Cohousing-L Mailing List: Re: Affordable Cohousing

[Kathryn McCamant (kmccamant]

Coop or condo… legally you can limit your equity either way if you can get the 
whole group to agree to limited equity without subsidies.  But as noted below, 
coops has a lot less financing options (for construction or longterm mortgage 
and share loans) largely just because the American banking industry has never 
accepted coops, at least in most of the country. There is really no reason that 
most cohousing could not be coops, except that its generally even harder to get 
financing as a coop. 

Katie 
-- 
Kathryn McCamant, President
CoHousing Solutions
Nevada City, CA 95959
T.530.478.1970  C.916.798.4755

www.cohousing-solutions.com
 




On 8/20/16, 2:16 PM, "Cohousing-L on behalf of Susan Adams" 
<cohousing-l-bounces+kmccamant=cohousing-solutions.com [at] cohousing.org on 
behalf of sadams430 [at] gmail.com> wrote:


Thanks Kay.  That is still a problem, which is why we will be working with
Shared Capital Cooperative and/or The National Cooperative Bank.
Susan

On Sat, Aug 20, 2016 at 5:13 PM, Kay Wilson <kwilsonfisk [at] comcast.net> 
wrote:

>
> Just a cautionary note. When we were preparing for construction
> of our community about 11 years ago, we hired a highly respected
> local contractor to oversee the project. When he learned that we
> were considering the co-op option, he recommended that we use the
> condominium structure instead because, he warned, our local banks
> were not familiar with the co-op legal structure, and might not
> be willing to give us a construction loan.
>
> That turned out to be good advice, because as soon as our local
> banks learned we were developing something called "cohousing,"
> there was only one bank in our county that was willing to give us
> a construction loan even though they were comfortable with
> condominium loans - they were skittish about the strange
> (communistic-sounding) structure called "co-housing." So you
> might want to talk with your local bankers about a co-op
> construction loan before you make your decision.
>
> Kay Wilson
> Meadow Wood Cohousing
> www.mwcondo.com
>
>
> -----Original Message-----
> From: Cohousing-L
> [mailto:cohousing-l-bounces+kwilsonfisk=comcast.net [at] cohousing.org
> ] On Behalf Of Susan Adams
> Sent: Saturday, August 20, 2016 12:42 PM
> To: Cohousing-L [at] cohousing.org
> Cc: tmalbright [at] verizon.net
> Subject: [C-L]_ Affordable Cohousing
>
>
> Hi all,
>
> I just can't wait any longer! Even though I don't have a great
> deal of data to offer yet, I do have links.
>
> Floyd Cohousing currently doing business as Jubilee, is en route
> to becoming a housing cooperative.
>
> If you want cohousing and affordability, I urge you to
> investigate the CoOp option.  If you become a market equity Co-Op
> you can make some money when you sell your home.  If you choose
> to become a limited equity Co-Op, you will only recoup what you
> have spent, but your community will remain not only affordable,
> but, depending on the market, often extremely affordable.
>
> Construction loans, blanket loans, and share loans are all
> available to Co-Ops.
>
> Check out these links
>
> http://www.rd.usda.gov/files/sr45.pdf     (very readable)
>
> http://coophousing.org/resources/owning-a-cooperative/buying-into
> -a-housing-cooperative/#paragraph14
>
> http://sharedcapital.coop/about/  (very impressive lending
> institution)
>
> http://www.uwcc.wisc.edu/pdf/Cooperative%20Equity%20and%20Ownersh
> ip.pdf
>
>
> I was a little daunted by the possibility of complicated book
> keeping, so followed a recommendation to call a CPA in Wisconsin
> who specializes in Co-Ops.  It wasn't the first time (or the
> second) that a professional offered to spend several hours with
> us in a conference call without charge!  I commented on that to
> him...and his reply was  "anyone who works with co-ops wants to
> help more co-ops happen."  Not the first time that co-ops sounded
> like cohousing!
>
> You probably won't be the first cohousing co-op, but you might be
> the second!
>
>
> Susan
>
> --
> *www.jubileecoho.com <http://www.jubileecoho.com>* A great place
> to grow a family!
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-- 
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A great place to grow a family!
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