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Local housing advocates secure victory

Written by Samuel A. Cohen

Aggie News Writer

Published on Feb 18, 2010

Many California workers will have a new resource when it comes to affordable housing. The California Legislature unanimously voted in favor of AB 1246, which Gov. Schwarzenegger later signed.

Rep. Dave Jones (D-Sacramento) authored the new bill that authorizes the establishment of "workforce housing cooperative trusts."

"Californians of all income levels need access to housing, and I am proud that this bill creates a new form of affordable housing," Jones said in a written statement on his website. "AB 1246 will allow employer and labor organizations to develop and fund workforce housing cooperatives, which will provide new lower cost home-ownership opportunities."

Cooperative housing is designed to allow a sponsor such as an employer, labor union or other social institution to buy a plot of land and then parcel it to individual members of a cooperative. The sponsoring organization holds a common mortgage over all of the properties, and individuals buy a share in the cooperative along with the right to occupy a housing unit.

Ordinarily, a property's equity increases as the debtor makes payments against the mortgage balance or as the property value appreciates.

AB 1246 defines housing cooperatives as limited equity housing, meaning equity increases are enjoyed by the entire cooperative and not just by individual members. The bill aims for individual payments within the cooperative to become more affordable over time even in a fluctuating real estate market.

Collective ownership through sponsor organizations is further facilitated by the sponsor organization's membership in the San Francisco-based Federal Home Loan Bank, which will provide subsidized loans to the sponsor to help affordably finance the property.

AB 1246 has a direct effect on Davis, said David J. Thompson, who sponsored the bill and is president of Twin Pines Cooperative Foundation. For example, the Davis Joint Unified School District already owns two large sites zoned for housing. DJUSD could lease the land to a sponsor organization allowing district employees to form a cooperative on the already-owned land.

"I think there is always a moment when there is a downturn in the economy when people have to come to terms with the idea that things they could have done themselves are not possible or at least as easy anymore," Thompson said. "You can either drop out of the [housing] market completely, or you can look at other people in your position and form a co-op."

Sen. Lois Wolk (D-Davis) voted for the bill.

"This was a good bill sponsored by our very own David Thompson" Wolk said. "In this time of economic and housing depression this is one more option for Californians."

Dos Pinos is a cooperative located in Davis. Between 1986 and 2004, Dos Pinos had the lowest monthly housing cost to owners anywhere in Davis, according to Thompson in a 2004 article in the Cooperative Housing Journal. Dos Pinos also had the only units which have been consistently accessible to the same or lower income groups, according to Thompson's article.

One key difference is that cooperatives formed under the new bill would have less leeway to dissolve through member votes and transfer equity to individual owners.

"One of the dilemmas is that limited equity cooperative housing creates a fairly sizable asset," Thompson said.

He said it is important to keep the cooperatives as a public good rather than a way to make unjust private profits.

SAMUEL A. COHEN can be reached at city@theaggie.org.

(Washington, DC) – The Nationwide Foundation in Columbus, OH has awarded a grant of $90,000 to the Cooperative Development Foundation. It will be used for CDF’s cooperative innovation initiatives and for administration of the United Co-op Appeal, a workplace giving campaign that benefits cooperative development organizations. Part of the grant will also benefit the National Cooperative Business Association’s domestic and international cooperative development activities.

“The Nationwide Foundation’s grant is very important to the development innovation sparked by our funding” said CDF Executive Director Steven Thomas. “It provides significant operational and program support at a time when it can be most effective.” Through its family of funds, CDF makes grants and loans for co-op housing and services for seniors in rural areas, student housing co-ops, training and education in many co-op sectors, support of cooperative development organizations, disaster relief and recovery, and cooperative leadership development.

“Nationwide is pleased to support CDF and the important work it does across the country,” said Chad Jester, Vice President of Corporate Involvement for Nationwide and President of the Nationwide Foundation.

Nationwide Foundation is an independent corporation funded by contributions from Nationwide companies. Founded in 1959, since 2000 it has given more than $190 million to non-profit organizations. Nationwide, based in Columbus, OH, is one of the largest insurance and financial services organizations in the world. For more information, visit www.nationwide.com.

The Cooperative Development Foundation is a 66-year-old, 501(c)(3) charity that sparks development innovation by providing community developers with the hardest money to get- the first dollar in. Find out more at www.cdf.coop.

Robert I. Kabat, 84, an official in the worldwide rural electrical cooperative movement, died Feb. 10 of
complications from aplastic anemia and pneumonia at Inova Mount Vernon Hospital. He lived in the Hollin
Hills area of Fairfax County. Mr. Kabat worked from 1953 to 1997 at the National Rural Electric Cooperative Association, where he founded and led its management services program. Inthe early 1960s, he led the association's international program, which helped bring electricity to portions of Latin America and Asia. He launched university-based training courses for co-op managers, a program that was named for him upon his retirement. Robert Ivan Kabat was born in Somerset, Pa. He graduated in 1949 from Oberlin College in Ohio. He served in the Merchant Marine during World War II and graduated from the U.S. Merchant Marine Academy in 1946. In retirement, he was an adviser to the boards of CARE, the Consumer Federation of America, the National Consumers League and the Cooperative Development Foundation. In 2005, he was inducted into the Cooperative Hall of Fame. Survivors include his wife of 60 years, Lois "Sandy" Kabat of Fairfax; three daughters, Ellen Kabat of Herndon, Gale Kabat of Annandale and Jennifer Kabat of Margaretville, N.Y.; a sister, Dorothy Kirby of Washington; and a grandson.

