HISTORY OF CO-OPERATIVES

The creation of Rental Housing Co-operatives in Victoria

A little over 40 years ago a group of housing activists associated with Shelter Victoria (an organisation involved with broad public housing issues) proposed a different form of housing. Their early vision was the first step towards the creation of Rental Housing Co-operatives, conceived as a way of addressing the needs and difficulties experienced by low to moderate income families, such as their exclusion from home ownership, high rents, the lack of private rental properties, and the long waiting period for public housing.

These activists believed that Rental Housing Co-operatives could give families control over their future, without the burden of the high costs associated with home ownership. This housing model is best described as halfway between home ownership and renting. It has been used in many countries around the world, with rental co-operative members numbering in their many thousands.

The first Rental Housing Co-operative in Victoria was established in Fitzroy, Collingwood in 1977. However, its Board of Management consisted of professional people only, whereas the Shelter housing activists intended the members to have control over their housing. Together with the State Government they began to plan a new model promising full renter responsibility for the management of a rental co-operative, without restrictions by the Ministry of Housing or the need for professional representation on the Board of Management. An evaluation of the Fitzroy Collingwood Co-operative produced a favourable report, finding a high level of tenant satisfaction and cost efficiency equal to the more conventional Ministry of Housing Estates.

The Ministry of Housing agreed to lease some of their public housing properties long term to rental housing cooperatives and encouraged community groups to apply. Five community groups submitted proposals, two of which were selected: the Western Region Housing Council, and the Mornington Tenant Action Group.

These first two Rental Housing Co-operatives were established as a pilot program in 1981, becoming the Williamstown Rental Housing Co-operative (WRHC) and the Mornington Rental Housing Co-operative.

Other housing co-operatives quickly followed, including a third model of rental housing co-operative, the Common Equity Rental Housing Co-operative Program (CERC).

The early years of WRHC Housing Co-operative

The Williamstown Rental Housing Cooperative (WRHC) became a legally registered body in September 1982. The first tenants were selected by an Interim Committee consisting of former mayor and local council politician Geraldine Schutt, Richard Cloverdale and Irena Davis who became the co-operatives first Housing Worker. As soon as the first 11 families had been selected, most of the interim committee members withdrew from active involvement, leaving the tenant members to establish the co-operative. General Meetings were held fortnightly, alternating between day and evening times for the convenience of members and to encourage full attendance. The Interim Committee continued to act as a resource to the co-op.

The early months were particularly busy setting up the first sub committees: Finance and Administration; the Maintenance Committee to look after ongoing house maintenance; the Tenant Selection Committee; and the House Buying Committee, which provided a list of suggested properties to the Housing Ministry.

In the early years the co-operative carried out 6-monthly inspections to address a very long list of work required on its housing stock. A tool library was set up in the early days for the use of all tenants, containing a mower, garden tools and tools for small jobs around the home. Co-op members worked hard to manage the co-op and gain essential skills, attending maintenance courses, committee meetings, housing conferences, and training sessions to learn about meeting procedures, collective management and negotiation. More houses were acquired by the Housing Ministry; new tenants were selected and WRHC grew from 11 to 36 houses across the municipality of Hobson’s Bay.

In 2006 the Office of Housing adopted a new regulatory framework, requiring Rental Housing Co-operatives like WRHC to develop a governance structure and become Registered Housing Providers. As a result, the responsibility of governance now falls on an elected Board of Directors who manage the operations of the co-op according to legislation including, but not limited to, the Residential Tenancies Act 1997, Co-Operatives National Law Application Act 2013 and the Privacy and Data Protection Act 2014.

Tenants are now referred to as ‘renters’ following recent changes to the RTA.

WRHC remains a member managed co-operative, with all major decisions and policies discussed and voted on by the membership.