|RE: covering startup and infrastructure costs||<– Date –> <– Thread –>|
|From: Karen Schwalbe (kschwalbewhrc.org)|
|Date: Mon, 12 Jul 1999 11:51:01 -0500|
Alchemy Farm, on Cape Cod, (MA) formed a corporation of shareholders whose intent was to develop a cohousing community. We intended to do a serviced lot model where each member builds its own house. Each family/individual bought a share for $10,000 (toward an expected $61,000 lot price) and bared all their financial laundry to acquire a mortgage on the land. Members who could put in more money than the share price did so as a loan at 8% interest. We subdivided the land as a planned unit development into 13 lots. The remaining infrastructure development was financed by selling the existing farmhouse on the property (to a cohousing community member) as the bank didn't think holding mortgages on the eight unsold properties was secure enough to extend more money to the project. We were able to do this over a five year period, as we had paying tenants in existing buildings on the property that covered mortgage, insurance, utilities, etc. It gave us a bit of breathing room in the design process. I have to second Rob Sandelins comments regarding documenting money spent and tax consequences. Get a good tax accountant (costing us between $600-$1000/yr) and make sure they understand what you are doing. It got especially confusing as we became a neighborhood association from a development corporation. Karen Schwalbe Alchemy Farm Cohousing Hatchville, Massachusetts
- covering startup and infrastructure costs brucefrishkoff, July 9 1999
- RE: covering startup and infrastructure costs Mac & Sandy Thomson, July 16 1999
- RE: covering startup and infrastructure costs Mac & Sandy Thomson, July 26 1999
Results generated by Tiger Technologies Web hosting using MHonArc.