|Re: Economic support in cohousing||<– Date –> <– Thread –>|
|From: David L. Mandel (75407.2361compuserve.com)|
|Date: Wed, 27 Dec 1995 10:25:59 -0600|
I'll add a little detail about the formal loans we have made to members: About a year ago we decided to assess homeowners for some transitional tax and insurance bills that probably would have been paid by the construction entity if it hadn't run out of money. The amount was at least several hundred per household; for some larger units as much as $7-800. And some people simply didn't have it. So we decided to offer loans from our reserve fund at prime rate for those who needed it. Seven households did, and they had the choice of setting fixed monthly payments they could afford or a term of their choice with a maximum of two years. These are unsecured loans, so we're assuming the risk that someone might skip out. So far no one has, and three of the loans have been entirely repaid. Sometime soon we'll discuss in our administrative cluster then decide at a general meeting whether we want to make emergency loans from our reserve a permanently available feature here. If we do, we'll probably set a maximum amount per loan as well as a maximum total that can be owed at any one time. Plus we'll have to try to define criteria for eligibility. The positives, aside from the spirit of mutual aid, are that even at prime rate, the interest on the loans is a better investment for our reserves than the CDs or money market funds we otherwise use. (What do other established communities do with their reserves?) Totally separate from all this, I'm aware of a half dozen or so other informal loans of significant size that have been made from member to member, mostly around crunch time when we were closing our purchases. None became problematic as far as I know. While these were strictly person to person, the existence of our cohousing community surely made them more likely to occur, I think. David Mandel, Southside Park Cohousing
RE: Economic SUpport in Cohousing Rob Sandelin (Exchange), December 21 1995
- Re: Economic support in cohousing David L. Mandel, December 27 1995
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