A housing cooperative is a legal entity or an artificial person such as a corporation that owns the dwelling units in a building or on a plot or parcel of land.
Each shareholder own shares in the share capital of the housing cooperative. By virtue of such shareholding every shareholder is entitled to the enjoyment and use of a dwelling unit.
In non-share capital cooperative model members acquire occupancy rights by payment of subscription fees or rent.
Members elect a board of directors to manage the affairs of the cooperative for and on their behalf.
The cooperative can carry the building mortgage requiring less funding from the individual members or shareholders. Similarly for major renovation and repairs funds can be raised by the cooperative on building mortgage instead of individual members bearing the burden.
Unlike a condominium, in a housing cooperative there are restrictions on transfer of shares, which is subject to the approval of the board of directors. The board can even set the sale price of the shares.
