Share prices in these cooperatives are usually low, and member households may not own more than one share. To further preserve affordability and prevent speculative resale, price restrictions are placed on the sale of shares. 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.