hoco:housing_commons

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-# Housing commons+This topic is part of [[gt:community|Community & culture]] and [[gt:economy|Economy & finance]]. 
 +====== Housing commons ======
  
  
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-## What is it?+===== What is it? =====
  
 Housing commons is a way of providing good-quality, affordable housing with secure tenancies. Houses in a housing commons are owned by the community in perpetuity, not by individuals or businesses (even co-operative businesses) or the state / local authority.  Housing commons is a way of providing good-quality, affordable housing with secure tenancies. Houses in a housing commons are owned by the community in perpetuity, not by individuals or businesses (even co-operative businesses) or the state / local authority. 
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 Here we introduce the basic model. We’ll endeavour to get any queries answered in the comments section below. Here we introduce the basic model. We’ll endeavour to get any queries answered in the comments section below.
  
-### The financial model+==== The financial model ====
  
-It might be good to read the ‘[use-credit obligatio](/ucos/Use-credit_obligations)[ns (UCOs)](/ucos/Use-credit_obligations)’ introduction, after which the housing commons idea should be much clearer, as UCOs are the basis for the proposed financial model.+It might be good to read the ‘[use-credit obligations (UCOs)](/ucos/Use-credit_obligations)’ introduction, after which the housing commons idea should be much clearer, as UCOs are the basis for the proposed financial model.
  
 Rent-credit obligations (RCOs) are UCOs for housing – ‘rent vouchers’, if you like – issued by the local housing commons group for use as rent in one of their properties. A house is purchased by a local housing commons group with cash, provided by investors, who in return are given 25 years’ worth of discounted RCOs for the property. Rent-credit obligations (RCOs) are UCOs for housing – ‘rent vouchers’, if you like – issued by the local housing commons group for use as rent in one of their properties. A house is purchased by a local housing commons group with cash, provided by investors, who in return are given 25 years’ worth of discounted RCOs for the property.
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 <caption> <caption>
-Where the rent goes on rented housing: most goes to the mortgage company.+_Where the rent goes on rented housing: most goes to the mortgage company._
  
 </caption> </caption>
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 <caption> <caption>
-The housing commons can prevent second home owners from destroying communities in coastal towns or other holiday destinations.+_The housing commons can prevent second home owners from destroying communities in coastal towns or other holiday destinations._
  
 </caption> </caption>
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 </figure> </figure>
 </WRAP> </WRAP>
-### The housing commons group+==== The housing commons group ====
  
 A housing commons group is a partnership with different classes of member – including tenants, investors, stewards (members who are paid to manage the scheme and maintain the properties) and ‘custodians’ (see below). Tenants are the biggest member class, with most of the votes. Anyone holding RCOs must be a member of a housing commons group, which is how groups can democratically prevent anyone from cornering the market in RCOs and extracting profits from the community. A housing commons group is a partnership with different classes of member – including tenants, investors, stewards (members who are paid to manage the scheme and maintain the properties) and ‘custodians’ (see below). Tenants are the biggest member class, with most of the votes. Anyone holding RCOs must be a member of a housing commons group, which is how groups can democratically prevent anyone from cornering the market in RCOs and extracting profits from the community.
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 </WRAP> </WRAP>
  
-### House-sellers+==== House-sellers ====
  
 Anyone can sell a house to the commons. The seller is happy because the commons group is a reliable, cash buyer and there's nothing unusual about the purchase. Anyone can sell a house to the commons. The seller is happy because the commons group is a reliable, cash buyer and there's nothing unusual about the purchase.
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 House sellers who receive cash for their house are not investors and therefore not members of the housing commons group. However, if they don’t need cash to buy another property straight away, they could, instead of taking payment for their property in cash, take RCOs, and become investors themselves. There probably won’t be many of these until the housing commons is well-established, but as RCO holders and therefore investors they’ll then be members of the housing commons group. House sellers who receive cash for their house are not investors and therefore not members of the housing commons group. However, if they don’t need cash to buy another property straight away, they could, instead of taking payment for their property in cash, take RCOs, and become investors themselves. There probably won’t be many of these until the housing commons is well-established, but as RCO holders and therefore investors they’ll then be members of the housing commons group.
  
