Script 402 gives information only, not legal advice. If you have a legal problem or need legal advice, you should speak to a lawyer. For the name of a lawyer to consult, call Lawyer Referral at 604.687.3221 in the lower mainland or 1.800.663.1919 elsewhere in British Columbia.

What is a housing co-operative?
A housing co-operative, or a housing co-op, for short, is an incorporated, non-profit association that owns housing for its members. The members are people who want to live in a mixed-income community where everyone helps manage the housing.

What laws govern housing co-ops?
The co-op’s “occupancy agreement” and “rules of the association” control the rights and duties of the members, except if they conflict with a law called the Cooperative Association Act. The occupancy agreement is like a lease. It has the rules, conditions, rights, and responsibilities of the members.

Who are members?
The people who own and live in a housing co-op are called “members.” Normally, a member must be at least 19 years old (although a co-op may allow members as young as 16). A member must also own at least one common share in the association and live in one of the co-op housing units. Members are not tenants, so the Residential Tenancy Act does not apply to them and they don’t pay rent. Instead, they pay a monthly housing charge for the mortgage, taxes, and operating expenses. Some members pay a housing charge based on their income – usually, about 30% of their gross household income. Other members pay a housing charge close to market rates. Together, the members have joint ownership, control, and management of the housing co-op.

What rights do members have?
Members can:

1. attend, speak, and vote at general meetings where major decisions are made, such as policy and rule changes, setting housing charges, and ending a person’s membership. 
2. elect the members of the board of directors, or run for election as one of the directors – if they want to be more involved in managing the co-op.
3. live permanently in their unit as long as they are members. But if the co-op ends a person’s membership, the co-op can apply to the BC Supreme Court for possession of the person’s unit.
4. use services provided by the co-op, at as close as possible to the actual cost.
5. withdraw from the co-op or transfer their share in it to another person – with the consent of the co-op’s directors.

What if members have a dispute?
Co-ops govern, or look after, themselves. The rules and policies of most co-ops have procedures to solve disputes between individual members and between the association and individual members. Members should follow those procedures to solve disputes. If that doesn’t work, they can seek help through arbitration or a court. Arbitration is less formal than a court. A person who is no longer a member and who has a dispute has only 6 months after leaving the co-op to seek arbitration or go to court. An arbitration decision is final, unless the rules of the co-op allow a person to appeal to court. If a co-op ends a person’s membership, the person cannot use arbitration to appeal that action – they have to go to court, instead, which is explained below.

What happens at co-op meetings?
Members of co-ops work together to manage the co-op through a board of directors and various committees. The members themselves, as well as the committees and the board of directors, all hold meetings, which deal with things like admitting new members, finance, policy-making, major decisions for the members, and setting up committees that you may be assigned to.

What do members have to do?
Members have to follow the rules of the co-op, which are made by co-op members. That means members have to:

1. follow the rules on parking, maintenance of the housing, and participation in the co-op.
2. attend general meetings and meetings of any committee they belong to.
3. pay their housing charges and shares in full and on time. All money payable is a debt to the co-op. If a member does not pay, the co-op can put a lien (a charge) on their shares. The co-op can also end a person’s membership for failure to pay.

What 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 the joint members are responsible for any assessments, levies, dues, fees, payments and other charges relating to membership and the co-op can collect that money from any joint members.

When can a co-op end a person’s membership?
A co-op can end (terminate) a person’s membership in any of the following cases:

• if the person does not pay rent, occupancy charges, or other money they owe for the use of the premises.
• if the directors believe that the person violated a “material (important) condition” in the occupancy agreement.
• for conduct detrimental to the co-op.

The co-op must first give notice of the problem to the member and give them a chance to correct it. A motion to end a person’s membership for one of these reasons needs approval by 75% of all directors in a meeting called for this purpose. The co-op has to give the member notice of the directors’ meeting, and let them appear and speak at the meeting. A person whose membership is ended is entitled to a refund of what they paid for their shares, minus any money they owe to the co-op. When a co-op ends a person’s membership, the person’s occupancy agreement also ends, so they can no longer live in the co-op.

What if a person disagrees with 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 have to notify the directors that they plan to appeal. And they have to do this within 7 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 ending of their membership wasn’t justified because:

• the co-op violated principles of natural justice, or
• the co-op’s decision was not reasonably supported by the facts, or
• the co-op’s decision was not authorized under the Cooperative Association Act

There is a 30-day time limit to apply to the Supreme Court. People need help from a lawyer before doing this.

When can a co-op end a person’s occupancy agreement?
A co-op can end (terminate) a person’s occupancy agreement for any breach of the agreement. The most common reason is non-payment of housing charges. The board must first demand in writing that the member correct the problem. If the member doesn’t correct it, the board can pass a resolution by a simple majority to end the occupancy agreement. In this case, the board does not have to invite the member to attend the board meeting where the decision is made, and the member cannot appeal the decision to the other members. But the member can ask the BC Supreme Court to overturn the co-op’s decision.

When the occupancy agreement ends, the person’s membership also ends and they must then leave the co-op.

More information
Check the website of the Co-operative Housing Federation of BC at www.chf.bc.ca or call them at 604.879.5111 in Vancouver and 1.866.879.5111, toll-free, elsewhere in BC. The Federation has model rules and a “Guide to the Co-op Act” on its website, under the “Effective Governance resources” link.

Check the Cooperative Association Act and Cooperative Association Regulation at www.qp.gov.bc.ca/statreg – click on “C” in the alphabetical list and then scroll down to the name of the Act and Regulation. You can click on either of them. Some libraries also have copies of BC laws and regulations.

[updated July 2007]

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