City grants including land, buildings, etc. National Trust for Historic Preservation, for buildings meeting their criteria. The Connecticut Housing Finance Authority can make very low interest loans to co-ops through Special Programs. Community Loan Funds offer very low interest, usually short-term loans which can be critical in leveraging financing. Loan funds can also be used to administer loans from individuals.
Local government can sometimes offer deferred loans.
Co-op projects can be structured to meet criteria set by secondary market. Freddie Mac and Fannie Mae have purchased some co-op mortgages. National Co-op Bank. Land co-op development is often contributed by the city with Community Development Block Grant funds defraying costs for development. Coupled with a conventional 1st mortgage from local lenders and CDBG funds, the 2nd mortgage reduces the risk to the lender and provides a below market interest rate making housing more affordable to low and moderate income people.