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Student Housing Cooperative considers allowing non-student residents

February 24, 2015

A recent referendum proposed changes to the MSU Student Housing Cooperative’s article of incorporations that include SHC applying for federal tax-exempt status. The benefits of this would include student co-ops being exempt from corporate income taxes and eligibility for donations, public and private grants.

But the application process for tax-exempt status would take time and amend the SCH articles and bylaws, making cooperative housing not exclusive to MSU students.

The SHC executive committee is not prepared to make any official statements regarding the internal member discussion regarding these documents either way.

“SHC’s mission is to promote quality housing and services through our cooperative principles,” said Holly Jo Sparks, executive director of the SHC office staff. “As an organization we are committed to expand the cooperative movement.”

The restriction to only students was only added in the past decade. When most of the co-ops were founded they were open to all members of the East Lansing community as a low-rent, discrimination-free occupancy.

The potential changes would require SHC to improve their screening and eviction processes, and be more mindful of the inclusion of low-income residents who may have a hard time continuing at MSU due to economic difficulties.

Dan Birkholz, president of the executive committee for SHC, said this is a long process and a decision has not yet been made.

“We’re trying to put our cooperative in a position that will allow it to serve the community as best it can for as long as it can while maintaining all of our cooperative principles,” Birkholz said.

The official document reported the effort to make SCH “more affordable” and tax-exempt came about from collecting information from current students. The proposed changes to the articles and bylaws were distributed to current members in a ballot form that must be passed by a two-thirds majority of the voting body. The deadline for a decision to be made is March 2.

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