Cohousing-L Mailing List: **Getting The Construction Loan**

[John Major (jmajor]

So, we're all learning here that getting the money together to actually build
the development is one the Great Leaps for CoHousing groups. Of course, having
a developer on board to sign for it makes this much easier, and I get the
impression that in Europe the government helps out a lot. But I was under the
impression that a majority of CoHo developments in this country have been
built with the *group* as the developer, to save money and control hassles,
largely. SO - how many units did *you* have spoken for when you secured your
construction loan?

We at Wasatch CoHo have 10 firmly committed households that are in the process
of pre-qualifying, and another few that will probably join up soon. Our site
plan shows 25 units, with another 5 spaces. We are coming up quickly on the
point where we will have to approach the lenders, and are recruiting as fast
as we can to have as many units committed before we go to the banks. But our
professional team (architect, development consultant, and so forth) are
telling us that we won't be able to get more than five more units built "on
spec", given our pooled collateral. What has been the experience of the
completed developments in the US so far? The Salt Lake City real estate market
is exploding, as we need to start construction as soon as possible. We are
confident that we can sell what we build, but we have to convince the banks as
well. Some information from other folks could be very helpful here, so speak
up!

Thanks -
John Major
jmajor [at] dayna.com
Wasatch CoHousing
Salt Lake City, UT