The importance of such affordable cooperative housing was recognized by the California Legislature in 1979, when legislation was passed that provided legal status for limited-equity housing cooperatives . This legislation requires that such cooperatives be incorporated as non-profit public benefit corporations, limit share price increases to 10 percent per annum, and mandate dedication of any profits from the sale of a cooperative to public or charitable entities. Since the legislation passed, thousands of apartment units and mobile home spaces have been developed through limited-equity housing cooperatives. Some cooperatives operate in the private market a nd receive no subsidies. In these cooperatives, sometimes known as market-rate or stock cooperatives , individual members of the cooperatives arrange private financing of share purchases.
Members can own more than one share and rent out the additional units for a profit.
When a member moves out the share is sold to the incoming member for its full market value. Members own a share in the cooperative, which entitles them to occupy a homesite or space and to use the park facilities. Mobile home park cooperatives have been set up in both market rate and limited equity forms. All rights reserved.