The goal of creating a co-housing project – a cooperative project where participants exist, live and work together as a group – is only possible upon successfully maneuvering through a very complex process. The first step is to found a group on the basis of the original idea and, with that group, to solicit the help of a large number of professionals and experts. The next task is to make sure the project is organized into an appropriate financial structure (i.e., civil law partnership/“GbR,” club/“Verein,” cooperative/“Genossenschaft”) and is on sure financial footing. The next stage involves planning and organizing the construction process for the acquired property or house – with the end result, of course, ideally still resembling the original idea. This article provides information on how the overall process should look and the interdependencies at work between the various stages and parties involved.
Phases of project development
Every co-housing and cooperative project is realized over the course of the following four phases:
- Founding phase
- Planning phase
- Building phase
- Dwelling phase
1. Founding phase
During this phase, project founders seek out other like-minded people; the group forms goals together and decides on the basics in terms of group governance and ways it will interactively cooperate. The most intensive part of the founding and planning phases are the group discussions regarding what the group wants and needs and the best ways to bring those things into being in terms of the final building and the group structure.
2. Planning phase (planning cooperative)
Ideas flower into detailed plans during this phase. Concrete building plans are developed and prepared within the framework of the planning cooperative, and a partially binding commitment from members is required for membership in that cooperative.
3. Building phase (homebuilding cooperative)
In essence, the building phase is marked by the demands and procedures also characterizing any “normal” building project. The primary focus during this phase is on purchasing property and interacting with the necessary professionals, government agencies and construction firms.
4. Dwelling phase (owners’ cooperative)
During this phase, the group fleshes out its way of living, working and being together as a community. It plans and carries out activities together. The focus is on participatory democracy and the self-administration of the group.
Founding
During this phase, the founders begin to inform themselves on the subject. They have an idea they would like to bring to life with others. They begin to talk about their idea with as many people as possible through various proponents of the idea (such as clubs and organizations with a special focus on the idea), postering and special events. They regularly discuss the idea and possible ways of bringing it into existence with others who are also interested in it. Together, they find possible parties with whom they might partner in realizing the idea, locate their ideal property and more.
A “Zukunftswerkstatt” workshop, which brings together people willing to act on the idea beyond just talking about it, can also provide the first spark for the initial founding of a group.
Preliminary planning
The preliminary planning of a building is designed to show that the concept is possible on the desired property and what costs it will entail. An investment plan is made on the basis of the estimated construction costs and the financial situation assessed.
Property purchase
The property purchase is the first big hurdle and, as a general rule, the first step where members spend a relatively large amount of money – or, at the very least, take a large degree of responsibility for a building, perhaps even a building in need of a great deal of repair. The group should have submitted a coherent concept, a coherent preliminary plan and a flexible cost estimate to the architects by this point.
Financing
Projects are rarely brought into existence without any help from an external money lender. The investment and financing plan produced and updated during the preliminary planning stage must now be formulated in such a way that the external money lender (typically a bank) can easily understand it.
Building application, construction documentation, contract awarding
This is the point at which the architects work out the technical and legal details of the plans. During this phase, the individual building processes that will be needed over the course of the overall construction process are itemized in a description, and multiple building enterprises are requested to provide affordable quotes for carrying out the itemized work. If the bank approves the financing plan, the building enterprises assessed to have given the best quotes can be contracted.
Construction phase
If the group does not opt to carry out a measure of the work itself, the focus of this phase rests on supervising the building enterprises in terms of how they plan and fulfill their contracts. This involves many unforeseen decisions that must be made quickly.
Dwelling and usage phase
In addition to the imaginativeness of the tenants, this phase requires an especially solid group structure that facilitates good decision making and can amicably moderate compromises. The past experiences of other groups, however, can also be used and adapted to fit the group’s given circumstances.
The group
The group itself plays the most important role in any co-housing project. The group’s most important task in this role is to develop the project idea and goal, then go on to develop it further through all four phases of the project with suitable external professionals, and to protect itself against any possible internal or external limitations.
If the group constructs a building or buildings together instead of simply acting in the capacity of landlord with respect to a co-housing cooperative, it takes on the all-encompassing responsibilities of a home-builder. In addition to bearing financial responsibility for the project, the group then enters into extensive contracts with architects, planners and other building enterprises that must be coordinated, both in terms of content and timing.
Moderator, project advisor
A third-party moderator is often the only solution that can help a group reach its goals quickly and with as little conflict as possible. Because of the neutrality of a group moderator, conversations can be shaped in such a way as to mediate differing perspectives, leading more quickly and constructively to a group decision.
There is a distinct advantage in the process of coming to a consensus with the help of a project advisor or coordinator: It allows for a more binding structure as the group develops its goals and the overall project and as the group commits to any subsequent steps to be taken. Since the most important thing is that the group make the project a reality together through taking concrete steps, and since group harmony is only of secondary importance in this goal, an experienced moderator saves the group time and energy by helping to circumvent irrelevant “sidetracking” during group conversations.
The “Zukunftswerkstatt” workshop method of Robert Jungk has proved to be an excellent tool in this respect as it brings groups together.
Project coordinator
As previously mentioned, groups must be aware of the copious number of administrative, coordinative and legal responsibilities it will face over the course of a construction project.
Although it is theoretically possible for many tasks to be fulfilled on a volunteer basis by group members, this is seldom possible due to factors of project timing.
As a general rule, delegating these tasks to a project coordinator is imperative, all the more since a project coordinator ensures that the group is not “taken for a ride” – that is to say, ends up paying more than is necessary – during contract negotiations due to a lack of experience.
Architect
The architect holds an often underestimated responsibility for the group – namely, coordinating the construction process in terms of its technical details, its timing and its costs.
A group’s decision in favor of a project is often based on the construction costs estimated by the architects and the subsequent ancillary expenses. If the costs of construction increase by 10% or 15% – a modest amount when it comes to construction costs – the overall price often increases by a comparable amount.
Choosing an experienced architect and constructively asking about the projected results helps considerably to avoid a broad range of possible later conflicts.
Banks
Not many banks approve financing for co-housing projects. A clear structure and contractual documentation of the relationships of the creditors with one another and over and against third parties are essential to a successful bank application.
Many banks, however, have a very restrictive policies, and hearing “too small,” “too large,” “too far afield” or “can’t be resold” should not discourage groups from talking with other banks.