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Difference between revisions of "Co-operative Housing: Members' Rights and Duties"
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Co-operative Housing: Members' Rights and Duties (view source)
Revision as of 05:09, 1 October 2023
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{{REVIEWEDPLS | reviewer = [https://citadellawyers.ca/silvano-s-todesco/ Silvano Todesco], Citadel Law Corporation|date= | {{REVIEWEDPLS | reviewer = [https://citadellawyers.ca/silvano-s-todesco/ Silvano Todesco], Citadel Law Corporation and David Kandestin, People's Law School|date= July 2023}} {{Dial-A-Law TOC|expanded = home}} | ||
A housing co-operative provides housing to its members. As a member of a co-op, you have a say in decisions affecting your housing, and rights and duties under the law. | A housing co-operative provides housing to its members. As a member of a co-op, you have a say in decisions affecting your housing, and rights and duties under the law. | ||
==What you should know== | ==What you should know== | ||
===A housing co-op provides housing to its members=== | ===A housing co-op provides housing to its members=== | ||
A housing co-operative, or '''co-op''', is an organization incorporated [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html | A housing co-operative, or '''co-op''', is an organization incorporated under the ''[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html Cooperative Association Act]'' that provides housing to its '''members'''. Members purchase a share to join and elect directors to govern the co-op. | ||
Most housing co-ops in BC are non-profit co-ops with a '''rental''' (not equity) model of housing. The members are typically people who want to live in a mixed-income community where they have a voice and a vote in decisions affecting their housing. | Most housing co-ops in BC are non-profit co-ops with a '''rental''' (not equity) model of housing. The members are typically people who want to live in a mixed-income community where they have a voice and a vote in decisions affecting their housing. | ||
===The laws and rules that apply to co-ops=== | ===The laws and rules that apply to co-ops=== | ||
[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html | Under the ''[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html Cooperative Association Act]'', a housing co-op must be organized and operated on a cooperative basis. The Act and the [https://www.canlii.org/en/bc/laws/regu/bc-reg-391-2000/latest/bc-reg-391-2000.html regulation under it] set out the framework for things like how co-ops are managed, general meetings, voting, and ending membership. | ||
The '''rules''' adopted by the co-op provide more detail on things like: | The '''rules''' adopted by the co-op provide more detail on things like: | ||
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The board of directors can set other rules that are approved by the members at a meeting called to do that. | The board of directors can set other rules that are approved by the members at a meeting called to do that. | ||
A co-op’s '''occupancy agreement''' is like a lease. It sets out members’ rights and responsibilities as residents. | A co-op’s '''occupancy agreement''' is like a lease. It sets out members’ rights and responsibilities as residents. | ||
===Rights of co-op members=== | |||
===Rights of co-op members=== | |||
Together, co-op members own their housing jointly and control the co-op’s governance and management. | Together, co-op members own their housing jointly and control the co-op’s governance and management. | ||
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Members can: | Members can: | ||
* attend, speak, and vote at general meetings where major decisions are made, such as changing policies and rules, setting housing charges, and electing directors | * attend, speak, and vote at general meetings where major decisions are made, such as changing policies and rules, setting housing charges, and electing directors | ||
* elect the directors, or run for election as one of the directors if they want to help govern the co-op | * elect the directors, or run for election as one of the directors if they want to help govern the co-op | ||
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* withdraw from the co-op or transfer their share in it to another person with the consent of the co-op’s directors | * withdraw from the co-op or transfer their share in it to another person with the consent of the co-op’s directors | ||
===Joint members=== | |||
If two or more people are joint members of a co-op, only one of the joint members can be a director at one time, and only the person whose name appears first on the share certificate can vote — unless the co-op’s rules say otherwise. All joint members must pay any assessments, levies, dues, fees, payments, and other charges relating to membership. The co-op can collect that money from any joint member. | If two or more people are joint members of a co-op, only one of the joint members can be a director at one time, and only the person whose name appears first on the share certificate can vote — unless the co-op’s rules say otherwise. All joint members must pay any assessments, levies, dues, fees, payments, and other charges relating to membership. The co-op can collect that money from any joint member. | ||
{| class="wikitable" | {| class="wikitable" | ||
|align="left"|'''Tip''' | |align="left"|'''Tip''' | ||
Co-op members are not tenants, so the BC ''Residential Tenancy Act'' does not apply to them. If a person paying rent is not a member of the co-op, and the co-op or one of its members is the landlord, the ''Residential Tenancy Act'' may apply to those rental units. You should get legal advice if it’s not clear whether residential tenancy laws apply. | Co-op members are not tenants, so the BC ''[https://www.canlii.org/en/bc/laws/stat/sbc-2002-c-78/latest/sbc-2002-c-78.html Residential Tenancy Act]'' does not apply to them. If a person paying rent is not a member of the co-op, and the co-op or one of its members is the landlord, the ''Residential Tenancy Act'' may apply to those rental units. You should get legal advice if it’s not clear whether residential tenancy laws apply. | ||
|} | |} | ||
===Duties of co-op members=== | ===Duties of co-op members=== | ||
Members must follow the co-op rules, which are made by members. They must: | Members must follow the co-op rules, which are made by members. They must: | ||
