New Co-op Housing Law in California
Press Release February 10, 2010
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Contact: David Thompson, Associated Cooperatives 530-757-2233.
Starting in January of 2010 there is a new law for housing cooperatives. Assembly Member Dave Jones (D-Sacramento) authored Assembly Bill 1246 as a tool for organizations in Californians to help workforce families in the housing market. The bill passed both houses unanimously and was signed into law by Governor Schwarzenegger.
AB 1246 authorized the creation of “workforce housing cooperative trusts.” A workforce housing cooperative trust would allow an employer or employee group to create housing cooperatives to provide permanently affordable housing for employees. A sponsor group (employer, union, religious or social institution, etc) will be authorized to bring equity, fund, lease land and permanently protect the assets of affordable housing units which will meet the needs of employees or members. AB 1246 also modifies the process by which an existing housing cooperative may dissolve, thereby reducing the chance that members may unjustly profit from the dissolution.
Research has shown that limited equity housing cooperatives increase affordability relative to market and increase affordability relating to median income. An ongoing study of Dos Pinos in Davis shows that in 1985, a three bedroom unit at Dos Pinos occupied by a family of four required them to earn 111% of median income. By 2009 that same family of four needed to earn only 59% of median income to live at Dos Pinos. No other “shared equity” housing becomes more affordable over time.
On an annual basis Dos Pinos generates substantial wealth building opportunities for the families that live in the cooperative. In 2009, a household in a 3 bedroom unit had an economic savings of $10,742 over the equivalent market rate apartment. Later this year, a national study by the Urban Institute will feature an extensive review (1985-2009) of the results found at Dos Pinos Housing Cooperative.
AB 1246 was sponsored by Associated Cooperatives, a statewide organization based in Davis. See www.community.coop for more information about cooperatives. There are limited equity housing cooperatives now providing many types of housing (family and senior apartments, single family homes and mobile homes) to about 5,000 families in California.
AB 1246 had the support of over 20 organizations; Agricultural Council of California, Bay Area Community Land Trust, Burbank Housing Development Corporation, Burlington Associates on Community Development, California Center for Cooperative Development, California Teachers Association (CTA), City of Sacramento, Cooperative Development Foundation, Housing Now, I’M HOME, National Cooperative Business Association, NCB, NCB Capital Impact, Nehemiah Community Reinvestment Fund, Inc., Neighborhood Partners, LLC, 9th Street Co-op, ROC USA, Sacramento Housing Alliance, San Francisco Community Land Trust, San Luis Obispo County Housing Trust Fund, Twin Pines Cooperative Foundation, WAGES Cooperatives (Women’s Action to Gain Economic Security.
www.community.coop