When multiple buildings constructed on the same land form separate cooperative housing societies, the issue of maintenance and management of common amenities naturally arises. Facilities such as internal roads, compound walls, security, gardens, common services, drainage, lighting, water infrastructure, and conveyance of land are shared by all societies. To manage these efficiently and distribute expenses fairly, the law provides for the formation of a Cooperative Housing Association.
What Is a Cooperative Housing Association?
A Cooperative Housing Association is a statutory body formed by two or more registered cooperative housing societies to manage and maintain common facilities and common land.
As per Section 154B-1(8) of the Maharashtra Cooperative Societies (MCS) Act, 1960, a cooperative housing association means an association of housing societies or other legal bodies formed for:
• maintenance of common amenities,
• management of common services,
• sharing expenditure relating to common facilities, and
• obtaining conveyance of the common land, where applicable.
In your case, since seven societies exist on the same plot, forming a cooperative housing association is the most practical and legally appropriate solution.
Purpose and Benefits of a Cooperative Housing Association
The main objectives include:
• Maintenance of common infrastructure used by all societies
• Equitable sharing of expenses among member societies
• Centralised decision-making for common services
• Simplified billing and accounting for shared costs
• Ease in obtaining land conveyance in favour of the association
This structure avoids disputes between societies and ensures transparency in managing shared assets.
Procedure to Form a Cooperative Housing Association
To form a cooperative housing association:
• Minimum two registered housing societies are required
• Each society must pass a General Body Resolution agreeing to:
– form the association,
– become a member of it, and
– contribute to common expenses
• Each society must nominate one representative to the managing committee of the association
• The nominated representatives coordinate for registration with the Registrar of Cooperative Societies
Once registered, the association becomes a separate legal entity responsible only for common matters.
What Is a Housing Federation?
A Housing Federation serves a completely different purpose.
As per Section 154B-1(16) of the MCS Act, a federation is a state-level or district-level federal society, notified in the Official Gazette, representing cooperative housing societies within a specified area.
Purpose of a Housing Federation
A housing federation primarily:
• represents the collective interests of affiliated societies,
• provides expert guidance, education, and training,
• acts as a representative body before government authorities, and
• promotes cooperative movement and awareness.
It does not maintain buildings, land, or common amenities.
Key Differences Between Cooperative Housing Association and Housing Federation
Nature
• Cooperative Housing Association – operational and property-oriented
• Housing Federation – representative and advisory
Members
• Association – housing societies sharing common land/facilities
• Federation – societies from a district or state
Purpose
• Association – maintenance, services, expenses, conveyance
• Federation – advocacy, education, coordination
Legal Duties
• Association – manages common assets
• Federation – governed by Section 154B-28, including creation of education and training fund
Contribution Requirement
• Association – contribution towards common expenses
• Federation – mandatory contribution to education and training fund by member societies
Which Is Suitable for Your Case?
Since your objective is sharing common expenses and maintaining common facilities, a Cooperative Housing Association is the correct and legally recognised structure. A housing federation would not address your operational needs.
Conclusion
For multiple societies on a single plot, a Cooperative Housing Association ensures legal clarity, financial fairness, and efficient management of common amenities. A housing federation, on the other hand, plays a policy-level and advisory role and is not meant for day-to-day maintenance or expense sharing.
