Cohousing-L Mailing List: Re: Creating more affordable cohousing - a personal story...

[Elizabeth Magill (pastorlizm]

>    There's another issue that ties in w/ this whole thing.  HOmes that meet 
> the affordability guidelines are awarded close to the time the take out 
> mortgages are secured -- this is at the END of the development process.   So 
> ... these folks are likely not going to be part of the earlier process of 
> organizing the community.  This is great if you need buyers at the end and 
> your remaining homes meet the affordability requirement.  But what about the 
> people who work from the beginning?  Will they be able to get the affordable 
> homes?  And will people work for 2+ years w/out a guarantee of getting an 
> affordable home?  My experience has been that people needing an affordable or 
> low cost home want it or need it NOW ... they don't have two years to invest 
> w/out a guarantee of owning a home.

We had one household stick with us for years hoping that she'd get a lottery 
home. There was a vague sense that we'd "make it work" if she didn't get 
chosen, but it was angst producing. And her status changed while she was in the 
project (starting from able to afford market rate to life situation that made 
her instead in the affordable lottery) so she already had superior buy-in 
before the life change.

It is TOTALLY true that it is hard for the people qualifying for the affordable 
lottery to be part of the development phase.

I'd be interested to know how many cohousing developments in the last five or 
six years have actually only had, or even primarily had, developers of the 
community be buyers of the homes.

> So in your case, Elizabeth, you were/are ACTIVELY LOOKING for buyers. You 
> needed buyers.   In this case, this worked for you.  

Yes, yes. Also the economy we built in, and all sorts of other details. I was 
only stating that rejecting municipal and state affordable housing programs 
automatically because they use lists or lotteries is a mistake. In each 
situation each community needs to figure how those housing lists and lotteries 
and other rules impact their specific situation. (AND why you need an 
experience developer who knows your area and cohousing to help make the project 
happen.)

> 
> Elizabeth -- what criteria did you use to approve or disapprove membership at 
> Mosaic?  What has been other folks's experience w/ approving or disapproving 
> members?

>> In my opinion the number of mis-matches in the two systems of joining was 
>> exactly the same. And the percent of market rate and affordable mis-matches 
>> are the same as well.
> 
> Well.  We won't know for sure until we have real data AND I take your word 
> that this is what it seems for you.

I don't actually know that we had criteria. I was opposed to the system all 
along (it was in place before I was voted in) and thus must admit that I don't 
look at it with an open mind!!!

> My other question for you, Liz, is why you still have 4 affordable homes 
> left?  Just curious as to why the affordability programs in your area have 
> not produced buyers for you.  It's probably a complicated answer -- and I'm 
> just curious.  No other motive here.  :-)
> Ann Z.

The biggest answer (in my totally biased opinion) is that the Mass state 40B 
system has very difficult eligibility requirements. Among other difficulties: 
if, for example, your income limit is $54,000 for your household, then you need 
to make at least, say, $52,500 to qualify for the mortgage..... . So ALMOST ALL 
of the 40B affordable home lotteries have had less applicants than homes. The 
people in our community who have been approved have been very hardworking, 
smart people who can follow pages and pages of directions, find the little 
exceptions here and there, run out and get a part-time second job of exactly 
the right sort, etc., etc., etc..

The second biggest answer is that the housing market fell apart just before our 
homes were completed. There are foreclosed homes all around for about $40K more 
than our affordable homes, and come with no income restrictions or resale 
limits...

-Liz
Elizabeth Magill
www.sawyerhill.org
Join us in the snow!
3BRs homes for $173,000.
2BR home for $154,500.