-- Patricia Sullivan

CDS Consulting Co-op and Food Co-op 500 invite you to participate in a new series of six internet based workshops. There is no fee for attendance, but you must register for each workshop to attend. Please forward this invitation to anyone you know who is working on starting a food co-op. Some topics may be of interest to people working in existing food co-ops that are considering an expansion, relocation, or additional store. For registration links and for more information, see the details below or visit this LINK:

http://www.cdsconsulting.coop/startup-webinar

January 21, 2010
For Immediate Release:

ARLINGTON, VA, January 21, 2010 — NRECA International, in coordination with USAID and other international and local partners, has sent a four-person rapid-response team to Haiti to assess the damage of the electric power sector following last week’s catastrophic earthquake.

The NRECA International Foundation has been present in Haiti since 1998. The Foundation coordinated donations of money, material, and volunteer labor from the US cooperative community to help Haitians in Pignon, a small town in the north-central region, establish the Cooperative Electrique de Pignon (COOPELEP), the first electric cooperative in Haiti.

The NRECA Foundation is contributing $50,000 to the initial Haiti earthquake relief effort, and is spearheading a fundraising effort for additional contributions from the greater NRECA membership.

“Providing safe, reliable power will be vital to the massive assistance effort now underway in Haiti,” said Glenn English, CEO of NRECA. “NRECA’s International Foundation and our member cooperatives stand ready to help with money, materials and manpower.”

The response team was given two principal assignments: (1) to conduct a rapid appraisal of the short-term measures needed to repair critical segments of the electric power system in Port-au-Prince; and (2) to identify the emergency power requirements for hospitals, health centers, refugee camps, and other public facilities both in Port-au-Prince, and at border towns along the Haitian-Dominican frontier.

The team has completed an initial field assessment of the Electricite du Haiti (EDH – the national electric company in Haiti). Significant damage was noted in three of the substations, while the transmission and distribution circuits sustained relatively minor damage.

After assessing power needs at principal relief centers, the team coordinated the installation of a 500 kVA emergency generator, donated by the Dominican Republic, at the principal hospital in Port-au-Prince. Two additional 1000 kVA generators will be installed this week to augment power to the hospital and to other relief centers.

The team will continue to support immediate needs in Port-au-Prince, and will begin efforts to assess emergency power needs outside of Port-au-Prince in the immediate future.

All donations made through the NRECA International Foundation’s website (www.nrecafoundation.coop) will be restricted for the Foundation’s Haiti Relief Efforts. Donations will continue funding the rapid response team currently in Haiti as well as travel for future linemen crews. Please make a donation today.

CDF is mentioned in ICA's Haiti Call for Assistance. Please Click Here for full press release

So just what is this Holiday Program all about?

CDF is giving you the chance to give a gift in honor of someone else. You know those people who are so hard to shop for? Well here is gift that you can feel confident they will enjoy! The person being honored will receive a lovely gift certificate from CDF, recognizing the donation made and informing them that the donation made is going to support -

-Affordable Housing for the elderly
-Economic equality for rural farmers
-Cooperative training and education for college students and
-Providing smaller organizations with the opportunities and capabilities to achieve greatness like the storied Cooperatives of Sunkist, Ocean Spray, Carpet One, REI, and Shoprite...to name a SELECT few.

So please, help CDF help others by participating in our Holiday Program. Not only will your donation go to support our needs, but you'll be able to see the joy on the faces of those your gift honors as well!

So how do I participate?

-Go to CDF's home page.
-Enter donation amount on the LEFT HAND column GOOGLE Box
-Fill out your payment information
-Send Terence Buen at tbuen@cdf.coop the Name and Address of the person you are honoring
-CDF sends a gift certificate to said person, acknowledging the donation.

If you have any questions please contact tbuen@cdf.coop or Terence Buen at 703-302-8097.

Thanks and Happy Holidays!

CDF

2010 COOPERATIVE HALL OF FAME CLASS INCLUDES INTERNATIONAL FLAVOR

Washington, D.C.—Credit union pioneer Larry Blanchard, rural utility icon Glenn English, cooperative visionary David Thompson and Ethiopian cooperative legend Werqu Mekasha have been selected for spring 2010 induction into the Cooperative Hall of Fame.

The four cooperative leaders will be recognized at the annual Hall of Fame Dinner and Induction Ceremony at Washington’s National Press Club on Wednesday, May 5, 2010. The event annually draws a standing-room-only crowd.

