Re: percentage of members to build
From: Kathryn McCamant (kmccamantcohousing-solutions.com)
Date: Tue, 20 Sep 2016 12:09:06 -0700 (PDT)
Sharon ask, I wonder if this has gotten harder or easier?

Getting construction loans for cohousing hasn’t gotten any easier, largely 
because of the great recession and the additional regulations that went into 
place after that. And, of course, banks got a big reminder about how much money 
they could lose in a big downturn. Unfortunately, it was the smaller banks, and 
often the ones that are more likely to fund cohousing projects, that got hit 
hardest during the recession (much harder than the large banks that caused the 
problems!), so they are much more conservative now. That means that banks are 
more focused than ever on having significant assets to back the construction 
loan guarantees. So it’s all about finding the right bank at the right time, 
and if you are seeking a development partner, finding the right developer at 
the right time. And then giving them a great, well thought out, package that 
addresses all their concerns so they don’t have to work too hard to work with 
you. 

This is a lot of the work I do at Cohousing Solutions. Helping groups 
understand their options, putting together a strong professional team, 
assisting in finding an appropriate developer and putting together that 
partnership, and then finding construction financing. I work all over the 
country. For any of you in the development process, feel free to give me a call 
to discuss how  we can help you get your community built. 

Katie 
-- 
Kathryn McCamant, President
CoHousing Solutions
T.530.478.1970  C.916.798.4755

www.cohousing-solutions.com
 




On 9/19/16, 5:02 PM, "Cohousing-L on behalf of Sharon Villines" 
<cohousing-l-bounces+kmccamant=cohousing-solutions.com [at] cohousing.org on 
behalf of sharon [at] sharonvillines.com> wrote:


> On Sep 19, 2016, at 3:00 PM, Kathryn McCamant <kmccamant [at] 
> cohousing-solutions.com> wrote:
> 
> Most cohousing groups would scare away banks (and developers) if they talk to 
> them early on. And you never get another shot at “introducing” your project 
> cleanly again. If their take away from that first meeting is that you are a 
> bunch of nice, well intentioned folks who have no idea what you’re getting 
> into…… it will be hard to convince them to take a fresh look later when 
> you’ve gotten your shit together.

I agree. I think Gilda was referring to the place where you are together, have 
land, and are looking for a developer. In Florida we found the best developer 
in the area by talking to Gilda and then the bank. He was willing to work with 
the group because it was cohousing. Usually he did larger projects for villages 
and  non-profits. He was always in under budget and on schedule. With him, 
getting a construction loan would have been easy. The banks trusted him.

There were many reasons why that community didn’t work out but one was that a 
small group actually wanted to do the development and wouldn’t share the power. 
But his presentation to us was amazing. I learned a lot. 

> The construction lending world is a small world, even in big markets, so I 
> have found it much more effective to build up a group, make sure they are 
> “real” about costs and the money, and then put together a really strong 
> package to send out to banks, and actively “shop” the construction loan.  As 
> developer Jim Leach always reminds me, if you have the buyers (that will/can  
> buy for what it is really going to cost to build your project), you can find 
> the money to build it.

But unless a group has hired a cohousing professional, I don’t think they could 
handle preparing this presentation. I think Chris Scott Hansen focuses 
specifically on this part of the process. Rocky Corner in CT had a wonderful 
financial adviser who knew where the money was for affordable housing. As I 
remember, they ended up with 3-4 different programs to work with.

I was on the board of a non-profit group trying to buy a historic theatre. The 
bank had a non-profit VP who was very helpful in explaining what we needed and 
where we could find it. What the bank could do for us. Who they had worked well 
with. But buying a theater is a clear concept. Cohousing isn’t so much.

> The bigger challenge tends to be finding enough qualified cohousing buyers 
> ready to put their funds in to a forming project. 

I wonder if this has gotten harder or easier?

Thank you for the correction, Katy,

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org




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