What is the purpose of the Replacement Reserve Fund?
The Replacement Reserve Fund sets aside funds on an annual basis for small and large capital projects such as roofing, flooring replacement and appliance replacement. Maintaining a healthy Replacement Reserve helps Cooperative members avoid large lump sum payments when these projects are undertaken.
Why is a Share Purchase required?
Living in a Co-op requires participation from Members to reduce operating costs. The nominal Share Purchase reinforces that commitment, while providing the Co-op with a small amount of non-interest bearing capital.
Do Co-ops fall under the Residential Tenancy Act?
No, Co-ops are governed by the Cooperative Association Act and its rules.
Why is participation an expectation?
Membership in a Co-op is different from strata living in that the co-op is meant to be more of a community, with Members contributing time and effort to the co-op for the benefit of all. Good participation by Members reduces operating costs, thereby maintaining lower housing charges.
How are housing charges assessed?
That is dependant on the type of Co-op and the source of subsidy. However, housing charges are generally assessed based on the household’s gross income. A percentage of the gross income, as determined by need in relation to subsidy availability, is applied and, in some cases, additional deductions made for family size, single parents, working spouses, utility costs, etc. If the calculations of the housing charge falls below the co-op’s minimum, the Member is assessed the minimum housing charge. Alternatively, if the calculation is greater than the co-op’s maximum housing charge, the Member is assessed the maximum.