Housing Construction Cooperative
Housing Construction Cooperative
in the USSR, a cooperative organization of production and clerical workers formed to subcontract the construction of and to operate, at its own expense, well-equipped residential buildings in cities and urban-type communities.
Housing construction cooperatives were first established in 1921 as housing-rental societies, worker housing construction societies, and all-citizen housing construction societies; at this time the state established financial and other privileges for the worker societies. These societies were abolished in 1937, and the buildings they had built were turned over to the housing resources of the local Soviets of working people’s deputies. In 1958 the Council of Ministers of the USSR adopted a decree on the advisability of establishing housing construction cooperatives to accelerate the pace of construction. The cooperatives began to develop extensively after adoption of the decision On Individual and Cooperative Housing Construction by the Central Committee of the CPSU and the Council of Ministers of the USSR on June 1, 1962 (Sobranie postanovleniia SSSR, 1962, no. 12, art. 93) and the decision On Further Development of Cooperative Housing Construction by the Council of Ministers of the USSR on Nov. 19, 1964 (Sobranie postanovleniia SSSR, 1964, no. 25, art. 147).
The activity of housing construction cooperatives is regulated by by-laws patterned on model by-laws ratified by the councils of ministers of the Union republics (in the RSFSR the model by-laws for housing construction cooperatives were ratified by the Council of Ministers of the RSFSR on Oct. 2, 1965). Citizens who have reached 18 years of age, reside permanently in the given area, and need housing or want to improve their housing conditions may enter housing construction cooperatives. The cooperatives are organized at institutions and enterprises. At least 60 persons must join together to form one in Moscow and Leningrad; 48 are required in the capitals of the Union and autonomous republics and krai and oblast centers and 24 in other cities and urban-type communities. The workers of small enterprises, organizations, and institutions and pensioners may join together in one cooperative. The share of each member cannot be less than the estimated cost of one apartment, the size of which depends on the number of family members but has a maximum of 60 sq m.
The state gives housing construction cooperatives various privileges in order to expand and accelerate this construction by enlisting the capital of the workers who need to improve their housing conditions. To construct a building, a cooperative may receive a loan at the Stroibank (Construction Investment Bank) of the USSR in amounts up to 60 percent (with payments of interest of 0.5 percent annually) of the estimated cost of construction for a period of ten to 15 years (see the June 1, 1962, decision of the Council of Ministers of the USSR), whereas loans of 70 percent of the estimated value of the building for a period of ten to 20 years (see the Nov. 19, 1964, decision of the Council of Ministers of the USSR) with payback in equal amounts can be obtained in the Kazakh SSR; the Altai, Krasnoiarsk, Primor’e, and Khabarovsk krais; the Amur, Arkhangelsk, Irkutsk, Kamchatka, Kemerovo, Magadan, Murmansk, Novosibirsk, Omsk, Sakhalin, Tomsk, Tiumen’, and Chita oblasts; and the Buriat, Komi, Karelian, Yakut, and Tuva ASSR’s. A building of a housing construction cooperative is its property, and it is operated entirely at the expense of the members of the cooperative without state subsidy.
A member of the cooperative has the right, with the con-sent of a general meeting of the members, to turn his share over to any adult in his family who lives with him permanently. The share of a deceased member passes to his heirs in accordance with the general statutes on inheritance. If the heirs have not used the apartment during the life of the de-ceased, they are paid the value of the share or a portion of it but do not acquire a preferential right to become members of the housing construction cooperative.