Cohousing-L Mailing List: RE: Capped Equity

[Raymond D. Gasser (raygasser]

At EcoVillage at Ithaca we put in what we call a "flip tax". We don't cap
equity, but if a house gets resold, the co-op gets back 20% of the profit
after taking into account improvements, inflation, etc. The proceeds are
supposedly earmarked for affordability issues.

Ray Gasser, EcoVillage at Ithaca
raygasser [at] delphi.com

where we've got one or two units coming on the market, but they look a lot
better in the spring when we're all outside planting!!!


At 09:11 AM 2/6/98 -0600, Floriferous [at] classic.msn.com wrote:
>Putting caps on equity may cause banks to have problems loaning to your 
>project.
>
>Rob Sandelin
>----------

>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?
>
>
>Robin Ellison
>Hartland Co housing
>>