|RE: limited equity/market value||<– Date –> <– Thread –>|
|From: Rob Sandelin (robsanmicrosoft.com)|
|Date: Tue, 28 Dec 93 11:06 CST|
We were advised by our attorney and also by the realtor and title company who reviewed our condominium declarations that if we placed limitations on equity on resale of units it would disqualify us from FMNA approval. FMNA approval is important if you are seeking commercial bank mortgages, and in our case that was key to us continuing our development. The way the mortgage stuff works is that banks sell batches of loans to FMNA to free up capital to loan again. Unique loans which can't be bundled, or are not sellable to FMNA must be held by the bank. Since the S&L problems there are a bunch of new regulations which limit the amount of individual loans banks can carry. I understand there are some special loan programs for "low-income" housing which allow banks to accept equity limitations. My advise, if you are looking for commercial bank mortgages, to ask your bank about what they will or will not accept in the way of limited equity. ---------- From: Judy <netmail!BAXTER%55317 [at] VX.CIS.UMN.EDU> To: Rob Sandelin Subject: limited equity/market value Date: Tuesday, December 28, 1993 10:45AM Tucson write: <Tucson Cohousing is having a discussion concerning Limited Equity or market value in the resale of property or improvements. 1. Can anyone out there give some thoughts or feeling regarding this topic. 2. Did anyone compromise and what did you do. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>> The issue seems to be, to me, trying to keep CoHousing relatively affordable for newcomers, vs limiting options for the people who leave, for whatever reason. Our group is very much mixed income, ranging from quite low (I don't remember the numbers) to modest/moderate (I don't think we have households with much more than $50,000 per year, maybe $60,000 or $70,000 now that one member, formerly unemployed,got a job?). The concern was that if someone needed to move elsewhere to a more expensive housing market, that family would be penalized. We were also advised that the housing market did not seem to be appreciating, in fact quite the reverse, and that limited equity would probably not make a big difference. Anyway, no one was absolutely committed to the need to be limited equity, and so we aren't. We did write into the by-laws a procedure which, quite frankly, I think was fairly fuzzy, whereby the coop proposes a "fair" price to the seller, along with, hopefully, a buyer from the waiting list, and the seller is not required to take that price. our by-laws committee is at work on lots of things, - i don't know hwere that stands. JUdy Judy Baxter, Monterey Cohousing Community, Twin Cities Area, Mpls/St.Paul MN (Mococo) baxter [at] epivax.epi.umn.edu Twin Cities CoHousing Network Voice Mail 612-930-7580 Voice Mail for Monterey Cohousing - 612-930-7554
Results generated by Tiger Technologies Web hosting using MHonArc.