Co-ops are run by members for members. Each member is responsible for ensuring the co-op operates in accordance with its own rules and the Co-operatives National Law Application Act.
All co-op members should be ready to take on the role of Co-op Director at some point during their membership.
Each co-op develops plans to allocate workloads and share skills to ensure effective future management.
Co-op Director responsibilities include:
- consulting with members to make decisions in the best interest of the entire co-op
- managing the co-op’s finances and ensuring its continued viability
- ensuring the co-op meets its responsibilities as a rental provider (if operating as a CERC).
Some co-ops might opt to contract out tasks like bookkeeping to reduce workloads or ensure the necessary expertise. However, Directors are still required to ensure that this work is current and make informed decisions based on the information provided.
Together, directors and general members make decisions that reflect the spirit of the International Cooperative Principles and the Policies and Principles of CEHL, always aiming to benefit all members.
CEHL offers a variety of resources, training opportunities, and professional advice to assist Co-op Directors in their governance responsibilities.
Co-op Directors role
Co-op Directors ensure:
Effective management
All day-to-day tasks required to meet the co-op’s responsibilities are well managed.
Record keeping
All relevant records are kept up-to-date.
Skill development
Directors support members in developing the skills and knowledge needed to manage the co-op’s tasks.
Succession planning
A succession plan is developed and implemented to ensure the co-op will be well managed in the future.
Meeting schedule
A regular schedule of meetings is maintained to make decisions and plan for future needs, with clear agreements on:
- how important decisions are made
- who has the authority to act on behalf of the co-op
- how members will be consulted and kept informed about co-op business.
Co-op financial management
Each co-op is financially independent and responsible for managing its own finances. CEHL provides resources, training, and advice to help co-ops monitor their financial health.
CERCs (Common Equity Rental Housing Co-operative)
As residential rental providers, CERCs receive rental income directly from their members. This rental income is allocated as follows:
- Payments to CEHL:
- to meet program expenses
- fund structural maintenance
- finance third-party property upgrades
- support growth across the program
- Co-op administration costs and property expenses:
- water and council rates
- owner’s corporation fees
- responsive and cyclical property maintenance
- administration
- community building activities
Additionally, CERCs need to save reserve funds for future maintenance costs.
CMCs (Community Managed Co-operative)
CMC members do not have rental provider responsibilities. All rents are paid directly to CEHL by renter members to cover:
- property maintenance
- tenancy management
- CEHL costs
CEHL forwards a small monthly payment to the CMC to cover:
- administrative costs
- community building activities
CMCs may also build reserve funds for future co-op projects.
What is co-op housing?
A housing co-operative is a community of people who work together to meet their housing needs.
