|Funding The "lot" development model||<– Date –> <– Thread –>|
|From: Rob Sandelin (robsanmicrosoft.com)|
|Date: Tue, 25 Apr 95 12:48 CDT|
One of the things Sharingwood did to help us over the financial low points of individuals is that there was a $2,000 special assessment, added to the price of each lot, which went into a common fund for startup funds for the commonhouse. This money was first, that is if someone paid a $5K down payment, the first 2K went into the account. We let individual lot owners borrow against that account when a large assessment came in for surveys, or road building or whatever. For example, to pave our road cost about $30K, which was a $1800 assessment per unit. Some people paid that up front, others who could not, borrowed money from the common account (at 8% interest). This way the bills were paid without a large immediate financial hit to those who couldn't raise the money, and the common account made more interest in the long run than it would have if we had just left the money in the account. The treasurer was assigned to keep track of the loans and individual accounts and so people could borrow money for assessments with some degree of confidentiality if they wanted. This common account has worked out very well for us. Rob Sandelin Sharingwood.
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