Limited Equity Cooperative [HUD] Law and Legal Definition

Pursuant to 24 CFR 241.1005 [Title 24 Housing and Urban Development; Subtitle B Regulations Relating to Housing and Urban Development; Chapter II Office of Assistant Secretary for Housing Federal Housing Commissioner, Department of Housing and Urban Development; Subchapter B Mortgage and Loan Insurance Programs under National Housing Act and Other Authorities; Part 241 Supplementary Financing for Insured Project Mortgages; Subpart E Insurance for Equity Loans and Acquisition Loans Eligibility Requirements], the term Limited Equity Cooperative means “a tenant cooperative corporation which, in a manner acceptable to the Commissioner, restricts the initial and resale price of the shares of stock in the cooperative corporation so that the shares remain affordable to low-income families and moderate income families.”