Re: Long-term affordability
From: Fred H Olson (fholsoncohousing.org)
Date: Thu, 11 Jul 2002 12:26:02 -0600 (MDT)
Martin Henner, Eugene, Oregon , henner [at] impartial.com  mhenner [at] 
attbi.com
is the author of the message below. 
It was posted by Fred the Cohousing-L list manager <fholson [at] cohousing.org> 
because had a "digest" subject line and quoted the whole digest.  Digest
subscribers, please watch this.  Fred
--------------------  FORWARDED MESSAGE FOLLOWS --------------------


I am responding the question from Corvallis Coho of limiting price
appreciation of units over time to keep them affordable.

I recently talked with the architect of Sacramento cohousing, David
Mogavera, who told me that previous to the cohousing project he had worked
for a group that had done a cooperative project which required owners to
sell with no price appreciation.  He said one unintended consequence was
a lax attitude among residents about keeping the project in good condition,
and an increased failure to participate.

I know people on the east coast who had sold their houses in the suburbs and
used the money to buy into a coop with limitations on appreciation. Years
later, when they wanted to move on, for retirements or jobs in other
regions, they found that they could only sell their units for about what
they had paid, but the cost of buying their next house had doubled or even
tripled in the interim. They felt cheated, and some were unable to afford
move on, feeling trapped.

-- 
Martin Henner
Eugene, Oregon
henner [at] impartial.com

> Message: 2
> Date: Wed, 10 Jul 2002 18:52:39 -0500 (CDT)
> From: Fred H Olson <fholson [at] cohousing.org>
> To: -cohousing-L mailing list <cohousing-l [at] cohousing.org>
> Subject: [C-L]_Long-term affordability
> Reply-To: cohousing-l [at] cohousing.org
> 
> Bruce Hecht, Corvallis, OR     <brucehe [at] peak.org>
> is the author of the message below.
> It was posted by Fred the Cohousing-L list manager <fholson [at] 
> cohousing.org>
> because the message included HTML ;      PLEASE do not post HTML, see
> http://csf.colorado.edu/cohousing/2001/msg01672.html
> --------------------  FORWARDED MESSAGE FOLLOWS --------------------
> 
> We are a forming cohousing group that is discussing the topic of long-term
> affordability. We understand that the Community Land Trust structure and the
> Limited Equity Coop structure model use a variety of formulas to limit the
> sale price of a unit over time with a goal of maintaining long-term
> affordability. Have any cohousing projects capped equity or appreciation of
> the sale of units using these approaches or other methods?  If you have
> please reply to my message with what you did, what legal structure you used
> to enforce it along with the pluses and minuses in your opinion.
> 
> Thanks for taking the time to respond
> 
> Bruce Hecht
> Coho Cohousing
> Corvallis, OR
> 

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