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, a 60-unit complex called Drakes Creek. While the Southeast Center has completed our work on this project, it continues on under the leadership of William F. Buchanan Community Development Corporation. Information about the Drakes Creek project may be found on the Drakes Creek website, www.drakescreekcoop.com, and inquiries can be directed to William F. Buchanan at their e-mail, info@wfbcdc.org. Questions regarding other potential housing cooperative projects, or housing cooperatives broadly, can be directed to us at communications@sec4cd.org
Housing Co-ops
Limited-equity housing cooperatives can be pathways to permanent affordable housing for all. 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
What is the Right of First Refusal (ROFR)?
A Right of First Refusal (ROFR) is a contractual agreement that gives a designated party the first opportunity to buy an asset before the owners put it on the market or otherwise sell it to another party. Right of First Refusal clauses can be included in worker contracts to give them the opportunity to buy the business they work for, if it is in danger of shuttering or being acquired by another party. ROFR clauses can be included in housing policies to allow for residents to purchase the homes before they are put up for sale on the market.
What is COPA? What is TOPA?
TOPA: Tenant Opportunity to Purchase Act
A tenant-side right of first offer and right of first refusal when the owner of a rental property decides to sell. Tenants may purchase the building themselves, often as a limited equity cooperative. They may also assign their purchase rights to a non-profit partner or mission-driven developer, with the opportunity to negotiate for rehabilitation, affordability, or lease commitments with the partner.
COPA: Community Opportunity to Purchase Act
A nonprofit-side right of first offer and right of first refusal. Certified mission-driven organizations — community development crperations, land trusts, or cooperative developers — get first crack at buying multifamily buildings offered for sale. Not every tenant group has the time or capacity to organize a purchase on a short timeline. COPA lets a certified nonprofit act on their behalf — and lets the municipality build a bench of qualified purchasers ready to move at market speed.