Community Led Housing
Community-led housing (CEL) is a model of housing where local people play a central role in the development, ownership, management, and stewardship of housing that meets their specific needs.
It is an umbrella term encompassing various non-profit models such as co-housing, collaborative housing, cooperative housing and community land trusts, where the community is integrally involved in key decisions about what, where, and for whom housing is provided.
The core principles include meaningful community engagement throughout the process, the community taking a long-term formal role in ownership or management, and the benefits to the local area or specific community being clearly defined and legally protected in perpetuity.
Community-led housing aims to create genuinely affordable, long-term homes while fostering stronger, more resilient communities that address social challenges.
Profit motives do not drive most community-led housing projects; they provide housing at lower costs, eliminating developer profit margins. There is a focus on the long-term, giving residents security, knowing that as their circumstances change, their housing does not.
This model of housing can either be rental housing or ownership housing, regardless, it is more affordable. The legal structure will be different to meet the different needs of each group. There are limited equity, shared equity and rental cooperative structures available to the community. Some communities may use a blend of different structures like Square One Villages.
A hybrid structure with a Community Land Trust and Housing Co-operative
Limited Equity Cooperatives
In limited equity cooperatives (LECs), each member is entitled to occupy one unit and has a vote on matters of common interest. This model is commonly found in apartment or townhouse communities. Members typically purchase a share in the cooperative, with the cooperative owning the asset. Prices for the shares are set by the co-op's bylaws, subscription agreement and issued certificates. Residents enjoy the financial advantages that stem from this economy of scale, knowing the collective holds the risk.
Community Land Trusts
Community Land Trusts (CLTs) are non-profit organisations that acquire the land and steward it for community benefit, typically leasing it to homeowners via long-term ground leases. The homeowner owns the building but not the land, which keeps the initial purchase costs lower by excluding land value. The CLT retains the right to repurchase the home and controls resale pricing, ensuring affordability in perpetuity.
Rental & Market Co-ops
Rental cooperatives own and lease properties to their members at affordable rates, typically a percentage of the member's income. This allows stable housing as their financial situation changes. Whereas a market cooperative is similar to home ownership. Members own their homes and can sell them at market rates, but the cooperative owns and manages the land. This is still an affordable housing option as the land component is collectively owned.
Benefits Everyone
Regardless of the structure, community-led housing is owned and operated by members for members. They control the management of their housing, where residents have a voice in core planning operations and decision-making. Members pool their skills and resources, building the cooperative's capacity and capabilities to meet its residents’ needs through shared ownership and costs.
Equitable and long-term housing security ensures a good social mix and a sense of home. Tenants and owners’ active participation leads to a focus on people-centred urban planning and design.
Community-led housing improves physical and mental health, reduces financial stress, increases opportunities for social and economic participation and reduces pressure on all levels of government to provide social housing.
Community-led housing is a no-brainer. It's time to move the housing conversation to a broad cooperative housing discussion and look beyond traditional home ownership, social housing, and private rental beyond a 12-month renewable lease.