|Re: Limits on price appreciation?||<– Date –> <– Thread –>|
|From: Raines Cohen (rc2-coho-Lraines.com)|
|Date: Fri, 20 Aug 2004 09:11:56 -0700 (PDT)|
On 8/19/04 11:43 AM, David Heimann <heimann [at] world.std.com> wrote: > We're putting together our condo docs and the question of limiting >how much a household can benefit from price appreciation has come up. >While there's definitely no consensus for this at this time, we'd like to >know whether any other community has addressed this topic. If so, what >issues came up? Could you reach a consensus? If so, what methods did you >consider? How did you address possible price *depreciation*? Do you have a core group value already consensed that supports this effort? Otherwise, I imagine it could be quite a struggle doing it this late in your process. It's better than trying to do it after purchase, but do you know how many of your members are able to stretch their finances to buy in or feel confident in having an "escape hatch" if the community doesn't work out like they dream precisely because they know that they can resell and buy somewhere else, using equity they've "earned" on their cohousing unit to afford a new home elsewhere? Depreciation happens. Let it! Buying into the market system reaps us benefits as well, in terms of % financable. The challenge here is that sellers don't lower their asking price to meet the market, and so units sit vacant or with unhappy resident owners for a while. > I've checked the archives and the only thread I saw in this >millennium was about land trusts (they keep the land off the appreciation >cycle, but banks won't touch it, except possibly for special loan programs >for low income families). Some useful search terms may include: "limited equity" - Berkeley Cohousing is a limited-equity condo, with maximum sale price AND buyer income capped (both pegged to increases in area median income, with price also increasing for capital improvements appreciating at the same rate) and reviewed by the city with each sale/buyer. This was in exchange for condo-conversion fee waivers equaling tens of thousands of dollars per unit. "recapture on resale" - some affordability programs, including the first-time homebuyer program in Oakland that some of my Swan's neighbors were able to use, include terms similar to what you describe. 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 pet issues are hot on the agenda right now. Secretary, Berkeley [CA] Cohousing Vacations are ending, and the kids are back -- and taller! Supporter, East Bay Cohousing <http://www.ebcoho.org/> Meeting tomorrow at Berkeley cohousing. Boardmember, Coho/US <http://www.cohousing.org/> The Cohousing Association of the United States -- are we in your HOA budget for next year?
Limits on price appreciation? David Heimann, August 19 2004
- Splitting the appreciation and affordability concerns David Heimann, August 19 2004
- Re: Limits on price appreciation? Raines Cohen, August 20 2004
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