Re: Membership sale agreement questions | <– Date –> <– Thread –> |
From: Rob Sandelin (robsanmicrosoft.com) | |
Date: Tue, 19 Apr 94 16:13 CDT |
Jim_Snyder-Grant wrote an extensive piece on the New View's legal agreements. Thanks for the details, they are very helpful. I would also add that some groups are doing mixed ownership models of both Co-op and Condo. For example, Sharingwood where I live has the houses as condo ownership (9 acres) and the greenbelt is owned as a cooperative (31acres). I understand that a group in California has set up their property ownership so the market rate housing is condo, and the lower-income/subsidized housing is co-op, which allows them to set equity levels on resale to maintain the low-income. (The low income housing is subsidized through a local government program) At Sharingwood the cost of each condo "lot" paid for the cost of the total property so the banks indirectly supported the coop by financing members lot purchase. (we got our property at a pretty good price) Since the lot prices were within the appraised value norm it allowed us to fund the greenbelt. We will also do something similiar for lot costs in our second phase, only the funds will be used to subsidize our common development and possibly a couple of units which will be owned by the cooperative corporation and leased. In this way the value of the lots in the future development will essentially give us a free commonhouse, shop and maybe even a unit or two. In essence, we are overcharging "ourselves" for lot costs and since the banks are financing us, the amount that is extra is paying for common development in a cooperative. The land was bought and held by the cooperative corporation and the condominium bought from the cooperative so we bought the condominium units from ourselves at a price greater than we paid for them to cover development costs. Our lawyer was impressed, said it totally legit and thought it was a nifty way to get indirect bank financing of something the bank would not really ever be willing to finance. Since we are a non-profit and used all the money to cover common development we didn't even owe any taxes. The key thing for us was the ability to buy the land, subdivide it and develop it at a lower than market cost. Typically a developer does this and pockets the profit. We used, and will use, the profit to fund the cooperative. Rob Sharingwood Cohousing ----------
- Re: Re: Membership sale agreement questions, (continued)
- Re: Re: Membership sale agreement questions Rob Sandelin, April 18 1994
- Re: Re: Membership sale agreement questions Stephen Hawthorne, April 19 1994
- Re: Membership sale agreement questions Jim_Snyder-Grant . LOTUS, April 19 1994
- Re: Re: Membership sale agreement questions Stephen Hawthorne, April 19 1994
- Re: Membership sale agreement questions Rob Sandelin, April 19 1994
- Re: Membership sale agreement questions Larry Henson, April 20 1994
- Re: Membership sale agreement questions Rob Sandelin, April 20 1994
- Re: Membership sale agreement questions Rob Sandelin, April 20 1994
- Re: Membership sale agreement questions Stephen Hawthorne, April 20 1994
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