Cohousing-L Mailing List: RE: group formation and affordability

[Rob Sandelin (robsan]

I agree with John that
>The idea is that the lower the amount a household is able
>to afford, (within reason,) the more affordable development strategies a
>group will be willing to utilize. This is especially true if the lower-
>and moderate-income members are somehow instrumental in the development
>process.

Another point of view about core group demographics.

Another way of looking at the same thing from a different angle is that 
you make some trade-offs based on the lowest common income denominator. 
 Some things, like windows for example, are often standardized in a 
development.  The lowest common denominator then goes into effect 
whereas high quality windows are traded off for lower quality windows, 
in order to meet affordability goals.  This trade-off is one of many, 
and what can happen, is even after all the tradeoffs are made, the 
lowest incomes can not afford it anyway and eventually move out of the 
project, leaving all those trade-offs in place.  Often the longer and 
harder a person has invested in a project, the less they will face up 
to the financial realities that the costs are over their heads and not 
until mortgage or construction loan approval, do they actually face the 
realities and have to bow out.  Of course at this point, all the 
trade-offs have been made, and those who are left in the project are 
stuck with them.

If your development goal is primarily affordability then making all the 
tradeoffs that implies is important.  However, if affordability is not 
a primary goal, then it would be well to talk with some local mortgage 
bankers, get an understanding of what their mortgage criteria are, then 
apply those in-house to your membership in some sort of private way, to 
evaluate individuals real ability to qualify for the mortgage on a 
unit.  Be as realistic about this as you can.  If a great person, who 
is a single teacher, with an income of $22K a year and no savings can't 
financially qualify for any projected units, the sooner everybody knows 
that the better.  Either you can start looking for mortgage support 
programs early, or the person can realize that the reality of the dream 
of cohousing is out of their reach.

I recognize that the last sentence above is great material for the "the 
capitalist system sucks" types of flame mails.  Do us all a favor and 
rant your flame to me personally.  Thanks

Rob Sandelin
Sharingwood