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Choose Economic Model

Non-profit co-ops usually need a government partner. Without it, equity contributions from members can provide the resources the co-op needs. The wishes (and capacity) of the core members matter a lot here.

  1. Which model best fits with the core members’ hopes and expectations?
  2. Do the core members have the financial capacity to make significant equity contributions?
  3. Are government partners or philanthropic donors available?

Between the mid-1970s and the early 1990s, the federal government offered supports for non-profit co-op housing (both in terms of development and promises of long-term subsidies to make the housing more affordable). That kind of assistance is less available, so the financial capability of potential members matters more now that it did in the past. Combine that with large increases in land and construction costs: creating new co-ops is challenging for new and small groups.

Photo credit: “Mann zieht Bauer nach vorne” by Marco Verch used by CC BY 2.0. Original image was straightened, cropped and toned with text added.