Cohousing-L Mailing List: Funding The "lot" development model

[Rob Sandelin (robsan]

One of the things Sharingwood did to help us over the financial low 
points of individuals is that there was a $2,000 special assessment, 
added to the price of each lot, which went into a common fund for 
startup funds for the commonhouse. This money was first, that is if 
someone paid a $5K down payment, the first 2K went into the account.   
We let individual lot owners borrow against that account when a large 
assessment came in for surveys, or road building or whatever.  For 
example, to pave our road cost about $30K, which was a $1800 assessment 
per unit.  Some people paid that up front, others who could not, 
borrowed money from the common account (at 8% interest).   This way the 
bills were paid without a large immediate financial hit to those who 
couldn't raise the money, and the common account made more interest in 
the long run than it would have if we had just left the money in the 
account.  The treasurer was assigned to keep track of the loans and 
individual accounts and so people could borrow money for assessments 
with some degree of confidentiality if they wanted.

This common account has worked out very well for us.

Rob Sandelin
Sharingwood.