|Re: Consultant fees||<– Date –> <– Thread –>|
|From: Rob Sandelin (robsanmicrosoft.com)|
|Date: Thu, 13 Jan 94 10:00:50 PST|
Sounds like you are in the classic limbo of finding a financial core group. Based on our experience I would advise you to do a thorough financial assessment of your members ability to make a mortgage if you haven't already. The Puget Sound Cohousing Network put together a Feasibility survey as part of the Cohousing Getting Started Kit which among other things screens for members income levels. One of the 4 deadly cohousing "traps" is when people who want to be members, or who may be members don't really have the financial wherewithal to make a mortgage. The typical financing formula used by banks out here is: 2 years in the same line of work no credit problems (collections or bankruptcy) Max loan at 2 1/2 times income. I have heard of several groups who thought they had enough core members but once they tried to actually committ to buying a site they found out many of their members didn't qualify for loans. Of the four projects in Puget Sound that have built or are building, the average home/unit cost is well above $100,000. So to qualify for a loan a member needs to have either lots of equity or an income of over $40,000. This has unfortunately excluded some excellent people from cohousing. It is much better to screen prospective members up front then have them put a bunch of time and energy into a dream that they can't realize. Although I have heard of at least one group who is successfully working a low-income project (The Pacifica group in Pacifica Ca) it is not easy to get subsidy for low income members. Good luck on your endeavors Rob Sandelin Puget Sound Cohousing Network Sharingwood Cohousing Community ---------- From: "Laura Bagnall" <netmail!laura_bagnall [at] terc.edu> To: Rob Sandelin Subject: Re: Consultant fees Date: Thursday, January 13, 1994 10:46AM Reply to: RE>Consultant fees Don't forget that there are two places to think about spreading costs. One place is during the development process, and the other place the final cost of each unit. We're still working out our strategy, but it looks like we will adopt the same strategy of dividing costs equally on a per household basis, with possible waivers due to extraordinary circumstances. However, once the construction is finished, all of the money that each household has contributed is credited towards the downpayment of their unit. At that point, the different units will cost different amounts. Again, we are very early in the process and haven't decided how to set the prices for the units, but I'm presuming that it will be based at least partly on unit size, so that single member households will probably need a smaller unit than a larger family household, and will thus end up paying less at that point. By the way, I haven't yet introduced myself to this list. I belong to a group that just started up in July of 1993. It is temporarily called NorthWest Inner Suburban Cohousing (NWIS), but we are actively working on choosing a better name. We are basically looking for a site in Arlington, MA, which is located just to the northwest (surprise!) of Boston. We are actively looking for new members to join us, and that is actually our main focus at the moment. We have identified a possible site, but we can't move forward until we have more members. I am on the Finance/Legal committee, so I have been actively participating in the process to work out the financial side of things. Any readers of this list in the Boston area who aren't currently affiliated with a group should feel free to contact me! Laura Bagnall Laura_Bagnall [at] terc.edu -------------------------------------- Date: 1/13/94 9:51 AM From: jcallen [at] world.std.com From: SMITHMCC [at] delphi.com The problem is that we are debating the issue of spreading the cost out on a per person or perhoushold basis. The single member housholds feel that they would be paying more because they do not have the resources that multiple person housholds have. Any thoughts??? So what about single-income, multi-adult households? What about salary differences? What about households with larger expenses. due to, say, a large number of children or support of disabled parents? What about... You can go crazy trying to be "fair." Our group spent an extraordinary amount of time and angst on this and finally ended up doing everything per household. This may not be fair, but at least it is clear and unambiguous.
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