Maharashtra Board Class 11 Cooperation Chapter 9 Housing Co operative Society PDF Download

Housing Co-operative Society

9.1 Introduction

Due to industrialization urbanization is taking place and at the same time due to rapid increase in population demand for shelter is increased. Due to large urbanization, increase in price of land and construction material as well as nuclear family system there is increase in prices of houses. So, it is not possible to purchase or construct house for middle or lower middle-income group of peoples. Due to which there is serious problem of housing.

To solve the common problem of housing many people come together and solve their housing problem through Housing co-operative society. Obtaining loan from Bank and Financial institution, purchase of land, constructions of houses, repair and maintenance of society if this all things are done through Housing co-operative society than the housing problem of general people will be solved and they will get houses at reasonable price. For solving housing problem Housing co-operative society is guaranteed solution. In 1909, "Bangalore Co-operative Society Limited" at Mysore was the first Housing co-operative society established in India. In planning period, the Housing co-operative society developed rapidly.

At National level National Co-operative Housing Federation of India is the apex body which gives direction to the co-operative movement in the country. It was established in September 1969. Housing and Urban Development Corporation (HUDCO) was established in April 1970 which provides loan for co-operative housing projects in urban area.

Teacher's Note

Housing co-operative society helps poor people buy houses together. In Mumbai, many families use housing societies to get their own home at low cost.

Exam Trick

Remember: Housing society = group buying = cheaper houses. Just like buying in bulk at markets saves money, many families buying together saves money on houses too.

Points to Remember

Housing co-operative society is a group where poor people come together to buy land and build houses together.
The first housing society in India was Bangalore Co-operative Society Limited in 1909.
HUDCO gives loans to housing societies for making houses in cities.
Housing societies make houses cheaper because many people share the cost.
The National Co-operative Housing Federation is the biggest housing society organization in India.

9.2 Meaning And Definition Of Housing Co-operative Society

Meaning

The people having common housing need comes together and establish Housing cooperative society. The land required for construction of houses is purchased through housing society or obtained from government at concessional rate. The building plan, construction of houses, construction material, labour, repair and maintenance all transactions are done through this society. Such co-operative society is known as Housing co-operative society.

Definition

"An organization formed by the people of limited income group to fulfil their common need of shelter on co-operative principles is known as Housing Co-operative Society".

According to Maharashtra Co-operative Societies Act, 1960, "An organization formed with an objective to provide houses or flats to its members and to provide them common facilities and amenities on co-operative principles is called as Housing Co-operative Society".

Teacher's Note

Housing co-operative society means a group of poor people who join together to build houses. In Delhi, teachers and office workers make housing societies to get affordable flats.

Exam Trick

Remember: Housing society = poor people + group together + cheap houses. Think of your neighborhood apartment society - that is a housing co-operative society!

Points to Remember

A housing co-operative society is a group formed by people who need houses but cannot buy alone.
The government gives land at low prices to housing societies.
The society buys land, makes building plans, and builds houses together.
All members pay money together to buy materials and build houses.
Repairs and maintenance are done by the whole society together.

9.3 Features / Characteristics Of Housing Co-operative Society

1. Voluntary Association

The Housing co-operative society is a voluntary organization. The persons having limited income source from middle and lower class comes together voluntarily and starts Housing co-operative society to solve their housing/shelter problems. There is no force or compulsion to become member of this co-operative society. The persons who are not having their own house can become member voluntarily.

2. Construction Of Houses At Reasonable Cost

The Housing co-operative societies try to provide houses at reasonable cost to its members. Therefore, such societies collectively purchase the land on large scale for their members. The construction material is purchased collectively on large scale, middlemen and unnecessary expenses are avoided, so houses are available at lower price. Moreover, there are many members in Housing co-operative society so the construction expense is reduced due to which the members get houses at reasonable prices. These societies perform all the functions that is from purchase of land till complete construction of house.

3. Capital Raising

Housing co-operative society collects its capital by issuing shares to the members, membership fees and loan from banks and financial institution. Life Insurance Corporation (LIC), Public and Commercial Banks, Co-operative Banks, Housing and Urban Development Corporation (HUDCO), Housing Development Finance Corporation (HDFC) provides loan to Housing co-operative society. In some projects government also provides funds and subsidies to the Housing co-operative societies under Gruha Nirman Yojana.

4. Democratic Management

Democratic management is one of the basic principle of co-operative society. The day-to-day management of such societies are conducted by the elected representatives from the members of co-operative society (Managing Committee). All basic and policy decision are taken in Annual general body meeting of members in democratic manner.

5. Elimination Of Middlemen

There are number of middlemen like dealers, agents and builders who are involved in the business of building and selling of houses. These middlemen charge their own margin of profit and exploit the needy customers. The Housing co-operative society directly deals with the members, the middlemen are eliminated so members get houses at reasonable price.

6. Saving In Cost Of Repair And Maintenance

The construction material like sand, bricks, cement, steel, etc. is purchased on large scale collectively for repair and maintenance of houses by co-operative society. All repair and maintenance work is done collectively so there is saving in cost of repair and maintenance.

7. Increase In Habit Of Saving

The Housing co-operative societies provide long term loan at lower rate of interest. The members have to repay the loan amount in instalments and the society also collects monthly subscription in the form of maintenance charges from members. So, the saving habit is inculcated among the members.

Teacher's Note

Housing societies have 10 special features that make them good for poor people. In Bangalore, housing societies help everyone get a fair chance to own a home.

Exam Trick

Remember 10 features as: Voluntary, Cheap houses, Money raised, Democratic, No middlemen, Cheap repairs, Saving habit, Community life, Urban growth, Loans. This is the order to remember!

Points to Remember

Housing society is voluntary - no one forces you to join.
Houses are cheap because many people buy land and materials together.
Members elect leaders who make decisions in a democratic way.
There are no middlemen to charge extra money.
All repairs and maintenance are done together at lower cost.

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