help Housing Guide, Pan-American Union, Department of S o c i a l A f f a i r s , 1962. Midmore, J. F., Report on KCo-operative Housing, A Report Prepared f o r the Co-operative Union of Canada, Ottawa, 1962. New York State, Education for Co-operative L i v i n g , D i v i s i o n of Housing and Community Renewal, New York, i 9 6 0 . New Brunswick Department of Agriculture, Credit Union and Co-operative Branch, Co-operative Associations i n New Brunswick, 1958. Ontario Association of Housing Aut h o r i t i e s , Good Housing f o r Canadians , Arnprior,'Ontario, August, 19b%~. 97 Podoluk, J. N., Income of Canadians, Dominion Bureau of S t a t i s t i c s , Queen's Printer, Ottawa, 1968. Robinson, I. M., The Growth and D i s t r i b u t i o n of the Population of 3. C , School of Architecture, Uni-v e r s i t y of B r i t i s h Columbia, Vancouver, 1950. Salegrio, 0 . R., Analysis de l a Sltuaclon y del Plan  Habitaclonai de S I Salvador, Departamento de Ingenieria, I n s t i t u t o de Vivienda Urbana, E l Salvador, 1968. Schmidt, S., Report on the Kel l y e r Task Force, prepared for Western Co-operative Housing Society, Vancouver, I 9 6 9 . Smith, J. R. A., Changing Urban Economic Patterns, Notes f o r Address to the F i r s t Canadian Urban Transportation Conference, Toronto, Feb., 1969. St. Patrick's College I n s t i t u t e of S o c i a l Action, A Guide to Co-operative Housing, "Study Text for Co-operative Home Builders", Ch. I I , Ottawa, 1953. University of B r i t i s h Columbia, School of Community and Regional Planning, Submission to the Task Force  on Planning and Urban Development, Vancouver, November, 1958. Unpublished Material Aquino, A. S., Las Co-operatlvas de Vivienda Como Una Soluclon a l Problema Habitaclonai de E l Salvador, Unpublished Thesis, Universidad Cantral de El*Salvador, San Salvador, 1968. University of B r i t i s h Columbia, The Vancouver Housing Market, Seminar i n Governmental^tfrbajri "Land P o l i c i e s , Faculty of Commerce and Business Administration, Vancouver, May, I968. Other Sources B r i t i s h Columbia Co-operative Union. Personal interview with Mr. Boutelier, Executive Secretary. 98 B r i t i s h Columbia Federation of Labour. Personal i n t e r -view with Miss Young. B r i t i s h Columbia M u n i c i p a l i t i e s . Exchanged correspondence with s i x m u n i c i p a l i t i e s of the province. B r i t i s h Columbia Carpenter's Union. Personal interview with Mr. Podovidicoff. B r i t i s h Columbia Teachers' Federation. Personal interview with Mr. Bentley. Central Mortgage and Housing Corporation. Personal i n t e r -view with Mr. Iverach, Assistant Manager. Central Mortgage and Housing Corporation. Telephone interview with Mr. Gordon, Appraisal Section. Co-operative Housing Association of Simon Fraser Students. Telephone interview with Mr. James Harding, member of the Association. University of B r i t i s h Columbia Alma Mater Society. Personal interview with Mr. David Zinhelt, President. University of B r i t i s h Columbia, Graduate Student Association, Personal interview with Mr. J. T i l l e y . Vancouver Land Registry O f f i c e . Personal Research i n Survey Department. Western Co-operative Housing Society. Personal interviews with Mr. R. English (Director) and Mrs. S. Schmidt. 99 APPENDIX A Estimated Percentage Population Increases i n each Continent and i n the world for the Period 1950-1975 (In M i l l i o n s ) „ A~ 4 North L a t i n . . Europe World A f r i c a A m e r i c a A m e r i c a Asia I n c l . Oceania USSR 53 52 43 86 60 31 59 (Extracted from: United Nations, The Future Growth of World  Population, Population Studies No. 28 (Department of Econo-mic and S o c i a l A f f a i r s , 1958), p. 23, Table 6 ) . APPENDIX B Average Increases i n Families and Households i n Five-Year Periods Between Census Years 1951-76 - In Canada v , „ .,. Family Non-family Total Period ^amines Households Households Households ( '000) ( ' 0 0 0 ) {%) ( '000) (.*) ( '000) 1951-56 84.6 2.4 91.7 2.9 12.4 2.6 104 .1 2.9 1956-61 87.0 2.2 97.0 2.7 28.6 5.0 125.6 3 . 0 1961-66 7 2 . 0 1.7 77.7 1.9 34 .5 4 . 