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$12K Phase 2 Homebuyers Nonrefundable Deposit
The $12K P2HB's deposits will be used to finance the development of the Phase 2 homes. That is, they will go towards paying for engineering, design, roads, water, sewer, home construction, and all the other costs related to developing Phase 2.
If a P2HB drops out for any reason, they will forfeit their deposit. They will not be able to sell it to someone on the waiting list. We're sorry that P2HB's have to shoulder that risk, but risk is a reality of the development process. The high disruption cost of members leaving during the development process was one of our hard learned lessons from Phase 1 development 20 years ago. We allowed members to sell their spots and found it to be very disruptive and costly to the community. When you become a committed P2HB, you will have real skin in the game and therefore you'll be invited to participate in the design of your future home. The home designs will reflect the needs of specific members. During P1 development, we found that when those members left, the architect had to spend extra time trying to accommodate the needs of the new member. This is just one example of the cost and disruption.
We want P2HB's to be fully committed to buying a home and living at Heartwood. We understand that life circumstances may get in the way. That would be unfortunate for all involved. The $12K deposit that would be forfeited would cover the costs of the disruption to the other P2HB's.
The only reason that the $12K deposit would be refunded would be if we fail to get someone's home built by the construction deadline in 2027. The plan is to complete construction by late 2022 or early 2023, but given that unexpected delays can sometimes happen, the construction deadline isn't until 2027. The whole project would be in jeopardy if we were in the middle of construction, passed the construction deadline, and had to refund deposits to P2HB's rather than sell homes to them.
Phase 2 Waiting List
Once all 14 P2HB spots are taken, anyone else wanting to commit to becoming a P2HB will have the option to go on the P2 Waiting List. To do so, they must complete the Prospective Member Checklist, sign and submit Heartwood Phase 2 Homebuyers Agreement, and make a $3,000 Fully Refundable Deposit. (See Phase 2 Homebuyer Commitment webpage for more details.) The $3K P2 Waiting List deposits are fully refundable at any time for any reason if a household decides that they no longer wish to remain on the P2 Waiting List.
If one of the 14 P2HB's drops out, the first household on the P2 Waiting List will have 10 days to make an additional $9K deposit, bringing their total deposit up to $12K. The $12K deposit will be nonrefundable. The developer (Tara Development) will then sign the household's Phase 2 Homebuyers Agreement, thus making it fully executed. The new P2HB that had been on the P2 Waiting List will take spot #14 in the lot and carport selection queue.
Any P2 Waiting List deposits still held after all P2 homes are sold will be refunded.
How to Pay Deposits
Mail a check, pay via PayPal, or contact Mac if you'd like to arrange a wire transfer. Checks should be made out to Tara Development and mailed to Mac Thomson, 800 Heartwood Lane, Unit 16, Bayfield, CO, 81122.
Our PayPal address is: macthomson@mac.com (Tara Development). Before finalizing your PayPal transaction, you’ll be given the opportunity to choose "Purchase Protection" (it might say "payment for goods and services") or "Personal" (it might say "Send to someone you trust" or "payment to friends or family"). Make sure to choose "Personal" (or "Send to someone you trust" or "payment to friends or family"). If you accidentally choose "Purchase Protection" (or "payment for goods and services"), there will be a fee charged at our end so you’d need to pay extra to cover the fee. When making an $12K deposit, the "Purchase Protection" fee is ~$360. When making a $3K deposit, the "Purchase Protection" fee is ~$90. To have no fee charged, make sure to choose "Personal" (or "Send to someone you trust" or "payment to friends or family"). Sorry this is a bit complicated. We've tried to simplify it with PayPal, but without success.
Early Bird Credits
Early Bird Credits are rewards that households receive for becoming P2HB's early in the development process. We recognize that making a $12K non-refundable deposit is a risky proposition. That’s one of the big reasons that anyone making the commitment to become a P2HB before we begin work on our Preliminary Plat application will receive a $7K Early Bird Credit to be applied towards the eventual purchase of their home. If there are any P2HB spots still open later, those Early Bird Credits will decrease as the development progresses and risk decreases. Risk is tied to reward. The risk is greatest at the beginning so the Early Bird Credit is the greatest.
The other main purpose for Early Bird Credits is to incentivize people to get off the sidelines, get into the game, and make the commitment to buy a home. Without sufficient committed homebuyers at each major development investment milestone, we cannot safely move forward. We need to know that we have enough committed homebuyers to warrant spending the big bucks on engineers, architects, lawyers, bank financing, construction, etc.
P2HB Cash Requirements
The cash requirement at the time of the Nonrefundable Construction Deposit will equal the Nonrefundable Construction Deposit amount minus the $13,000 deposits already made so that the total of all deposits required on P2HB's will be the Nonrefundable Construction Deposit amount.
Estimated Home Prices
The estimated home prices in the chart below are based on home construction costs in July of 2021. All of the homebuilders who provided these estimates believe that home construction costs are abnormally high due to Covid and are likely to come down, but there is no guarantee of that.
- Sunday, Oct 24, 2021 from 5:30pm - 6:30pm (fourth Sunday of each month): P2 Zoom Happy Hour
- Saturday, Nov 13, 2021 from 8:30am - 10:30am (second Saturday of each month): P2 Zoom Gathering
- Sunday, Nov 28, 2021 from 5:30pm - 6:30pm (fourth Sunday of each month): P2 Zoom Happy Hour
- Saturday, Dec 11, 2021 from 8:30am - 10:30am (second Saturday of each month): P2 Zoom Gathering
- Sunday, Dec 26, 2021 from 5:30pm - 6:30pm (fourth Sunday of each month): P2 Zoom Happy Hour
- Saturday, Jan 8, 2022 from 8:30am - 10:30am (second Saturday of each month): P2 Zoom Gathering
$12K Phase 2 Homebuyers Nonrefundable Deposit
The $12K P2HB's deposits will be used to finance the development of the Phase 2 homes. That is, they will go towards paying for engineering, design, roads, water, sewer, home construction, and all the other costs related to developing Phase 2.
