Financing the Future of Cooperative Low-Income Housing
“In a limited-equity cooperative, members buy a share in the development, which gives them the right to occupy one of the units. Members pay monthly fees to cover maintenance expenses and participate in decision-making around building management. To ensure that limited-equity cooperatives remain affordable, shares have restricted resale values and members must also fit income limitations. This arrangement can make limited-equity cooperatives more accessible to lower-income households than community land trusts or other affordable housing models. A recent study from the National Housing Institute found that 90 percent of inclusionary housing programs involving owner-occupied housing use some form of shared equity to preserve the affordability of units.”