CONVERTING PUBLIC-HOUSING TO COOPERATIVES - THE EXPERIENCE OF 3 DEVELOPMENTS

This article assesses the feasibility of converting public housing dev elopments to limited-equity cooperatives to increase tenants' control over their living environments. It analyzes the experience of three ho using developments converted under the Public Housing Homeownership De monstration of the U.S. Department of Housing and Urban Development. O bstacles to conversion included the extensive renovations needed befor e transfer, the prohibition against involuntary relocation of tenants, the work of generating interest in the cooperatives, and the difficul ty of financing. Indicators of the cooperatives' success are mixed. On e faces serious financial problems; the other two are financially soun d despite substantial amounts of share payments in arrears. One set of cooperators is largely dissatisfied with living in the cooperative; t he other two sets are mildly satisfied. Factors inhibiting greater suc cess included inadequate board training, poor communication between bo ard and residents, lack of participation by cooperators, and the need for major repairs soon after purchase.