Cohousing-L Mailing List: Re: limited equity/market value

[Robert Hartman (hartman]

Something that I've advocated for a while, but have yet to see actually
done, is for the community to use the departing individual or family's
share of equity to finance a down payment at 0% interest for them.

This is the use to which most departing members would put the money
when they cash out anyway.  This way, the community gets to keep all
the equity, while the departing family is not put at any hardship when
trying to find a new place.

Another option might be for the community to buy the departing
family's new residence for them, and lease it to them for an amount
equal to the monthly payment (including an amortized down-payment).
This way, the community holdings increase, while the individual
members get to live where they want--after spending enough time in
the shared quarters to accumulate an adequate share of equity benefits.

Please let me know if anyone tries making arrangements like this and
how it works out!

-r