Over more than two decades working with real estate cooperatives through The Hutton Group, Jack Boyajian has gained experience converting cooperatives of all kinds into condominiums. In recent years, Jack Boyajian and The Hutton Group have been developing a way for limited equity cooperatives (LECs) to recover some of their equity while maintaining their goal of providing long-term affordable housing.
Structurally, LECs differ from other forms of co-ops in several ways. In an LEC, the price of a co-op share, which grants a vote in the co-op’s management and a long-term lease to a co-op unit, tends to be very low. Holders of LEC shares usually do not take out mortgages and become owners and tenants at the same time.
LECs also seek to ensure that housing prices in the co-op remain affordable by limiting the value of the shares in the cooperative. They often rely upon the help of mortgage subsidies or government programs, as well, and while they can form a good alternative to subsidized or market-rate housing, they are not ideal in every situation.
Jack Boyajian and his team can design a custom plan where all units in an limited equity cooperative can become individual condominium units. Each of it's residence will have the the opportunity to keep part of the equity they have helped create when the unit is sold to the next owner. All new purchasers must prove that their household income is below the area's median amount. If the community or its residents are receiving government subsidies, they will be preserved under the plan.
Structurally, LECs differ from other forms of co-ops in several ways. In an LEC, the price of a co-op share, which grants a vote in the co-op’s management and a long-term lease to a co-op unit, tends to be very low. Holders of LEC shares usually do not take out mortgages and become owners and tenants at the same time.
LECs also seek to ensure that housing prices in the co-op remain affordable by limiting the value of the shares in the cooperative. They often rely upon the help of mortgage subsidies or government programs, as well, and while they can form a good alternative to subsidized or market-rate housing, they are not ideal in every situation.
Jack Boyajian and his team can design a custom plan where all units in an limited equity cooperative can become individual condominium units. Each of it's residence will have the the opportunity to keep part of the equity they have helped create when the unit is sold to the next owner. All new purchasers must prove that their household income is below the area's median amount. If the community or its residents are receiving government subsidies, they will be preserved under the plan.