Ameen Housing Co-operative (AHC) coordinates collection of funds from members for investments in residential homes. A member intending to purchase a home through AHC is required to deposit his/her share of total investment with AHC for six months to qualify for appropriate funds.
When AHC has sufficient funds to invest in the next home, the member who satisfies all the requirements and is at the top of the wait-list, is authorized to find a home or refinance his/her mortgage. The member selects a home of his/her choice.
The house is jointly owned by the member and AHC in proportion to their investments.
The title of the house is held by AHC until the member/home-owner fulfills all the obligations of taking full ownership. The home-owner pays monthly rent to the Co-op until AHC's investment (including any appreciation in property value) is completely paid off.
A portion of the rent goes to the Co-op's revenue pool and a portion goes towards the home-owner's principle. Amounts are proportionate to the member's and the Co-op's ownership in the house. Rents are assessed by the AHC annually and are adjusted upward or downward, based on the rental market conditions.
Any appreciation or depreciation in property value at buy-out time is shared between the home-owner and AHC according to a formula that depends on their initial share in the house.
Every quarter the AHC Board declares a dividend from the net income for that quarter.