-### Investors+==== Investors ====
  
 An investor could be anyone with spare cash that they’d like to invest in their local community. This might include people with a deposit for buying a house, that they realise is not going to be possible, and so they might decide to invest in a project that may provide them with housing another way – that also benefits their community. An investor could be anyone with spare cash that they’d like to invest in their local community. This might include people with a deposit for buying a house, that they realise is not going to be possible, and so they might decide to invest in a project that may provide them with housing another way – that also benefits their community.
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 <caption> <caption>
-We love housing co-ops, but they have to incur debt to obtain properties, which makes it difficult for them to grow, and to prevent wealth being extracted from their communities.+_We love housing co-ops, but they have to incur debt to obtain properties, which makes it difficult for them to grow, and to prevent wealth being extracted from their communities._
  
 </caption> </caption>
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 Investors get a one-off return, but there’s no interest to be paid to mortgage companies, and commons houses will never be sold again. In time, the group can wean itself off investors, and rents can fall to the cost of providing housing. Investors get a one-off return, but there’s no interest to be paid to mortgage companies, and commons houses will never be sold again. In time, the group can wean itself off investors, and rents can fall to the cost of providing housing.
  
-### Tenants+==== Tenants ====
  
 The message to tenants is: this house is for rent at £x per month, but you can buy rent vouchers – at a small discount, so your rent will be cheaper. The discount is worked out by the management committee of the housing commons group, and is possible because there’s no scarcity of RCOs, and no debt to repay. This provides affordability and security for tenants, in well-maintained, well-insulated, high quality properties that they’re actually co-owners of. If there’s a waiting list, the group can vote to prioritise local people in housing need. The message to tenants is: this house is for rent at £x per month, but you can buy rent vouchers – at a small discount, so your rent will be cheaper. The discount is worked out by the management committee of the housing commons group, and is possible because there’s no scarcity of RCOs, and no debt to repay. This provides affordability and security for tenants, in well-maintained, well-insulated, high quality properties that they’re actually co-owners of. If there’s a waiting list, the group can vote to prioritise local people in housing need.
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 <caption> <caption>
-Simplified value flow diagram for a local housing commons, showing the movement of RCOs (rent vouchers), cash etc. between the housing commons group (CHS = commons housing society), investors, tenants and stewards. (ROI = return on investment).+_Simplified value flow diagram for a local housing commons, showing the movement of RCOs (rent vouchers), cash etc. between the housing commons group (CHS = commons housing society), investors, tenants and stewards. (ROI = return on investment)._
  
 </caption> </caption>
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 </WRAP> </WRAP>
  
-### 'Custodians'+==== 'Custodians' ====
  
 There’s also a ‘custodian’ member class, who don’t propose anything, but have a veto vote. There are some core commons principles – for example around evictions without due process, profiteering, selling property out of the commons etc. They’re disinterested arbiters to make sure that the purpose of the commons isn’t compromised - if the custodians see proposals that go against commons principles, they can veto them. There’s also a ‘custodian’ member class, who don’t propose anything, but have a veto vote. There are some core commons principles – for example around evictions without due process, profiteering, selling property out of the commons etc. They’re disinterested arbiters to make sure that the purpose of the commons isn’t compromised - if the custodians see proposals that go against commons principles, they can veto them.
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 Custodians could also, for example, stop tenant members setting the rents too low, which would undermine the model by deterring investors. Custodians could also, for example, stop tenant members setting the rents too low, which would undermine the model by deterring investors.
  
-### Housing Commons Society+==== Housing Commons Society ====
  
 This will be a national body whose job is to make sure that local housing commons groups stick to the core principles. It can appoint / train / vet local custodians. This body researches trends that will affect the housing commons (including govt. policy), creates guidelines on how to respond to them, and provides arbitration for conflict resolution. This will be a national body whose job is to make sure that local housing commons groups stick to the core principles. It can appoint / train / vet local custodians. This body researches trends that will affect the housing commons (including govt. policy), creates guidelines on how to respond to them, and provides arbitration for conflict resolution.
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 If any local housing commons group fails (although without debt, they should be robust), the national society will step in to ensure that housing is provided and maintained for RCOs, while working to re-establish good local management with the commoners. If any local housing commons group fails (although without debt, they should be robust), the national society will step in to ensure that housing is provided and maintained for RCOs, while working to re-establish good local management with the commoners.
  
