Re: Real Estate profits
From: Chris ScottHanson (chriscohousingresources.com)
Date: Sat, 19 May 2007 20:55:36 -0700 (PDT)
Rod,

Basic, but very important concept for long term affordability in cohousing...

Tie the affordability assistance (silent second, co-purchase, price discount, etc.) to the household that needs the help and NOT to the building. Recycle the money as it becomes available to others who need help, either new purchasers, or existing residents who have a financial problem, like loss of a job.

Much simpler, much more effective.


Chris ScottHanson

On May 12, 2007, at 6:48 PM, Rod Lambert wrote:

Re slowing down escalating resale prices:
Here at EcoVillage at Ithaca we are examining this question again as we work towards our 3rd Nbhd. We actually got a 18k HUD subsidy for 5 of the units in the 2nd NBHD (SoNG)but one of the units has changed hands at the new market value - there goes the affordable unit. The trick of course is to see what can be done to maintain a unit's affordability. One way we are looking at is to attach the unit's sale price to the median income for the area, statistics kept by local county officials in this area so it is a relatively unbiased, official number. We are considering the idea of making several units available with significantly reduced common costs to make them initially more affordable. In return that unit would have to remain affordable to someone at 80% of the median income for the county. Owners would see an increase in value but it would track an affordable curve into the future. This is probably easier to hold to in a coop then in other legal models. Of course the non subsidized owners have to value this affordability goal enough to take on somewhat higher common costs. I would be interested in hearing feedback on this approach.
This really is a problem that needs some creative solutions.

Rod Lambert
Development Manager and Design Coordinator
Second Neighborhood
Ecovillage At Ithaca


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