Cohousing-L Mailing List: Re: Affordable housing percentage

[Sharon Villines (sharon]

on 10/17/2002 3:31 AM, Bruce Hecht at brucehe [at] peak.org wrote:

> be possible to do 50% of the units as affordable (to those from 50-80% of
> median income). Any thoughts or experience doing cohousing project with a
> high percentage of affordable units? One comment or concern I hear is that
> it will be difficult in the future to get the community to do any
> improvements to the property as there will be not be a lot of available
> income. Any thoughts?

If you look at the percentages in your state (not all the affordable numbers
are the same) you are really looking at "average" and "median" incomes, not
"low" income. To do a project with incomes in this range should not be a
problem. I doubt if there are any projects that were built for the top 20%
of incomes.

But income diversity does cause income issues that the community needs to
discuss and be comfortable with. So far, we have resolved the issue of
capital improvements by allowing people to donate money. The amounts are not
a matter of public info (though I'm sure someone could insist on seeing them
if they wanted to) and no one even knows who donated although some self
revelation comes out in the process.

But the community decides how the money will be used. If we use the same
process that we recently used to buy a universal gym for the exercise room,
it will go like this:

1. Many members want to fence the southeast corner which is now unusable
because we have no security there and cant' see it from any of our units.
The police and the neighbors want us to fence it because vagrants are
sleeping there, drug deals, etc.

2. Esthetically it would be best to use the same fence as the parking lot
fence but this is more expensive. Lasts longer, looks better, and is open
rails so it isn't a visual barrier to those walking or driving by. Open
fencing is safer for drivers since it is a corner.

3. That will cost X amount of dollars, we can only afford Y. For liability
reasons and space needs we want to get it fenced asap.

4. One person takes responsibility of making a list of those who are willing
to contribute extra funds for the fence. People contact that person
privately and indicate how much they are willing to give. That person
reports back the total amount available.

5. Budgeting is adjusted. We have a budgeted amount and a donated amount. Is
it enough? Are we close?Can we do it? The community goes back and forth
until enough money is budgeted and donated or it chooses another fence.

Two factors seem important in this process: The community makes the decision
about what it wants and can afford to spend _and to maintain_. THEN the
funds are requested. While each member can voice preferences over what kind
of fence we need or they want, those donating the money do not have a
greater say in the matter. They can give or withdraw or raise the amounts
according to their preferences but this is a private decision that has no
influence on the community's decision. All voices are given equal
consideration.

So far, this has worked well for us. One issue on "income". The issue is
really  income and assets and ability.  Net worth and earning ability are
more determinative in the long run.

We have many people who have made choices not to have high incomes -- they
made this choice by choosing low income jobs that they find gratifying.
Others have chosen to breed or adopt children and thus have less disposable
income. Some have done both.

Some have low incomes but large assets. They have saved for many years of
working in a lucrative job in order to retire "early" and do what they cared
more about. Others inherited money. Some of these people could get a job
tomorrow and have a higher income if they wanted to make the sacrifice.
Others, perfectly competent and skilled, are having a very hard time finding
jobs and have been un- or under-employed for what is becoming years.

So the issue of "income" is very complex. Qualifying for an "affordable"
home in most states only means what it says on your tax returns for the
previous 2-5 years.

One of the things that building a community teaches you, and that some
people are afraid might be lost in developer-driven cohousing, is that you
need everyone to get a community built. You can't be choosey. Each unit sold
brings you closer to your goal of obtaining a construction loan and breaking
ground.

If you wait until you have a completed group that meets all your diversity
desires and has reached consensus on everything, you will never get built.
At first, you have to do the best you can to be open and make sound
financial decisions about construction. At minimum, people have to be
mortgage approved and participate in the group process (a good test of
ability and openness to reason). But that will mean a range of income, net
worth, and earning ability, even if your least expensive unit is $300,000.

Remember, Prince Charles married up and according to the standards of some,
the Royal Family lives in affordable housing.

Sharon
-- 
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org



_______________________________________________
Cohousing-L mailing list
Cohousing-L [at] cohousing.org  Unsubscribe  and other info:
http://www.communityforum.net/mailman/listinfo/cohousing-l