Converting public housing to cooperatives: The experience of three developments

This article assesses the feasibility of converting public housing developments to limited‐equity cooperatives to increase tenants’ control over their living environments. It analyzes the experience of three housing developments converted under the Public Housing Homeownership Demonstration of the U.S. Department of Housing and Urban Development. Obstacles to conversion included the extensive renovations needed before transfer, the prohibition against involuntary relocation of tenants, the work of generating interest in the cooperatives, and the difficulty of financing. Indicators of the cooperatives’ success are mixed. One faces serious financial problems; the other two are financially sound despite substantial amounts of share payments in arrears. One set of cooperators is largely dissatisfied with living in the cooperative; the other two sets are mildly satisfied. Factors inhibiting greater success included inadequate board training, poor communication between board and residents, lack of participation by cooperators, and the need for major repairs soon after purchase.