We support a model that combines a community land trust (CLT) and a limited-equity housing cooperative (LEHC). A community land trust is a nonprofit organization that holds land for a community to steward. The limited-equity housing co-op leases the land and owns their structures on top of the community land trust land. This allows for low monthly carrying charges that cover their share of mortgage, insurance, taxes, etc. Instead of rent, LEC shareholders pay a monthly maintenance fee. These fees fund the daily operations of the building like property management, taxes, insurance, repairs, and the mortgage cost. The co-op resident-owner builds wealth by saving on lower monthly costs, stable cost-controlled housing, and increased equity on their initial buy-in share.

Limited-equity housing cooperatives can be pathways to permanent affordable housing for all. Drakes Creek is for residents who make 50% AMI or less. Instead of housing for profit, a housing cooperative is run at cost. At Drakes Creek, we are targeting an annual increase of 3% or LESS significantly less than the average rent increase of 7.5% in the area. Because you get to decide the budget, you get to help manage the costs!