-### History+==== History ====
  
 There have been several community-owned housing models, including [housing co-ops](/coop/co-operatives), [community land trusts](/comy/community) and [cohousing](/coho/cohousing). [Garden](https://en.wikipedia.org/wiki/Garden_city_movement) [cities](https://en.wikipedia.org/wiki/Garden_city_movement) were originally intended to be community-owned, but this was dropped due to opposition from investors. The fact that the housing commons model doesn’t require debt makes it much more likely to grow to challenge the current system. There have been several community-owned housing models, including [housing co-ops](/coop/co-operatives), [community land trusts](/comy/community) and [cohousing](/coho/cohousing). [Garden](https://en.wikipedia.org/wiki/Garden_city_movement) [cities](https://en.wikipedia.org/wiki/Garden_city_movement) were originally intended to be community-owned, but this was dropped due to opposition from investors. The fact that the housing commons model doesn’t require debt makes it much more likely to grow to challenge the current system.
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 <caption> <caption>
-The local housing commons group will employ local tradespeople to maintain its properties.+_The local housing commons group will employ local tradespeople to maintain its properties._
  
 </caption> </caption>
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-## What are the benefits?+===== What are the benefits? =====
  
-### People and communities+==== People and communities ====
  
 - It makes housing human – it’s about affordable, good-quality homes with secure tenancies and good terms (with allowances made for times of hardship), rather than speculation. As the commons grows, because it doesn’t involve debt or price speculation, rents can fall to the cost of managing and maintaining the properties. - It makes housing human – it’s about affordable, good-quality homes with secure tenancies and good terms (with allowances made for times of hardship), rather than speculation. As the commons grows, because it doesn’t involve debt or price speculation, rents can fall to the cost of managing and maintaining the properties.
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 <caption> <caption>
-Young people looking for somewhere to live might be better off investing the money they’ve saved for a deposit for a house purchase into the housing commons instead.+_Young people looking for somewhere to live might be better off investing the money they’ve saved for a deposit for a house purchase into the housing commons instead._
  
 </caption> </caption>
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 </figure> </figure>
 </WRAP> </WRAP>
- +==== Environment ====
-### Environment+
  
 - Because there’s no debt to service, housing commons groups can afford to retrofit insulation, renewables and energy-efficiency measures. This can help keep old people warm in winter, improve the hugely inefficient national housing stock (which all governments have failed to do, and are not really capable of doing, from the top down), move the UK towards net zero carbon (ditto), and provide a springboard to launch a local (renewable) energy commons, which will be much easier to set up in a town with a functioning housing commons. - Because there’s no debt to service, housing commons groups can afford to retrofit insulation, renewables and energy-efficiency measures. This can help keep old people warm in winter, improve the hugely inefficient national housing stock (which all governments have failed to do, and are not really capable of doing, from the top down), move the UK towards net zero carbon (ditto), and provide a springboard to launch a local (renewable) energy commons, which will be much easier to set up in a town with a functioning housing commons.
-### System change+==== System change ====
  
 - Assets (housing and cash) are transferred into the commons, to help build a commons economy. There’s been a lot of talk about building the commons, but it hasn’t taken off in a way that can challenge capitalism. This model could change that, because it’s not based on debt and it doesn’t require altruism. - Assets (housing and cash) are transferred into the commons, to help build a commons economy. There’s been a lot of talk about building the commons, but it hasn’t taken off in a way that can challenge capitalism. This model could change that, because it’s not based on debt and it doesn’t require altruism.
  
-- Commons housing will never be sold again. [Building societies](/buil/building_societies) were demutualised and ‘carpet-bagged’ – members voted to remove the legal asset lock that prevented them from being sold, in order to receive a one-off payment. This can happen with co-ops too. As it grows, the housing commons will be holding a lot of very valuable assets, with no debt, so will be an obvious target for predatory capitalists, with clever lawyers trying to get round the asset locks. But this model, with the Housing Commons Society acting as custodian, is designed to prevent this.+- Commons housing will never be sold again. [[bsoc:Building societies]] were demutualised and ‘carpet-bagged’ – members voted to remove the legal asset lock that prevented them from being sold, in order to receive a one-off payment. This can happen with co-ops too. As it grows, the housing commons will be holding a lot of very valuable assets, with no debt, so will be an obvious target for predatory capitalists, with clever lawyers trying to get round the asset locks. But this model, with the Housing Commons Society acting as custodian, is designed to prevent this.
  
