How a Swiss non-profit housing cooperative (Wohnbaugenossenschaft, e.g. ABZ Zürich) assembles capital. The movement is privately organised with little government support, ~1,800 co-ops, avg ~90 flats each (max ~5,000), 98% local-acting; market share ~5% in cities rising to ~20% in places. Governing principle is “cost-rent” (Kostenmiete) — non-profit, rent set to actual cost, structurally below market, the same logic as the German Syndikat and Catalan grant-of-use models.
Capital stack (per the 2015 ABZ figures — volatile, verify)
A normal Swiss property: 65% 1st mortgage + 15% 2nd mortgage + 20% owner capital. A cooperative swaps owner capital for cheaper subordinated sources:
- 1st mortgage (bank): ~65%
- 2nd mortgage (bank): ~15% — often guaranteed by a cooperative central body so the co-op need not post the equity itself
- Revolving funds: ~10% — low-interest loans from a government/movement revolving fund (the federal Fonds de Roulement is the recognised real-world instrument; the slide names it generically)
- Owner capital (member shares): ~10%
Support instruments (named generically in source)
- Government: revolving funds; bond issuance by banks for co-ops carrying a national-government guarantee (the real-world vehicle is the bond-issuing cooperative for non-profit housing); loans to cut rent for low-income households.
- Movement self-help: a central cooperative that guarantees the 2nd mortgage; a solidarity-fund foundation lending owner capital; a foundation supplying share capital to young co-ops.
Open question: the 2015 deck names mechanisms generically. Confirm current instrument names, ratios and the Fonds de Roulement terms against a live federal/umbrella source before quoting figures to a user.
Related
- norway-cooperative-financing — the other Nordic/Alpine non-profit model; bank loans + a movement guarantee vehicle instead of revolving funds
- sostre-civic-cessio-us — Catalan grant-of-use co-op that cites Switzerland as an inspiration; same cost-rent, subordinated-tranche logic
- gls-bank-financing — German ethical-bank senior tranche, a comparable role to the Swiss 1st mortgage