Genotec

Genotec, originally founded as Genotech Wohnbaugenossenschaft eG on 6 November 2002, was a German housing cooperative headquartered in Ludwigsburg. Its main business was an option-to-buy model, a special form of rent-to-own, aimed at providing members with permanently affordable housing. The cooperative required interested parties to become members with a minimum share of 100 euros, and through capital contributions of 10,000 to 40,000 euros or monthly savings, members could qualify for an allocation. After a waiting period, the cooperative would build or buy a desired property, retain ownership, and transfer it for use under a 25-year fixed-rent contract, with the member holding a purchase option secured in the land register. The model used allocation mathematics similar to building societies and operated as a closed money cycle, with state subsidies available for cooperative shares. On 15 January 2014, the cooperative was renamed GENO Wohnbaugenossenschaft eG. By 31 December 2016, it had 4,976 members (down from 5,269 in 2015) and 32 employees (down from 43). It reported annual deficits of −4.83 million euros in 2016 and −5.29 million euros in 2015, covered by equity. The balance sheet total as of 31 December 2017 was 32.15 million euros. On 4 May 2018, due to accumulated losses of 18.3 million euros, the cooperative separated from its board members Jens Meier and Martin Däuber. On 25 May 2018, it announced the opening of insolvency proceedings under self-administration. Consumer advocates and media had warned about the company since 2006. In 2006, the magazine Finanztest considered the plans unrealistic and the costs higher than bank financing. Industry representatives later assessed the scheme as a Ponzi scheme. Approximately 10,000 investors were affected, with potential damages of up to 30 million euros. Court proceedings against several former board members are ongoing, with allegations of fraud and delayed insolvency. A verdict against founder and long-time board member Jens Meier was expected in 2021. The indictment alleged that Meier took 300,000 euros in remuneration in 2017 alone and that properties were sold below value to straw companies, with at least 4.2 million euros misappropriated.

Genotec was founded on 6 November 2002 as Genotech Wohnbaugenossenschaft eG, a housing cooperative based in Ludwigsburg, Germany. Its statutory purpose was the economic promotion and support of its members, with the specific goal of providing permanently affordable housing. The cooperative's main business was an option-to-buy model, a special form of rent-to-own. Under this model, interested parties had to become members with a minimum share of 100 euros. Through capital contributions of 10,000 to 40,000 euros (100 to 400 shares) or monthly savings of at least 25 euros over up to 300 months, members could qualify for an allocation. After a waiting period of at least 12 months, the cooperative would build or buy the desired property, retain ownership, and transfer it for use under a notarized 25-year fixed-rent contract. The member held a purchase option secured in the land register, with a unilateral three-month termination right. Members were required to save at least 1.1% of the investment sum annually to purchase the property at a notarized price within 25 years. If the option was not exercised, the member could move out with three months' notice and return the property. The model used allocation mathematics similar to building societies and operated as a closed money cycle, with state subsidies available for cooperative shares. On 15 January 2014, the cooperative was renamed GENO Wohnbaugenossenschaft eG. By 31 December 2016, it had 4,976 members (down from 5,269 in 2015) and 32 employees (down from 43). It reported annual deficits of −4.83 million euros in 2016 and −5.29 million euros in 2015, covered by equity. The balance sheet total as of 31 December 2017 was 32.15 million euros. On 4 May 2018, due to accumulated losses of 18.3 million euros, the cooperative separated from its board members Jens Meier and Martin Däuber. On 25 May 2018, it announced the opening of insolvency proceedings under self-administration. Consumer advocates and media had warned about the company since 2006. In 2006, the magazine Finanztest considered the plans unrealistic and the costs higher than bank financing. Industry representatives later assessed the scheme as a Ponzi scheme. Approximately 10,000 investors were affected, with potential damages of up to 30 million euros. Court proceedings against several former board members are ongoing, with allegations of fraud and delayed insolvency. A verdict against founder and long-time board member Jens Meier was expected in 2021. The indictment alleged that Meier took 300,000 euros in remuneration in 2017 alone and that properties were sold below value to straw companies, with at least 4.2 million euros misappropriated.

• Founded as Genotech Wohnbaugenossenschaft eG

• Renamed to GENO Wohnbaugenossenschaft eG

• Separated from board members Jens Meier and Martin Däuber due to accumulated losses of 18.3 million euros

• Announced opening of insolvency proceedings under self-administration

Affordable housing through a cooperative rent-to-own model

• Optionskaufmodell (option-to-buy model)

  A rent-to-own model where members save for a property and receive a purchase option after a waiting period.

• Fraud and Ponzi scheme allegations

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1. 1Geno Wohnbaugenossenschaftde.wikipedia.org
2. 2Genotecwikidata.org