RE: modular cohousing community | <– Date –> <– Thread –> |
From: Rob Sandelin (Exchange) (Robsan![]() |
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Date: Thu, 7 Dec 1995 16:58:12 -0600 |
John Shryock wrote about creating a circle village in Montana of manufactored homes. >The prospective >dweller would purchase their own home ( a nice 1300 sq.ft. goes for >about >60K) and then buy into the non-profit cohousing corporation for about >15K. I think you might have trouble trying to sell the bank on the "stock" idea. If the banks won't fund a stock cooperative, one idea might be to break into two legal organizations, one for land and property title, and one for creating the common elements. Unless you set up the legal structure as a condominium, the bank may be fussy about mortgage money for common elements like a commonhouse, and raising enough money via assessment to build a commonhouse might be something the residents are not interested in. Especially if the primary interest in a cheap place to live rather than a community. One way to be creative about this is to build the common element costs into the price of the lots. You create a development organization, then sell the lots at a premium price, using the profit on the lot price to pay for commonhouse construction. For example, say the cost of the site and development will be $500,000, which divided amoung 20 lots is 25,000 per lot. YOu sell the lots for $35,000 and use the $200,000 profit to build the commonhouse. Banks are used to developers making a profit and as long as the price of the lots was not hugely out of market reality they would go for it. In order to do this and not loose 28% of the profit in income taxes you need to get a good tax advisor. One way you may be able to avoid taxes is to sell title for lots for $10, but still collect 35K for each lot as a development assessment. If you phase in your assessment collections as your development costs come in, by only "selling" lots as you can use the captial, you should be able to cover all your costs, pay little taxes, and have the funds to build the commonhouse without anyone having to pay assessm ents. Again, to get this right you need to consult with a good tax accountant and design your membership and buyin paperwork carefully. There may be some other ways you can organize as a non-profit and avoid taxes - check with a local attorney. Rob Sandelin Sharingwood
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modular cohousing community John Shryock, December 7 1995
- RE: modular cohousing community Rob Sandelin (Exchange), December 7 1995
- Re: modular cohousing community King Collins, December 7 1995
- RE: modular cohousing community Mark Frauenglass, December 8 1995
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