At the nineteenth century , cooperative housing movement started to take place in Europe specially great Britain and France . which was about offering solution of affordable housing for those who had no option but rental apartments which was coasty for those of low income .also the cooperatives provided a solution to housing shortages that arose when industrial development attracted people into the cities and targeted the working class families who could not afford to purchase a home. In response to the depressed economic conditions brought forth by industrialization, people began to form cooperative businesses to meet their needs. By gathering their money, people were able to buy food in large quantities at a volume discount, allowing them …show more content…
The luxury cooperatives were hit especially hard. During the Great Depression of the 1930s, most of the high-income housing cooperatives failed. But Generally, the more affordable lower income cooperatives survived the Depression . During World War II had changed the United States with its high demand for war materials and jobs, and the economy was booming. One major change that took place after the war was the enactment of“Section 216 of the IRS code” in 1942. This act allowed income tax deductions for mortgage interest and property taxes for cooperative members. The first major inducement for the development of new co-ops for moderate and low income families in New York came with the leadership of the union movement after the war. The years between 1945 and 1950 saw another increase in cooperative development. By the 1060’s-1970’s, the United Housing Foundation and its predecessors had created number of cooperative housing projects in New York City, ranging in size, with large number of apartments and with focusing on other facilities that meet the members need like its own food stores, nursery schools, a credit union, and a multitude of civic and social