|Re: ROFR||<– Date –> <– Thread –>|
|From: Kay Argyle (Kay.Argyleutah.edu)|
|Date: Thu, 4 Jun 2009 14:50:51 -0700 (PDT)|
> We got rid of the ROFR from our bylaws. "Why did you get rid of it?" Rebecca We don't know that we ever actually lost any sales for lack of FHA approval. After all, when some person on the tour who asked about FHA financing doesn't call again, was that the reason, or something else? We'd had sales that fell through when a buyer couldn't get financing; maybe some of them might have qualified for FHA if we were an approved project. We did know that we could easily have lost a sale. Fortunately the buyer qualified for a conventional mortgage, and wanted to join us enough to gulp and take it instead of a cheaper VA loan (the VA rubberstamps anything with FHA approval). Balanced against the nebulous possibility that a Right of First Refusal might, at some unknown time in the future, give us a tool to fend off a theoretical hostile sale by a theoretical disaffected ex-resident or indifferent heirs, we had an instance of it causing actual harm (higher interest), and a clear potential for it being a drawback in other cases. It was at that point we first seriously discussed removing the ROFR from the bylaws, although we didn't pursue it once we discovered the FHA also doesn't like one entity owning more than ten percent of the units. We weren't about to tell one resident he had to toss out his tenants, active members of the community, pursuant to selling his two rental units. (We were under the impression at the time that that rule would also apply to our income-qualified units, partially owned by the condo association, but it doesn't.) Last year we had a test case -- a unit for sale by a relocation company, with a realty agent who didn't know what cohousing was and didn't want to know. It seemed like a time, if ever, when the ROFR might finally come into its own. It dawned on us that exercising the ROFR meant coming up with over $200K to buy the unit. Er .... (Fortunately a buyer found us on the intentional communities list, before the realtor found anyone -- not that he was trying very hard.) There didn't seem much point in keeping the troublesome clause, particularly since, the landlord having sold one unit to a heretofore renter, the ten percent rule was no longer a separate obstacle. So we revised the bylaws. Kay Wasatch Commons SLC __________ Information from ESET Smart Security, version of virus signature database 4131 (20090604) __________ The message was checked by ESET Smart Security. http://www.eset.com
Re: Cohousing-L Digest, Vol 65, Issue 5 Rebecca Reid, June 4 2009
- Re: ROFR Kay Argyle, June 4 2009
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