Cohousing-L Mailing List: Re: A strategy for affordability

[David L. Mandel (dlmandel]

Using a CLT or any other limited equity (e.g. LE coop) model requires 
disconnecting from the notion that housing, in addition to providing a home, 
should also be treated as an investment necessary for one's financial future or 
that of one's heirs. That goes against the grain of our "privatize everything" 
social order, and making the opposite ethos widespread will require a larger 
transformation, but it can work to some degree in relatively small numbers. For 
those who have a decent income, the lower monthly cost can make possible other 
savings that can be invested for retirement, education, etc. For truly low 
income people, a limited equity development may well make possible home 
ownership that would otherwise be out of reach altogether. In exchange, they 
(and other participants) forgo the slim possibility that a new housing bubble 
might "enrich" them. I personally find that tradeoff attractive. One of the 
ways our ruling elite keeps us from rebelling is
 by perpetuating the myth that anyone with the right combination of luck and 
smarts can get rich. Sure, a few can, but the system is built on exploitation 
of most of us and impoverishment of far too many.
David Mandel

--- On Sun, 5/16/10, Fred H Olson <fholson [at] cohousing.org> wrote:

From: Fred H Olson <fholson [at] cohousing.org>
Subject: Re: [C-L]_ A strategy for affordability
To: "Cohousing-L mailing list" <cohousing-l [at] cohousing.org>
Date: Sunday, May 16, 2010, 6:30 AM


Richard, thanks for the pointer to
The Community Land Trust Reader
see http://j.mp/cJZrpy

( which goes to:
http://www.lincolninst.edu/pubs/1776_New-Book-Announcement--The-Community-Land-Trust-Reader
 )

Community Land Trusts (CLT) have been discussed on Cohousing-L
from time to time.

But things have changed.  One of the main problems with CLT's is that
since CLT's are few in number in the US, moving from one to another
can be difficult. This may result in having to go back into the
regular housing market where housing prices may have inflated leaving
one's equity short since CLTs limit price inflation.  But the housing
market meltdown has clearly shown that planning on housing inflation
can be problematic too.

I too find Brian's reply odd.  Particularly his example:

> used travel trailer for a few thousand dollars, and park it in a
> friend's suburban backyard for perhaps nothing.

However I do sort of agree with his conclusion:

> If low and moderate income folks are having trouble affording a
> house, the problem is NOT the cost of building it.

A main problem is the market that, till recently, pushes prices
very high in many places.  It bewilders me how people afford housing
prices in some places.  This is what CLT's address.

Fred  who has lived in the same house for 33 years, one strategy
      is to stay in the same place for a long time.

--
YEA! (& boo) 3/23/10 Health Care Reform Passed! See my Blog entry.
Fred H. Olson  Minneapolis,MN 55411  USA        (near north Mpls)
Communications for Justice -- Free, superior listserv's w/o ads:
http://justcomm.org ;     My Link Pg: http://fholson.cohousing.org
612-588-9532 (7am-10pm CST/CDT)   Email: fholson at cohousing.org

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