RE: low income housing
From: Glen Orcutt (gorcuttprowess.com)
Date: Fri, 12 May 95 11:36 CDT
Buzz Burrell said:
>I think we'de better address the affordability issue with more
determination and
>creativity;  it's pivotal, not just for coho, but for the country as a whole.
>Coho should be taking the lead and modeling ways that people can again
afford to
>own their own place. 

While creating affordable housing within the Cohousing model is a very
well-meaning goal, it is not an easy one to accomplish.  One of the goals of
the Coho model is to have common facilities.  Without them, you may have an
owner designed neighborhood that is affordable, but you don't have the
amenities.

Here in Chico, land prices and building costs are some of the lowest in the
country.  Our land cost averaged only $8,400 per unit.  Yet by the time we
add infrastructure, common facilities and a home, the base 2 and 3 bedroom
homes are $98,000 and $113,000 respectively.  These prices however are above
what the local redevelopment agency will contribute for low and moderate
income families.

If we had opted for no common facilities, the 2 and 3 bedroom prices would
be $89,000 and $101,000 - more affordable, but less desirable.

It is easy to say that cohousing should be taking the lead in this area, but
what do you cut to make it happen?  Or who do you get the money from to make
up the difference?  Sacramento was indeed fortunate to have redevelopment
money to achieve their goals, however not all municipalities are as
far-sighted (not all groups have the energy to battle through the red-tape
either).  

Sweat equity is one approach, however there are problems getting a mortgage
with sweat equity.  Banks will not usually lend on unfinished homes.
Perhaps we can look at finding a way to use the "pre-sold, owner-developer"
umbrella to create opportunities for sweat equity and get mortgages.

Affordability for low-income is a worthy goal and necessary for some groups.
However, affordabilitiy can be in conflict with other aspects of the
cohousing model, such as extensive common facilities and being built by
contractors.  Each particular group must find it's own balance for it's members.

Glen Orcutt
Valley Oaks Village
Chico, CA

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