Part II of this Article deepens the expanded view of organizational law developed in Part I with a focus on its distributive features. Using the analytical framework of entity governance, resource governance, and use and purpose governance, Part II demonstrates how these dimensions of organizational law interact to constrain the development of affordable housing cooperatives. What are commonly framed as financing problems in fact expose fundamental tensions embedded within the organizational law of affordable housing cooperatives. This analysis demonstrates that these challenges arise from the structuring of resource governance in affordable housing cooperatives and their interaction with the personal economic capacity of their members.
As such, Part II develops the claim that organizational law is not distributively neutral but is central in the production and maintenance of poverty and economic inequality. Drawing on legal and social science scholarship, Part II proposes a corrective-distributive approach designed to address the externalities of poverty and inequality that prevailing organizational law generates. Applying this framework, the Article articulates principles designed to strengthen the resource governance of affordable housing cooperatives while preserving democratic control and long-term affordability. Throughout this analysis, Part II positions affordable housing cooperatives as a paradigmatic case for retheorizing organizational law, its distributive effects, and its institutional design.