Income and Expense Activities & Milestones by Time Line
At this stage of planning development, some of the aspects and terminology that have been used to describe our work and goals have been interchangeable between 2 organizational entities: Homes for the Upwardly Mobile (HUM) & Prospective Homeowners Association (PHA).  The difference between "organizations" is: PHA will become a Homebuyers' Mutual Assistance Association and HUM is initially the Buyers Club and Advocacy Group. (All Membership funds raised will go into a trust fund, for the purposes outlined below here).

Overall Process of Financing Purchase:
Incorporation of Entities, Contracting for and Setting up Homes
Transactional items occur through escrow / beginning with Action Item 5:    

  1. HUM Sells memberships to prospective homebuyers, receipts go into a trust fund, managed by Development Sponsor, a CPA and an Attorney-at-Law

    1. Income is utilized to hire consultants and for organizational maintenance (1)

      1. Currently developing a budget on consultant costs, by interviewing appropriate consultants that may potentially work on the project.

  2. In the meantime, while #1 above is happening, we are locating manufacturers of pre-fabricated housing and general contractors qualified and capable of developing the projects with our goals and at our future locations.

  3. HUM hires consulting architect, landscape architect, conceptual artist, CPAs, Attorneys

  4. HUM pays Development Sponsor work-to-date, within the 10% of proceeds parameters.

    1. (1) HUM provides ongoing overhead funding for organizational maintenance

  5. HUM identifies Landowner to sell, donate or partner and gets contracts signed.

  6. HUM has preliminary site work analyzed, forecasted and conceptualized.

  7. HUM takes proposal to County or Cities' Planning & Development department for response.

  8. A legal corporate entity called a Mutual Benefit Society is incorporated under the laws of the State of California. The MBS is named Prospective Homeowners Association. 

  9. PHA hires consultants to put a budget together for 2 housing co-ops, a M.E.C. & a L.E.C. (2) to manage separate properties.

    1. Prepare legal incorporation of two Housing Co-operatives, where home buyers earn equity

      1. (2) One co-operative for low-to-moderate income buyers will be a Limited Equity Co-op, the other for middle-to-upper income buyers will be a Market Equity Co-op. (State of California requires the two may not mix).

    2. HUM members may close their membership in HUM/PHA, if they don't wish to continue receiving the benefits of the MBS and start a membership in either the L.E.C. or M.E.C. by purchasing equity shares in one or the other co-operative corporation.

  10. Two other corporate entities are formed: HRU & CPR as housing developers (The 1st a non-profit, the 2nd for-profit) for the purpose of developing housing for differing income groups. It is designed that the for-profit will be wholly-owned by the non-profit.

  11. CPR seeks/gets approval from zoning and planning department to subsidize & co-op/condo-ize land; or

    1. If higher density was not successfully negotiated, back to the drawing board; possibly go to Plan B, which is to work with a different plan for development, or another parcel of land to have considered for a change in density.

  12. HRU forms a Community Land Trust (CLT)

  13. CPR accepts co-op members' "purchase" home down payments, in order to purchase or make a commitment to purchase land in the name of the corporation

  14. Landowner sells, donates or partners with HRU or CPR asking their land to be developed, or used for trade with other property owners in order for us to obtain contiguous lots of property.

  15. Post transfer of land title from original owner to HRU, HRU signs title of land over to CLT

  16. Landowner pays off any outstanding loan on original mortgage(s), or signs deal to repurchase a housing unit, so that the owner can stay on the property.

  17. CPR subdivides land if told it is necessary by the County Planners and otherwise amortizes cost of lots by the number of allowable development lots: cost per lot is determined by total land value divided by the total to be developed.

  18. HRU establishes a Letter of Credit (LOC) with a 2-stage finance co.

  19. LOC used to purchase manufactured Homes

  20. HRU sets up contractor payment fund, for periodic disbursements upon construction completion stages.

  21. CPR hires general contractor to finish job

  22. CPR hires Project Manager to oversee all installation and set up work

  23. General Contractor or its subcontractors prepares land, establishes plumbing to each lot, pours foundations. 

  24. CPR purchases factory-built off-site manufactured homes and orders homes delivered to the building site, after all permits and plans are approved; then the general contractor or its subcontractors sets the homes up and the landscaping, fencing, garages or carports, utility connections and fastens homes by earthquake standards to the foundations. 

  25. CPR may sell new larger (Upper Class/Income) home to original landowner, or other buyer

  26. CPR sells new regular-sized home(s) to Middle Income Buyers

  27. HRU sells new regular-sized home(s) to Lower and Moderate Income Buyers

  28. At this stage, all buyers are either coming up with the balance of their purchase cost, or financing the balance.

  29. The Prospective Homeowners Association transforms from solely a public interest group to a Mutual Benefit Association. Members of Homes for the Upwardly Mobile may become members of Prospective Homeowners Association. 

Click here for a Powerpoint presentation that explains the whole design/build process in detail

Stage One (Currently in process, as of June 5, 2006)
Item / Service Cost / Rate Estimated Time Projected Cost Date Start Date Complete
 

Stage Two

Item / Service Cost / Rate Estimated Time Projected Cost Date Start Date Complete
  • Tasks to perform
    • Incorporate two housing co-operatives as non-profit 501(c)(3) mutual benefit associations, for the purposes: 1) Limited Equity Co-op & 2) Market Equity Co-op
    • Any work done to follow up previous tasks performed by consultants
  • Income raised pays for tasks, comes from sales of memberships in the Housing Co-operative
 

Stage Three

Item / Service Cost / Rate Estimated Time Projected Cost Date Start Date Complete
 

Stage Four

Item / Service Cost / Rate Estimated Time Projected Cost Date Start Date Complete
  • Turning all active work oversight and contracts over to the corporations after formation of:
    • HRU (Homes for the Rest of Us) a non-profit 501(c)(3)
      • Seeing if we can develop an IRS subchapter 905 under a local 501(c)(3)
      • Creation of the HRU Community Land Trust
    • CPR (Competitively Priced Residences) a for-profit California Corporation
  • Determining initial buyers, from the membership roster of Prospective Homeowners Association

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