SECTOR - COOPERATIVE HOUSING

INDIA (2020)

Arbitrary use of power by cooperative housing societies

June 2020 COVID-19 has unfurled a variety of social and economic issues across the world. Laws designed to deal with the crisis (such as the Epidemic Diseases Act, 1897) allow the government to take special measures. However, multiple co-operative housing societies across India, driven by herd mentality, have presumed the power to take special measures on their own accord. Co-operative housing societies are reported to impose arbitrary rules such as restriction on entry of self-employed persons and even residents who have been away without such residents furnishing proof of having tested negative for COVID.

State cannot force cooperatives to be registered under specific Act

Telangana High Court declared that the authorities under the Cooperative Societies Act acted against the basic tenets of cooperative law when it refused erstwhile members of an apartment owners association to register itself under the provisions of Maintenance Mutually Aided Co-operative Society (MMACS).

Cooperative housing societies will now have to pay GST on maintenance charges; check new rules

GST Appellate Authority for Advance Rulings (AAAR) has rejected the appellant's contention to distinguish between commercial and a co-operative society on facts and also dismissed its submission that a particular transaction cannot be considered as business under Income Tax Laws by clarifying that Income Tax Act, 1961 is inapplicable under CGST Act, 2017.

It has also distinguished the society’s reliance on the SC judgment in the case of Calcutta Club, basis which the Appellant contended that a society can’t be said to be doing business with its members as both the society and its members are one and the same, owing to the common Principle of Mutuality.

Kerala Regulator Allows Net Metering for a 100 kW Solar System at a Housing Cooperative Society

After going through the provisions of renewable energy regulations 2020, the Commission observed that for all prosumers irrespective of tariff capacity, relaxation was not available to the group housing societies and residential flats for installing solar PV systems for common services, exceeding either their contract demand or connected load as applicable. However, as part of promoting rooftop solar installations by residential consumers, the Commission permitted installing renewable energy systems of capacity up to 20 kW irrespective of the connected load. If the prosumer desires to install the renewable energy system above the connected load or contract demand, the augmentation of the distribution system required for connectivity must be borne by the prosumer.

USA

2021Housing Cooperatives And The Need Certification For PPP Loans

Under the recently enacted federal Consolidated Appropriations Act of 2021, cooperatives are now specifically eligible to obtain Paycheck Protection Program (PPP) loans. For smaller borrowers, the basic program requirements have not changed. In applying for the loan, borrowers must still make a certification in good faith that "current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Where the borrower has suffered no loss as a result of COVID-19, such a certification may be questionable. But sustaining actual losses, such as a loss of commercial income, would presumably support the good faith of such a certification.

Paycheck Protection Program (PPP)

Borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs; PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures; the program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.

New York : Cooperatives, Condos and Cooperatives

For condominiums, cooperatives and homeowner’s associations, the novel coronavirus has presented myriad legal issues. However, dealing with COVID-19 has provided one benefit. There is now an opportunity to develop a blueprint for condominiums and cooperatives to follow when, and if, the next similar crisis occurs. It is therefore incumbent upon the practitioner to set forth for their clients plans for the future so that they are readily accessible when needed. To understand the basic foundation of what concerns many of these properties have, we should understand that, at a minimum, there is typically a statutory requirement to protect the health and welfare of residents

Multiple Dwelling Law (NY) - Legal Text

Disaster Emergency Executive order dated March 2020 -Legal Text

New York Legislation to prohibit eviction without good cause

Twenty-four members of the New York State Senate on Jan. 27, 2021, introduced S-3082and 43 members of the New York State Assembly on Feb. 19, 2021, introduced A-5573 which would preclude the owners of cooperatives, condominiums, hotels and rental buildings from being able to evict a tenant, subtenant, or someone without a lease or other occupancy agreement (broadly defined as a "tenant") unless the landlord can demonstrate good cause for the eviction. Landlord is defined as a lessor, sublessor, or other person receiving or entitled to receive rent (defined as "any consideration") for the occupancy of a "housing accommodation" and housing accommodation applies to any residential premises, which would include condominiums and hotel occupants who stay for 30 days or more.

UNITED KINGDOM

Tackling The Affordable Housing Crisis – The Mutual Home Ownership Society

MHOS's are resident owned structures and most MHOS's that we are aware of adopt a housing co-operative model. Co-operatives UK sponsor a set of model rules for an MHOS.

The members of an MHOS will elect a board of directors who control the day to day management of the MHOS within policy set by the members.

The key documents that make up an MHOS are its rules (constitution), leases and, in some cases, equity unit agreements. The rules set out the constitutional relationship between the members, the directors and the MHOS, and their respective rights, and the decision making processes of the MHOS. The leases set out members' occupancy rights and responsibilities. They may also set out the arrangements relating to that member's equity units (more to follow) and the payment that members can expect to receive when they leave the MHOS, although we are increasingly seeing these matters set out in a separate equity unit agreement (again, more of that below). Ultimately these documents all need to sing together to ensure that the only members of the MHOS, are its only tenants, and are its only equity unit holders.

Stamp Duty for Housing Cooperatives

GUATEMALA

New Legislation on Leasing: Cooperatives, Microfinance excluded

Among the general regulation established on the Law, it is worth mentioning the following: it defines four types of leasing, namely, financial, property, operative, for housing and for social housing. Additionally, the Law obliges all entities whose main commercial activity is to conduct leasing operations to include to their company names any of the following terms: “leasing”, “lease”, “arrendadora financiera”, “arrendadora operativa”, and others derived from these terms. Nevertheless, banks, cooperatives, microfinance institutions and private financial corporations are excluded from this provision; therefore, all entities currently engaged on this activity, shall modify their company names in a term of 6 months after the entry into force of this law, in case they do not comply with the requirement set forth above. 

PAKISTAN

2021

Private as well as cooperative housing societies shall be inspected on parameters of plantation, water supply, sanitation and solid waste management

The Islamabad Capital Territory (ICT) administration has formally started “Clean & Green Islamabad Campaign 2021” whereby private as well as cooperative housing societies shall be inspected strictly on the parameters of plantation, water supply, sanitation and solid waste management, sewerage system, awareness campaigns and contribution in corporate social activities, according to the officials