Cohousing-L Mailing List: Re: marketing question / right of first refusal

[Lyle Scheer (wonko]

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Raines,

Raines Cohen wrote:
> On Jul 18, 2007, at 10:55 AM, Leah wrote:
>> We are moving into Bear Grass Village in Ashland Oregon in a month!  
>> (where, by the way, we still have one 3 bedroom townhouse  
>> available!) We are figuring out the specifics of our HOA dues. The  
>> membership committee has requested a budget for marketing if people  
>> leave the group. We have a right of first refusal and they figure  
>> we need to do the marketing as a group to exercise this right. I  
>> understand the need to market our project but I also think it is  
>> the responsibility of the individual to pay for marketing of their  
>> house if they want to sell it. What do other groups do?

> So unless there's caps on unit prices or appreciation or recapture  
> clauses in your deeds (see my wife Dr. Elizabeth Morris's article in  
> this month's Cohousing magazine online for info on this and other  
> affordability strategies used by cohousing groups), right of first  
> refusal can result in significant unintended side effects for groups.  

We will be finding this out shortly.  We have an agreement with the City
of Ashland.  We are selling the units basically at cost.  If the cost is
less than 90% of market value for each unit, then an equity limit will
apply... when the units are sold they will have to be priced at the same
discount percentage as they were purchased.  Thus, the unit prices will
be fixed.  However, with both the recent downturn in the market and the
budget having increased from our original plan, we don't know if we'll
be selling the units at less than 90% of market value.

- - Lyle
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