About us
FE.CO.VI (FEDERACIÓN DE COOPERATIVAS DE VIVIENDA ) IS THE FEDERATION OF HOUSING COOPERATIVES OF USERS VIA IN-ADVANCE SAVINGS PLAN.
IT IS A UNION ENTITY which defends the interests of the housing cooperatives via in-advance savings plan in whose core all ideologies harmoniously coexist, united by a common ideal of SERVICES.
FE.CO.VI FOSTERS ONLY THE BUILDING OF ECONOMICAL HOUSING OF SOCIAL INTEREST.
ITS MEMBER COOPERATIVES BUILD AT A 30% BELOW THE BUILDING COSTS OF PRIVATE
DEVELOPERS:
The Institutes of Technical Assistance which train them for the self administration
of the construction, succeed in turning the cooperatives into building companies,
which directly buy materials and engage labor, thus achieving much lower average
building costs than the those of private developing.
It is approved by the cooperative experiences of EL LADRILLO, LA CARRETA and COVIAPA with alternative finance exclusive to the cooperative system: COFAC, CACDU, and AFAP INTEGRACIÓN, supported with a reserve fund contributed by FE.CO.VI and the Swedish Cooperative Centre (SCC) .
The Cooperative Banking grants credits expeditiously thus enabling construction via self administration in a record time between 10 and 12 months as opposed to the many years of grueling proceedings before the Governmental Banking , which is conditioned by political and private interests.
These unprecedented construction experiences without the support of the State, are hindered by the IMABA(tax on loans) and IVA (value-added tax) , taxes upon the interests, which raises the monthly amortization repayments over the limited savings capacity of some co-operativists.
FE.CO.VI is still struggling to eliminate those taxes on home-loans.
You may contact us in Montevideo, capital city of Uruguay (South America),(street)Wilson Ferreira Aldunate 1345 of.(desk) 502, from Monday to Friday , from 3:00 p.m to 9:00 p.m, telephone/fax number (--598 2) 901.05.90 or via electronic mail at fecovi@fecovi.org.uy
IN-ADVANCE SAVINGS PLAN
The In-advance Savings Plan , considered in the Act number 13728 and its modifying and complementary statutes, consists in the Savings of a certain amount of money (by the Cooperatives) and in-advance to the grant of a loan for the housing construction.
Such savings aim at paying for the purchase of the property and partially covering the construction costs.
These savings must be , of at least, a 15% of the total value of the construction work plus property value.
The great majority of the new beneficiaries ( employees , small retailers, freelance workers, professionals, etc) constitute families of medium-low and decreasing incomes, whom in order to be able to afford accessible monthly amortization repayments (less than a rent ) must resort to subsidized loans granted by the Ministry of Housing. This forces to construct houses using building typologies from 2 to 5 levels maximum ; and makes it impossible for the cooperatives to have access to costs of housing of more than 5 floors (plus a lift).
USERS SYSTEM
The Users System, considered in the cited laws, consists in that property of the real state is the cooperative´s property, whose use and enjoyment is contracted by the users for unlimited time and it is inheritable.
SOCIOECONOMIC CONSEQUENCES OF THE USERS SYSTEM
Together with the same investment in money :
1.We build a 30% more of housing, always keeping the constructive level which has characterized every cooperative of our federation.
2. We generate an extra 30% of direct and indirect employment.
3.We favor a 30% more families than private developers, who create independent owner cooperatives without federal help.
4) A record of 30 years guarantees that there has been no default with the amortization of loans of any of its affiliate cooperatives. If a partner is in temporary economic trouble, it is assisted by a relief fund which enables the cooperative to continue with the amortization repayments. This prevents the execution and subsequent sale of the attached property together with the subsequent costs and risks upon the lending bank as it occurs in the case of a proprietor who has fallen into arrears.
5)Cooperatives under users´ regime generate a property value control, since they are not part of real state speculation. Thus they contribute to the settlement of the original neighbors , preventing the expensive migration to the city outskirts.
ECONOMIC ADVANTAGES OF THE USERS SYSTEM
1. 30% of savings in the building costs is reflected in a 30% reduction in the advance savings ( set by law in a 15%) and another 30% is reflected in the monthly redemption rate.
2. users cooperatives are released from any tax levying the real state. At present this represents a greater average of monthly savings per partner.
3. the housing reparations are on the Cooperative´s side.
4. costs of administration, maintenance and community services are reduced as a result of self-administration.
CONTRIBUTION TO SOCIAL DEVELOPMENT
1. Participation as voter and eligible members in the democratic government of the cooperative is compulsory.
2. Harmonious coexistence is assured by rules which sanction any act proving detrimental to other neighbors, even if necessary, resorting to the exclusion of the partner in the event of non-justified and repeated default. The election of the new partner is done pursuant to strict moral and socioeconomic rules.
3. The cooperative system of users has radically transformed the concept of community property as opposed to private property.
4. The need for permanent analysis and group decision does not only develop critical awareness on of the reality upon which the cooperative is inserted, but it also activates mechanisms of social solidarity fostering responsible and mature participation in the provision of complementary services.
5. The democratic decision –taking processes in Executive Boards, Sessions and Plenary sessions contribute to improve social insertion through acquisition of new capacities and knowledge, the experience of assuming responsibilities and connecting people with the neighboring environment for the boosting of community actions to improve the cultural and social environment.
6. The families federated at FECOVI constitute organized communities of neighbors, with proven savings capacity to co-finance building work and services of common interest feasible through agreements made with departmental Municipalities, to achieve these aims of communication with their neighbors and make them protagonists of the renovation of the city.
CONCLUSIONS:
THE COOPERATIVE SYSTEM OF HOUSING USERS, IS OF CRUCIAL SOCIOECONOMIC IMPORTANCE AT BOTH NATIONAL AND LOCAL LEVELS AND FOR THE QUALITY IMPROVEMENT OF LIFE OF THE BENEFICIARY FAMILY UNITS.