Legal Questions

How is home ownership legally structured in cohousing communities?

Most cohousing communities in the U.S. are structured as condominiums or planned unit developments (PUDs). In the “lot development model,” residents jointly own the common property and facilities, and are the sole owners of the lot on which they build their single-family detached house. Sometimes residents in attached townhomes own just the land directly under their homes (the footprint), or perhaps the footprint plus a small back or front “private” yard.

Is there a screening process? Who decides who lives in cohousing?

Most forming and developing cohousing groups do not screen new members. Potential members learn about the community and the expectations for participation and decide for themselves whether or not the community will meet their needs.

To help potential member households make an informed decision, groups usually require attendance at an orientation, several regular business meetings, and perhaps some involvement with a committee before they can apply for membership. Specific arrangements for joining vary across communities.

What if a member wants to move out of the community and sell his or her home?

Any household leaving the community can legally sell its property to anyone it chooses, except in a few cohousing communities in the U.S. that are structured as cooperatives. Some groups maintain a “right of first refusal,” which means that the seller must offer his or her home for purchase by the community or to an individual or individuals within the community before putting it on the open market. In other communities, residents sign a voluntary agreement that they will not lease or sell their house to a person or persons who do not wish to participate fully in the community.

Some groups maintain a waiting list of people interested in being informed if a home becomes available. The seller and the rest of the community will benefit if everyone lends a hand in finding new owners. When it comes to resales, experience has shown that homes in cohousing have appreciated faster than the market as a whole.

What about rentals?

Many cohousing neighborhoods include a few rental units owned by members who intend to move in later or who are away for a period of time. In some communities, individual households rent out their attached “in-law” apartments or finished basement apartments. Some people want to rent in cohousing to try it out, because they cannot yet afford to buy a unit, or because they want to live in a particular community but no units are currently available for sale. Most residents agree that rental units are a positive addition to a community.

How is the community managed?

Residents manage the community through a homeowners association. Committees carry out the work. Most cohousing communities make decisions by consensus, and although many groups have a policy for voting if the group cannot reach consensus after a number of attempts, in practice they rarely or never find it necessary to vote.

How much participation is required?

Cohousing communities tend to trust the rhythms of the group, where participation ebbs and flows among individual members. A minimum level of participation generally includes cleaning in the common house or working on the land. Residents who eat common meals usually are expected to assist on a cooking or cleaning team once a month or more, depending upon the community’s needs.