Cohousing-L Mailing List: Co-op setups_affordable housing

[MikeJoTodd (MikeJoTodd]

Here in Minnesota, there are two resources for info on co-op setups:
Monterey CoHousing, of which I'm a member, will be happy to tell you
about our experiences and why we are a mixed model (part co-op and part
condo). Also Northcountry Community Development Fund (NCDF) has recently
expanded their activity into housing funding and development assistance.
One of their goals is to reduce the financial penalty currently
associated with going with the co-op model. (Right now, lenders see
co-ops as being more risky than other types of housing so we end up
paying higher interest rates on the co-op portion of our development
than the condo portion).  NCDF is in the process of completing a HUD
loan for an affordable co-op apartment building here in Minneapolis, so
they have experience in the HUD process. I believe a certain number of
units are reserved for people at 50% or below the area median income,
which is $37,650 for a family of four in the Minneapolis-St. Paul
region. HUD programs can be either project-based (in which case the
subsidy goes to the development as a whole, and then a certain number of
units are reserved for people at or below the income guidelines) or they
can be accessed individually by low-income people/families if the home
the family is considering buying meets certain guidelines. Project-based
subsidies are more likely to be successful for cohousing developments
that aren't completely pre-sold; you don't have to specify at the outset
which units will receive the subsidies, and it makes marketing the
unsold units easier (assuming there are willing buyers whose incomes
fall below the guidelines.) For any of these programs, the best resource
is your state Housing Finance Agency or local HUD HRA (Housing Resource
Agency). And it's best to work with developers or financial institutions
that have experience, especially if you want to do a HUD-backed project.
It can take a year or more (usually more) to get HUD approval. We got
good advice about it from professionals (friends of ours) who worked in
developing housing for seniors.
Joelyn Malone
Monterey Cohousing, Minneapolis
Where 5 of our 26 adults are currently renters, and we have one condo
unit available for sale at $219,900.

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