Cohousing-L Mailing List: Re: Right of first refusal

[John Patterson (jsp1]

We had a similar experience at Burlington Cohousing in VT.  Several years ago, 
one of our owners wanted to refinance a mortgage through the VA but was unable 
to do it since the RFR provision was seen as potentially discriminatory.  After 
some discussion we agreed that the RFR provision in our Dec wasn’t much 
practical use anyway.  Therefore, we amended the Dec to remove it.  I’m pretty 
sure no one misses it.

John
(Also "no expert, just reporting in”)

> On Mar 9, 2017, at 10:28 AM, Jude Foster <foster.jude [at] gmail.com> wrote:
> 
> 
> In 2008, Bank of America declined a mortgage application based on the 
> presence of the Right of First Refusal in our Declaration.  We were informed 
> that Freddie Mac (FHLMC) does not allow this clause or practice (chapter 
> 42.2-e of the FHLMC manual).  After that, our Board investigated and 
> discovered that it was not allowed by state law, which Marcia from Columbia 
> Ecovillage mentions in her post.  We then amended our Declaration to remove 
> that Right of First Refusal.    No problems since.  So it is interesting that 
> other communities are reporting that they still have and exercise the Right 
> of First Refusal.
> I am no expert, just reporting in, and asking.
> 
> Jude
> Trillium Hollow, Portland OR
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