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Types of housing co-ops:

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In a Market-Rate Co-op (MRC) you can buy or sell a membership share at whatever price the market will bear. Purchase prices and equity accumulation are very similar to condominium or single-family ownership.

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In a Limited-Equity Co-op (LEC) the proceeds members can get from selling their shares is limited by the pre-determined formula stated in the bylaws. This keeps the cost of shares low and preserves affordability for future members. 

In a Leasehold Co-op (LC) the co-op leases the property from an outside entity, often a non-profit organization. While members do not have financial ownership of the property, they can benefit from greater stability, control, and affordablity when compared to rental housing. A primary reason for this arrangement is if public subsidies used to fund the development do not allow for resident ownership.

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