Re: Trading Systems
From: Peg Blum (pegbcambridgecohousing.org)
Date: Fri, 5 Apr 2002 10:51:02 -0700 (MST)
Ann Zabaldo wrote:

> Rather than sweat equity wouldn't it be better to find a >source of
funding for their unit -- do you have any >institutions that provide funding
for folks needing >affordable or low income housing?    Sometimes the >group
is willing to create a pool of money that can
> support others in the group that need it.  But I've rarely >come across
folks w/ enough "spare" cash who can do >this.  It does happen tho'.
>
At Cambridge Cohousing in Cambridge, MA, we had several households (out of
41) who could not come up with our required pre-construction contribution of
30% of the projected purchase price.  We had a Finance Committee which
reviewed each household's circumstances and made recommendations for
decreasing the initial contribution.  We were able to carry those folks
temporarily until they got their mortgages at 5  (for first time home
owners), 10 or 20% downpayment, at which time they would pay the purchase
price to the LLP.  Our units became available for move-in over a period of 6
months, so as folks got their mortgages, the LLP(Limited Liability
Partnership) was able to pay off the construction loan.

One household participated in the Cambridge Condo Initiative, a program
which assists people needing help with the downpayment on a mortgage, in
exchange for limited equity on re-sale.  (My knowledge of this is sketchy.)

Peg Blum
pegb [at] cambridgecohousing.org
www.cambridgecohousing.org


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