Cohousing-L Mailing List: Re: Right of first refusal

[Jude Foster (foster.jude]

In 2008, Bank of America declined a mortgage application based on the presence 
of the Right of First Refusal in our Declaration.  We were informed that 
Freddie Mac (FHLMC) does not allow this clause or practice (chapter 42.2-e of 
the FHLMC manual).  After that, our Board investigated and discovered that it 
was not allowed by state law, which Marcia from Columbia Ecovillage mentions in 
her post.  We then amended our Declaration to remove that Right of First 
Refusal.    No problems since.  So it is interesting that other communities are 
reporting that they still have and exercise the Right of First Refusal.
I am no expert, just reporting in, and asking.

Jude
Trillium Hollow, Portland OR