Housing Societies V/S Co-operative Housing In India
Jun 09, 2023Investments

Housing Societies V/S Co-operative Housing In India

by Godrej Properties Limited

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The Importance Of Housing Societies And Co-operative Housing Societies

India has witnessed rapid urbanisation in recent years, leading to a significant increase in the demand for affordable housing. As a result, cooperative housing societies have emerged as a viable solution to this issue. In this article, one can explore the concept of housing societies and co-operative housing in India.


Types Of Societies And Its Difference

1. What are Housing Societies?

A community that owns and administers residential homes is known as a housing society. The goal was to offer working-class people who couldn't afford to buy a home in their inexpensive accommodation.

2. How Do Housing Societies Operate?

Housing societies can be founded under the Co-operative Societies Act, which enables people to band together and create a cooperative society to accomplish a shared objective. The society is run by a committee of elected members who handle the group's business. The property is owned by the society as a whole, and upkeep is the responsibility of the members.

3. What Is Co-operative Housing?

Co-operative housing is where the tenants collectively own and administer the property. Co-operative housing is designed to give middle-class and low-income people access to inexpensive homes. The cooperative society's members each own an equal portion of the property, which they jointly manage and maintain.

4. How Are Housing Societies Different From Co-operative Housing?

The primary distinction between the two is that, whereas inhabitants of cooperative housing jointly own and manage the property, members of housing societies collectively own and operate the property. Housing societies are prevalent in both urban and rural settings. However, cooperative housing societies are more commonplace in urban areas.

Types of Co-operative Housing Societies (categorized by type of ownership):

  • Ownership Housing Societies: The society owns the land either on lease or freehold, while members individually own the houses.
  • Co-Partnership Housing Societies: These societies own both land and buildings, either on leasehold or freehold and allocate flats to their members.
  • House Mortgage Societies: These societies offer loans to members for house construction. Members are responsible for building their own houses.
  • House Construction or House Building Societies: The society provides funds to members for building houses, and members both build and reside in these houses. The funds are recovered as a loan.

What are the characteristics of a Cooperative Housing Society?

  • Open to Everyone: Regardless of your gender, caste, social status, or political and religious beliefs, you can join a cooperative housing society.
  • Voluntary Organizations: Housing societies operate voluntarily, built on the principles of self-help and self-reliance.
  • Democratic Ownership: Co-operatives are owned and run by the people, with office bearers and representatives chosen through a fair election process.
  • Self-Regulation: Members govern and operate cooperative housing societies independently, ensuring autonomy in all aspects.
  • Training and Information: Co-operatives provide training and education to members about management, legal compliance, and the benefits of communal living for effective participation.
  • Financial Contribution: Every member equally contributes to common properties and maintenance.
  • Limited Liability: Expenses are shared equally based on each member's contribution to maintenance.
  • Legal Entity: A registered co-operative is a legal entity governed by local and national laws.

Features of a Housing Society

  • Open to All: No discrimination based on gender, social status, caste, or political and religious beliefs.
  • Voluntary Organizations: Housing societies function through self-help and self-reliance initiatives.
  • Democratic Ownership: Cooperatives are owned and operated by the people. Office bearers/representatives are chosen through a fair election process.
  • Self-Regulation: Cooperative housing societies are managed and governed by their members, making them self-sufficient and self-governing.

Types of Housing Societies

There are four main types of housing societies:

  • Tenant-Ownership Housing Cooperatives: The organization has a stake in the land of a housing society where tenants possess homes. Members are considered homeowners and land leaseholders. They can build their homes but must follow rules for property transfer and subletting.
  • Tenant Co-Partnership Housing Cooperatives: This cooperative owns the apartment complex and land, which can be freeholded or leased. Members gain occupancy rights after paying the required down payment and monthly rent.
  • House Construction Societies: These societies construct houses for members, providing them to family members after completion.
  • Housing Mortgage Societies: Similar to credit unions, these societies lend money to members to build houses, with members organizing the construction.

The Final Word

In India, cooperative housing societies are becoming a crucial component of the housing market since they offer affordable housing options and a sense of community. Housing societies, on the other hand, are a bit high-end. Co-operative housing societies provide a workable answer to the issue as the demand for cheap housing keeps increasing. Therefore, it is crucial to keep supporting and promoting these societies to guarantee that everyone in India's metropolitan areas can access high-quality, reasonably priced housing.

 

Frequently Asked Questions

1. Does the Indian Government recognise Cooperative Housing Societies?

Ans: Co-operative housing societies are registered under the Co-operative Societies Act and are recognised by the Indian government. To address the housing shortage in metropolitan areas, the government also offers a variety of subsidies and incentives to encourage the growth of cooperative housing societies.

2. How are Co-Operative Housing Societies managed?

Ans: A management committee chosen by the members oversees cooperative housing societies. The committee directs all aspects of the society's activities, including upkeep, budgeting, and decision-making.

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