 - The state won’t be able to close down the housing commons as it did housing co-ops – by withdrawing funding – because the housing commons won’t rely on state funding. - The state won’t be able to close down the housing commons as it did housing co-ops – by withdrawing funding – because the housing commons won’t rely on state funding.
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 {{ http://lowimpactorg.onyx-sites.io/wp-content/uploads/housing-commons-graeber-1.png }} {{ http://lowimpactorg.onyx-sites.io/wp-content/uploads/housing-commons-graeber-1.png }}
  
-### Downsides+==== Downsides ====
  
 If a housing commons keeps growing rather than splitting to cover more (but smaller) areas, then it’s possible to imagine a small town being dominated by one housing commons group, and possibly becoming quite exclusive, with members only accepting people like themselves. This is something that custodians can limit, with appropriate, human scale as a guiding principle. Scale can be reached by many, smaller groups rather than one giant group. Then if one group tries to be exclusive for whatever reason, people can go elsewhere. If a housing commons keeps growing rather than splitting to cover more (but smaller) areas, then it’s possible to imagine a small town being dominated by one housing commons group, and possibly becoming quite exclusive, with members only accepting people like themselves. This is something that custodians can limit, with appropriate, human scale as a guiding principle. Scale can be reached by many, smaller groups rather than one giant group. Then if one group tries to be exclusive for whatever reason, people can go elsewhere.
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-## What can I do?+===== What can I do? =====
  
 [Here's where we've got to in Stroud](http://lowimpactorg.onyx-sites.io/posts/stroud-housing-commons-latest-developments). We're looking for people to give it a go in their town. Let us know if that's you. [Here's where we've got to in Stroud](http://lowimpactorg.onyx-sites.io/posts/stroud-housing-commons-latest-developments). We're looking for people to give it a go in their town. Let us know if that's you.
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 We see the housing commons developing in 4 phases: We see the housing commons developing in 4 phases:
  
-### Phase 1: pilot schemes+==== Phase 1: pilot schemes ====
  
 This involves building a few, small, working models as examples. We have a low-risk design for a pilot, which we're testing in [Stroud](https://stroudcommons.org/). This involves building a few, small, working models as examples. We have a low-risk design for a pilot, which we're testing in [Stroud](https://stroudcommons.org/).
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 <caption> <caption>
-Members can decide for themselves what kind of housing they want. They might decide that all houses will be super-insulated, or have solar panels, or a front porch – excellent for building community, as tenants can sit and chat to people walking past.+_Members can decide for themselves what kind of housing they want. They might decide that all houses will be super-insulated, or have solar panels, or a front porch – excellent for building community, as tenants can sit and chat to people walking past._
  
 </caption> </caption>
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 If you'd like a pilot project in your town, or if you’re experienced in any aspect of housing management, maintenance, law or finance, and you want to offer advice or contribute to the national group, [contact us](http://lowimpactorg.onyx-sites.io/about/contact). We’re partnering with [Mutual Credit Services](https://www.mutualcredit.services/), who will hold your hand through the process. If you'd like a pilot project in your town, or if you’re experienced in any aspect of housing management, maintenance, law or finance, and you want to offer advice or contribute to the national group, [contact us](http://lowimpactorg.onyx-sites.io/about/contact). We’re partnering with [Mutual Credit Services](https://www.mutualcredit.services/), who will hold your hand through the process.
  
