Cohousing-L Mailing List: Re: Limits on rentals with or without absentee landlords

[Sophie Rubin (yophiest]

Yeah after doing a bit of research it looks like it can be hard for buyers
to get a mortgage if more than 50% of the complex is rentals, or if more
than 10% of units are owned by the same person/entity.

This leads me to think a subdivision structure would be better - more
security for buyers and less weird red tape for the rental LLC. Of course
getting subdivisions approved is it’s own can of worms.

Anyone’s cohousing structures as a subdivision instead of a condominium
association?


On Mon, Jul 3, 2023 at 11:35 Bonnie Fergusson via Cohousing-L <
cohousing-l [at] cohousing.org> wrote:

>      One reason for limiting rentals is that banks sometimes won’t issue
> mortgages if the percent of units that are rented is too high in a
> community.  This can make it hard for owners to sell their units.  Our
> experience with renters has been mostly very good, high community
> participation and several times long term renters have ended up buying into
> the community when another unit becomes available.  Which is a great result
> for all concerned.
> Bonnie FergussonSwans Market CohousingOakland, CA
>
> Sent from Yahoo Mail for iPad
>
>
> On Monday, July 3, 2023, 7:58 AM, Hafidha Sofia <hafidhaao [at] gmail.com>
> wrote:
>
> Yes, Sophie. Songaia Cohousing has done such a thing. It wasn't part of
> the initial design, but an adaptation. A group of 6-7 members formed an LLC
> to purchase one of the houses that was being built by a developer on an
> adjacent property. The intention was to provide housing for people who
> couldn't purchase. (The community was at capacity. Owners rarely sold and
> adding more dwellings to the land wasn't an option.)
>
> The very large house is rented by room. When I lived there, I rented two
> bedrooms and an office space; there were three additional bedrooms rented
> out. The first wave of renters included two members of the LLC. They had
> invested money to purchase the house and also paid rent to live there.
>
> For the LLC owners it was an investment they got a return on;  it is also
> a fair amount of work. They have to manage the property and tenants, which
> is a part-time job.
>
> I'm curious about models of cohousing community that build rental units in
> mind from the start - with ownership and management coming from the
> cohousing community.
>
> A sort of hybrid cooperative, where revenue goes back into community.
>
> I think Canticle Farm in Oakland does something like this. The homes are
> purchased by or donated to the 501(c)3. Canticle operates as a non-profit.
> My understanding is all houses are shared houses, not single family. But
> there are families there! It is a vibrant, lively community.
>
> hafidha
>
>
>
>
> > On Jul 2, 2023, at 2:35 PM, Sophie Rubin <yophiest [at] gmail.com> wrote:
> >
> > [trimmed text - the following is an excerpt]
>
> > To address the issue that Sharon brought up about people getting attached
> > and renters having to leave: are there communities that have some owned
> and
> > some rental units? Like via an LLC associated with the community that
> owns
> > the rentals, not individual landlords? Then the rentals could be
> structured
> > to favor long-term renters without them risking displacement. More
> > stability for the community and for the renters themselves. And more
> > economic diversity for the community.
> >
> > [trimmed]
> >
> > Sophie Rubin
> >
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