The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-03-20

A splendid solution for the nous
ing and high rent problems CONFRONT
ing present-day tenants, whlch is
meeting with increasing favor In
many cities throughout the country
but which has not yet been en-
braced by Washington tenants Is the
cooperative purchase and ownership
OF apartment houses.
There 10 no reason why the plan
would not work with the same sue
cess In Washington as has met It's
adoption elsewhere.
Working OF the Plan.
The cooperative housing plan as
applied to multi-family houses IL the
sale OF the building to the tenants
or to a group OF people who become
tenants OF Il. This plan. while work
cd out Independently, has many points
OF similarity with the so-called CO.
partnership housing schemes in Great
Britain. Several such enterprises In
England have been started In which
the co-partners rent their homes from
a corporation in which they are stock
holders. In this way, IL they are COM
PEELED to move by reason OF a change
Of employment or otherwise, they
can surrender their homes and move
In n new locality, at the same time
holding their stock interest in the
corporation If they choose, which
pays them a dividend.
The cooperative housing plan, as
adopted in other cities, is to meet the
needs of people whose incomes range
from $1,000 to $4,000. and who seek
the comforts of living in apartment
homes and wish TO protect themselves
against excessive increases in rent.
There are a number OF cooperative
ly owned apartments in New York.
but these have usually been confined
to buildings owned by people OF
large means, who take perpetual
leases upon their apartments. and
, when not occupying them either sub
let or pay the rent themselves. This
scheme is not applicable to people
Of moderate means. who frequently are
compelled to move because OF change
of employment and other reasons and
cannot afford to assume the re-
sponsibility of possibly paying rent
In two places.
Preventing Deterioration.
To meet this situation and at the
same tire prevent a possible de-
terioration in the tenancy of the
building. the lease of the apartment
and the ownership OF the building
have been kept separate in the CO.
operative ownership plan, except that
in the first instance the tenant and
the owner are the same person. Liter
ally, each tenant is his own landlord.
The equity in any building above the
mortgage, usually a savings bank or
insurance company mortgage of long
term, is capitalized by the formation
nf n n title To the
building. The tenantowners each
subscribe for an amount of stock in
proportion to the size of the apart
ment which they occupy. In other
words, the tenant of four-room
apartment would not be required to
purchase as much stock as the ten
ant of a fve-room apartment, and
so on.
The tcnant-owner at the same time
that he purchases the stock leases
an apartment at the current rent, re-
| Movable from year to year indefinite
ly at the will of the tenant, but with
the option that, upon notice before
July / in any year, he may surrender
his lease the following October l.
Management of Building.
The corporation of tenant-owners.
| Of which each tenant is a director,
makes a contract for the management
Of the building with some competent
| real estate agent.
The agent collects the rent, makes
all the disbursements on account or
the operation of the building. and
what is left comes back to the stock
holders as a dividend upon their in
vestment 1t will thus be seen that
the tenant owners have no burden in
connection with the management OF
the building. and are only required to
meet once or twice . year as directors