Limited Equity Housing Cooperatives (LEHC) are business corporations in which residents share ownership. Co-op members work together to reach mutual goals based on democratic control and decision-making. Cooperative residents are typically guided in practices of living together in mutual ownership by the "Rochdale Principles," developed by the International Cooperative Alliance.

LEHC offer ownership opportunities to lower income households while limiting the return from resale that they can receive from the housing. 

            Limited Equity Housing Cooperatives:

● Build member participation in the corporation
● Operate as nonprofits
● Combine business and social goals
● Rely on democratic participation
● Create voluntary membership.

             Advantages of Cooperative Housing

   Cooperatives create economic and social benefits:

● Security of tenure. By removing the owner or landlord, the residents control their own living environment and gain homeownership opportunity.

● Lower housing costs. Eliminating landlords' rental profits and lowering operating costs through members' contributions to management activities, maintenance and bookkeeping can significantly reduce monthly housing costs.

● Ability to accrue savings. While equity in the housing is limited, the differential between lower monthly charges and market rents allows residents savings that can build other forms of assets.

● Mortgage deductions. Coop members may deduct mortgage interest and property taxes from income taxes like other homeowners.

● Rent subsidies. Cooperative members can qualify for Section 8 rental subsidy to support their monthly housing costs.

● Membership. Cooperative members can build inclusive communities through the process that guides selection of new membership.

● Quality of housing. Cooperative members can initiate property upgrades that would not be possible in private rental housing.

● Long-term affordability. Cooperative members can ensure that their property will remain affordable over time to other low-income people. 

               Participation, Organizing, and Training

 "A surprisingly large number of people who join housing cooperatives are only vaguely aware that joining a coop is much different from renting an apartment."
SOURCE: Cooperative Housing a Handbook for Effective Operations. Midwest Association of Housing Cooperatives, Organization for Applied Science in Society. Ann Arbor 1977. page 7

Participation is the lifeblood of a cooperative. Cooperatives and the requirements of cooperative living are unfamiliar territory to most residents.

To be successful, a co-op needs a core of very committed people willing to contribute a great deal of time. and a second tier of supportive members who are willing to work.

Insufficient participation can result in anger and resentment and ultimately undermine a co-op.