Re: Affordable Housing in Your Community - taking on risk | <– Date –> <– Thread –> |
From: Norman Gauss (normangausscharter.net) | |
Date: Wed, 27 Jul 2011 09:30:30 -0700 (PDT) |
Offering below-market housing to low-income people amounts to pretending that there is just as little risk in doing this as there is for middle-income people. If creative financing is resorted to, somebody has to take on the higher risk of dealing with people whose reliability in making payments may not be proven. In our community, residents who have arranged for affordability programs have been arrears in their payments more than once since they moved in. In the meantime, extra effort has had to be expended by our finance team to repeatedly contact these people to get them to pay their bills. This is time devoted to bill collecting that could have been devoted to more constructive things. My point is that people with money present a lower risk than those on more shaky financial grounds. Somebody has to take on this risk, and that may amount to making the recipient of low-income less responsible for his/her financial obligations. Norm Gauss -----Original Message----- From: Sharon Villines [mailto:sharon [at] sharonvillines.com] Sent: Wednesday, July 27, 2011 7:33 AM To: Cohousing-L Subject: Re: [C-L]_ Affordable Housing in Your Community Ann Zabaldo On 27 Jul 2011, at 9:32 AM, Fred H Olson wrote: > I think it would be a mistake to allow listeners think that cohousing > in the US has been very successful about addressing affordability. > Attempts have been made, there is a desire to make cohousing > affordable, but it remains a major challenge. I agree with you, Fred, but I also think that it would be a mistake to believe that it hasn't been accomplished in many cohousing communities for at least some of the residents. Ann is eternally optimistic. What hasn't been done is low income cohousing. The current market is very hard for everyone and like the added burden it places on the disadvantaged, it is equally hard on small odd enterprises like cohousing. And will remain hard because low income and rental units require investors. In this market investors are not taking risks. And before you say cohousing is not risky, note that eBay, when it was already up and running, was considered a risky investment. The developer had to provide her own funding in order to grow. People with money are very conservative - that's how they got their money and will keep it. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org _________________________________________________________________ Cohousing-L mailing list -- Unsubscribe, archives and other info at: http://www.cohousing.org/cohousing-L/
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Re: Affordable Housing in Your Community - taking on risk Norman Gauss, July 27 2011
- Re: Affordable Housing in Your Community - taking on risk Richard L. Kohlhaas, July 27 2011
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