Limited-Equity Housing Cooperative or “LEHC”

LEHCs are a special type of stock cooperative that are created to provide affordable housing. There are typically maximum annual increases permitted on the cost and resale value of the stock or membership interest of resident owners, and the property must be held for public or charitable purposes and must revert to a public or charitable entity or charitable corporation when the LEHC is dissolved. See Civil Code section 817 and Business and Professions Code section 11003.4.

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