Post by JULIE D. LAWTON on Mar 31, 2014 23:23:06 GMT 4
"Limited Equity Cooperatives: The Non-Economic Value of Homeownership" Free Download
Washington University Journal of Law and Policy, Vol. 43, No. 187, 2013
DePaul Legal Studies Research Paper No. 14-03
JULIE D. LAWTON, DePaul University - College of Law
Email: jlawton1@depaul.edu
This article evaluates the meaning of home ownership for low and moderate income residents who live in a home ownership model that does not provide equity appreciation. For many Americans, wealth creation is one of the major reasons for home ownership. Federal and local governments have for years looked to wealth creation as a means of helping low and moderate-income residents become self-sufficient. However, for many low and moderate income residents, home ownership is not an easily obtainable goal since many low and moderate-income residents have neither the income, nor credit, to qualify for a mortgage for a condominium or single family home. To combat these problems, some affordable housing proponents advocate for alternatives to traditional fee-simple ownership, such as community land trusts and housing cooperatives. One of the major criticisms of these types of home ownership is that they are structured to restrict equity appreciation to promote long-term affordability, and, thus, undermine the value of home ownership. This Article examines one of these alternatives, the limited equity cooperative, to evaluate the non-economic value of home ownership and to help understand why this home ownership model is still valued as home ownership for these owners who have no hope of equity appreciation.
Washington University Journal of Law and Policy, Vol. 43, No. 187, 2013
DePaul Legal Studies Research Paper No. 14-03
JULIE D. LAWTON, DePaul University - College of Law
Email: jlawton1@depaul.edu
This article evaluates the meaning of home ownership for low and moderate income residents who live in a home ownership model that does not provide equity appreciation. For many Americans, wealth creation is one of the major reasons for home ownership. Federal and local governments have for years looked to wealth creation as a means of helping low and moderate-income residents become self-sufficient. However, for many low and moderate income residents, home ownership is not an easily obtainable goal since many low and moderate-income residents have neither the income, nor credit, to qualify for a mortgage for a condominium or single family home. To combat these problems, some affordable housing proponents advocate for alternatives to traditional fee-simple ownership, such as community land trusts and housing cooperatives. One of the major criticisms of these types of home ownership is that they are structured to restrict equity appreciation to promote long-term affordability, and, thus, undermine the value of home ownership. This Article examines one of these alternatives, the limited equity cooperative, to evaluate the non-economic value of home ownership and to help understand why this home ownership model is still valued as home ownership for these owners who have no hope of equity appreciation.