|Re: coop/condo financing||<– Date –> <– Thread –>|
|From: Nancy Wight (wighthpwarr.wal.hp.com)|
|Date: Mon, 14 Jun 93 08:58 CDT|
Hi Judy, The experience we had here at New View in the Boston area was that on and off for 4 years we discussed the advantages and disadvantages of co-op vs. condo. What it ultmately came down to was that we didn't have a choice. Our project manager (we don't have a developer) talked to many, many, banks, and was finally successful in establishing a relationship with one of them, who then agreed to finance our cohousing project. They told us that in Acton, MA (sort of a semi-rural, suburban Boston town), the appraisals would come in the following order: Single family detached house would have the most value, then an attached townhouse/condo, then attached housing with coop structure, then a cohousing community with co-op structure (attached or detached). Because we had to pay a steep price for our land, we can't afford to have low appraisals, so we will have to be a condo. Also, it was not clear that the bank would even consider funding us as a co-op anyway. We have hired a lawyer who specializes in setting up hybrid condo/co-op structures, and it *is* possible to get some of the benefits of co-ops with a condo structure (for example, giving the condo association the right of first refusal to purchase a house for sale). When we get the details worked out, I will be glad to post them here. One other thing that we have found is, that to some degree, you can discourage people who are not interested in in *cohousing* from buying houses in your community by the design of your community. For example, our community is designed in a way that does not allow cars to cross or drive on the pedestrian path, and while a number of houses will have parking at or near their houses (behind them), the majority w ill not, and some people will have to walk up to 150 feet to their cars. People moving to Acton expect to have a two-car garage attached to their house, and would think twice about this "inconvenience" before buying into our community. I hope this helps. - Nancy Wight New View Neighborhood Development
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