Cohousing-L Mailing List: coops (was Re:Replacement reserves)

[Judy Baxter (BAXTER]

Hi From Judy Baxter, Monterey Cohousing community, Twin cities (minneapolis) MN

Well, we are one of the few coop cohousings.  It's lots more
complicated.  It Sounds  like that (was it Santa Rosa?) coop is a
limited equity coop, and the NY State one is market rate.  We are
market rate, and have just seen a sale at a price that surprised us.

And it is my understanding  that traditional banks avoid coops
because the coop must approve/accept buyers, and the bank wants to be
able to sell quickly, without restrictions, if there is a default.
That's for ownership coops.

And we (to get back to reserves), by our bylaws, are individually
responsible for painting walls, carpets, appliances, etc. I can't
speak generally.
Judy

----------------------------------------------------------------------
Judy Baxter, Monterey Cohousing Community,(MoCoCo) Twin Cities Area, Mpls.,MN
----------------------------------------------------------------------
-- e-mail:      baxter [at] epi.umn.edu
15 homes - 7 new townhomes plus 
        8 coop apartments       in the Mansion (a rehab Georgian building)
(built as a retirement home in 1924 -) which also serves as our Common House
coops moved in in 1993, townhomes in 1996
----------------------------------------------------------------------
 Voice Mail for Monterey Cohousing - 952-930-7554
 web page: http://www.jimn.org/mococo/ 

--------Original message------

APR 09, 2004
Elizabeth Stevenson wrote:

>Co-ops ARE groovier. The reason it's hard to get a bank to finance a co-op
>is that they don't make a profit for the homeowner.
>
I'm pretty ignorant of the details, but I do know that we can resell our 
shares at the market rate, which has in fact gone up some.
Our bylaws call for a 25% "flip tax" on gains, so if you make a $40K 
gain when selling your home (shares) you give back $10K to the coop, 
which gets earmarked for affordability-related uses.
AFAIK, this flip tax stuff is at the discretion of whoever creates the 
coop bylaws, but maybe our situation is specific to NY state laws, don't 
know.


>Maybe I'll retire in Ithaca...
>  
>
We have two homes available!



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