The Hall of Fame, the cooperative community’s highest honor, recognizes those who have made “heroic” contributions to cooperative enterprise. “These four individuals could not better exemplify the meaning of the term leadership in their work with cooperatives,” said Steven Thomas, Executive Director of the Cooperative Development Foundation, which administers the Hall of Fame. “The inclusion of three iconic US cooperative leaders is deeply satisfying, and the induction of the very first non-US citizen is an exciting development that will add to the character of the Cooperative Hall of Fame induction ceremony.”

Cooperatives are democratically owned and controlled businesses that are driven by member-service in addition to their financial bottom lines. Examples include credit unions, food co-ops, rural utility co-ops, and farm co-ops. Hall of Fame nominations are received from throughout the cooperative community and are screened by two committees of national co-op leaders. The final selection is approved by the board of the National Cooperative Business Association.

‘Leadership by example’

The Cooperative Hall of Fame was established in 1974 by NCBA and is housed in NCBA’s offices in Washington. It can also be visited on the web at www.heroes.coop or www.cdf.coop. “The 2010 Hall of Fame class will join the 139 cooperative heroes already in the Cooperative Hall of Fame, whose lives and accomplishments provide historical examples of leadership for the entire cooperative community,” Thomas said.

Following are details on the 2010 inductees. For dinner attendance or sponsorship information, contact CDF at 703-302-8097 or tbuen@cdf.coop.

2010 Cooperative Hall of Fame Class is as follows:

• Larry Blanchard (Credit Unions)
Shaper of today’s credit union landscape – An employee and organizer of credit unions who worked for every major credit union organization in the U.S. Credit union development educator who helped guide the evolution of the Campus Credit Union Council. Leader of Operation Grassroots, the struggle to maintain regulatory independence for credit unions. Uniter of credit unions, credit union organizations, consumer and labor movements, other cooperatives, business leaders, and people of all ages to make H.R. 1151 law, without which there might not be a credit union movement today.

• Glenn English (Rural Utilities)
Promoter of rural America and rural utilities – Former Congressman from Oklahoma committed to the quality of life for small-town and rural America, promoter of cooperative enterprise, and champion of sweeping changes to the electric cooperative financing program. CEO of NRECA who defended the nation’s electric cooperatives from assaults on their power supply and financing program and represented rural electric cooperatives in negotiations leading to the comprehensive energy policy passed in 2005. Influenced national policy as CEO of NRECA and as a member of the boards of the Consumer Federation of America and NCBA.

• Werqu Mekasha (Agriculture)
Revitalizer of agricultural cooperatives in Ethiopia – having held high government posts under the Haile Selassie regime and been jailed for eight years after the regime was overthrown, Mekasha devoted himself to improving the lives of his countrymen through agricultural cooperatives, forging government policy to assure cooperative independence. Through his heroic efforts, Ethiopia’s cooperatives not only became businesses that increased farmers’ incomes but also set the stage for growth and trade, especially in the coffee sector.

• David Thompson (General)
Multi-sector leader, founder, innovator, visionary, developer, and author – As an employee of NCB and NCBA and as a volunteer with dozens of organizations and efforts, has advanced cooperatives of all sorts by developing and strengthening co-ops, co-op organizations and cooperative infrastructure, support systems and legal frameworks. Examples include local and national legislation to facilitate co-op housing and to establish the National Cooperative Bank, funding for the Kagawa Fund for student cooperatives, replication of the Cooperative Community Fund idea in food co-ops across the nation, and international cooperative work.

# # # # # #

The Cooperative Development Foundation is a 501 (c) 3 charitable family of funds that advances economic development through innovative cooperative enterprise.

The “Blackjack” (21st annual) edition of the Race for Cooperative Development features a return to Hains Point in East Potomac Park in Washington, DC on October 17 for the annual rite of Coop Month in the Capitol Area. This year, a full house of 500 is expected due to CDF’s partnering with the Boy Scouts’ National Capital Area Council! This is a unique chance to teach a whole new generation about coops in a terrific, fun way.

This year, we have added incentive to make a great showing for coops since they are in the news. We will have multiple VIPs attending the Race, including Sergio Rojas, Executive Director of the President’s Council on Physical Fitness & Sports.

We need YOU there to make this event a winner! Log onto www.cdf.coop to register, volunteer, donate and get involved! All eyes are on coops now, let’s make a grand statement with this year’s Race for Cooperative Development!

United Coop Appeal… Something Good, All Year Long

This year’s UCA campaign is shaping up as a record campaign. After a 25% increase in donations thorough last year’s UCA campaign, we are actively recruiting organizations to host the 2009-2010 UCA. Never hosted it before? No problem! We’ll walk you through it, it’s easy.

This is one of those programs that depends on scale to work- the more the merrier. Imagine the multiplicative effect of hundreds of coops hosting the UCA, offering it to their employees? Cooperative charities would be able to make mountains move for new coops.

Visit www.cdf.coop today and download the host registration form! Of course, you can always drop us a line at tbuen@cdf.coop and sthomas@cdf.coop.

Onward and upward!

Steve Thomas

Executive Director

CDF

Since the MSC Fund came to CDF in 2004, it has surpassed the half-million mark in grants given -- $547,117!