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April 18, 2005
update
Hi friends-
Let me give you a little update. Last Friday, Jamie, Scott Borger and I met with the O'Rourkes to discuss forms of communal ownership of property. I'll give my impressions of the coversation - Jamie and Scott, feel free to add anything. The O'Rourkes thought that the most tenable way for us to enter the market (for members who can't get into the market the standard way) would be for the church itself to buy property. Since the church already owns a big chunk of property, it could more easily qualify for a big blanket loan (since the church already owns a big chunk of property, this built up equity gives it more leverage in qualifying for and getting a better loan). The church could then sell the individual units. The specifics about the units (ie, if the church wanted to set appreciation rates so that prices remain more affordable in the future, how many people should be connected to the life of the church, etc) would all be laid out in the contract. There seem to be a couple of advantages in doing it this way. First, we wouldn't be limited by outside organizations' strictures (ie, its apparent that if we worked with the city's financing, they would be averse to us already having a specific group of people who make up the majority of the occupants picked out). Second, families who normally would not qualify for mortgages would still be able to participate since the church carries the loan. Clearly, this option of the church buying property is no small feat. The English speaking congregation is only a shareholder in the church's property so all the congregations would have to be convinced of the viability/goodness (as opposed to value right John ;) of the project. You can imagine the intense discussion that this feat would require as you decide important logistics, not least of which is the process for deciding which families get to participate, which units, etc. Although difficult, this process would probably be redemptive in itself.
We are planning to meet with some people more familiar with the non-profit model soon. I'll give you an update on this too. Obviously, this whole process will take a long time. A few people have expressed a lot of urgency in getting into housing as soon as possible. We may want to think of encouraging these folks to find others in the congregation who also have a little built up/ or salaries sufficiently high enough to go in together to purchase two or three famiy places. The economies of scale would still be of advantage (buying in bulk is cheaper). While this will be good for a few families who collectively have the means, its no solution for all the families in the church as not all the families would be able to qualify for mortgages. I'm thinking that after Jamie, Scott, Cassie (if you're still interested in meeting Cassie) and I talk with the non-profit folks we will report to the group and go over the options. This next week I'll try to get contact numbers to those who might be interested in purchasing collective units together in the short term. The Bulgriens and Borgers have both expressed interest in doing something like this quickly so if any other "B" families are interested they can join up with them. I'll try to get some contact numbers to help make this easier.
Jamie and Scott, feel free to add any emendations from your memories of our meetings with the O'Rourkes.
Peace all,
Aaron
Posted by aaronfriberg at April 18, 2005 01:03 AM