>  Blog >  Legal > cooperative housing society
Ipsa Rai | 27 Apr 2023

Cooperative Housing Society: Meaning, Features, Benefits & Types

Cooperative Housing Society: Meaning, Features, Benefits & Types

Table of Content:

  1. Cooperative Housing Society Meaning & Goals
  2. Features of a Co-op Housing Society
  3. Benefits of Living in a Cooperative Housing Society
  4. Cooperative Housing Society Models
  5. How To Start a Housing Cooperative?
  6. Cooperative Housing Society Formation: Paperwork Required

A cooperative housing society is a group formed by a legal entity to meet their housing needs. The organisation is the owner and manager of residential properties. The housing cooperative buys land, develops it, builds apartments, and allocates them to the interested investors and buyers.

The Registrar of Cooperative Societies is responsible for overseeing the implementation of the Cooperative Societies Act and the rules of the housing cooperative societies in each of the Indian states. Notably, most cooperative societies in India are organised under the National Cooperative Housing Federation of India (NCHFI) and operate in accordance with the model bye-laws established by the Multi-State Cooperative Societies Act of 2002.

Cooperative Housing Society Meaning & Goals

The primary goal of housing cooperative societies is to serve the needs of its members. Here is a list of some of the key goals of a housing cooperative in India:

  • Providing members of the society with loans so that they can build homes or other structures within the complex.

  • Purchasing property, building apartments, and allocating units to members.

  • Advancing the financial well-being of the cooperative society and inspiring individual initiative.

  • Creating a harmonious social and economic climate in the community's dwellings is a crucial role of a cooperative housing society to promote a high standard of living.

  • Maintaining the housing complex on a regular basis and supplying essentials like water and electricity.

Features of a Co-op Housing Society

  • Housing cooperative societies are voluntary organisations in the sense that their operations are guided by the principles of individual initiative and mutual help.

  • Everyone with shared interests is welcome to join the co-op housing society.

  • Cooperative housing society developments enjoy a high degree of autonomy and independence.

  • All positions of authority within a cooperative housing society are held by elected members of the community.

  • A cooperative Housing society is a distinct legal entity that operates under the laws governing cooperative societies. Cooperatives that are formally established fall under the jurisdiction of applicable state and federal statutes.

  • Each household in a co-housing community makes a monetary contribution toward the upkeep and acquisition of shared facilities.

  • Members' financial exposure is limited to their individual contributions to the limited liability company.

  • Each and every member of housing cooperative societies works together for the common good, without concern for personal gain or power dynamics.

  • Housing cooperative societies equip their members with the information they need to fulfil their responsibilities as owners, managers, and residents of the communities they serve.

  • Through local, national, and international frameworks, housing cooperatives help their members improve their quality of life by adopting best practices. 

Also Read: Tips To Ensure Ensure Right Property Investment Within Budget

Benefits of Living in a Cooperative Housing Society


In a co-op housing society, members vote on and implement all fiscal policies. Less money is spent on member services and amenities overall. It's cheaper than buying on your own when you factor in a reasonable down payment, low pre-closing costs, and a longer mortgage term.

Trustworthy Financial Commitment

Since cooperative housing societies are legally recognised and have their own resources, they can be relied upon for security and consistency.

Cooperative housing societies are a secure option for home ownership. Members of housing cooperative societies can reside in their apartments for as long as they like, without interference from landlords. The occupancy benefits are still in effect even after the tenant moves out, and the apartment can be leased or rented.

Superior Conveniences and Services

One can anticipate improved management and high-quality amenities in a cooperative housing society. All the basic house maintainence needs are met because everyone has a chance to contribute to the group.

Authoritarian Rule

Every member of housing cooperative societies is also a shareholder, which is run in a democratic fashion. In a housing cooperative, every member shares in the benefits equally. The society's leaders are selected via election and voting.

Responsibility Sharing

Maintenance, repairs, replacements, and insurance fall under the purview of the cooperative housing society. Members must contribute to the upkeep of the society by paying the associated fees. 

As an added bonus, the members are involved in the planning and design process from the very beginning, all the way through any subsequent iterations. All members contribute roughly the same amount toward the monthly maintenance and operating costs.

Cooperative Housing Society Models

Cooperative housing societies can be broken down into the following types:

1. Tenant Ownership Housing Society

The land in a tenant-ownership cooperative housing society is owned by the tenants in either a leasehold or freehold capacity. The members own homes or have long-term leases on properties on the land. To avoid breaking the rules, they must follow the procedures for house transfers and subletting and may still build homes as per their needs.

2. Tenant Co-partnership Cooperative Housing Society

Tenant co-partnership housing societies fall into one of two categories, leasehold and freehold, depending on the ownership structure of the co-op housing society. After the initial share payment and the first month's rent, the members can move in. 

3. Housing Mortgage Society

These housing mortgage societies function similarly to credit societies where  they lend money to members for the purpose of building homes. Members, however, are tasked with organising the actual building process.

4. House Building Society

Under this type, housing cooperative societies engage in house construction for the benefit of their members. Members receive their new homes once construction is complete. Loans are repaid from the repayment of construction costs.

Also Read: Decoding The Most Debatable Question: Rent or Buy

How To Start a Housing Cooperative?

The National Cooperative Housing Federation of India is the umbrella organisation for the vast majority of India's cooperative societies. The model bylaws are based on the 2002 Multi-State Cooperative Societies Act and outline the process for establishing a cooperative housing society as well as the roles and responsibilities of its members. The Cooperative Society Act of 1912 and the state Cooperative Society Acts govern other types of cooperatives.

To establish a group, there should be at least ten people working toward the same goals. Members with common interests typically live in the same area, work for the same company, are part of the same organisation, etc.

The Cooperative Societies Act of 1912 requires the registration of any cooperative housing society in India. Here is a rundown of what needs to be done in order to officially establish a housing cooperative:

  • A housing society's members must first choose a chief promoter before it can apply for official registration.

  • Members will vote on a proposed name for the organisation and two alternates. 

  • Promoter's name and occupation must be included on the application and registration fees must be paid before it is submitted to the registrar.

  • The bylaws are subsequently approved. Each household will have a share capital that all members must contribute to equally.

Cooperative Housing Society Formation: Paperwork Required

Registering housing cooperative societies will necessitate the following forms and paperwork:

  • Completed enrollment paperwork is submitted.

  • All relevant bank records/certificates.

  • At least 90% of the promoter members must sign all four copies of the application.

  • Specifics about the promoters.

  • Details on how the society functions.

  • Additional draft of the society's proposed bylaws,

  • Account statements in Form D format,

  • Evidence that the registration fee has been paid.

  • Any additional paperwork required by the registry.

  • Attorney-issued Title Clearance Certificate.

We have explored every aspect of the cooperative housing society and discussed the reasons why you should decide to take a home in a housing cooperative. 


Need Help?