Re: Money again
From: Nancy Wight (wighthpwarr.wal.hp.com)
Date: Tue, 3 Aug 93 10:50 CDT
> 
> 
> Nancy,
>       Thanks for the detailed information. With this current site,
> the option idea wouldn't work. The owner is FDIC and all they want to
> do is get rid of the land as quickly as possible. So fast, in fact,
> they are selling it with a somewhat unclear title. (Maybe this
> developer is doing us a favor. Silver lining stuff.)

In our quest for land, we also looked into  to getting land via FDIC, 
auctions, etc., and determined that we could not take the kind of financial
risk it would take in order to do that.  There are so many things
that can go wrong with a piece of land (like the one you mentioned-
an unclear title).  We looked at approx. 30-40 pieces of land, and after
some investigation we found something wrong with each one of them.
The most common problems were: the land didn't perc (wasn't suitable
for septic), the zoning regulations would not allow cohousing and/or
a common house, there was toxic waste within a mile, the town had its
eye on the land for conservation or other uses, extreme neighborhood
opposition (threats to members of our group), the land was made
up entirely of ledge and would have to be blasted, most of the land
was wetlands and could not be built upon.  So, you may be right
about the silver lining!

>       A question: Do you still have a contact at the National Coop 
> Bank?  My food coop (Park Slope Food Coop, Brooklyn NY), got a loan from
> them and I have the name and number of that contact person. But if 
> there is someone there who knows something about CoHousing, I would 
> rather talk to her.

Our contact at the NCB is David Fried.

> 
>       If I understand your system, people paid a $5000 dollar
> deposit, and then pay a monthly fee to build up the cash fund?
> If your already have a mortgage, you are outlaying a lot a cash per
> month. But it makes sense to spread out the downpayment over a year.
> I know most of my cash is tied up in my co-op apt. Other members are 
> talking about home-equity loans till they sell their homes or apts. 

Yes, it is very difficult for some of us with mortgages to lay out
that much cash every month.  Some people in the group have gotten
home equity loans, others have saved up over the past 4 years.  We
did get an offer from a bank to lend us some money for the pre-construction
costs, using the land as collateral, but we decided not to take it
for the time being for legal and other complicated reasons.

> 
> A lot of risk...

> Robert Cooper  

Yes.  Even though a lot of the money is secured by the land, it was
very scary to put out so much money without any assurances whatsoever that
this community would actually be built.  

- Nancy Wight
  New View Neighborhood Development
  Acton, MA

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