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Co-ops govern themselves. The '''rules''' and '''policies''' of most co-ops have procedures to solve disputes between members and between the association and members. Members should follow those procedures to solve disputes. | Co-ops govern themselves. The '''rules''' and '''policies''' of most co-ops have procedures to solve disputes between members and between the association and members. Members should follow those procedures to solve disputes. | ||
If that doesn’t work, members can seek help through arbitration or the court system. | If that doesn’t work, members can seek help through arbitration or the court system. Arbitration is like court, but less formal. '''Arbitration''' decisions are final unless the co-op’s rules allow the decision to be appealed in court. | ||
If a co-op ends a person’s membership, the person cannot use arbitration to appeal that action — they must go to court, as explained shortly. | If a co-op ends a person’s membership, the person cannot use arbitration to appeal that action — they must go to court, as explained shortly. A person with a dispute who is no longer a member has six months after leaving the co-op to seek arbitration or go to court. | ||
A person with a dispute who is no longer a member has six months after leaving the co-op to seek arbitration or go to court. | |||
===Ending a person’s membership=== | ===Ending a person’s membership=== | ||
Housing co-op evictions must follow [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html | Housing co-op evictions must follow the ''[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html Cooperative Association Act]'' and the [https://www.canlii.org/en/bc/laws/regu/bc-reg-391-2000/latest/bc-reg-391-2000.html regulation under it]. A co-op can end a person’s membership in any of the following cases: | ||
* if a person '''does not pay rent''', occupancy charges, or other money they owe for using the premises | * if a person '''does not pay rent''', occupancy charges, or other money they owe for using the premises | ||
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{| class="wikitable" | {| class="wikitable" | ||
|align="left"|'''Tip''' | |align="left"|'''Tip''' | ||
If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, | If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, the Community Legal Assistance Society may be able to help. | ||
|} | |} | ||
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The person can appeal to the members at the next membership meeting and continue as a member until the appeal is heard. But first, they must notify the directors they plan to appeal. And they must do this within '''seven days''' of when they are notified of the directors’ decision to end their membership. | The person can appeal to the members at the next membership meeting and continue as a member until the appeal is heard. But first, they must notify the directors they plan to appeal. And they must do this within '''seven days''' of when they are notified of the directors’ decision to end their membership. | ||
If the members confirm the directors’ decision, the person can apply to the BC Supreme Court to rule that the termination of their membership wasn’t justified — because the co-op violated principles of natural justice or its decision was not reasonably supported by the facts or authorized [https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html | {| class="wikitable" | ||
|align="left"|'''Tip''' | |||
The above right to appeal to the members does not apply if the reason for eviction is for unpaid housing charges. In that case, the appeal starts at the BC Supreme Court. | |||
|} | |||
The next step in an appeal to the members is a meeting of all the members of the association. There, the members vote on whether to uphold or reject the directors’ decision to evict. The threshold for approval is typically 75% (for those serious matters described above), but may be 50%+1 for other matters, as outlined in the '[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html 'Cooperative Association Act]'' or the co-op’s rules. | |||
If the members confirm the directors’ decision, the person can apply to the BC Supreme Court to rule that the termination of their membership wasn’t justified — because the co-op violated principles of natural justice or its decision was not reasonably supported by the facts or authorized under the ''[https://www.canlii.org/en/bc/laws/stat/sbc-1999-c-28/latest/sbc-1999-c-28.html Cooperative Association Act]''. | |||
{| class="wikitable" | {| class="wikitable" | ||
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There is a 30-day limit to appeal a housing co-op eviction to the Supreme Court. It is advisable to seek a lawyer’s help to do this, as the documents and process are complex. | There is a 30-day limit to appeal a housing co-op eviction to the Supreme Court. It is advisable to seek a lawyer’s help to do this, as the documents and process are complex. | ||
|} | |} | ||
===Leaving the co-op and recovering unpaid housing charges=== | |||
If the person’s appeals are unsuccessful, they must then leave the co-op. | |||
If an evicted member does not pay what they owe to the co-op, the co-op can sue them. Claims for $5,000 or less [https://civilresolutionbc.ca/ | If an evicted member does not pay what they owe to the co-op, the co-op can sue them. Claims for $5,000 or less go to the [https://civilresolutionbc.ca/ Civil Resolution Tribunal]. Claims above $5,000 and up to $35,000 go to [http://www.smallclaimsbc.ca/ Small Claims Court]. Claims above $35,000 go to [https://www.bccourts.ca/supreme_court/ BC Supreme Court]. | ||
==Who can help== | ==Who can help== | ||
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The '''Co-operative Housing Federation of BC''' website features [https://www.chf.bc.ca/resources/model-rules-2/ model rules] and information for those living in a housing co-op. | The '''Co-operative Housing Federation of BC''' website features [https://www.chf.bc.ca/resources/model-rules-2/ model rules] and information for those living in a housing co-op. | ||
:Call 604-879-5111 (Vancouver) or 1-866-879-5111 (toll-free) | |||
:[https://www.chf.bc.ca/ Visit website] | |||
If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, the '''Community Legal Assistance Society''' may be able to help. | If you are a member of a housing co-op and you have received a letter saying your membership has been terminated, the '''Community Legal Assistance Society''' may be able to help. | ||
:Call 604-685-3425 (Vancouver) or 1-888-685-6222 (toll-free) | |||
:[https://clasbc.net/ Visit website] | |||
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