Re: Low Cost Cohousing
From: Greg Nelson (ghnpgt.com)
Date: Wed, 24 Feb 2010 09:21:50 -0800 (PST)
Sharon Villines writes:

> I think a good basis for comparison of housing costs is the HUD  
> figures. Their formulas maybe right or wrong but they are a stable  
> reference point. They also list market rates, set in large areas so  
> neighborhoods will vary.

I agree this is a good starting point, although it's a lot more
complicated than it looks at first glance.  When we were working on
our recent affordability grant application, it took me about two days
to digest all of the relevant charts and numbers and evaluate how to
split out our costs to align with their recommended numbers.

For example, they have pages and pages of correction tables that
substitute different numbers for the income levels in different towns;
I'm not sure if this is to correct for regional price of living or
regional income levels or both, but you can't just use the generic
federal median income statistics.  Also, I think there is quite a bit
of vagueness and confusion about how to compute "living expenses" to
keep this at the 30% of income proportion they require.  It includes
taxes for homeowners but not for renters.  It includes utilities: but
is that just heat (before or after HEAP subsidies?) and electric; or
does it include phone... (long distance?), what if there is no
landline, does it include the higher cost of cell phone...

While I'm thinking about it, since people have been asking for more
specifics and numbers, here are our cost breakdowns for a couple of
example affordable units, if we receive the grant:

800 sq ft, 2 br 1 bath 
Affordable for family of 4 at VLI level: 30-50% median income
Lot price: $45,000
Home price: $76,000
Total less grant: $101,000
Monthly mort: $606
Monthly taxes: $167
Monthly community fees: $50 (subsidized)
Monthly insurance: $25
Montly heat: $7
Monthly util $40
Montly total: $895

1200 sq ft 3 br 1.5 bath
Affordable for family of 4 at LI level: 50-80% median income
Lot price: $45,000
Home price: $114,000
Total less grant: $139,000
Monthly mort: $834
Monthly taxes: $251
Monthly community fees: $200
Monthly insurance: $38
Montly heat: $10
Monthly util $40
Montly total: $1373

The same homes might be $200-$300 more per month without the grant.
Do those seem like fair numbers?  I don't know.  I wish we could make
them cheaper, but they do meet the HUD guidelines.

Greg Nelson                     email:  ghn [at] pgt.com
White Hawk Ecovillage           phone:  607-273-2576
Ithaca, NY 14850                web:    www.whitehawk.org

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