|Re: Equity Co-op||<– Date –> <– Thread –>|
|From: Raines Cohen (rc2-coho-Lraines.com)|
|Date: Sun, 29 Dec 2002 21:12:05 -0700 (MST)|
On 12/28/02 11:06 AM, Maggie < mdutton [at] shaw.ca> wrote: >I understand that Prairie Sky Cohousing in Calgary (formerly Whole Life >Housing Society) in Calgary, Canada, decided to be an equity co-op. Could >someone from Prairie Sky tell us what that decision entailed and the reasons >why the group chose this model? How is it different from other housing >co-ops? I can't speak for Calgary, but I recently had a discussion with Hank Obermayer of Mariposa Grove Cohousing here in Oakland, CA, an artists' community/physical retrofit project. He mentioned that they had been planning on a transition from his sole ownership to a limited equity condo, but were lately moving towards co-op rather than condo, because: - One of the members had recently declared bankruptcy, and so would be unable to qualify for a mortgage, negating the "finance it through standard purchase mechanisms" benefit that a condo structure would offer - Another one had never sought or obtained credit... with the same result. [there may have been other reasons, but they were lost in the chaos of the delightful holiday party there where I learned these things] A co-op ownership structure can provide for investment in shares of the organization, with the mortgage held on the entire structure collectively by the organization. Downsides include higher interest rates; possible benefits include use of a Land Trust or similar mechanism to detach the land value from the unit prices. Raines Raines Cohen <my initials,2,dash,coho,dash,L at my first name .com> Member, Swan's Market Coho [Oakland, CA] <http://www.swansway.com/> Where a neighbor cooked a birthday common dinner tonight. Facilitator, East Bay Cohousing [on hiatus] <http://www.ebcoho.org/> Plotting a transition to regional group / umbrella form. Boardmember, The Cohousing Network <http://www.cohousing.org/> Preparing an update to its communities list. _______________________________________________ Cohousing-L mailing list Cohousing-L [at] cohousing.org Unsubscribe and other info: http://www.cohousing.org/cohousing-L
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