|Re: Cohousing failures||<– Date –> <– Thread –>|
|From: Jim Snyder-Grant (jimsgnewview.org)|
|Date: Fri, 4 Feb 2000 16:24:05 -0700 (MST)|
Acton had some concerns about possible failures in our cohouing adventure as well. They had had some failed development site scars they had to deal with: developer goes bankrupt & disappears as a financial entity after scraping away a bunch of dirt & starting to build roads. The town has an ugly site to deal with. Our construction loan was wrapped in a complicated three-part agreement between New View, our bank, and the town. Part of the agreement left some of our construction loan in escrow for the town to use in tidying up the site if we ended up ceasing to exist as an entity. The bank's approach in protecting its loan money was more direct and potentially brutal: each of us had to individually co-sign the loan. We were each potentially liable for the entire multi-million dollar loan! Our lawyer drafted up a New View side agreement at the same time that we would share any losses equally if the banks or other creditors came after any of us. Needless to say, none of the awful scenarios came true, but the bank & the town certainly had their concerns, and we structured our agreements to deal with those concerns. -Jim Snyder-Grant New View (Acton MA) ----- Original Message ----- From: <RowenaHC [at] cs.com> To: "Multiple recipients of list" <cohousing-l [at] freedom2.mtn.org> Sent: Friday, February 04, 2000 5:39 PM Subject: Re: Cohousing failures > > I don't understand the concern of the negative counsel member as you reported > it. Presumably, if there were a "failure," meaning an inability to finish or > sell the units and went bankrupt, the bank that provided the construction > funding and the members of the cohousing partnership would remain > responsible, not the town! I think you need to have your attorney explain > this to you, she or he will know more about your particular financial set up > than any of us do. > > In the red-hot real estate market around here when we built we had the > comfort of knowing that if the chousing group fell apart we could always sell > on the open market at a profit! >
- Cohousing failures Marya S. Tipton, February 3 2000
- RE: Cohousing failures Rob Sandelin, February 5 2000
- Re: Cohousing failures Stuart Staniford-Chen, February 5 2000
Results generated by Tiger Technologies Web hosting using MHonArc.