Cohousing-L Mailing List: Re: affordable coho options

[Mac Thomson (mac]

David,

Thanks for your info on how Southside was successful at creating a mixed
income neighborhood.  Here in Durango, like many Colorado resort towns, the
land prices are often too high for local wage earners.  We're not as bad as
Aspen or Telluride yet, but it's certainly become a problem.  At San Juan
Cohousing our strategy is to create some internal financial assitance rather
than seeking it from outside of the group.  We'd like to have several rental
options (like Nyland) and also possibly assist with downpayments.  The funds
would be made available be members who are able to and inclined to provide
them.  I have a few questions about your message that may help us firm up our
concept.  You wrote:

>  The agency provided $330,000 in supplementary construction
> financing, plus allowed us to pay it for the land ($415,000) after
> the units were built and as they sold. Then this latter amount was
> used to provide second mortgages to 11 of the 25 buyers, covering up
> to 49% of the unit's value, the exact amount depending on the
> buyer's ability to qualify for  a first mortgage. These seconds are
> due upon resale or many years down the road; repayment will involve
> a share of appreciation as well as principal; and the resale of the
> units in the meantime is restricted as to price and income of buyer.

Did the second mortgage plus the first mortgage equal the total price of the
home, i.e., no downpayment?  Or was there also a downpayment and if so, what
percent of the price?

You mention that repayment of seconds "will involve a share of appreciation
as well as principal".  Does that mean that they're interest free?

Were the homes initially sold at market value?  And if so, why is a deed
restriction necessary?  ("the resale of the units in the meantime is
restricted as to price and income of buyer")

    Mac Thomson                         San Juan Cohousing
    Mac [at] HappyValley.com           Durango, Colorado

  "Circumstances are the rulers of the weak;
          they are but the instruments of the wise."
                        - Samuel Lover


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