Significant Dates in Cooperative History
1752 – The first successful cooperative was organized in the United States when Benjamin Franklin formed the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire — the oldest continuing cooperative in the U.S.
1844 – The Rochdale Equitable Pioneers Society was established in Rochdale, England. These pioneers wrote down a set of principles to operate their food cooperative which contributed to their success and spread to other cooperatives around the world. The successful establishment of the cooperative in Rochdale marks the beginning of the modern cooperative era.
1865 – Michigan passed what is believed to be the first law recognizing the cooperative method of buying and selling.
1895 – The International Cooperative Alliance (ICA) was established. Today over 200 national cooperative organizations representing 92 nations belong to ICA, the apex organization of all national cooperative movements. The ICA aims to promote cooperative development and trade worldwide and boasts an individual membership of more than 750 million people.
1897 First housing cooperative in U.S. sponsored by Finnish immigrants in Brooklyn
1916 – The first national cooperative association was formed — now known as the National Cooperative Business Association.
1922 – Congress passed the Capper-Volstead Act allowing farmers to act together to market their products without being in violation of antitrust laws.
1920s & 30s – Congress established governmental agencies — the Farm Credit Administration (1929), the National Credit Union Administration (1934) and the Rural Electrification Administration (1936) — to provide loans and assistance to cooperatives.
1941 Section 216 added to Internal Revenue Code so that cooperative members could take a personal deduction of a share of mortgage interest and real estate taxes, just like single family homeowners.
Lanham Act allowed postwar conversion to cooperative of housing for war workers.
1948/49? Executive Order on non-discrimination in FHA housing.
1950 National Housing Act. Added Section 213, FHA insurance of blanket mortgages for housing cooperatives.
1968 Fair Housing Act.
19?? 221 and 236 below market interest programs added
1977? Section 246 allows tenants to buy buildings under default by the owner and get a HUD insured mortgage as a cooperative.
1978 – Congress passed the National Consumer Cooperative Bank Act, establishing the National Cooperative Bank.
1978 fannie Mae announces its program to buy cooperative share loans and blanket mortgages
1978 Congress passes Section 203n authorizing FHA insured share loans
1988 fair Housing Act Amendments re nondiscrimination against families with children
1997? Trump v Commissioner. Housing cooperatives win the right to use Subchapter T like other cooperatives and not be subject to Section 277 for taxation of certain revenue
2000 213 mortgage limits are raised and indexed for future raises
2005? Department of Veterans Affairs given authority by Congress to guarantee share loans for veterans
2006 HECMs for cooperatives (reverse share loans) authorized by Congress
2006? IRC 216 amended to make it easier for cooperatives to qualify it members for mortgage interest and real estate tax deductions
2000 – In 2000, NCBA brought cooperatives to the cutting edge of technology by successfully lobbying the Internet Corporation for Assigned Names and Numbers to create a new top-level Internet domain—.coop—exclusively for cooperatives. The .coop registry, launched in January 2002.
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