What are the three main types of cooperatives?

The answer is based on the understanding of how cooperatives are categorized within property management and housing communities. The three main types: equity cooperatives, limited equity cooperatives, and leasehold cooperatives each serve distinct purposes and function in different ways.

Equity cooperatives allow members to own shares in the cooperative in exchange for a proprietary interest in the property, often leading to a greater financial stake and potential for appreciation in value. Limited equity cooperatives restrict the amount of profit a member can retain upon selling their shares, promoting affordability and long-term housing stability for lower-income residents. Leasehold cooperatives, on the other hand, differ in that they involve members owning shares in the cooperative but leasing the land on which the property is situated, which can add an additional layer of affordability and flexibility.

The other options do not accurately represent the conventional categorizations within cooperatives. For instance, “partnership cooperatives” and “corporate cooperatives” do not align with recognized types in the context of residential cooperatives, and terms like “limited liability cooperatives” and “rental cooperatives” do not reflect the accepted frameworks typically used to discuss cooperative structures. Therefore, option C accurately captures the recognized classifications.