Why Limited Equity?

Our limited equity model allows low-income New Yorkers to become homeowners while preserving affordability for future generations.

Through the limited-equity cooperative model, the buildings we develop are preserved as community assets for the long-term. Our projects’ benefits continue well beyond their first residents. Families can build some personal equity while paying an affordable monthly maintenance fee, all while stewarding their own affordable housing. When a family moves out, they sell the apartment to a new income-eligible family at a low price, thereby creating true, lasting, shared-equity and community wealth. This model not only fosters diversity but keeps families and generations within the fabric of a city.

Our development program ensures that low- and middle-income people are able to take collective ownership of their homes. Homeownership is the most common way to build wealth in the United States, yet people of color have been systematically excluded through racist policies like redlining. Through limited-equity co-ops, people of color are able to build wealth and have control over their own stable housing.

UHAB develops rental buildings as well as cooperatives. Cooperative limited-equity ownership isn’t the best outcome for every building, for a variety of reasons. Some of our best projects have gone on to become happy and healthy rentals owned by nonprofits. It all depends on the desires of the residents.

What is a limited-equity co-op anyway?

Limited-equity co-ops are valuable because they provide shelter, not because they make a profit. In New York City, limited-equity co-ops are often called HDFC co-ops.
What’s an HDFC? →
Common Questions →
Mission →