Generally, a housing cooperative is formed to provide the best affordable housing and community facilities possible to its members. The cooperative can achieve its objectives in various ways, as indicated by the various types of cooperatives described below.

Limited Objective Cooperative

This type of housing cooperative helps its members acquire land and install infrastructure by building streets and walkways and installing water, sanitation, and electrical systems, but ceases to exist after it has achieved its objectives. This type of cooperative does not get involved in estate management, but some or all members might decide to work with some type of community organization on such activities as trash collection and security.

Multiple Mortgage Cooperative

This type helps its members obtain a house with an individual mortgage. The cooperative may or may not own the common land and/or property in the housing project. If the cooperative owns the common land or property, it will have to manage and maintain these assets. If the cooperative does not own either land or property in the project, it has no management responsibilities unless its members want it to assume them.

Blanket Mortgage Cooperative

This type of housing cooperative builds a project that it owns. It signs an occupancy agreement with each member for use of one of the cooperative’s units. The cooperative manages the project; that is, it collects the monthly carrying charges, which include an amount for use of the house and an amount for project management and maintenance. The cooperative manages the project at least until it pays off its long-term mortgage to the finance institution.