A housing cooperative (or real estate cooperative more generally), is a membership-based legal entity which owns real estate on behalf of its members through incorporation. The 'corporation' is structured to grant the right to occupy one housing unit by way of a share purchase. The units in a housing co-op are owned by the cooperatives members and cannot be sold for profit.
In the United States over 1 million families live inside a housing cooperative.
Did You Know?
A primary advantage of the housing cooperative is the pooling of the members' resources so that their buying power is leveraged, thus lowering the cost per member in all the services and products associated with home ownership. Some types of real-estate cooperatives include: condominiums, rentals, single-family homes, market rate, and limited equity.
Furthermore, since families who own their own homes have a greater stake in their neighborhoods, private economic development organizations and local governments are encouraging the development of housing cooperatives. Because of these reasons, housing cooperatives are an effective way to provide homeownership for low-income Americans, while simultaneously boosting economic sustainability by retaining monies inside the community -- rather than letting those profits be syphoned away to external real-estate investors.
"...families who own their own homes have a greater stake in their neighborhoods..."
Expanding home ownership
Housing cooperatives are an effective way to provide homeownership to low-income Americans.