Cohousing-L Mailing List: Re: reserve investment and taxes

[Sharon Villines (sharon]

> On Apr 18, 2026, at 12:36 PM, Diana Carroll <dianaecarroll [at] gmail.com> 
> wrote:

>   When Takoma Village asked the accountant this just after move-in, they said 
> you have a long way to go before those earnings are large enough to be worth 
> worrying about.
> 
> I don't "worry" about it, but I (as the bookkeeper for Mosaic Commons) do pay 
> taxes on it. you have to file and pay taxes, whether you owe $1 or $100000. 
> NOT paying taxes is something I'd "worry" about. I certainly hope Takoma is 
> paying their taxes!

We certainly did pay taxes but the H Form way is more complicated and there is 
a different way that I think is a straight percentage. The people (not me) who 
handle this are aware of all the options and just use the one that is best for 
that year.

> I guess, in theory, but...not really. Fannie Mae used to require 10% of the 
> operating budget be put into reserves, and starting in 2027 is increasing 
> that to 15%. If your condominium association doesn't meet Fannie Mae 
> requirements it makes it nearly impossible for buyers to get a mortgage. I'm 
> skeptical that there are cohousing communities whose members are so rich that 
> they insist that all new buyers buy in cash. Is that a thing?! 

In NYC, there are condos that won’t allow people to hold _any_ mortgage on 
their units. Buyers have to have cash. Others will limit the mortgage to half 
the cost of the unit. I’m sure there are many variations. Some buildings just 
don’t want people who are “living above their means.” It’s a form of 
maintaining exclusivity but also of financial security for the building. 

Sharon
----
Sharon Villines
Riderwood Village, Silver Spring MD
Founding member and 25 year resident in Takoma Village, Washington DC