Cohousing-L Mailing List: Re: Capped Equity

[Smith & McGowan (mcsmith]

Toni Smith wrote:

Creek's Bend Cohousing in Troy New York is about to have a Community
Circle around the issues of "exiting, selling one's unit, and waiting
lists and profit margins.  Perhaps any words of wisdom sent to
Hartland's posting about "capped equity" could go to the list, so we all
can benefit.  I also welcome any other experience with the matters we
are addressing in our Community Circle.

Toni

Robin D. Ellison wrote:
> 
> Our group in Hartland VT. is discussing Capping Equity on the resale of homes
> in the future.
> 
> I have only seen equity caps tied
> to initial subsidy, with the intent that the subidized homeowner not profit
> from the subsidy, thus also retaining the subsidy to the next purchaser.
> 
> Has anyone see or been part of a system that caps unsubidized homes?
> 
> If so how has it worked?  What are the equity issues?   Were people happy with
> the process.
> 
> It would seem that to cap a house build at full market price would lower the
> price to the next buyer, but at the expense to the person who paid for the
> construction.
> 
> Robin Ellison
> Hartland Co housing
> Hartland Vt.
> 
> Six commited households, three ready to go through our "clearness" process, 
> 250
> acres sustainable farms and forest. Hiring the design team.