ABSTRACT
This chapter discusses the limited equity cooperative (LEC) generally and the current DC model as part of the shared equity housing framework. The triumph of any tenant purchase closing is quickly tempered by the fact that it is just the beginning of the hard work that the residents will undertake as LEC shareholder-members. An LEC is a hybrid form of affordable housing that has characteristics generally associated with each of rental and homeownership, as well as with public and private ownership. Most LECs physically located in the District choose to incorporate in DC, under DC Code 29901 as are market-rate housing cooperatives. The "community interest" and defining difference for LECs as compared to market-rate housing cooperatives is the limitation of the equity a member can realize upon transfer or sale of her share. The "buy-in" price for original TOPA tenants usually is very affordable.
