LEHCs make housing affordable to low-income people by taking property off the speculative real estate market..  Cooperative properties allow lower income people who might be forced out by rent increases or sales to remain in their apartments.  The construction of new cooperative units can offer displaced low-income residents the opportunity to remain in their neighborhood.

LEHCs can improve the quality of life for its members by giving them control over their housing, by creating a process for members to work with other people and institutions in improving the neighborhood, and by formulating political influence that can slow gentrification and increase local control over their neighborhoods.

A Note of Caution:  Developing a LEHC can add to gentrification pressures by removing rental housing from the housing stock. While this can be averted by new co-op construction or by the conversion of vacant buildings, the very act of improving housing creates pressures by increasing the neighborhood's desirability to outsiders.  By creating a coordinated approach to neighborhood planning, LEHCs can benefit current neighborhood renters while advocating development of new affordable rental housing.

Advantages of Cooperative Housing

Cooperatives create economic and social benefits:

• Security of tenure. By removing the owner or landlord, the residents control their own living environment and gain homeownership opportunity.
• Lower housing costs.   Eliminating landlords' rental profits and lowering operating costs through members' contributions to management activities, maintenance and bookkeeping can significantly reduce monthly housing costs.
• Ability to accrue savings. While equity in the housing is limited, the differential between lower monthly charges and market rents allows residents savings that can build other forms of assets.
• Mortgage deductions. Coop members may deduct mortgage interest and property taxes from income taxes like other homeowners.
• Rent subsidies.   Cooperative members can qualify for Section 8 rental subsidy to support their monthly housing costs.
• Membership.   Cooperative members can build inclusive communities through the process that guides selection of new membership.
• Quality of housing.   Cooperative members can initiate property upgrades that would not be possible in private rental housing.
• Long-term affordability.   Cooperative members can ensure that their property will remain affordable over time to other low-income people.
• Surrounding neighborhood conditions.   Cooperative members can develop, participate in, and allocate funds to local neighborhood improvement projects.

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