May 6, 2019

Shared equity home ownership

City Lab - Community land trusts and co-ops are alternative land- and home-ownership structures that provide benefits traditional markets cannot. Community land trusts are community-run, nonprofit landholding organizations that sell or rent the units atop the land they own, usually with the intent of keeping that housing affordable in perpetuity.

Housing co-ops are organizations of residents in multi-family buildings in which each household owns a share of the building. Shares can be sold at market rates, or below market rates in limited-equity co-ops, where the co-op recoups a percentage of equity earned on every transaction in order to subsidize the next shareholder.

Despite its growing popularity, shared-equity housing faces financial and logistical challenges that could prevent significant scale-up.

DETAILS

No comments: