Success Factors

Key Ingredients

Many elements are needed to successfully develop a LEHC in the context of gentrification pressures.

• Member Commitment. Members need a clear understanding what they are getting into. Members must be motivated to participate in the co-op's life and willing to accept the equity limits.
• Community Support. Community acceptance is key to successful development. In order to garner support, developers must devote sufficient time to educating neighbors, key public supporters, and local community organizations. .
• Local Government Support. Local politicians and staff of key public agencies play crucial roles. They can hold the key to reasonable access to financing and zoning approvals.
• Adequate Financing. There are many types of financing needed with a LEHC. See Financing.
• Workable Limited Equity Formula. A balance needs to be found in creating the formula that controls the amount of equity that a member may take out of the unit and long term affordability to other low-income families. The formula needs to provide an adequate incentive to encourage members to maintain the property and the individual units and to participate in the co-op's life.
• Technical Development and Management Capacity.
• Comprehensive Neighborhood Plan. The co-op is best created as part of a plan to address gentrification issues. The plan may call for development of many co-ops as well as other types of housing to accommodate older and newer residents. The plan will help assure that the community as a whole supports the co-op and wants it to succeed.

• Ongoing Training. Ongoing training of co-op members is also crucial in order to keep building the skills of the residents to meet changing conditions.
• Reasonable Progress. Sometimes people lose confidence that a co-op can ever become a reality as the development process can take several years.