In 2019, JD Sullivan was working two jobs and still couldn’t afford housing in Grand Rapids, MI. Then he discovered a housing cooperative. For a modest buy-in, he gained stable, affordable housing. Today, JD is not only a resident but also the president of his cooperative’s board, a reminder that co-ops build more than just homes. They build leaders.
That transformation, from homeless to homeowner to board president, illustrates why people like Dave Rugg are so committed to cooperative housing. “It’s difficult to provide housing for the extremely low income, but here are organizations doing it successfully,” says Rugg, eyes lighting up (co-founder of the Michigan Community Land Cooperative).
Rugg has been immersed in co-ops for nearly 45 years, starting as a graduate student in Minnesota. Back then, his student cooperative was a single building; today it has six.
“Co-ops have the power to do wonderful things,” he says.
Now in Michigan, Rugg is laying the groundwork with the Michigan Community Land Cooperative. The group already has houses with residents in Grand Rapids and more ahead. Each project begins by identifying a suitable property, raising funds, and assembling individuals who need affordable homes and are willing to share ownership and decision-making, thereby forming a community.
The more challenging task is the human aspect: teaching first-time homeowners how to run a cooperative business, encompassing budgeting, maintenance, and decision-making. Here, groups like CSI in Warren, MI, are vital, as they create training programs and materials for limited-equity cooperatives nationwide. Dave sees how a good budget serves as a financial guide for the year ahead. He likes to ensure that there’s a narrative describing the line items, so members have a clear concept written out, along with the numbers, so everyone understands them.
Traditional lenders are rarely a good fit for co-ops, as they often have higher rates, shorter terms, and little flexibility. LEAF, by contrast, is structured for this work. In this case, LEAF’s financing reduced what would have been an impossible 26% monthly payment increase to 3.5%, the difference between collapse and stability.
The Michigan Community Land Cooperative is laying down rails for future generations: affordable, community-owned homes that create not just temporary shelter, but leaders like JD Sullivan. This is the future LEAF, and our community is helping to build it.