MANAGING EXTERNALITIES IN MULTIUNIT HOUSING - LIMITED EQUITY COOPERATIVES AS ALTERNATIVES TO PUBLIC-HOUSING

In this paper, we examine some of the ways that the market responds to housing externalities, focusing especially on multi-unit,low income h ousing. We develop a theoretical model of a household's choice among p rivate rental housing, public housing, and limited equity cooperative housing. The results suggest that the ability of LECs to attract tenan ts depends, among other things, on the ability of self-management to i nternalize housing externalities compared to hierarchical management. Case studies of LECs suggest that the results are mixed. (C) 1998 Soci ety for Policy Modeling. Published by Elsevier Science Inc.