[Cash-outreach-engagement-circle] MAJ and CASH

[Herta Gatter]

This sounds great - can we suggest to Tony to have a meeting in September?

Herta Gatter

Outreach and Engagement Circle
Community Assets for Society and Housing
ldn.cash <http://ldn.cash/>
@ldncash




> On 9 Aug 2023, at 11:34, Abigail Hammond | CASH via Cash-outreach-engagement-circle <cash-outreach-engagement-circle at email-lists.org> wrote:
> 
> 
> 
> -------- Original Message --------
> Subject: MAJ and CASH
> Date: Tuesday, August 08, 2023 17:05 BST
> From: "Tony Wood" <woodywood2 at blueyonder.co.uk <mailto:woodywood2 at blueyonder.co.uk>>
> To: "'Abigail Hammond | CASH'" <abigail.h at ldn.cash <mailto:abigail.h at ldn.cash>>, <francine.holdgate at hotmail.co.uk <mailto:francine.holdgate at hotmail.co.uk>>
> CC: <cash-outreach-engaement-circle at email-lists.org <mailto:cash-outreach-engaement-circle at email-lists.org>>, "Jane Laporte" <janelaporte04 at gmail.com <mailto:janelaporte04 at gmail.com>>
> 
> 
> 
> Hi all,
>  
> This is Tony from Mary Ann Johnson Housing Co-op (MAJ) in Tottenham.
>  
> Some of us in MAJ read your document X and we had an idea to put to you, although it might not be something you want to do, but happy to chat if the idea could fit into what you are looking at.
>  
> In the past MAJ has tried to get the very large co-ops (mainly in London) to lend to smaller co-ops (especially those just starting out), but we didn’t really have much luck. To be fair we only mentioned it at one London Federation of Housing Co-op meetings and it was some time ago. We have stayed in contact with the London Fed and try to get to the occasional meetings and have kept our membership up with them. We would really like to see the very large co-ops start lending to smaller co-ops but we think they are scarred they could lose their money (I think some in Sanford might have had the same worries before they started lending, but hopefully they can see MAJ and I think the Drive are both fairly secure loans).
>  
> So, we would like to chat with people from CASH (if this helps you) that we put forward that one of the big co-ops actually lends a sizeable amount to MAJ. MAJ would then use this money to pay off one of our mortgages. This would benefit MAJ as we would rather owe a co-op than a bank. MAJ doesn’t actually need to do this and it will be a lot of work convincing a larger co-op to lend (ideally we would want £125,000 but maybe we accept a lot less and also it could be a group of co-ops). The amount doesn’t actually matter. The idea is getting the bigger co-ops to start the discussion. And once they lend to a safe co-op like MAJ (we have a lot of assets (homes) that the loans could be secured against and have paid off quite a bit of mortgages and our house values have risen quite a bit) hopefully we have started the discussion and they will be more open to lending to newer co-ops in London, or at least be open to discussing it.
>  
> Very very basically it could work something like this. Say a large co-op presently gets (say) 2% interest on their capital in the bank. Say MAJ pays 8% on its mortgage. MAJ could agree to give a co-op (say) 4%. 
>  
> Why should CASH get involved? Well apart from getting big co-ops to lend to smaller ones in London (and therefore helping new co-ops with finance) we are also thinking MAJ could also pay (say) 1 or 2% to CASH. So MAJ pay 6% - large coop gets 4% and CASH gets 1 or 2%. Obviously there would need to be a water tight contract (and this could be used for future loan deal) and the rates would need to be tied to bank rates as if loans went down MAJ wouldn’t want to be worse of that with our present lender. 
>  
> Also, and a BIG also, MAJ hasn’t discussed figures and amounts at all. All the figures I’m using, I’m using as just examples. MAJ said I can chat  to CASH and can put some work into this, but we haven’t chatted about figures, percentages, or how much we could/would borrow from a large co-op. To keep this open I’ve also copied in Jane from MAJ, in case she feels I’m over stepping the remit I’ve been given by MAJ.
>  
> Anyway, have a read. Digest all my ramblings. And let me know if its anything CASH might be interested in doing.
>  
> Tony
> 
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