Housing Cooperatives

Limited-Equity Housing Cooperatives

Market-rate homeownership continues to be out of reach for many residents across Missoula. While many residents are left with few choices but to rent, many neighbors also face the risk of displacement when their buildings go up for sale. With the experience of NeighborWorks MT, NMCDC added the first limited-equity housing cooperative into our Community Land Trust in May of 2023!

The Wolf Avenue Collective collectively purchased 8 homes in the Northside, preserving their affordability for perpetuity and leading Montana through this model of collective ownership!

Check out the impact of collective ownership from these community stories:

Missoula Renters Try New Affordable Housing Model

New housing model in Montana turns tenants into shareholders

New affordable housing model gives 75-year-old poet permanent home

New housing model allows Missoulian to grow roots in neighborhood she loves

Coop FAQ:

What is a limited-equity housing cooperative (LEHC)?

Limited-equity housing cooperatives start when residents decide to organize a building, either by forming a cooperative in a new building or deciding to turn an existing building into one. Coop members participate in the governance and management of the building, often using a voting process to create the rules that dictate how residents live and share the space.

My rental building is for sale! What can I do?

Meet with your neighbors and determine if there is interest in collectively purchasing your homes! Reach out to NMCDC’s Land Stewardship program for additional support by emailing [email protected]. When we learn more on your timeline, we can work to explore what options may be available to help finance a collective purchase!

I own rental property. How can I sell the units to my tenants?

We know that many investors may no longer need the ownership of their properties yet want to ensure that the current tenants can stay renting at an affordable cost. The LEHC model provides an opportunity to sell your units at market-rate and provide housing stability for neighbors in our community! Please reach out to NMCDC Executive Director by emailing [email protected] so we can work with you in this process!

What are the steps to becoming a cooperative?
  • Tenant Organizing: The first step is having tenants communicating with their neighbors. It is important to determine interest in collective ownership as well as gathering details around an expected property sale date, price, and interest in the seller working with the cooperative! NMCDC can provide assistance with door-knocking to tenants and communicating with a property’s owner!
  • Due Diligence: As with all real estate transactions, it’s important to do your due diligence! Property assessments, building inspections, and environmental reviews can all be tools to determining if a collective purchase will be worthwhile for the anticipated cooperative.
  • Financing: We will also work with potential members of the cooperative to find mortgage financing. We are grateful to have partnered with lending instutions like NeighborWorks Montana and Clearwater Credit Union in the past!
  • Community Land Trust: One of NMCDC’s main roles in housing cooperatives is to purchase the land underneath any buildings and placing it in our Community Land Trust. This ensures that the homes are permanently affordable, and any coop membership sales are available for income-qualified buyers. We will explore available subsidy to purchase the land including but not limited to Missoula’s Affordable Housing Trust Fund and workforce housing funds from the Missoula Redevelopment Agency.
  • Legal Incorporation: When residents agree to move forward with a collective purchase, they will hire an attorney to review legal documents pertinent to their specific property and incorporate as a limited-equity housing cooperative with the State of Montana!
  • Community Governance: Cooperative members will vote on a Board of Directors to adopt numerous community governance policies like Community Rules, Shared Yard Space Agreements, Capital Improvement Plan, and more! The Board will meet frequently leading up to the purchase of the property and will meet monthly after purchase to address any community concerns and visions! NMCDC will train cooperative members in facilitating these meetings and have templates available for long-term stewardship in your community.
  • and more! Limited-Equity Housing Cooperatives is a new model of housing in Missoula as Wolf Avenue Collective led the way in May 2023! We strongly believe in this model of housing and are determined to continue making this process as streamlined as possible for all those involved. Each property and real estate transaction presents new opportunities, and we will likely continue learning new ways to make this a viable option for our community. We appreciate your support as we navigate this together!

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