Housing Co-ops

Limited-equity housing cooperatives can be pathways to permanent affordable housing for all. At Southeast Center for Cooperative Development, we have worked with a number of community partners to develop the first ever limited equity cooperative in Davidson County.

We support a model that combines a community land trust (CLT) and a limited-equity housing cooperative (LEHC). A community land trust is a nonprofit organization that holds land for a community to steward. The limited-equity housing co-op leases the land and owns their structures on top of the community land trust land. This allows for low monthly carrying charges that cover their share of mortgage, insurance, taxes, etc. Instead of rent, LEC shareholders pay a monthly maintenance fee. These fees fund the daily operations of the building like property management, taxes, insurance, repairs, and the mortgage cost. The co-op resident-owner builds wealth by saving on lower monthly costs, stable cost-controlled housing, and increased equity on their initial buy-in share.