Ehlenz, Meagan

This article reviews the concept of shared equity homeownership (SEH) in the United States. The review examines the origins of the SEH model and its historic precedents. It considers the impetus for SEH, setting the discourse within the context of US housing policy and, specifically, low-income homeownership research. Subsequently, the review assesses the current state of SEH research, including the evidence associated with SEH as an affordable housing strategy, its application and challenges in the field, and gaps in the scholarly discourse.

Since 2008, many have questioned the efficacy of conventional homeownership, particularly for low-income households. Advocates champion shared equity homeownership as an alternative, including community land trusts (CLTs) and limited equity cooperatives (LECs); yet, they too have limitations. CLTs offer ongoing homeownership support, but require conventionally “bankable” households. LECs can offer low-income households autonomy and limited asset building, but often require fiscal and organizational support to succeed. This paper explores an innovation in shared equity—the merger of CLTs and LECs to address challenges and maximize collective strengths. Set within the context of the benefits and limits of CLTs and LECs as independent organizations, the paper examines five CLTs with LEC projects. It considers the CLTs’ motivations for pursuing LECs and appraises the characteristics of hybrid projects. While CLT-LEC projects are small in number, they illustrate an emergent practice in the field and speak to the organizational adaptability of the broader shared equity model.