BOULDER CREEK
COMMUNITY
Boulder, Colorado
(10 of 15 available condos occupied by 20 Members)
MORE AFFORDABLE HOUSING:
Boulder Creek Community
is offering a financial ‘ middle ground’ of
‘more affordable’ condo rental and
purchase alternatives to the traditional
‘market rate’ rent/buy options and the
government regulated ‘rent/buy controlled’
housing options. The intention here is to
generate a balanced mix of affordable
living, community sustainability, and owner
return on investment.
MORE AFFORDABLE condos offer:
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1.Lower down payment requirement (e.g. approx. 8% down) than the standard 20% to 30% down payment now required by lenders as a condtion for realizing the lowest mortgage interest rates.
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2.Lower closing costs, if the selected property can be owner financed. This means no expensive points, origination fees or other typical lender settlement charges.
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3.Lower monthly rental payments of between $150 and $250 per month, depending on the size of the condo, in exchange for successful community participation.
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4.Lower monthly ownership payments of between approx. $250 to $600 per month for 100% owners (and half of that for 50% owners, depending on the size of the condo, in exchange for successful community participation.
RESALE DEED RESTRICTIONS: Unlike market rate condo sales, where the seller receives 100% of any net profit from resale, or the government ownership controlled housing options, where the seller has realized little or no profit upon resale, our ‘middle ground’ deed restricted resale financial model gives the seller the opportunity to receive 1/3rd of any net profit from sale. (another 1/3rd goes to the second deed of trust note holder* and the final 1/3rd net profit is passed on to the next buyer as a more affordable, below market, purchase price.) This resale formula, including a limited time community first right to buy option, increases community sustainability by making it easier for the community to buy the unit at it’s sales price and rent-to-own it to the next participating community member prior to resale.
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*this 1/3rd paid to the 2nd DOT Note Holder is compensation for that Note Holder having received no interest payments during the term of the loan.