7 112.2 2.3 1966-71 108.2 2.3 113.4 2.5 31.5 3.5 144.9 2.7 1971-76 126.2 2.4 134 .1 2.6 30.6 2.9 164.7 2.7 Note: Data exclude Yukon and Northwest T e r r i t o r i e s . (Extracted from: Wolfgang M. T i l i n g , Housing Demand to 1970. Prepared f o r the Economic Council of Canada, S t a f f Study No. 4 (Ottawa: Queen's Printer, 1965), p. 9, Table 2 ) . 100 APPENDIX C Housing f a l l s within p r o v i n c i a l j u r i s d i c t i o n as s p e c i -f i e d by one or other of the following powers delegated to the province under section 92 of the B r i t i s h North America A 2. Direct Taxation within the Province for the Raising of a Revenue fo r P r o v i n c i a l Purposes 8. Municipal I n s t i t u t i o n s i n the Province 10. Local Works and Undertakings... 11. The Incorporation of Companies with P r o v i n c i a l Objects 13. Property and C i v i l Rights i n the Province 16. Generally a l l Matters of merely l o c a l or private Nature i n theJProvince (A. E. Grauer, Housing, "A Study Prepared f o r the Royal Commission on Dominion-Provincial Relations", Ottawa, 193°, P. 3k). APPENDIX D In searching through the l i t e r a t u r e on incomes i n Canada, no universal concensus was found on income cate-gories or c l a s s i f i c a t i o n s . The presented c l a s s i f i c a t i o n has been used by Western Co-operative Housing Society (Pamphlet No. 3) and by M. M. Barrow, "Federal Housing P o l i c i e s and the Developing Urban Structure: C o n f l i c t s and Resolution", (Unpublished Master's thesis, School of Community and Regional Planning, University of B r i t i s h Columbia, I967, p. 2 0 ) . 101 APPENDIX E The Task Force on Housing and Urban Development observed that i n order to q u a l i f y for a $29i000 house i n a Toronto suburb a family would require an annual i n -come of $8,000. ("The Housing Crunch of the 'Affluent Poor' ", Time Weekly Magazine, Canada E d i t i o n , Toronto, November 8, 1969, p. 1 3 ) . 1 0 2 APPENDIX P Excerpts from pamphlet d i s t r i b u t e d by Willow Park Association . WW** G r a ^ ^ ^ W i l l o w Park Housing Co-op Ltd. is a non-profit ^ corporation. Its purpose is not to earn money but to serve its members' needs at the lowest possible cost consistent with sound operction. W i l l o w Park was sponsored by C K A M , the Co-operative Housing Association oi Manitoba, for the purpose oi helping families to achieve the advantages of co-operative ownership by designing and building dwellings that provide the most home for ihe least money. W h e n the families first move in they w i l l elect their own directors and begin taking over the responsibilities of operating their property. The Co-op establishes its own membership committee, cr .d provides • day-to-day management needs. \ f'Uo1^ P a r W i l l o w Park is designed to serve the housing ' 1 needs of families in the moderate annual in-come range oi about S3,COO to 56,000. No dis-tinctions are made because of racia l origin or religion. y £ t y ^ f ' ^ s m a ' ^ down payment is necessary as in a l l home purchases and is required by Central Mortgage and Housing which is providing the funds ior construction. The down payment required varies with the size of unit and is a small fraction of construction cost. 3 103 WW* * . ^ . C O ' 0 " ? ^ * Willow Park is a modern housing de-veiopment.located at Burrows Avenue and Dorset Street in northwest Winni-. peg. It contains units ranging from one to four bedrooms. Those who live in Willow Park will own the housing development through membership shares in Willow Park Housing Co-op. Each member-shareholder signs an occu-pancy agreement that gives him the right to occupy a specific dwelling unit. p a f ^ A W i l l o w Park family has special advantages \*]\Woy* over both ordinary ownership and renting. A n ordinary homeowner has no control beyond his ov/n property, except by appealing to local government. A renter has no control at a l l . W i l l o w Park families exercise a large measure oi community control. They adopt reasonable rules designed to keep their neighborhood a pleasant, safe and decent place to l ive. A W i l l o w Park family gets top quality housing and pays only what it actually costs to own and operate its dwel l ing. Like the ordinary homeowner, the W i l l o w Park Co-op member pays r.o profit to a landlord, yet is as free