New construction - cost allocation
From: JACOB DYE (jacobdyemsn.com)
Date: Thu, 28 Aug 2008 08:35:29 -0700 (PDT)
Hello,
 
This is an inquiry for folks who have experience with distributing land 
development and common house constuction costs among the individual home 
owners...and ethics.
 
We have two possible cost distribution scenarios and are open to more. The cost 
of individual homes would of course be covered by the individual home owner, 
the remaining costs would be distributed. 
 
The first way is where 25% of the total costs (common house, land purchase, 
development & rezoning) is divided equally by the number of residences. The 
remaining 75% of total costs would be distributed according to the square 
footage.
 
The second is similar but using 50/50, where 50% of the total cost is 
distributed evenly to the individual home owners and the remaining 50% of total 
costs would be divided according to the square footage of the homes. 
 
For the site we are looking at, the monetary difference between the first and 
second scenario is about $25,000 for the smallest and largest homes. So a 600 
ft^2 home is $25K more in the 50/50 than in the 25/75. 
 
This may come down to the impact/benefit to the community of a multi-person 
household vs. the single person household. The multi-person household has more 
impact to the community but possibly has greater benefit than the individual. 
 
Is $25,000 an acceptable investment to a single person household for the 
benefits of a larger community? or
Should the cost distribution be divided solely on the home sqaure footage?
 
Thanks,
 
Jacob
Stillpoint, CO

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