frequently asked questions
WHAT'S IN IT FOR YOU?
*You can participate in matters of planning and management and in establishing policy for the operation of the community;
*As owners, there is community pride which results in a responsible attitude towards maintenance of both unit and site;
*You can obtain a larger or small er unit if your family situation changes, yet you remain in the same community; .
*You can make any improvements you wish within limitations you yourself decide as a co-operative member;
*You have the opportunity to set up other services such as day care, food stores, recreational facilities, etc. as a group;
*Your housing charges will be stable, increasing only when actual costs such as interest and principle go up and not increasing due to market conditions.
FREQUENTLY ASKED QUESTIONS
Q. How do Housing Co-operatives differ from Condominiums?
A. In condominiums each resident owns his/her own home and is free to sell the home at current market value. Co-operatives are managed by their Members, collectively, and because of the non-profit aspect, monthly housing charges are usually less than monthly mortgage payments & condo fees. Philosophically, co-operatives thrive on loyal Membership, which encourages interdependency on many levels.
Q. What are the benefits of Membership in Riverdale Housing Co-operative?
A. Security of tenure, housing charges that do not fluctuate with the housing market, community living, the right to have a say in what happens in the co-op, and a great environment for raising children, to name a few.
Q. Are Riverdale co-op members renters or owners?
A. Members are definitely are NOT renters. Collectively co-op members ‘own’ the mortgage on the buildings and the land lease for the property the buildings are resident upon.
Q. Do I own my Unit?
A. No. You own a share in the co-op which owns ALL the Units. As a Shareholder/Member you are entitled to reside in one of the Units.
Q. Do I pay a rent or a mortgage?
A. Each member household makes a monthly payment to the co-op called a housing charge, which covers the member's fair share of the mortgage, taxes, and operating costs. Besides the initial lower cost of housing, the co-operative also offers a stable housing cost. Since the member is both owner and tenant, there is no desire to raise the monthly charges except to cover increased costs (e .g. municipal taxes and maintenance). Therefore, the monthly charges rise more slowly than on the open market. These lower housing charges give the benefit of increased savings and higher standard of living.
Q. Is my Share purchase amount really just a large damage deposit?
A. No. When you buy your share, you become a Member of Riverdale Housing Co-operative. As noted earlier, Membership gives you the right to reside in the Co-op and to have a say in what happens in the Co-op. However, it is true that, if there is damage to your Unit when you leave the Co-op, the Co-op can withhold monies from your Share ‘refund’ to pay for repairs. Keep in mind that you are responsible for damage to your Unit, even if the cost of repair upon your departure is greater than the value of your Shares.
Q. If I decide to move out, can I sell my share?
A. No. Your share are bought back by the co-op, subject to any monies which might be withheld. The share will be re-sold to the next incoming Member.
Q. What additional costs are associated with living in the Co-op?
A. Members purchase shares when they first join the Co-op. The usual household utility expenses are paid by the member: gas, electrical power and communications. In addition, units are not provided with appliances such as stoves. fridges, dishwashers, washers and dryers, although hook-ups are available.
Q. Am I allowed to keep pets?
A. Yes. General rules of good pet-ownership apply: members are responsible for any damages caused by their pets, and for picking up after their pets.
Q. Do I have to volunteer in the co-op? Do I have to be involved on a committee?
A. YES you must volunteer. You have chosen to live in a housing cooperative and you have accepted the responsibility of sharing in this Co-op’s affairs. Every Unit is asked to try to have at least one Member actively serving on a committee or the Board. We understand that sometimes Members will need a break from volunteering for short periods of time during their stay at the co-op, and these breaks are acceptable to the Members. We also understand that some volunteer work can be accomplished outside of committee work and so we try to stretch our definition of ‘volunteer’ to accommodate those efforts.
Q. What will happen if the Co-op should be dissolved?
A. After payment of its debts and liabilities and after repayment of Shares to the Members, the remaining property of the non-profit housing coop has to be transferred to or distributed among, one or more non-profit housing co-operatives, non-profit organizations or charitable organizations as per 389(1)(b) of the Cooperatives Act, Alberta.
Q. How and when is the Board of Directors chosen?
A. Prospective Directors are nominated out of the general Membership prior to, or during the Annual General Meeting. Any Member may submit his/her own name or that of another Member for nomination. The Directors are volunteers who are elected democratically by at an Annual General Meeting.
Q. Can anyone vote at the Annual General Meeting or a Special Meeting?
A. Yes. The rule is one vote per co-op Member.
Q. Who makes the rules for our Co-op?
A. We must abide by the defining documents of our Housing Co-operative. These include the National Housing Act, our Commitment Letters with CMHC, our Operating Agreement with CMHC, our Mortgage Agreement with the CMHC, our Land Lease with the City of Edmonton, the Cooperatives Act and Regulations, Alberta, our Articles of Incorporation, our Shareholders Agreement and our Bylaws. Additionally – we must abide by our own policies and procedures. Members, either individually or as Member of a committee, write and revise policies and procedures and the general Membership approves all policies and procedures at Co-op Special Meetings. Current By-laws provide for the Board to approve any policy which is not deemed a Major Policy, but currently the Board has deemed that all policy must be approved by the Members.
Q. Am I responsible for insurance on my personal possessions?
A. Yes. Your personal insurance should cover fire insurance on ALL personal property, including any Improvements to your Unit as well as personal liability.
Q. How much do housing charges increase each year?
A. The Co-operative is a non-profit corporation. Typically increases in housing charges have kept pace with inflation with an increase of 1 to 3% each year. However, housing charges are the Co-op’s only source of income and could increase by larger amounts should it be required due to an increase in the expenditure budget for the year, such as might occur as a result of increased labor costs. Note also that if there is a change in your financial or living circumstances which no longer allow you to qualify for subsidy, housing charges can increase to the maximum rate charged in the following fiscal year, which in extenuating circumstances could be as much as 25% more.