A limited-equity housing cooperative is a form of shared housing in which many individuals or families jointly purchase housing, often a multi-unit home. Instead of owning a particular unit within it, each party owns a share of the property as a whole, which expands access to home ownership for lower-income people.
In many countries, home ownership is a time-tested path to financial security. But today, rental costs in urban centers across the globe continue to rise at a rate faster than income, making it nearly impossible to save enough for a down payment on a house. Expensive down payments and the skyrocketing cost of urban real estate have pushed home ownership further out of reach for many on low to moderate incomes. Communities need a model which serves the housing needs of these income groups over time. There is an accessible alternative to a lifetime of high rent payments to landlords: limited-equity housing cooperatives (LEHCs).
Read the rest at Nonprofit Quarterly
Add new comment