Across the U.S., affordable housing providers are facing an increasingly urgent question: How do we ensure long-term stability and equity for residents in the face of rising costs, expiring subsidies, and waves of displacement? One answer gaining traction, especially among mission-driven developers and nonprofit landlords, is the conversion of existing affordable rental properties into resident-owned housing cooperatives.

This isn’t just a legal or financial shift; it’s also a cultural one. By transitioning from rental-only models to co-op ownership (also known as “resident-owned rentals,” in some forms), housing providers can create pathways for permanent affordability, community wealth-building and resident self-determination.

At the heart of this shift is one of the most promising strategies: housing+ co-ops. These are limited-equity, democratically governed communities where residents share not only ownership but responsibility. The “plus” refers to additional economic activities foster resilience and wellbeing alongside shelter — these include childcare, mutual aid networks, cooperatively run ground-floor businesses, and shared vehicle fleets that generate revenue when not in use by residents. These are not speculative investments. They are rooted infrastructures to support thriving communities, built and maintained by the people who live there.

I’ve spent the past year co-authoring “The Cooperative Housing Blueprint: A Manual for Equitable Homeownership,” which lays out how local governments, technical assistance providers and affordable housing developers can facilitate these conversions. The manual offers a roadmap for housing providers ready to evolve beyond traditional rental models; many already are.

Organizations like Mercy Housing, Enterprise Community Partners and others own thousands of affordable units across the country. These holdings represent a powerful opportunity to give tenants a chance not just to stay, but to build equity and shape the future of their communities.

With the right support in place, conversions to cooperative ownership can help lock in affordability, prevent displacement and empower residents, especially in neighborhoods with many BIPOC, immigrant and low-income residents.

This is not theoretical. In Seattle, the Frolic model shows how small-scale infill paired with co-ownership can stabilize communities and spark regeneration. In Oregon, SquareOne Villages and the Oregon Cooperative Housing Network are creating replicable frameworks for clustered co-ops with shared governance. Nationally, ROC-USA has supported hundreds of mobile home communities in collectively purchasing the land under their homes, showing what’s possible when tenants, financing and technical support align.

How might an affordable housing provider begin this process?

Start with a pilot. Identify a property where residents are engaged and where affordability could be at risk in the future. Begin conversations early. Work with partners like community development financial institutions, land trusts and co-op networks to structure viable purchase pathways. Provide post-conversion support, including governance training and property management coaching. This doesn’t mean abandoning rentals altogether; it means offering a new option where it fits, especially in communities with the desire and capacity to self-govern.

Policy can help. States can pass right-to-purchase laws, giving tenants first opportunity when buildings go up for sale. Local governments can provide bridge financing or tax relief to make conversions financially viable. The Department of Housing and Urban Development’s Section 213 mortgage insurance program could be modernized to better support co-ops. These are overdue updates to a public toolkit designed for a different era.

Capital is also key. The National Cooperative Bank and other mission-aligned lenders already offer financing, but we need more: predevelopment grants, low-interest loans, and patient capital that can flow to community-rooted, BIPOC-led co-op initiatives. Philanthropy can seed early pilots. Public funding can help scale them.

We can also look to history for precedent. During the New Deal and again in the 1970s, federal programs supported cooperative housing as a strategy for affordability and community development. Many of those co-ops still thrive today, offering a model of resilience that has outlasted many conventional affordable rentals. It’s time to update and expand those lessons for the challenges of the 21st century, including housing insecurity, climate displacement and deepening inequality.

Cooperative models also offer a path to reduce operating costs through shared labor. In many housing+ co-ops, residents participate in a work-share system that distributes responsibilities like maintenance, landscaping, or administrative support across the community. Unlike exploitative or informal arrangements, co-ops structure these contributions democratically and equitably, recognizing labor as a form of value and participation. This reduces reliance on outside contractors, keeps housing costs lower and reinforces a culture of collective stewardship.

Choosing not to explore co-op conversions risks entrenching a status quo that undermines long-term stability. Affordable housing organizations were founded to serve communities, not simply to manage assets. As public trust and philanthropic support continue to favor deeper impact, transparency and equity, providers who embrace shared ownership models will be better positioned to meet both funding expectations and community needs.

In contrast, those who hold tightly to control may find themselves out of sync with the evolving demands of housing justice. Mission-driven providers who resist shared ownership risk becoming part of the problem: holding power, extracting rent and missing their mandate to build lasting community wealth. In a moment demanding transformation, silence and inaction speak volumes.

For mission-driven affordable housing providers, this is a chance to deepen impact. Many already work closely with tenants, have deep community trust, and hold portfolios that could anchor long-term affordability. By converting select properties into co-ops, they can go beyond housing provision to become facilitators of economic justice and neighborhood resilience.

The housing crisis demands diversified solutions. Rentals remain essential; but they don’t have to be the only model. Housing+ co-ops offer a complementary path: one rooted in equity, stability and shared power.

Let’s not just preserve affordability. Let’s build a future where tenants can become stewards, neighbors become co-owners, and housing becomes a foundation for flourishing.

This post was originally published on Next City.