Developers are accepting applications for what would be Portland's first "limited equity" cooperative housing development.
The Lambert Woods development is part of a larger affordable housing project. Ninety units of cooperative housing would be constructed, in addition to income-restricted apartments, located in the city's North Deering neighborhood.
Elizabeth Trice, with Maine Cooperative Development Partners, says co-ops are managed by residents and don't require an upfront bank loan. Instead, residents must purchase an upfront "share" of the co-op at an estimated cost of about $20,000, She says those shares also don't accumulate much equity, which disincentivizes residents from selling quickly.
"So residents in cooperatives are incentivized to stay long term because their costs, they stay stable. And they don't get to cash out when they leave. So they tend to be very stable places to live," Trice said. "We have great examples in New York City where there are some 25,000 units of limited equity cooperative housing.
"You're only earning appreciation on that share price. And the majority of the equity stays with the development, stays with the cooperative, which is what enables future generations of residents to live there affordably."
Units for the co-op will be available to residents making up to either 80% or 100% of the area's median income.
Monthly expenses, including utilities, are estimated to range from a maximum of $1,400 for a studio unit to $2,600 for a three-bedroom.
Local and state officials said they believe the project is the first of its kind in Portland, though a similar approach is being used at Lewiston's Raise-Op Housing Cooperative.
Construction is expected to begin in the coming year.
