Reserve Yours Today.
Reserve early to get your choice of floor plan and location.
Download and print the reservation form.
Why is this project structured as a cooperative?
The folks that first conceived this project felt strongly that, as a GLBT housing project, the cooperative model offered a better opportunity to create and maintain a strong sense of community among the cooperative members.
How is a limited equity cooperative different from a condo or an apartment?
In a condo, you arrange for your own financing (mortgage) and you pay monthly association dues. When a member of a condo association decides to sell they can do so to anyone they wish.
In an apartment, you have little control over how the building is operated and at what cost. You also are not able to receive property tax and mortgage interest deductions on your taxes.
In a cooperative:
- You make one monthly payment which includes your share of the co-op’s blanket mortgage and the operating costs.
- The cooperative approves all membership.
- The board, elected by the membership, makes all decisions regarding operation of the building and establishes the annual budget with no motive for profit.
- Cooperative members get the tax benefit of home ownership with an annual property tax statement and a statement of mortgage interest.
- Limited equity cooperatives are not the right choice for those interested in speculating in the real estate market.
What is the relationship between Spirit of the Lakes United Church of Christ and the housing?
The church wanted the site to serve the GLBT community and be an asset to the surrounding
community. The church also wants to make their space available for use by the cooperative members. Other than that, there is no relationship between the church and the housing except that the church and the cooperative each own its space within the same building.
Are pets allowed?
YES! Submit your reservation early and you’ll be able to weigh in on whether there should be any restriction on the number, type or size.
What’s going on in the surrounding neighborhood?
There is a heightened sense of vitality within the surrounding Midtown Phillips and Powderhorn neighborhoods. A few of the highlights include the Midtown Greenway (the bike/walking path from Lake Calhoun to the Mississippi River), the Global Market at Midtown Exchange (former Sears building) and beautiful Powderhorn Park as well as a multitude of arts organizations and ethnic restaurants and shops. The housing project enjoys the strong support of both neighborhood organizations; each has made a financial contribution toward the project. The church has been a welcome and involved presence at this location for 13 years, and decided to make this investment as a testimony to its continued commitment to the surrounding community.
What kind of commitment am I making if I submit a $200 reservation agreement?
None. A reservation indicates your potential interest in the project and establishes the order in which specific units at specific costs can be selected (called a subscription). Reservations are fully refundable.
Why are reservations important?
In addition to the above, the Department of Housing and Urban Development (HUD) uses the number of reservations as an indication of the potential demand for the cooperative. HUD insures the blanket cooperative mortgage, so they have a vested interest in making sure there is an adequate demand for the project. Once sufficient demand has been demonstrated and we’ve finalized unit plans and costs, you will be asked to convert your reservation into a subscription. At that time, you’ll pay an $800 subscription deposit and select a specific unit at a specific cost. As with reservations, subscription deposits are fully refundable. Once HUD has issued a firm commitment and we are 60 to 90 days from the construction start date, Share Collection will take place. This means your share will be due at this time.
What if I need equity from the sale of my home to pay the share price?
PRG, the non-profit developer of the project, will be setting up interim or bridge financing for people in this situation.
When will the building be ready for occupancy?
Now that the financing for the project has been secured, the rate at which reservations are made is really driving the project schedule. Construction start is slated for fall 2008, with occupancy in fall 2009.
How are buyer selections and upgrades handled in a cooperative?
Buyer selections (choices at no additional cost) and upgrades will be available for a wide range of items including flooring, counter tops, cabinets, lighting appliances and more.
What parking is available?
The underground indoor parking is reserved for the cooperative membership. The surface parking will be owned by the church but will be available as guest parking when not in use.
What’s the range of unit sizes and costs?
Units range from one bedroom with 650 square feet to a two-master-bedroom unit with 1,334 square feet, with lots of variation between. Costs, while still preliminary at this stage, range from $900 to $1,950 per month, with share prices of $30,000 to $61,000. A number of the units have financial assistance available to make them more affordable to lower income individuals and households that cannot afford the share price. All costs will be finalized before you will be asked to convert your reservation to a subscription (where you choose a specific unit).