limited equity cooperative

Definition

A type of shared home ownership in which individuals buy a share in a cooperative, usually at a low price. Each share entitles an individual to occupy one unit and to take part in making decisions regarding the cooperative. Limited equity cooperatives limit the return that share owners can receive on resale of their shares. In this respect, they are different from market rate cooperatives, in which members can sell their shares at market value. The share owners of limited equity cooperatives are usually low-income households.
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limited discretionary account limited liability