Cohousing-L Mailing List: Re: still happening...........

[Fred-List manager (fholson]

Michael Mariano <mike [at] schemataworkshop.com>
is the author of the message below.  It was posted by
Fred, the Cohousing-L list manager <fholson [at] cohousing.org>
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Fred

--------------------  FORWARDED MESSAGE FOLLOWS --------------------
Regarding financing for our construction loan, as expected, we had to
provide our operating agreement to our lender, which used the term
cohousing throughout. We kicked ourselves at the time for having done
that while feeling like we knew better, but it only stalled things for
a few weeks while the bank's attorneys reviewed (at our cost) and we
clarified that none of what was said was intended to supersede the
Fair Housing Act, and each resident signed a document indicating such.

We have educated both our bank and appraiser on the cohousing concept,
and it did help to explain why anyone would design-develop-build such
a thing.

In our case, we did not do individual mortgages, but instead we have
collectively built a multifamily apartment building (opening in
December) with street level commercial where each resident family is a
shareholder of the ownership entity (an LLC), and rents back from the
LLC while paying down the mortgage and building equity.

Our approach with the banks was that we were simply interested in
financing a construction and perm loan for a nearly fully pre-leased
apartment building. They liked this and saw it as fairly low risk. We
like it because the collective ownership of the building puts the
interest and longevity of the community as the focus of our cohousing
endeavor.

To the point made earlier about having an experienced/successful
developer on the team, we also needed to do so, and found a local
developer who had demonstrated experience in our neighborhood. She
understood we hired her specifically for her expertise in development
and to help us get proposal requests out to prospective lenders, and
see the project through to completion.

As architects with cohousing-specific and other multifamily experience
and a general contractor already on the team for pre-construction
services, our developer understood that we didn't need or necessarily
want feedback on building design or construction issues, but it's been
helpful to have her as a resource for construction easements and
foundation/shoring, and utility coordination issues.

It was difficult for a group of future residents to access financing
for our cohousing community, but with a developer as consultant, we
were able to frame it as a fairly simple deal, and communicate in
their terms what they needed to see.

We have a perm loan proposal from our construction lender, but will
likely shop the loan around in January after construction is complete.

Mike Mariano
http://www.capitolhillurbancohousing.org/
Where we have our future architecture studio floor and walls in place, and are 
pouring our second floor concrete level next Friday, then moving up with four 
floors of wood frame residences above.

michael mariano aia | schemata workshop inc
architect & principal
112 5th ave., seattle, wa 98109
206.285.1589
www.schemataworkshop.com<http://www.schemataworkshop.com>

Message: 4
Date: Sat, 25 Apr 2015 15:55:13 -0400
From: Ann Zabaldo <zabaldo [at] earthlink.net<mailto:zabaldo [at] 
earthlink.net>>
Subject: Re: [C-L]_ still happening...........

Diana and all ? I totally understand how difficult it was for people
Who endured the crash to come up with mortgage money.   Painful and
bloody.

It was hard to get a loan for any housing at all. My only point is I
don't think it had anything to do with "Cohousing" as much as it had
to do with Lenders be much happier to sit on mortgage money authorized
by the Congress than actually lend it out. It was a disgrace all
around. And it still is.

Ann zabaldo
Takoma Village Cohousing
Washington DC