|Re: Membership control in resales = co-op ownership||<– Date –> <– Thread –>|
|From: David L. Mandel (75407.2361compuserve.com)|
|Date: Thu, 28 Dec 1995 01:14:55 -0600|
Some thoughts in response to Charlie's question and Rob's reply, especially the horror story about the foreclosed-upon house at Sharingwood: One obvious answer was in the very beginning of Charlie's query: the decision the Berkeley cohousing group is still struggling with -- cooperative or condominium ownership. On the most elementary level, with the former, a group can have a high degree of control over who buys in, while with the latter, there is almost none. Especially in a place like Berkeley, a highly desirable locale with a high demand for housing, the danger Charlie cites of future folks buying in because it's a convenient, attractive place to live at a fairly reasonable price is serious indeed. I dread the same phenomenon in our downtown Sacramento location; especially down the road when our neighborhood will probably be considered more desirable in other ways, it will be even more so for its convenience to the Capitol and surrounding offices and other amenities. Someone could easily buy a unit and never participate in community life. When we made the condo vs. co-op decision, the real estate market was still in the go-go late '80s and many of our members were pulled into wanting condo by the expectation that it would be a much better investment of their life savings. I don't blame those who wanted to protect their investment, though here's another example of why I scream inside at the fact that a basic necessity such as housing is treated as just another commodity in our capitalist system. ... Anyway, if the debate were taking place in today's stagnant market, those of us who urged co-op back then might have prevailed. The other obstacle to co-op (part of the same phenomenon, actually) is that our housing finance system is not designed to support it. I guess there's not as much money to be made, so there aren't as many banks out there willing to do co-op financing, and while there may be some government money to finance limited equity co-ops (full or partial) for low-income folks, it gets pretty complicated. I am far from an expert on how to do it. But there are some knowledgeable people out there, and I urge you, Charlie, as well as others in similar positions to give some real serious attention to the possibility of co-op financing. Winslow cohousing near Seattle did it, by the way, so you may want to contact them for concrete advice. Is anyone else considering co-op ownership these days? David Mandel Southside Park Cohousing
Re: Membership control in resales = co-op ownership David L. Mandel, December 27 1995
- RE: Membership control in resales = co-op ownership Rob Sandelin (Exchange), December 28 1995
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