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Limited Equity Housing Cooperative


Type of real property ownership where owners purchase a share in the cooperative, rather than the standard real property interest. Stock holders have the right to use and occupy one unit and have the responsibility in maintaining the property.


A limited equity housing cooperative is a form of ownership that provides significant benefits to owners by allowing multiple buyers to buy a co-op together. Although owners of the co-op have limited equity through the division of costs amongst owners, they also can significantly reduce the final cost of ownership for all owners.

The stock cooperative will be financed by the California Housing Finance Agency and give homeownership benefits to each owner. The main benefit is the division of costs between owners thereby allowing owners who would otherwise not have the necessary capital to buy property. This makes owning the property more affordable. Profit for the owners of a co-op is divided accordingly based on financial commitment amongst owners.

A limited housing cooperative, also known as a co-op, is a property purchasing method typically utilized by low income consumers whereby they share the costs of home ownership. All parties have the duty to maintain their obligations including payments, maintenance, and others.

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