6 Core Objects of a Cooperative Housing Society
A member-centric way of working is critical to a cooperative housing society (CHS). The essence of cooperation and collective efforts lies at the heart of a CHS. While the resident members of a CHS fulfill various duties, the society must strive to achieve certain foundational goals for its members.
A business entity, at the time of its incorporation, defines its company’s objects which include the purpose of its creation as well as the activities it will perform to fulfill the set purpose. Similarly, the fundamental objectives for which the society was registered are called the Objects of a Society. Let’s read more about these set expectations of what the society must deliver to its members.
1. Fulfill the Initiation Purpose
The common goal of people forming a cooperative housing society is to fulfill their necessity for housing. Various types of societies are defined to achieve this core purpose in numerous ways. These differences exist in how the society purchases land, constructs, and allotts the built units to ensure that the purpose of housing is fulfilled. In any case, the society must make available this property (land and/or building) and hold its clear ownership or lease title for the arrangement chosen.
For the Tenant Ownership type, it is expected of the society to purchase or lease land for subsequent construction of houses and allot the constructed units to society members.
For the Tenant Co-Partnership type, the society is expected to either
- purchase building(s) on plot(s) and allot the flats within to the society members for their authorized use or
- obtain conveyance of the right, title, and interest in the land with building(s) from the builder
2. Manage Property
The first object sets the ground for developing the housing structure and ensuring members ‘control over it. But the construction of units is only the first step in fulfilling the purpose of housing. Once the four walls are put in place, the necessary utilities and amenities must be installed to make the place suitable for accommodation. Connections for utilities such as water, electricity, gas, sewer system, trash, and recycling must be set up by the society. These are the basic services that will enable the society to function properly and provide a comfortable living space for its members. The next step is to equip the premises with necessary add-on amenities such as elevators, CCTV surveillance, and so on as agreed by the society members.
The society is further expected to engage all necessary professional services such as accounting, audit, legal, and others to ensure proper compliance. Furthermore, auxiliary services like housekeeping, security, gardening, etc. needed for the maintenance and upkeep of the society premises must also be sought after by the society.
Last but not the least, the society is also responsible for timely and consistent management of all services, amenities, utilities, employees, and the overall structure to ensure the proper functioning of the housing premises.
3. Raise Funds
Money is a necessary factor for successfully accomplishing the activities outlined in all objects. And since cooperative housing societies don’t sell products and/or services to secure a revenue stream, the funds must be raised through contributions from all its members. For consistent management, funds are raised through monthly contributions from members towards maintenance. Additional funds can be raised depending on the purpose only after an agreement between all society members.
4. Organize Activities (Social, Cultural & Recreational)
Cooperative Housing Societies are a way to live cordially within a community. Procuring housing is a basic need fulfilled through societies but living the cooperative values requires effort and time. Bonding and alignment among society members become essential to ensure a smooth functioning society.
Gatherings are aimed at breaking the ice between members, developing stronger communication within them, and enhancing the collaboration attitude towards each other. The society is fundamentally expected to provide this ground by organizing activities for social and cultural events as well as recreational purposes.
5. Educate & Train Members
Cooperative housing societies are non-profit legal entities completely managed by their resident members. It is essential for them to be knowledgeable on how to manage this entity. Understanding cooperative directives and compliances are important for people in society’s key management roles. Additionally, each member must be aware of their rights and duties set out in a cooperative environment. The society must therefore ensure imparting the necessary knowledge and training its members to fulfill the tasks necessary for society’s smooth functioning over time.
6. Fulfill Set Objectives
The last object ties all the objects together by highlighting the importance and necessity for the society to achieve this set of 5 objects. The object provisions that the society must do everything necessary or expedient for achieving these core objectives.
