As we near the end of the co-op’s operating agreement, we have to make some important decisions. Why do we exist? What do we believe in? What kind of future do we want?
The answers to these questions will guide us to become a fully independent co-operative corporation, in developing a formula for success, which includes good governance, principled leadership, sound management, asset management and community building.
How do we start? By developing a vision statement and a mission statement. We will have a group exercise to help create new statements.
Three Links Co-operative (Barrie) is a non-profit corporation incorporated in April 1983 and is located in the northwest end of Barrie, Ontario. Its purpose is to provide good quality, affordable housing on a co-operative basis for its members. The original members were involved in developing the co-op’s policies and selecting the first co-op members.
The project was approved by CMHC in December 1983. The property was purchased and construction commenced early in 1984. Three Links is an 80 unit townhouse Co-op with 18 two bedroom units, 52 three bedroom units, 6 four bedroom units and 4 wheelchair- accessible 2 bedroom units. It also has a separate community facility with a large meeting room, offices, and a laundry room. The property also has green space as well as a children’s play area that includes a small playground and a sandbox.
Like other Housing Co-ops, Three Links was initially financed through a mortgage from an approved lender that covered 100% of the capital costs. The mortgage was insured by the Canada Mortgage and Housing Corporation (CMHC).
In addition to insuring the mortgage CMHC, along with the Co-operative Housing Federation of Canada (CHF Canada), provides the Co-op with a monthly assistance grant which provides a subsidy payment which can be used to lower the occupancy cost for members who cannot afford to pay market rate. One of the conditions of the CMHC grant is that at least 15% of the units be filled by members on a rent geared to income basis.
In recent years, Three Links has become mortgage-free, fully paying the 35 year term of the mortgage. Because of this, the Co-op now owns the land and the buildings outright. That being said, housing charges paid by members are integral to covering the maintenance and operating costs. The advantage of living in a Co-op is that the Co-op’s budget is set on a cost-only/nonprofit basis. Through careful management, the Co-op can keep its housing charge increases down to a minimum level each year. A recommended budget is sent to each member. Housing charge increases are based on this budget and must be approved by the general membership, and generally come into effect on July 1st each year.
