Securing funding for truly inclusive housing projects can be a challenge, but it doesn’t have to be an insurmountable one. Cities already use various streams—like Tax Increment Financing (TIFs), inclusionary zoning fees, and housing trust funds—that can be redirected to support community ownership. The key is making sure these funds actually go where they’re most needed, rather than ending up as unnecessary subsidies for high-end developments.
A Land Acquisition Vehicle (LAV), co-owned by a community co-op and professional investors, can be structured to accept a range of capital sources. This includes grants from philanthropic foundations, program-related investments (PRIs) from major donors, and even contributions of public land at discounted rates.
By putting the co-op "on the cap table," residents acquire not just a symbolic place in the conversation but also a legal and financial stake in the property's future.
Accountability is woven into this approach. Because local stakeholders are part of the ownership entity, they can track whether commitments around affordability and anti-displacement measures are being met in practice.
Unlike one-off community benefits agreements, this structure can enforce affordability covenants over the long term. If developers deviate from those obligations, they do so at the risk of direct pushback from co-owners—a powerful check that rarely exists under traditional models.
Ultimately, this solution neither requires a complete overhaul of existing policies nor waits for a more ideal climate for housing reform. It uses the frameworks and resources we already have, but reorients them so that community members actively shape the future of their neighborhoods.
By pooling funding, sharing ownership, and building robust accountability measures, we stand a better chance of creating cities where growth doesn’t mean pushing people out, but rather elevating everyone who calls these places home.
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