Affordable Coho Options
From: Rob Sandelin (Exchange) (RobsanExchange.MICROSOFT.com)
Date: Mon, 11 Dec 1995 18:14:49 -0600
        MASwain [at] aol.com mentioned a couple of NW examples of groups 
partnering with 
a low income housing organizations to fund units for low incomes.  Another 
example would be Vashon Cohousing, on Vashon Island, which partnered with a 
housing group called Vashon Household and funded four households with $400K 
in low income housing grants from the County and State.  They are just in 
the (hopefully) final stages of getting their site approvals.  They are a 
condominium, and my understanding is that the grants pay outright for the 
purchase of the land (lot development model) and the price of the unit, 
although I am not sure of the percentages of how much money goes to what.  I 
know that there was some selection anxiety on the part of the group, but 
that was totally taken care of by careful orientations done to the low 
income partnering organization.

The benefit is that the group gets four of its units (lots) bought, gets 
income diversity, and also the housing agency deals with most the headaches 
of the grants, etc.  And of course, four lucky families get a significant 
subsidy of the price of a new home in a cohousing community.  This is deal 
in the works, with several potential glitches, but they did land the grants 
and are waiting for design approvals and still have to find a lender. It 
will be interesting to see how the banks deal with market rate housing and 
subsidized housing and if there is any difference. My understanding is that 
the grants will buy down the price of the housing by about $85K, and so 
units costing a total of say $135K will be mortgaged for $50K.  The low 
income folks still have to qualify for the $50K mortgage which might be 
tricky - Kind of a catch 22, you have to poor enough to be able to qualify, 
but rich enough to be able to get a mortgage.  Wierd.....

It took a two year lead time to get this together (that is it took two years 
to get the grants submitted and accepted, not to write, actual grant writing 
took 3 weeks, then lots of waiting)

So if you want to go this route, plan way far ahead if you can and get your 
proposals together early.

Rob Sandelin
Puget Sound Cohousing Associaiton




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