I believe there are three groups of thought on the privatization of Village View. Group one philosophically opposes privatization, and by this I mean they have unwavering support for the Mitchell Lama concept. They have no interest in the possible economic advantage of going private, and I certainly respect this position. I call this group the "IDEALISTS". Group two also opposes privatization, but is based on economic principles. They fully understand that going private will ultimately be an economic advantage. However they are concerned over the initial cost due to preparation of studies and financial reports, the fact that H.P.D. might require us to lower our loan balance, that maintenance fees may go up (possibly considerably) at first, and the increase in our real estate taxes. Consequently many of our residents may not have the financial resources to comply with these requirements. I call this group the "REALISTS". The third group supports privatization. They fully understand the economic advantages of being in the free market. The equity in their home can be used for their child's college tuition, to obtain a reverse mortgage, and the ability to sublet or sell at current market rates. These options can be a strategic tool in developing a financial plan for the future. I call this group the "STRATEGISTS". So where do I stand? I am a "REALIST". I know that privatization will ultimately be an economic advantage, but I am not willing to take that chance if it hurts our residents who are least able to afford it. Ultimately this is a shareholder decision, and I believe the board should be neutral.
Update: Reverse mortgages are not available for co-ops. Thanks to Oleh Pich for the comment.
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