Criteria for site selection
We are surveying and researching suitable locations that fit with the values and objectives of the community. This requires considering a balance between the general needs of the group such as proximity to transport and shops, and finding land of sufficient size to build private and communal spaces. Finding a suitable site is a challenging aspect of this project given we will be competing with large property developers that have capacity to build multiple storey housing. However, we offer strong community based, affordable and sustainable based living as an alternative to the private rental and home ownership market.
Sustainability and affordability
Each household In Cohousing Harrow will have its own private dwelling, although these may be compact to allow more space for the communal areas.
We want to enable adults with learning and/or physical disabilities to be fully included in the community, reflecting the proportion of disability in the general population. Initially we would expect these people to be family of other members of the group, but we may also become a ‘registered provider’.
We will future proof our homes so that they can accommodate people’s needs as they grow older.
Diversity
As a cohousing group we are diverse and welcome diversity! Everyone brings a different set of skills and interests, and hopes to develop new ones through this process. Our intention is for an intergenerational community with people from different backgrounds.
We recognise that one of the distinctive features of modern community housing is the diversity of the members it accommodates and supports, as well as the equality of access to housing we can offer to an increasingly diverse population. We support the Equality Act 2010, which protects characteristics including ethnicity, faith, gender, age, disability, and sexual orientation. Housing people from a variety of social and ethnic groups – and others who may be vulnerable or experience disproportionate disadvantage – is an important element of the social purpose of our cohousing project.
Sociocracy
The entire community (all full/resident members) is responsible for defining the overall direction of the project, including setting its aims. We have chosen Sociocracy as our governance system and decision-making process.
Sociocracy is a governance system that guarantees inclusivity in the decisions and direction of a community by consulting every member and reaching a position with which all can “Consent”. In this instance “Consent” does not mean endorsement or unanimous agreement; it means that in order to move forward the group has arrived at a position on which everyone can agree.
Arrival at Consent follows a group discussion, or “round,” during which one person at a time speaks while others listen. Every member of the group gets a turn to speak. Objections to any proposal occasion further discussions until a decision is reached which aligns with the community’s mission, and which everyone can either “live with,” or considers “good enough for now – safe enough to try”.. In this way Sociocracy “balances the desire to move forward towards the group’s mission with making sure every voice can be heard in the process.”
Sociocracy allows for devolved decision making regarding essential communal tasks. These are divided into domains and allocated to a group of community members, referred to as a “circle.”
Circles operate autonomously and have full authority over their respective domains. Two circle members are chosen to ensure a regular flow of information from their circle to others and to the General circle, ensuring consideration and transparency.
Legal Structure
We are currently incorporated as a Company Limited by Guarantee (CLG) with four Directors who act on behalf of the entire membership. We also have Sociocratic Working Circles which meet at regular intervals.
MHOS
We are considering setting up a Mutual Home Ownership Society (MHOS), which is a form of cooperative housing. Using this model would enable us to include more people at the ‘intermediate market’ level who would otherwise not be in a position to obtain mortgages. An MHOS model would also allow us to maintain affordability in perpetuity for the majority of our housing.
People living in MHOSs pay a deposit and make monthly payments under the terms of a long lease. In making payments, they accrue collective ownership of a cooperative society. In return, members secure equity shares in the society. In an MHOS structure, the community utilises a mixture of capital and collective mortgage and each individual home unit is responsible for paying their share.
The model creates a new way of owning equity in the value of residential property. It allows for the costs of owning a home to be spread across the community in accordance with ability to pay.
If a resident wishes to leave, their lease and occupancy rights are transferred to an incoming member, and their accrued equity in the society is returned to them. By dealing in equity shares rather than ownership, the property can be held outside of the market, and the affordability created is recycled from one generation of occupants to the next.
The benefits of MHOS include:
- Collective home ownership as an alternative to private individual home ownership.
- It builds community
- Ownership is long-term and secure.
- Financial inclusion
- An alternative to private renting
- Homes are affordable in perpetuity
For more information MHOS visit: https://ukmhos.weebly.com/
Financing stages
There are different phases in a community cohousing project which involve a mix of financing options. Sources of finance include equity raised within the community, loans and mortgages, fundraising, grants and different lenders.
Finance is secured by community members at different stages shown in the following diagram. Ideally, we aim to have a healthy mix of sources at favourable terms in order to stay aligned with the objective of affordable housing. We are also committed to working with ethical and sustainable sources of finance in the development and post development phases.
Simple schematic of key stages of financing
| Pre-development | Development | Long-term | ||||
| Site stage | Plan stage | Build stage | Re-financing | Completed | Living stage | |
| Grants | ||||||
| Equity | Equity share | Full ownership over time as debt is repaid | ||||
| Debt | Development finance | Long term borrowing | Long term borrowing |
Pre-development financing – This stage is largely based on grants and equity raised amongst the community members.
Development financing – Borrowing in the development finance stage may be combined with grants and equity in order to cover the costs of the development process. The largest component of this will relate to the construction of the housing development.
Long term financing – Long -term financing includes the refinancing stage, where a mix of borrowing and mortgages serves two key aims. (a) repaying development finance when the development is completed; and (b) continuing to repay for the development with long term mortgages and income from any rentals that are part of the community. Over time, as debt and mortgages are paid off the community becomes fully owned by all members.
On-going costs – There are likely to be on-going costs associated with the maintenance of the community, shared facilities and communal spaces. These are agreed upon between members within the governance and legal structure that is co-designed.
Groups and organisations we have links with:
We are supported by the GLA through the Community Led Housing Hub London: https://www.communityledhousing.london/
Our project is listed on their website here:
We are members of the UK Cohousing Network: https://cohousing.org.uk/
We are also members of Cohousing London: https://www.facebook.com/cohousinglondon/