The Future of Limited Equity Cooperatives

As a type of collective ownership, LECs enable homeownership without the risk of debt financing or the responsibility of maintenance. Cooperative members receive the same tax advantages as traditional homeowners, assessed on shares of the cooperative rather than a single unit. The restriction on share resale values keeps LECs affordable to multiple generations of purchasers and enables renters to become homeowners without having to qualify for traditional financing. LECs provide these benefits while spreading the risk and cost of homeownership across many shareholders (Saegert and Benitez 2003)

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