Creating a limited equity cooperative is both a technical and political process. It requires the cooperation and assistance of many different people.
Neighborhood Residents. People in the neighborhood need to be accepting of the co-op. They may be advocates for the co-op, recommending the creation of LEHCs and helping with the planning and control of gentrification. They may be potential members of the co-op. They may also oppose LEHCs for a variety of reasons. NIMBY participants may oppose any type of low-income housing developments.
Sellers. When real estate markets are weak, sellers may be willing to offer longer escrow periods-very useful in creating the necessary time to pull together the financing. A seller may offer to finance part or all of the sale. Sellers may also be willing to enter into a donated sale or partially donated sale, which lowers the cost to the buyer. When real estate markets are stronger, sellers are less likely to agree to these terms. Developers should explore these possibilities; the seller may be sympathetic to their goals and offer excellent terms even in a hot market.
Public Agencies. Agencies at all levels of government can be helpful or obstructionist in creating LEHCs. They are influential in obtaining financing. They can be central to the process of obtaining zoning changes or needed variances. When neighborhood opposition arises, agencies can play an important role with their recommendations to decision-making bodies.
Co-op Members. Members need to be willing to cooperate, to participate in the governing and managing of the co-op, and willing to accept limitations on their equity accumulation.
Developer. The developer must be willing to work with a large group, accept input, and seek solutions. This work adds time to the process and increases the costs as well. When sweat equity is involved, the developer must be willing to work with the residents and to help train them.
Trainer and Organizer. These functions may be handled by the same person or by different ones. Both functions require great skill and are crucial to the functioning of the cooperative.
