Cohousing-L Mailing List: RE: cost division: individual v. househo

[Mark Frauenglass (WORKGROUP/MAILDATA/Mark%Acquilano_Leslie_Inc+p]

Source date/time: Mon, 6 Feb. 95 21:44 CST
>Steve Farley asked:
>how to determine an equitable division of development costs; namely
>should costs be split by household or by individual?

Highline Crossing in Littleton, Colorado split development costs by UNIT
based on several factors.  1. Unit frontage: a wider unit, 24 ft. or 28 ft.
paid more than a 20' unit. (could use sq. ft.)
 2. Lot premium: locations with a view of the Rockies looking over the
Highline Canal and McLellan Reservoir paid more than lots on the interior of
the site with no view.
3. Solar access:  South facing units paid more than east west facing units.
These are combined to a total 'site premium' which is then added to your
base unit cost to come up with the cost of your unit and spreads the
development cost out (we felt) equitably. This approach gave people choices
to buy what they could afford and doesn't penalize a large family. An
interior east west 2 bedroom unit paid maybe $20,000 less than the same
south facing 2 bedroom unit with a great view.
Also, people who 'invested' larger amounts of money up front got 'bonus'
dollars, as much as 200% of up to 2.5% of their unit cost, received as a
reduction in price of the unit when we get our mortgages.  Investors over
that amount got 9% rates of return on their money.  The entire project is
designed as a profit making enterprise.  The developer, investors and the
'Homeowners Association' (that's us) get a share of the profit.  Our share
funds our Association for insurance, site maintenance etc. that we are
required to have by local governing agencies.
I recommend contacting a developer sympathetic to cohousing for assistance.
 I'm sure our developer, Wonderland, out of Boulder, CO, would talk to you.
(303) 449-3232  They are strong advocates of cohousing here in Colorado.
 Having a development plan with all the costs spelled out removed
'development' as a source of contention for us.

Mark Frauenglass, soon to be moving in to
Highline Crossing, Littleton, CO
Mark%724-9482 [at] mcimail.com