Fwd: equity caps
From: RowenaHC (RowenaHCcs.com)
Date: Tue, 17 Aug 1999 19:48:58 -0600 (MDT)
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Return-path: RowenaHC [at] cs.com
From: RowenaHC [at] cs.com
Full-name: RowenaHC
Message-ID: <6d2018c5.24eb67d4 [at] cs.com>
Date: Tue, 17 Aug 1999 21:35:16 EDT
Subject: Re: equity caps
To: lilbert [at] earthlink.net
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I don't know if you heard from anyone at CambridgeCoho.  We did manage to 
make three units "affordable" - out of 41!  Pretty depressing, really since 
we started with a desire to keep things affordable.  Actually, in the grossly 
inflated real estate market here our units were below market rate.  We sold 
two units to the Cambridge Housing Authority at discounted prices and one 
went to a single mother who was eligible for a Cambridge program which 
provides low cost loans to individuals to purchase condos with the proviso 
that their equity increase is capped and they must sell to another eligible 

We went through the whole - we'll be a cooperative and cap equity bit but 
gave up partly because of the resistence to financial institutions to both 
cooperatives and caps and partly because some of our younger families who 
were having a hard time coming up with the funds to buy couldn't bring 
themselves to give up the idea of increasing market value.  A major argument 
was that if they had to move they needed to sell for enough to buy elsewhere. 
  And it just happened - a family is transferring to San Diego, which is 
right up there with Cambridge in the sky rocketing real estate market.  The 
increased value of their unit here will enable them to buy there!

So, perhaps we did the right thing by not insisting on equity caps after all.


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