Land cost per unit for senior cohousing
From: T LOFFT2 (tlofft2hotmail.com)
Date: Wed, 5 Aug 2009 10:15:47 -0700 (PDT)
Hi, Dennis,

 

I'm glad to see you all are sticking with your project.

 

The value/cost per unit must be compared to the Market Value being received.

 

Some sites will appear to be more expensive than others because they have 
better attributes.

 

This is often a fault of appraisers (more often, a fault of sellers) in valuing 
land for which they don't fully evaluate all the attributes of value included 
in a 'comparable' property.

 

For example, a site may or may not include, and therefore may need additional 
$$ invested to comply with, local county/municipal requirements:

1. Sewer tap fees and/or capacity charges; sewer line extension design, 
engineering & construction costs; sewer line public works agreement legal fees, 
easement costs, permit and inspection charges; 

2. Water tap fees and/or capacity charges; water line extension design, 
engineering & construction costs; water line public works agreement legal fees, 
easement costs, permit and inspection charges; 

3. Road and access impact fees; extension design, engineering & construction 
costs; road construction public works agreement legal fees, easement costs, 
permit and inspection charges; 

4. Storm water management impact fees, design, engineering & construction 
costs; public works agreement legal fees, easement costs, permit and inspection 
charges; 

5. Other impact fees chargeable, such as for library, schools, police, fire 
services, affordable housing, public transit, reforestation, water shed 
protection and conservation, etc.   

 

If any or all of these are already paid for a site, then they are an added 
value and part of the cost saved in the development budget; If they are not yet 
paid, they may add up to more than the raw land value per unit itself.

 

If none of them have been paid and all of them have to be negotiated with the 
jurisdiction and paid out of the development budget, then the site is simply 
raw land and not an approved site, and certainly not a developed or buildable 
site:

 

So land value is considered differently, at least by me, at six principal 
stages: the question is: At what stage is the site on which you are negotiating 
value?:
Stage 1: absolute raw land, not in the comprehensive plan for development: 
(almost the worst condition; even worse if it's a brownfield site and needs 
contamination remediation);

Stage 2: Comprehensive plan category permits development subject to zoning;

Stage 3: Zoned for development desired; needs site design and permitting;

Stage 4: Site Plan & Utilities Plans approved; no fees paid or improvements in 
place; 

Stage 5: All permits for land development approved and fees paid, but no site 
development yet;

Stage 6: All on site and off site development improvements in place or under 
bond for go-ahead; ready for building permit.

 

The corollary aspect of value is when the Seller expects to get paid, and under 
what conditions of warranty of getting permits to proceed to construction; the 
earlier you make any payments for an unapproved site, the longer your group has 
to pay interest and debt service on any borrowed money.

 

Best wishes;

 

Tom Lofft

Liberty Village, MD

 


Date: Mon, 03 Aug 2009 14:04:53 -0400
From: Dennis Jay <dennisjay [at] mac.com>
Subject: [C-L]_ Land cost per unit for senior cohousing
To: cohousing-l [at] cohousing.org
Message-ID: <16635EF9-F47F-4E03-9FB6-8F910543E0D1 [at] mac.com>
Content-Type: text/plain; charset=WINDOWS-1252; format=flowed;
delsp=yes
 
Greenhouse is a forming senior cohousing group in Annapolis, Md. We 
propose 32 units on a 2.3 acre site, of which only 3/4 of an acre is 
useable because of environmental constraints.
 
Because of its proximity to Washington, D.C., there has been only a 
modest decrease in property values here. This is a great sustainable 
site with transit, shops and services a short walk away, but the 
property is very expensive. Land cost at $51,300 per unit is roughly 
double the recommended 15% ratio for cohousing, and we are currently 
negotiating with the owner to avoid a further increase to $62,500 per 
unit. And because this is senior cohousing, our units are smaller than 
usual, averaging just 682 square feet.
 
Preliminary cost estimates are as follows:
 
Studio ? size: 504 sf ? land cost range: $138,000 to $152,000
 
1 BR ? size: 672 sf ? land cost range: $184,128 to $204,288
 
2 BR ? size: 756 sf ? land cost range: $207,144 to $229,824
 
2 BR+ ? size: 1008 sf ? land cost range: $276,192 to $304,416
 
Prices so not include common house outfitting.
 
We would appreciate any comments on the feasibility of these prices ? 
good, bad or indifferent.
 
Many thanks,
 
Bob Corbett
Dennis Jay
 
Greenhouse Cohousing
Annapolis, Md.
 

_________________________________________________________________
Get free photo software from Windows Live
http://www.windowslive.com/online/photos?ocid=PID23393::T:WLMTAGL:ON:WL:en-US:SI_PH_software:082009

Results generated by Tiger Technologies Web hosting using MHonArc.