BROOKLYN COHOUSING

2/2/10 update

Our challenges with obtaining financing for 1901 Eighth Avenue were due to the times we live in, and the continuing reluctance of banks to lend for any kind of large scale housing construction in NYC. The traditional lending model which has served cohousing well for many years, and which was the basis for our project, is no longer fully valid. The idea of a group putting together a fair degree of equity from their own pockets (20% of total project cost) and borrowing the balance from a traditional bank, to first acquire a property and then complete a development project, is now very difficult if not impossible to accomplish. Therefore in the summer and fall of 2009 we actively pursued less traditional approaches (involvement of co-developers, non-traditional lenders, participation of environmental groups, etc.)

At the end of 2009 we concluded that developing 1901 Eighth Avenue was not possible for a reasonable financing cost and level of risk to us, nor was any other self-developed project feasible where the group would need to get a large construction loan.

 In January of 2010 we struck out on the new path to success we are now pursuing. We have chosen to go with our strength in current market conditions. As a cohesive "buyer group" of over twenty households, we are very attractive to developers who are having trouble with sales in this market. We plan to buy a block of units--or possibly all of the units--in a complete or nearly complete condo building. As always, we would incorporate common outdoor and indoor spaces for the community. We have hired Seth Brown of Aspen Equities, a local developer, to assist us in this process. With his help, we have identified a number of buildings that can work for us, and are seriously considering several strong options that include abundant common space for our community.

Interested in joining us? Provisional Membership offers a no-risk way for you to find out if this is right for your household. See How to Join.