-### Phase 2: seeding the housing commons in communities+==== Phase 2: seeding the housing commons in communities ====
  
 When we have a small number of pilot projects, to show that the concept works, it will spread to more towns. This can be helped by forming groups of interested people who know their local area, including what local tenants need (student bedsits, small houses for older or single people, larger family homes etc.). Their role will be to find more people happy to invest in / sell property to the commons, and to set up local word-of-mouth crowdfunding - asking people to put 5-10k into a local, secure investment pool. On the basis of that, the local housing commons will be able to begin to buy the kinds of housing stock required locally. When we have a small number of pilot projects, to show that the concept works, it will spread to more towns. This can be helped by forming groups of interested people who know their local area, including what local tenants need (student bedsits, small houses for older or single people, larger family homes etc.). Their role will be to find more people happy to invest in / sell property to the commons, and to set up local word-of-mouth crowdfunding - asking people to put 5-10k into a local, secure investment pool. On the basis of that, the local housing commons will be able to begin to buy the kinds of housing stock required locally.
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 <caption> <caption>
-With a housing commons in your town, it would be much easier to set up related commons, such as energy, water and transport.+_With a housing commons in your town, it would be much easier to set up related commons, such as energy, water and transport._
  
 </caption> </caption>
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 </WRAP> </WRAP>
  
-### Phase 3: establishing a market+==== Phase 3: establishing a market ====
  
 When the concept has been shown to work, and as fledgling housing commons start to grow in a range of communities, ordinary people selling a house will realise that the housing commons buying their house from them in exchange for RCOs is an attractive option, because the RCOs can be shown to be worth more than the market price of the house. We want to get to the situation, as quickly as possible, where sellers, investors and potential tenants are approaching housing commons groups, because the benefits for all parties are clear. When the concept has been shown to work, and as fledgling housing commons start to grow in a range of communities, ordinary people selling a house will realise that the housing commons buying their house from them in exchange for RCOs is an attractive option, because the RCOs can be shown to be worth more than the market price of the house. We want to get to the situation, as quickly as possible, where sellers, investors and potential tenants are approaching housing commons groups, because the benefits for all parties are clear.
  
-### Phase 4: growth+==== Phase 4: growth ====
  
 Once a market has been established, and word spreads, more people will transfer homes to the housing commons in exchange for RCOs, because it makes financial sense. Some people will even want to sell their house for RCOs and use them to keep living in it, because it removes the worry of insuring, repairing and maintaining the property. Once a market has been established, and word spreads, more people will transfer homes to the housing commons in exchange for RCOs, because it makes financial sense. Some people will even want to sell their house for RCOs and use them to keep living in it, because it removes the worry of insuring, repairing and maintaining the property.
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 <caption> <caption>
-Specialist banks, building societies or other financial institutions could provide national, regulated, ethical, mutual investment funds, which will invest in commons groups everywhere. Something like this is sadly lacking at the moment, and these kinds of funds could be very popular with people wanting to invest ethically in their community.+_Specialist banks, building societies or other financial institutions could provide national, regulated, ethical, mutual investment funds, which will invest in commons groups everywhere. Something like this is sadly lacking at the moment, and these kinds of funds could be very popular with people wanting to invest ethically in their community._
  
 </caption> </caption>
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-## Further resources+===== Forum ===== 
 + 
 +This topic belongs to the section [[gt:community|Community & culture]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/community). 
 + 
 +It is also in the section [[gt:economy|Economy & finance]] (Forum: [Economy & finance](https://forum.growingthecommons.org/t/economy)). 
 + 
 +===== Further resources ===== 
 + 
 +- [Why a house is a terrible investment](https://jlcollinsnh.com/2023/03/02/why-your-house-is-a-terrible-investment/) 
 +- [Housing commons in Stroud](https://stroudcommons.org/housing-commons/) 
 +- [Hastings Commons](https://hastingscommons.com/) - commoning housing in Hastings 
 +- [International Journal of the Commons](https://thecommonsjournal.org/articles/10.5334/ijc.1490) - housing commons? a scoping review 
 +- [Resilience](https://www.resilience.org/stories/2024-08-23/solving-the-housing-crisis-via-the-commons/) - solving the housing crisis via the commons 
 +- [Housing as commons: Sites of struggle and possibility](https://journals.openedition.org/cidades/9342) 
 + 
 + 
 +===== Related topics ===== 
 + 
 +- [[comg:Commoning]] 
 +- [[clts:Community land trusts]] 
 +- [[comy:Community]] 
 +- [[coho:Cohousing]] 
 +- [[ucos:Use-credit obligations]] 
 +- [[crco:Credit commons]] 
 +- [[hcoo:Housing co-operatives]]
  
  
  
-## Specialist(s)+===== Specialist curators of this topic =====
  
  
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