Cohousing-L Mailing List: Request-- "Mission Protection" Resale Price Formula

[Pare Gerou (paregerou]

Yassou Everyone,

Greek Village Cohousing is amending a part of its resale policy in light of
new knowledge, and we would love it if you could share your "mission
protection" or "reasonable resale profit" formulas.  We anticipate our
homes will increase in value dramatically after move-in due to many
attractive amenities going in around us in a resort (ie: winery,
interactive olive oil mill, spa, etc).  We appreciate being near these
things, but we chose our land for the purpose of being in Greece, nature,
and cohousing, not to be surrounded by additional amenities.  We want to
enjoy them but not have them jeopardize our mission.  Hence- a need for
planning.

Our interest is in providing our members a reasonable profit if they wish
to sell while also preserving the mission of multigenerational cohousing.
If someone sells one of our homes, they should be able to buy another in
the nearby city, not in Monti Carlo.  If someone wants to buy into our
community in a few years, they should be able to if they are young with
children, have solid middle-class salaries, and have collateral of value to
liquidate.

We are thus looking for a resale price formula that enables a cost of
living and inflation profit, or additionally or alternatively some measure
of a nearby town comparable, but draws the line at a profit one could make
by buying into this exact area where some expensive resort villas and
resort amenities will be occupying some of the same land that our multiple
cohousing villages will share.  We don't want our resale prices to limit us
to only very wealthy and retired people.  Sound familiar?

If you have a "mission protection" formula that the community uses when
determining the resale price of homes, please do share.

No need to mention all the legal issues- we are not limited by deed
restriction regulation in the US nor residential regulations,--we don't
have the same limitations.  No need to mention the other strategy of
designating only a few "affordable units" with deed restrictions.  This
approach only provides a very small minority of homes for multigenerational
or diverse populations.  We are using this approach for a lower
socioeconomic group of local families and are trying to purchase homes to
rent to them rather than use the 4-5 affordable units at most method.

We want to offer all of our member-owners a formula that enables them to
enjoy a reasonable amount of profit, but we don't want to allow a large
windfall to incentivize resale and raise prices to the extent that only a
narrow population can afford to buy them.

Is anyone aware of specific formulas?  We would love to hear them. Please
share, or if you prefer, please email GreekVillageCohousing [at] gmail.com

With Appreciation,
Pare Gerou
www.GreekVillageCohousing.com