The Syndikat relies on a model of divided powers. Within the house LLC, there are two subordinate bodies with different interests that mutually monitor each other. Thus, a reprivatization is rendered nearly impossible, since both of these bodies would have to agree to the sale of the house.
Of course, even a cooperative can stipulate in its statutes that living space is to be withdrawn from the capital market. However, with a qualified majority, the members of the cooperative can change the statutes. Since there is no way to prevent this from happening, the cooperative model seemed too ‘insecure’.
In addition, it is important to have autonomous projects which are able to make their own decisions about matters of concern to the respective project (except for the sale of the house) and that will not endanger the other projects in the event of insolvency. This is possible only if each house has an independent legal status. An LLC is ideally suited for this purpose, since it has low ‘maintenance costs’ and is relatively easy to manage: unlike a cooperative, an LLC does not have to be a member of an auditing association that can charge up to 5,000 Euros for an annual audit; moreover, an LLC does not have to have investments approved by an auditing association. An auditing association has to assess whether the investment is profitable. New projects, however, initially generate losses.
A foundation would indeed be a ‘secure’ legal form for the neutralization of property, but would unfortunately only be able to invest its interest income in its specified purpose. Therefore, its assets would have to be invested at high interest rates in order to earn as much money as possible for new projects. The Syndikat, however, wants to place money at the disposal of the projects directly, charging little or no interest.