Cohousing-L Mailing List: co-op and lenders

[Lynn Nadeau (welcome]

Here in Washington State, Winslow Cohousing Group is a long-established 
cooperative that serves as an example that a co-op CAN be possible. I don't 
know the details of their financing, but the Port Townsend EcoVillage has 
consulted their legal documents and found that they have in their bylaws 
something called a Recognition Agreement. This is a way of assuring a 
lending institution that in the event of foreclosure on a property, the 
lending institution won't be tangled in red tape to re-sell. Even some of 
the "red tape" which normally protects the community from random resales. In 
dialogue with the director of a local bank, we found that they too referred 
to a Recognition Agreement as facilitating their participation. 

So..... it's at least something to ask about. Seems to be a way of meeting a 
lender half-way (or more). 

Lynn Nadeau
PT EcoVillage
and RoseWind Cohousing (which  has a resale available) www.rosewind.org