The Concept of Cooperative Housing Society Broken Down 

September 16, 2022 . Home Buying Insights . 10 min read
cooperative housing society

In India, the cooperative housing society dates back decades and is still active today. It plays an important part in the process of making housing options that are within people’s budgets available to lakhs of individuals.  

A cooperative housing society is an organisation that self-regulates and is run by the cooperative’s members. It comes into being as a result of members working together, and with one another’s permission, to establish the organisation.  

In this article, we cover all there is to know about cooperative housing society, including the many advantages of making an investment in one. 

What is a Cooperative Housing Society? 

Cooperative housing societies are groups of people who have come together to form a legal entity and share ownership in order to better serve their community. The cooperative housing society owns and maintains residential properties, each of which may include one or more individual homes. The cooperative housing society will buy land, then expand it, build apartments on it, and then give those units to its members. 

The Registrar of Cooperative Societies is responsible for enforcing the Cooperative Societies Acts and regulations that govern the operation of the society in India.  

History of India’s cooperative housing society 

Cooperative housing society movements grew substantially in India around the beginning of the twentieth century. The Bangalore Building Cooperative Organisation was the inaugural cooperative housing society to be created in the Indian state of Karnataka in 1909. This was followed by the establishment of the Bombay Cooperative Housing Authority in the Indian state of Maharashtra in 1913. 

To help housing cooperatives throughout the country pool resources, including funding and security, undertake studies, and lend a hand to their local governing bodies, the National Cooperative Housing Federation was founded in 1969. 

There have been a number of programmes on both the regional and the central levels that are intended to provide housing societies with financing and aid in land management. The regulations governing cooperative housing have undergone several changes under the direction of the government in order to make them more accommodating for smaller and medium-sized housing organisations. 

Various types 

The following categories are used to describe the many types of housing cooperatives: 

  • Tenant ownership 

Land in these cooperative housing associations may be owned freehold or on a leasehold basis. Individuals who are members of the cooperative are mostly homeowners or people who have long-term leases on the property. They have to follow the rules for home transfers and subletting. Nonetheless, people have the freedom to design and build homes that meet their own requirements. 

  • Tenant co-partnership 

The cooperative societies in this group have either freehold or leasehold titles to the property. Following payment of the first share and the monthly fee, the members are given immediate residence.  

  • Housing mortgage 

The housing cooperatives function similarly to credit cooperatives in that they provide members with access to loans for the purpose of building homes. In any case, it is up to the members to schedule the building activities. 

  • House construction 

Cooperative societies fall under this category since they are responsible for the construction of homes on behalf of their member-owners. After the homes have been built, the members are given the keys to their newly constructed dwellings. The funds that were used for the building might be recouped via several lending options.  

Top Features

  1. Voluntary organisation 

Cooperative housing societies are non-profit organisations that are run on a voluntary basis and are built on the principles of self-sufficiency and mutual aid for their members. 

  1. Progressive administration 

In a cooperative housing association, elected officials and representatives have positions of power. 

  1. Public membership 

Everyone who shares the goals of the cooperative housing society is welcome to apply for membership in the organisation. 

  1. Self-reliance and liberty 

Cooperative housing is a kind of housing that is, in many respects, self-governing and impartial. 

  1. Distinct legal entity 

The Cooperative Societies Act stipulates the requirements for registering a cooperative housing society. Once cooperatives are registered, they are considered to be legal entities and are subject to applicable state and federal laws. 

  1. Information and instruction 

In order to carry out their duties effectively, participants of cooperative housing society get education and instruction on such topics as legal compliance, administration, and the advantages of communal living. 

  1. Contribution of capital  

The cooperative housing society requires that each member make a payment of the same amount in order to acquire and maintain the shared properties. 

  1. Profitable for members 

Every cooperative housing society participates together for the common good, enjoying the fruits of everyone’s labours without regard for personal gain or the jostling for position. 

  1. Mutual aid 

By leveraging regional, national, and global frameworks and belief systems, cooperative housing societies help their members implement best practices and raise their quality of life. 

Goals of a Cooperative Housing Society 

A cooperative housing society’s primary mission is to provide a source of assistance for its individual members. Other goals includes the following, which are listed below: 

  • Providing the members of the housing society with financial assistance in the form of loans so that they may build homes or other buildings inside the complex. 
  • Purchasing land, building apartments, and dividing them up among the members of the cooperative housing society. 
  • Boosting the vested interests of the housing society and fostering an attitude of economic independence among its members. 
  • Creating an optimal social and economic situation inside the housing society so as to make it possible for residents to enjoy healthy lifestyle circumstances. 
  • Providing fundamental amenities such as drinking water and electricity, in addition to guaranteeing that the housing society is routinely maintained. 

Positive aspects of taking up residence in a Housing Society 

  1. Affordable 

In a cooperative housing society, the members exercise authority over and make decisions on the organisation’s finances. it is far more affordable in terms of amenities and conveniences provided to each individual member. if you make a decent initial investment, spend as little as possible in pre-closing fees, and extend the length of your mortgage, it will be more inexpensive than any other form of individual ownership. 

  1. Investment security and safety 

Housing cooperatives are solid and stable institutions because they have their own distinct legal presence and the resources necessary to keep their businesses going. A home in a cooperative housing society is a sound financial investment that may be owned outright.  

Representatives of housing cooperative societies are free to stay in their apartments for as long as they like because their landlords are not allowed to interfere. Even after leaving the apartment, the occupancy benefits continue to be paid out, and new tenants have the option of leasing or renting the property. 

  1. Superior services and facilities 

Since they have a sense of ownership in the space, the members take good care of it. One may anticipate improved administration as well as high-quality amenities. All member’s requirements are accommodated, and they are given the opportunity to share their thoughts for the betterment of the group as a whole. 

  1. Collective obligations 

Each stakeholder is responsible for a portion of the cooperative housing society. Servicing, repairs, upgrades, and coverage will all fall within the purview of the cooperative society. Members must contribute to the upkeep of society by paying the associated fees. Participants have input on all phases of design and implementation, from initial conception to a major overhaul. Each member pays a small percentage of the total monthly bill to cover overhead and upkeep. 


The cooperative housing society is known for its feeling of fellowship, cooperation, and socialisations that are sanctioned by the law, making it simple and secure for its members to participate. Now that you know how a cooperative housing society works and the benefits of joining one, allow us to assist you in acquiring the perfect property.  

HomeCapital is the best place to begin the process of purchasing a home in a cooperative housing society or another similar arrangement. The HomeCapital program provides buyers with access to interest-free down payment assistance, which may be used toward the paying the initial contribution by home buyers, stamp duty, as well as the possession charges required to be paid while taking possession of the house. 

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