Cohousing-L Mailing List: repostto

[Cascadia Commons Cohousing (cccoho]

Here's a post from the other Portland (OR) cohousing group:

We're looking at fallback plans to our hoped for construction loan to build
the whole project.  Has anyone considered or attempted to get your common
house built by any of the following unorthodox routes?
 a) a developer (separate from whomever is developing the dwellings)?
 b) have the HOA apply for the construction loan (instead of the developing
entity);
 c) have the homebuyers collectively apply for a mortgage on it, instead of
folding it into their individual home mortgages. (we recognize that this
would be less advantageous re: income tax deductions)
 d) have the common house owned by an investor, with deed restrictions
presumably, from whom the HOA lease/purchases it. (we recognize that this
would be less advantageous re: income tax deductions)

We are having trouble getting a construction bank loan, and we had the
thought to split off the common house.  This would lessen the amount of the
construction loan our LLC is seeking, and would improve the ratios that the
bank uses to screen loans.  The cost of building the common house is at
least a third higher than the value added to our project's appraised value.

The banks are balking for a variety of reasons (too many borrowers, condos,
etc), but maybe if we could improve the ratios . . .   Also, the hope would
be to assure the construction of the common house, so as to strengthen the
project's marketability.

Your experiences and advice to gates_jennifer [at] hotmail.com will be much
appreciated!

Jennifer Gates
Cascadia Commons Cohousing
Portalnd, Oregon