Oh lord.
Ok. Let's break it down.
Acorn Homes owns a street of 20 houses. They are a housing association and all houses are rented out to tenants. Every tenant pays 500pcm rent.
Acorn Homes receives 20 lots of 500 per month every month. They keep the money and use it for things like wages, insurances, repairs to the street, a gardener to cut the communal grass in the middle of the estate and they save the rest in a pot.
In 10 years time, they need to put new bathrooms in each home. So they book a contract to supply 20 bathrooms to the houses on the street. Then the invoice comes in, and the money from their bank account is paid to the bathroom fitters.
The money in Acorn Homes bank account is 100% made up of peoples rent.
Therefore, every Acorn Homes tenant has, over the last 10 years, been giving some of the money to the bathroom fund. Therefore it is not a free bathroom, but something that every tenant has paid towards over the last 10 years.
One day, Acorn Homes decide to sell off number 20. So the home is sold, and Acorn Homes now owns 19 houses.
When they then come to do the new kitchens, they use their bank account (full of people rent) to pay for 19 kitchens.
Number 20 has to pay for their own kitchen, and does this using their own funds, as they do not have a landlord who is obliged to provide this.
Mortgages are cheaper than rent, so Number 20 now only pays 400pcm to the bank for their mortgage, and now has 100pcm spare to save for replacements in their owned home.