|Affordable Cohousing: Series Introduction||<– Date –> <– Thread –>|
|From: Chris ScottHanson (cscotthansonmac.com)|
|Date: Wed, 11 Feb 2015 09:51:49 -0800 (PST)|
Affordable Cohousing A SELECTION OF IDEAS FOR CREATING MORE AFFORDABILITY IN YOUR COMMUNITY [submitted to cohousing-l in weekly installments, for comment and input.] You’re probably tired of hearing about smaller units, standardization, simple unit plans, modest finishes, all with the goal of achieving more affordability. Well it’s true, these all help, but there are other affordability strategies that are based on interpersonal relationships, community, and trust, that can be just as effective, if not more so. The strategies outlined in the series to follow have been collected over the past 25 years of doing cohousing projects across the US and Canada. Many of the strategies outlined below are what I call “internal banking.” These internal banking relationships are magical when they happen, and it would seem they can only happen when there is a strong sense of community, and trust. Each of these has been used successfully in one project or another. The vast majority of cohousing projects that have been built in North America have included a number of internal banking elements which have allowed members with some resources to assist members with more limited resources to participate in the community. There are two primary ways of purchasing your home in cohousing. In the simplest form, these are: 1) an all cash purchase, or 2) a mortgage from a bank, usually requiring some downpayment from the purchaser. The mortgage is called a “take out loan” by the construction lender because it takes them out, paying off their loan to build the project. Your cohousing group can adopt some or all of the following strategies for achieving a measure of affordability within your project. Some of these strategies work for some people. Others work for other people. Some of these strategies need to work together. It all depends on needs, circumstances, pride, personal relationships, trust, liquidity, risk willingness, risk aversion, and/or time sensitive financial needs. 1. Internal Down Payment Assistance 2. Outside Down Payment Assistance 3. Second Mortgages 4. Co-purchase Options 5. First Time Buyers 6. The Reduced Monthly Condo Fee Subsidy. 7. Maintenance Reserve Reinvestment 8. Unit Price Buy Down 9. Design for Affordability - Capital Costs and Operating Costs 10. Shared Units 11. Community Owned Rental Unit 12. Participating Nonresident Owners 13. Purchase of One or More Units by an Outside Affordable Housing Entity In the coming weeks I will submit to cohousing-l an explanation of each of these strategies. I hope, if you’re interested, that you will comment, edit, expand or help explain how each of these strategies can contribute to making cohousing more affordable, to more people. Share your stories and we can add them to the shared wisdom. Chris ScottHanson Urban Cohousing Associates, Inc. <http://www.urbancohousingassociates.com/> Land Acquisition, Development Consulting & Project Management Ecovillages, Cohousing & Sustainable Communities Fifth Street Commons <http://fifthstreetcommons.com/> PO Box 1288 Langley, WA 98260 (206) 601-7802 cell Author of: The Cohousing Handbook - BUILDING A PLACE FOR COMMUNITY Available from Amazon.com new, used and as an eBook.
Results generated by Tiger Technologies Web hosting using MHonArc.