Limited Equity Housing

Generally used for condominiums and housing cooperatives, limited equity housing incorporates regulations that work to keep housing affordable by placing limits on the amount of equity or profit that can be earned by a single homeowner over a period of time. For example, equity limitations can provide a fixed return on investment (for example, 2% appreciation per year of ownership), or limit the sales price based on average below-median incomes for households. In places where housing prices are rising quickly, this program can help to keep the housing affordable for future purchasers.