|coop/condo financing||<– Date –> <– Thread –>|
|From: Judy (BAXTER%EPIVAXvx.cis.umn.edu)|
|Date: Fri, 11 Jun 93 10:33 CDT|
june 11,'93 Our group (Monterey Cohousing) just outside Minneapolis, MN, is currently a coop, owning the building that currently houses our common space and 8 in-process apartments. We basically went coop so that we could get a blanket mortgage and do equity sharing, so our low-income members didn't have to qualify separately (we needed a total 30% downpayment on the $330,000 sale price). It is my understanding that the major advantages of coop are the ability to do a blanket mortgage, and the ability to require approval from the group (Board of Directors) for whoever buys shares. I.e. more control over membership. The disadvantages seem to be difficulty in getting financing and limited sources of share loans for resale of units and possibly higher interest rates. The disadvantage of condo financing is that it appears (I am quoting David Thompson, a developer type who visited with us recently, very committed to coops, did some work w/ muir Commons at Davis, ) when push comes to shove, and someone really wants/needs to sell their property, all the covenants you make probably can't stop them, and the community can be diluted with people who really aren't interested in CoHousing. Advntages are : more accepted by banks, maybe easier to get, possibly lower interest rates, financing of resale is more normal. DOES ANYONE KNOW ANY OTHER COHOUSING GROUPS CURRENTLY USING/PLANNING COOP FINANCING? WE are moving into phase 2, construction of 10-15 more units, and will face this same decision again. I WOULD ALSO APPRECIATE FEEDBACK ON THE CONDO/COOP ISSUE. Judy Baxter, Monterey Cohousing Community, Twin Cities Area, Mpls/St.Paul MN (Mococo) baxter%epivax [at] vx.acs.umn.edu
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