A Research Note on: Colorado Housing Cooperatives

Abstract

This paper describes two metropolitan Denver, Colorado-area housing cooperatives and their shareholders. Specifically, it presents the financing and equity provisions and the resident motivations and perceptions of the South Dahlia Lane and Rose Hill Town houses cooperatives. Data were gathered from the cooperatives’ organizational documents and a Cooperative Housing Resident Questionnaire that was developed to survey 146 current and former members. The response rate was 62 percent. One cooperative is a limited equity development. The other development has evolved into a market-equity cooperative. The respondents most frequently cite the following as reasons for joining the cooperatives: down payments, membership fees and operating costs that fit their income levels, payments that build ownership, acceptable units, buildings and physical layouts, and control over the environment. The advantages of cooperative living listed most frequently are neighbors and community and affordability. Disadvantages given most often include resalelequity concerns, cooperative management, crowding and physical deficiencies.

Residents’ knowledge and skills in home maintenance and repair, understanding of laws and ordinances regarding housing, and ability to get along with other people increase as a result of cooperative living. The majority of South Dahlia Lane respondents and nearly half of the Rose Hill respondents have more control in their cooperative than in previous rental housing. The cooperatives’ organization, management and living conditions are rated as excellent or good by more than two-thirds of the respondents. More than 40 percent of the respondents disagree with the idea that housing cooperatives should limit the return on equity. Tentative conclusions are that housing cooperatives can be a viable alternative method of home ownership. Key factors to success with limited equity cooperatives may include residents’ motivations for choosing and retaining that form of ownership.

Additional information

Notes on contributors

Joyce Haertel Ellenbecker

Joyce Haertel Ellenbecker received her M.S. in housing from Colorado State University.

Betty Jo White

Betty Jo White is Associate Professor, Department of Family Resource Management, Oregon State University, Corvallis, Oregon. The thesis upon which this paper is based received one of the 1985 National Consumer Cooperative Bank Glenn Anderson Research Awards for excellence in research on consumer cooperatives. The award was made in April, 1986 by the Cooperative League Fund in Washington, D.C.