Common Pueblo: Introduction To Tenant-Ownership
What is a tenant-ownership?
A tenant-owned housing association is a cooperative economic association that owns and manages a property. The Tenant-Ownership agreement , governs what a tenant owned housing association may and must do. A tenant owned housing association leases the apartments on its property to the members of association who have paid for their owner-occupied apartments. A tenant-owner does not formally own his or her apartment (the apartment itself is owned by the tenant-owned housing corporation), but instead directly owns a portion of the corportion and has a right to reside in the apartment (right of utilization) without any time limitation.
Being a tenant-owner
In a tenant-owner corporation, you pay a fixed down payment to the corporation only when the use of the apartment is granted for the very first time. As a tenant-owner, you have no right to the return of this down payment from the corporation when you cease to be a member. Instead, you repay the financial value of the tenant owner apartment through your sale of the tenant-owner right to the apartment. You have no personal liability and you risk only your down payment.
A tenant-owner is a member in a tenant-owned housing corporation, which means that the members are directly part-owners of the property. The members of a tenant-owned housing corporation together decide how the property should be renovated, how cleaning should be done and the how common areas should be used. A tenant-owner is entitled to have a say in the activities of the tenant owned cooperative housing corp orationby voting at the annual general meeting of the association and introducing motions to be handled at such a meeting.
The tenant-owner is entitled to pledge, sell or gift his or her owner-occupied apartment. But along with the rights of a tenant-owner, there are also obligations. The obligations of a tenant-owner to the tenant owned cooperative housing corporation are set out, inter alia, in the by-laws of the corporation.