§ 1581. Short title

§ 1581. Short title This chapter shall be known as the “Cooperative Housing Ownership Act.” (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)

§ 1582. Purpose

§ 1582. Purpose The purpose of this chapter is to foster creation and preservation of affordable housing in Vermont by enabling individuals to form cooperative housing corporations, including limited equity cooperatives, for the purpose of developing, acquiring, owning, and operating housing on a cooperative basis, and by encouraging lending institutions to engage in financing of […]

§ 1583. Definitions

§ 1583. Definitions The definitions contained in chapter 17 of this title shall apply to this chapter. As used in this chapter, the following terms shall have the meanings indicated, unless the context otherwise requires: (1) “Conversion” means a change in character of residential real property from a rental to an ownership basis. Creation of […]

§ 1584. Application

§ 1584. Application Any corporation organized under chapter 17 of this title may elect to be governed as a cooperative housing corporation under the provisions of this chapter. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)

§ 1585. Name; use of “cooperative”

§ 1585. Name; use of “cooperative” The use of the terms “cooperative housing,” “housing cooperative,” or “cooperative apartments,” or any variants thereof in identification of dwelling units is reserved to cooperative housing corporations organized under this chapter. Except as allowed by section 981 of this title, use of those terms, or any variants thereof, by […]

§ 1586. Property classification of cooperative interest

§ 1586. Property classification of cooperative interest (a) A cooperative interest is personal property. (b) The possessory interest evidenced by a proprietary lease is a part of and may not be severed from a cooperative interest. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)

§ 1587. Perfection of security interests in cooperative interests

§ 1587. Perfection of security interests in cooperative interests (a) A security interest in a cooperative interest shall attach, be perfected, and be enforceable as provided in 9A V.S.A. Article 9. (b) On request of a secured party, a cooperative housing corporation shall note on its books and records the interest of the secured party […]

§ 1588. Articles of association; minimum requirements

§ 1588. Articles of association; minimum requirements Articles of association of cooperative housing corporations shall contain the following provisions in addition to those required by chapter 17 of this title: (1) a statement that the cooperative housing corporation shall have only one class of stock; (2) a statement of restrictions, if any, upon transfer of […]

§ 1589. Subscriptions for membership prior to organization; organization meeting

§ 1589. Subscriptions for membership prior to organization; organization meeting (a) Within two years after issuance of the certificate of incorporation of a cooperative housing corporation, the cooperative housing corporation shall secure memberships or subscription agreements representing no less than 80 percent of the units in the cooperative housing corporation. In the case of a […]

§ 1590. Minimum occupancy requirement

§ 1590. Minimum occupancy requirement Subject to the provisions of section 1589 of this title, at least 80 percent of a cooperative housing corporation’s occupied units shall be occupied by members. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)

§ 1591. Membership

§ 1591. Membership (a) A cooperative housing corporation shall be organized on a membership basis with capital stock. (b) A cooperative housing corporation shall have one class of stock and, therefore, one class of members, all of whom must be residents except as provided in subdivision 1599(1) of this title. The designation, qualifications, requirements, method […]

§ 1592. Bylaws; minimum requirements

§ 1592. Bylaws; minimum requirements The bylaws of a cooperative housing corporation shall contain procedures under which the cooperative housing corporation’s possessory remedy shall be pursued in the event of a member’s default and the rights of the defaulting member, in accordance with subdivision 1599(3) of this title. (Added 1987, No. 254 (Adj. Sess.), § […]

§ 1593. Membership shares; requirements

§ 1593. Membership shares; requirements A cooperative housing corporation shall issue shares to its members as evidence of their ownership of a cooperative interest. Such shares shall be in a form prescribed in the articles of association or bylaws of the cooperative housing corporation. Restrictions upon transfer of shares shall be noted on the face […]

§ 1594. Voting

§ 1594. Voting (a) The votes in a cooperative housing corporation shall be assigned so that each member has one vote. (b) Voting authority may not be assigned to nonresidents. (c) Nonmembers may be elected by the membership of the cooperative housing corporation to serve on the board of directors of the cooperative housing corporation, […]

§ 1595. Meetings; notice; quorum

§ 1595. Meetings; notice; quorum (a) Each cooperative housing corporation shall provide in its bylaws for one or more regular membership meetings annually. (b) Special membership meetings may be called by the president or the board of directors, and shall be called upon receipt by the board of a petition signed by at least ten […]

§ 1596. Directors; election; removal

§ 1596. Directors; election; removal (a) The business of the cooperative housing corporation shall be managed by a board of directors of not less than three individuals, elected by the members from their own number, except as provided in subsection 1594(c) of this title. (b) In cooperative housing corporations with less than 20 members, the […]

§ 1597. Merger; consolidation

§ 1597. Merger; consolidation Cooperative housing corporations shall not engage in mergers or consolidation if such action is undertaken for the purpose of circumventing section 1598, 1602, 1603, 1606, or 1607 of this title. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)

§ 1598. Limited equity cooperatives

§ 1598. Limited equity cooperatives A cooperative housing corporation may organize as a limited equity cooperative in order to fulfill the public purpose of providing and preserving housing for persons and households of low and moderate income at the time that they purchase their memberships. In addition to safeguarding the foregoing public purpose, a limited […]

§ 1599. Proprietary lease

§ 1599. Proprietary lease Every member of a cooperative housing corporation shall be entitled to receive from the cooperative housing corporation a written proprietary lease which shall include the following: (1) A provision that no sublease in excess of one year, no amendment, and no modification to such proprietary lease shall be permitted or created […]

§ 1600. Deposits; sale of cooperative interests; escrow

§ 1600. Deposits; sale of cooperative interests; escrow Deposits taken in connection with the sale of cooperative interests by a cooperative housing corporation, with respect to units intended for residential use shall be deposited and held in an interest-bearing escrow account for the benefit of the purchaser, until such time as the transaction closes unless […]