to move to another city as if he were s imply renting a home. The Co-op arranges for the resale of this equity. For a l l practical purposes a W i l l o w Park family owns its own home subject only to payment of monthly charges and observance of common sense rules that the members adopt. Wi l low Park orfers members the same freedom from maintenance chores that rental housing does. The Co-op handles repairs, insurance, maintenance of grounds and other facilities just as a landlord does. rAe°*" ' The down payment buys shares in Willow Park Housing Co-op Ltd. which represent part own-ership in the whole development including playgrounds, meeting rooms and all other community facilities. When you have become a member-shareholder you get an occupancy agreement which establishes your riqhi to occupy a specific dwelling unit and spells out the rules you and your neighbors adopt to live together in harmony. ., , Your monthly charges in Willow Park are your ^ j , ^ ^ ^ ' 5 portion of the actual cost of operating the de-velopment. They include your share of mort-gage payments including principal and interest. They also include your share of fire, wind, hail and public liability insurcnce, real estate taxes-and improvements. They include your share of operating expenses including utilities, . repairs, and maintenance. Utilities such as heat and light cost much ' less when purchased by a group than they would if purchased indi-vidually. They also include your contribution to special reserves for replace-ments and emergencies. If there is a surplus at the end cf the year the directors will make recommendations regarding its use at the .annual . meeting. of the members. V Q , J .•j^iU^*'e6^ Y ° u a 9 r e e t 0 P aY Yoxir monthly charges on time. 2. You agree to use your premises for resi-Y E $ V O V L S J • dential purposes only. 105 .3. Y o u agree not to sublet your home without permission from W i l l o w Park Co-op. 4. Y o u agree to keep up the inside of your home. 5. Y o u agree to live up to the rules adopted .by the members. The rules can be changed at membership meetings. eU yc,v>'1' ^ n o r d e r t o p-event speculation, W i l l o w Park VfXO^®^ Co-op has first option to buy your shares or V ' you may sell them to a prospective member with the approval of the Co-op. P O T * * * " * " 9 ; r - y O U " * ' s easy to find out. Just fill out the enclosed * ° ' r " form and mail it to the Co-operative Housing Association of Manitoba. Meetings -wi l l ' be arranged for those interested and you v/il l be notified. Details v/ i l l be provided about down payments, monthly charges, and the terms of the occupancy agreements. You wi l l be able to compare the cost of W i l l o w Perk housing with the cost of renting or of ordinary home ownership. There are many successful housing co-ops in various parts of the United States. Wi i low Park is the first housing co-op in Winnipeg . It is a hew venture in developing top qual i iy housing at low cost for people with moderate incomes. There is an excellent chance that W i l l o w Park is for you. If you are interested in learning more about W i l l o w Park Housing Co-op, phone— Co-operative Housing Association of Manitoba, TUrner 8-1254. ,5 106 APPENDIX G Excerpts from Pamphlet Distributed by Western Co-operative Housing Society / » j r.-*> vi* ^ PS}, P t£) fi CO-OPERATIVE xs-a p. r>. .7 r\ v, « rj fj !J / T ^ i r .» / Q i A NEW ICAY TO HOME OWNERSHIP iTlJii'SliU-1 i I l.i, I! : .»-Av\ 1'.' : !• I'll-! ,I i • , 1 'I P ! •• TV • ^ • : •• 1 1 i •>.'-• :Z I I- ' . • • ! ' ' ? , . - ^ ^ 5 U i L H i ' i i i i 1 m m 0 PRIVACY 0 PARKS & TFdiES 0 HIGH QUALITY* 0 L017 COST 0 MEDALLION HOMES 4 LOCATED IN THE HEART OF PORT ALEERNI 1 0 7 BARCLAY CO-CPER&TIVE HOUSING ASSOCIATION SCKSDULE OF CHARGES per U n i t s 2. B.P... 3 B.R,. 4 B.R.. RILL PRICE. S143120cCO 3l6;6COi00 $17,750.00 WW PAYMEifT * 750,00 350*00 900*00 P r i n . S I n t . ICS.00 122.00 131.00 Taxes «* ' . U2i£S ,-13.00 1-^CO 12U«0O- •. 