Cohousing-L Mailing List: Re: percentage of members to build

[Sharon Villines (sharon]

> On Sep 18, 2016, at 7:53 AM, Susan Adams <sadams430 [at] gmail.com> wrote:
> 
> What percentage of your anticipated membership did you have before you
> began to build your homes?

Unless you are self financed, banks will set this number — the construction 
loan will require a certain percentage of homes to be “under contract.” Banks 
do finance developers who have tons of assets, but I don’t think those 
developers are financing cohousing, at least this week.

The percentages I’ve heard as bank requirements is 72%-75%. 

I remember the day when the purchase option on our land was expiring. We had to 
have signed contracts plus a 5% non-refundable deposit for 75% of the units had 
to be in by close of business the next day. Since many of us were not even 
living locally and others had funds in accounts that were not available with 24 
hours notice, it was a scramble. We were fortunate to have a member who was 
able to do short term loans to people who didn’t have access and somehow we 
managed this long distance.

If we had not been able to do that, we/the developer would have lost the land. 
Property prices had gone up so much in our area that the land owner would have 
been very happy to have it back.

BUT that said, you have to keep moving as if you had 75% or whatever your bank 
requires of the units sold. Proceed on faith to work as hard as you can because 
that is what sells units.

And as Gilda Iriarti who used to do the financial stuff for the Cohousing 
Company, advised a group in Florida and probably many others, work with a bank 
from day one. Ask your banker for referrals to architects, developers, etc. 
Because they are on the money end of things and see projects succeed and fail 
everyday, they know who consistently brings in projects on time and within 
budget. Interview bankers upfront. And talk about real estate development not 
required meals, support networks, or self management. 

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org