Cohousing-L Mailing List: Re: revolving affordability

[Sharon Villines (sharon]

On Nov 15, 2004, at 10:28 AM, Melissa Bailey wrote:
>

>  Our association fees will increase significantly in 2005 and several 
> households have expressed a short term, financial need.  As a result, 
> the committee is exploring additional arrangements. One thought is to 
> create an account which those selling their units can donate a % of 
> their profits if they so desire.    This account would also serve as a 
> mechanism to dole out short term loans for those in need.

I think this sounds like an excellent use of transfer fees -- to build 
up an emergency fund for short term loans.

Another time when associations will need loans is when a member is 
terminally ill and become insolvent. The unit will eventually be sold 
and loan can be repaid from the sale of the unit but in the meantime 
the other members of the community may have hard time covering the 
costs. Having funds set aside for this would provide much stability.

"Transfer fees" are common in condominiums of all kinds. Having a unit 
transfer owners creates work for the association in number of ways so 
being compensated from this is reasonable. The community wants to be at 
the table when funds are being passed around since it is the community 
as a whole that has contributed to the wealth of the sale by creating a 
financially stable and attractive community.

Sharon
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Sharon Villines, Editor and Publisher
Building Community: A Newsletter on Coops, Condos, Cohousing, and Other 
New Neighborhoods