Cohousing-L Mailing List: Re: Low-Income, Affordable Cohousing

[Lee Haring (LEHBC]

Dear Eric, I can't directly anwer your question, but you may like to know that
the group planning a CoHousing project at Cantine's Island, Saugerties, New Yor
k (about 110 miles north of New York City) is trying to solve the problem this
way: Twelve dwellings will sit on five lots; each lot has a deed, mortgage, an
d owner of record. Because several of the dwellings are attached, we need to fi
nd only five people/households who can qualify for mortgages. The others, who a
re not "bankable," can be members of the community, with the same rights, privi
leges, and responsibilities as the "owners." The latter lease their property to
 the homeowners' association, which in turn subleases the property to each memb
er. We use an HOA structure because it is more recognizable to lending institut
ions than a co-op, in this region. Members will build equity through (1) the ca
sh they bring as a down payment, (2) the portion of each payment which is attri
butable to principal reduction, and (3) the HOA-defined value of HOA approved i
mprovements to the member's dwelling.  All the best, Lee.