135.00 143*00 •SERVICES <w» . . . . . . E l e c t r i c i t y 21.CO 23.00• 26.00 Water 1.50 2.00 2.00 Insurance 1.00 1.25 1.50 Upkeep & Most. 8.00 8.CO 3.00 Reserve ._3!t50 ./VSQ. 354C0 38.00 42.00 ^OJES j . a Add Mortgages A p p l i c a t i o n Foe • of $35.00 t o each Down Payment. * A p p l i c a n t may raake a l a r g e r down payssant and reduce monthly payments. ** Taxes ~ a f t e r Home Cvner Grant allowed *** These are hig h estimates of co s t s - - a c t u a l c o s t to Hc*a~ owner w i l l be based cn the a c t u a l expenditures c f the Assn. OPTION AVAILABLE:. ° Carpets ° Moulded Counter Top? ° Ceramic T i l e ° Re c r e a t i o n Room ° V a n i t y Bath ' ° Drapes ° Textured C e i l i n g s 0 Feature Wall 108 It'. 14*4 h i \ *\ I f -- :- - J TVX) BEDROOM KC.ME u b ~ ?'* 1 ALL with f u l l Basements & Laundry 5 U.J2G. R T F 8** ] ' ; G.R. G-a. u:7 L ^ i f l i ' ij> ***** S E C O N D -OK THREE BEDROOM HOME $ 16,600. "FOUR BEDROOM HOME $ 17,750. 109 APPENDIX H There has been recent governmental e f f o r t to upgrade the poor housing c o n d i t i o n s of these people but no o v e r a l l , c o n s i s t e n t program has, as y e t , been t r a c e d f o r the purpose. In the e a r l y 1960's C.M.H.C. approved a promising plan of housing co-operatives to be t e s t e d i n northern communities of Saskatchewan, but disagreements between the p r o v i n c i a l and community l e v e l s prevented implementation of the plans. ( 3 r l e f on Housing, op., c i t . , p. 19) • APPENDIX I L e t t e r sent to random sample of c i t i e s and m u n i c i p a l i t i e s i n B r i t i s h Columbia i n September 1969 s Dear S i r : During the l a s t year I have been a c t i v e l y engaged i n resear c h on housing co-operatives i n B r i t i s h Columbia. Such housing takes the form of m u l t i - u n i t p r o j e c t s (of any type) and i t can be described as f o l l o w s : housing owned and operated on formal co-operative p r i n c i p l e s . I t s occupants, who e s t a b l i s h them-selv e s as an a s s o c i a t i o n , do not own the i n d i v i d u a l u n i t they occupy but the housing p r o j e c t as a whole. A very important part of t h i s research i s the d i s c o v e r y of any p o l i c i e s p e r t a i n i n g to such housing which may be i n p r a c t i c e i n t h i s Province. As means of o b t a i n i n g such i n f o r -mation the f o l l o w i n g question i s put to you: Does your c i t y , m u n i c i p a l i t y , d i s t r i c t or r e g i o n o f f e r any s p e c i f i c p o l i c i e s f o r housing co-operatives? A "yes" or "no" answer would be s u f f i c i e n t , although f u r t h e r e x p l a n a t i o n ( i n the case of a "yes" answer) would be a p p r e c i a t e d . I f such i n f o r m a t i o n i s not a v a i l a b l e to 110 you, please forward the question to any o f f i c i a l source who may answer i t . Please mail your reply to: Marianthi Constantinu School of Community & Regional Planning University of B r i t i s h Columbia Vancouver 8, B. C. Hoping to hear from you at your e a r l i e s t convenience, Thankfully yours, Marianthi Constantinu. APPENDIX J Council's f i n a l resolutions concerning the sale of Vancouver City land f o r co-operative housing: ( i ) a 6 . 6-acre s i t e of the city-owned land i n the recommended South-Blast corner of the c i t y would be reserved f o r sale to co-operative groups only: ( i l ) the land would not be sold at fix e d price but co-operatives tvould have to bid against each other for the property. (The Vancouver Sun. June 22, 19*58, p. 16) I l l APPENDIX K The B. C. Co-operative Union o f f e r s the follow-ing example i n favour of housing on leased land: "Suppose the raw land value of a l o t i s .^51000. A municipality obtaining $5,000 from the sale of the l o t and investing i t at 5* would have -$21,609 at the end of 30 years. I f , instead of s e l l i n g the l o t , i t was leased at a yearly r e n t a l of 5% of i t s value, the municipality would receive 316,609 i n t h i r t y years. It would also own the l o t at the end of the t h i r t y years, so the value of the l o t should be added to the return. By adding the o r i g i n a l value of '15.000 we f i n d we end nv with the same return". (Brief on Housing, on. c i t . , p. 5) Land leasing by housing co-operatives has been successfully applied i n the case of Willow Park Housing Project i n Winnipeg. 

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