Far from being a niche, the Uruguayan model shows how a solid legal framework and State commitment can guarantee the right to decent housing, while at the same time, promoting a deep-seated social cohesion.
This success story dates back to the 1968 ‘Ley Nacional de Vivienda’ (National Housing Act). This legislation was before its time, as it acknowledged and supported cooperatives as a legitimate, preferential route towards a solution for housing. Instead of being limited to just building social housing, the Uruguay State opted for a model that empowers the citizens: the mutual aid system. This focus does not only tackle the need for a roof, but it also transforms the beneficiaries into the protagonists and administrators of their own patrimony.
Self-management and shared effort
The heart of this model lies in its self-management and the shared effort. The families that make up a mutual aid cooperative organise themselves to actively take part in the building of their future homes. For years, the cooperative members provide hours of physical work – alongside the professional technical assistance funded by the State, which significantly reduces the building costs. This process generates an intangible added value: social capital. As they are building together, the neighbours forge strong community links, which are essential for social cohabitation and the subsequent administration of the housing complexes.
The government’s role is essentially that of a facilitator and funder, not that of the direct constructor. The State, through the National Housing Fund, guarantees access to very long-term loans – often 25 or 30 years, with low interest rates. This financial architecture ensures that the monthly fees are accessible to families on medium and low incomes, allowing the investment to be reinvested in the system itself to benefit future cooperative groups. It is a powerful tool for redistributing wealth and for the fight against urban inequality.
Cohabitation rules and use of common spaces
The social impact of housing cooperatives in Uruguay goes way beyond bricks and mortar. These complexes are designed and managed by their actual inhabitants, which can be translated into greater care for the setting and a strong identification with the district. The cooperative members take democratic decisions about the maintenance, the cohabitation rules and the use of common spaces, strengthening the members’ democratic control principle, an essential keystone of cooperativism.
This model has been shown to be remarkably resilient. Over the decades, it has survived economic crises and political changes, thanks to the law that has upheld its original spirit. In the context of the IYC 2025, Uruguay offers a clear lesson to the world’s governments: investing in legal frameworks that are favourable to cooperativism means investing in long-term solutions, centred on the people. The Uruguay housing model is living proof that effective cooperation can cut across the political situation to build both a better world and a home, at the same time.
