How do you define a co-op (and what the heck is cohousing)?

Co-ops (or cooperatives) go all the way back to the 1800s, yet many in our profession have only a cursory understanding of what they are and how they work.

To shed some light on the subject, Kelly Construction & Design offers some answers to commonly asked questions, beginning with: What is a co-op and what makes co-ops unique?

A co-op is a corporation owned and operated by its members.

Members can be the co-op’s customers, producers, workers, or residents who are united behind a common goal: to meet the shared needs of all members (as opposed to generating investor profits).

How do co-ops work?

  • Member Owned: Members buy shares in the corporation or pay a fee to join.
  • Democratic governance: Each member typically gets one vote, regardless of the amount they have invested.
  • Profit distribution: Any surpluses are reinvested in the co-op or distributed back to members based on their usage, not their capital investment.
  • Types of Co-ops: The primary types of co-ops in the U.S. are: Housing co-ops, consumer co-ops (e.g., grocery stores), worker co-ops, utility co-ops, and agricultural co-ops.

According to attorney Nola Hitchcock Cross of Cross Law Firm, there are several longstanding and successful co-ops in the greater Milwaukee area, including a grocery store/café, bookstore, housing cooperative, and home repair co-op. In her travels, she was impressed with the cooperatives she toured in England, Wales, France and Spain, which included large auto factories owned entirely by employees. “There’s no limit to what a cooperative can be. In fact, the more people grasp the benefits of shared ownership, the more varied and innovative co-ops we’ll see in the future,” she states. The distinguishing feature is “one member, one vote,” as opposed to voting by the number of shares you own.

Ms. Hitchcock Cross has been a driving force behind the cohousing movement, speaking at the national organization, and working to create cohousing in Milwaukee. Cohousing differs from co-op housing in that cohousing buildings are specifically designed to support interactive living. “The secret sauce in cohousing is communal space with guest rooms, lounge, play area, and common kitchen and dining for weekly common meals. Individual homes/condos are smaller to encourage use of communal spaces,” she notes.

Her latest initiative is River Trail Commons – a Mixed Income Community of Neighbors, Milwaukee’s first cohousing development. It consists of three buildings: two 8-unit townhome buildings and a 24-home apartment-like building, plus the large Common House where everyone can gather weekly for common meals, and otherwise for mail, laundry, watching movies in the lounge, socializing on the rooftop, and so on.

With both market-rate and deeply discounted condo homes (for first-generation home buyers), River Trial Commons will make property ownership available to many for whom it’s been out of reach. Equally important is the fact that with economic integration comes the opportunity for social and racial integration. “The idea is to create a strong community,” says Hitchcock Cross. "It has a completely different feel where we have each other's back.”

River Trail Commons has been in the planning stage for many years and more than $1 million has been donated to support first-generation buyer discounts. From the community’s unique design to innovative pricing to sustainability and funding, no detail has been overlooked.

Partners on the River Trail Commons community development include Kelly Construction & Design (KCD), Kabala Washatko architects (TKWA), and Spang Strategies.

Ms. Hitchcock Cross has a long working relationship with Holly Hawkins, President of KCD-Wisconsin, who has been with the cohousing initiative from the start about 10 years ago. “This project requires collaboration and better ideas at every step,” she explains. “So it’s a perfect fit for a general contractor like KCD that works with the big picture in mind. Besides, Kelly Construction and Holly Hawkins have been with us through all the starts and stops, continuously with their ‘can do’ approach. Holly always demonstrates that they care about the outcome as much as we do and they’re available 24/7 when emergencies arise. We really feel like partners!”

So, when you see a new multi-unit /multi-home development going up, instead of assuming “more apartments” (or market-rate housing), ponder whether it might be a co-operative or a co-housing community, since more of these types of communities are sure to be in our future.

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