MEHO In Action

In order to deliver its goals The Caledonian Foundation set up the Caledonian Land Trust. Over time we hope that many other land trusts will be set up to allow a wide variety of communities to tap into the potential of Micro Equity Home Ownership. The Caledonian Land Trust will purchase properties and, working with partner organisations, it will identify suitable tenants.

When a tenant has extra cash he/she pays a little more each month which goes towards the purchase of shares in the property. Friends and family can also buy gift shares for the tenant.

Because the tenant owns shares in the property, the rent goes down. If the tenant continues to pay the same rent, the proportion of equity increases and the rent continues to decrease.

After 5 years the tenant can sign a new agreement and continue to the purchase the home or cash in the shares.

If you want to find out more detail on how the MEHO financial model works download our Micro Equity Spreadsheet and input information relevant to housing in your area.

Using MEHO for community facilities

Each community facility provided as a MEHO project will have two blocks of share issues for investment. Firstly shares will be issued to raise capital for the property giving investors a great opportunity to make a sound investment. Secondly a block of shares will be issued to provide opportunities for this facility to be run as a social enterprise in which the management and staff of this business would have the opportunity to own shares in it.

We expect that each project will correspond to a particular facility to begin with. However there is no reason why a successful, established facility could not issue another block of shares to raise capital to replicate itself, with the same objectives and business model.