If a P2HB drops out for any reason, they will forfeit their deposit. They will not be able to sell it to someone on the waiting list. We're sorry that P2HB's have to shoulder that risk, but risk is a reality of the development process. The high disruption cost of members leaving during the development process was one of our hard learned lessons from Phase 1 development 20 years ago. We allowed members to sell their spots and found it to be very disruptive and costly to the community. When you become a committed P2HB, you will have real skin in the game and therefore you'll be invited to participate in the design of your future home. The home designs will reflect the needs of specific members. During P1 development, we found that when those members left, the architect had to spend extra time trying to accommodate the needs of the new member. This is just one example of the cost and disruption.
We want P2HB's to be fully committed to buying a home and living at Heartwood. We understand that life circumstances may get in the way. That would be unfortunate for all involved. The $12K deposit that would be forfeited would cover the costs of the disruption to the other P2HB's.
The only reason that the $12K deposit would be refunded would be if we fail to get someone's home built by the construction deadline in 2027. The plan is to complete construction by late 2022 or early 2023, but given that unexpected delays can sometimes happen, the construction deadline isn't until 2027. The whole project would be in jeopardy if we were in the middle of construction, passed the construction deadline, and had to refund deposits to P2HB's rather than sell homes to them.
Phase 2 Waiting List
Once all 14 P2HB spots are taken, anyone else wanting to commit to becoming a P2HB will have the option to go on the P2 Waiting List. To do so, they must complete the Prospective Member Checklist, sign and submit Heartwood Phase 2 Homebuyers Agreement, and make a $3,000 Fully Refundable Deposit. (See Phase 2 Homebuyer Commitment webpage for more details.) The $3K P2 Waiting List deposits are fully refundable at any time for any reason if a household decides that they no longer wish to remain on the P2 Waiting List.
If one of the 14 P2HB's drops out, the first household on the P2 Waiting List will have 10 days to make an additional $9K deposit, bringing their total deposit up to $12K. The $12K deposit will be nonrefundable. The developer (Tara Development) will then sign the household's Phase 2 Homebuyers Agreement, thus making it fully executed. The new P2HB that had been on the P2 Waiting List will take spot #14 in the lot and carport selection queue.
Any P2 Waiting List deposits still held after all P2 homes are sold will be refunded.
How to Pay Deposits
Mail a check, pay via PayPal, or contact Mac if you'd like to arrange a wire transfer. Checks should be made out to Tara Development and mailed to Mac Thomson, 800 Heartwood Lane, Unit 16, Bayfield, CO, 81122.
Our PayPal address is: macthomson@mac.com (Tara Development). Before finalizing your PayPal transaction, you’ll be given the opportunity to choose "Purchase Protection" (it might say "payment for goods and services") or "Personal" (it might say "Send to someone you trust" or "payment to friends or family"). Make sure to choose "Personal" (or "Send to someone you trust" or "payment to friends or family"). If you accidentally choose "Purchase Protection" (or "payment for goods and services"), there will be a fee charged at our end so you’d need to pay extra to cover the fee. When making an $12K deposit, the "Purchase Protection" fee is ~$360. When making a $3K deposit, the "Purchase Protection" fee is ~$90. To have no fee charged, make sure to choose "Personal" (or "Send to someone you trust" or "payment to friends or family"). Sorry this is a bit complicated. We've tried to simplify it with PayPal, but without success.
Early Bird Credits
Early Bird Credits are rewards that households receive for becoming P2HB's early in the development process. We recognize that making a $12K non-refundable deposit is a risky proposition. That’s one of the big reasons that anyone making the commitment to become a P2HB before we begin work on our Preliminary Plat application will receive a $7K Early Bird Credit to be applied towards the eventual purchase of their home. If there are any P2HB spots still open later, those Early Bird Credits will decrease as the development progresses and risk decreases. Risk is tied to reward. The risk is greatest at the beginning so the Early Bird Credit is the greatest.
The other main purpose for Early Bird Credits is to incentivize people to get off the sidelines, get into the game, and make the commitment to buy a home. Without sufficient committed homebuyers at each major development investment milestone, we cannot safely move forward. We need to know that we have enough committed homebuyers to warrant spending the big bucks on engineers, architects, lawyers, bank financing, construction, etc.
P2HB Cash Requirements
- P2HB Commitment: $12,000
(upon becoming a P2HB) - Home Design Deposit: $1,000
(just before home design work begins) - Nonrefundable Construction Deposit: 7.5% of home purchase price
(within 7 days of entering Home Purchase Contract) - Home Purchase Balance: home purchase price - all deposits previously made - Early Bird Credit
(at closing)
The cash requirement at the time of the Nonrefundable Construction Deposit will equal the Nonrefundable Construction Deposit amount minus the $13,000 deposits already made so that the total of all deposits required on P2HB's will be the Nonrefundable Construction Deposit amount.
Estimated Home Prices
The estimated home prices in the chart below are based on home construction costs in July of 2021. All of the homebuilders who provided these estimates believe that home construction costs are abnormally high due to Covid and are likely to come down, but there is no guarantee of that.
Pod House
We may build a pod house or two in Phase 2 if there are homebuyers that want to do so. A pod house is a home that is designed for several independent households to live together under the same roof. The independent households might be singles, couples, or possibly even families. The exact design of the pod house has not yet been worked out, but it is likely that each household in the pod house would have their own bedroom (or two) and a bathroom, with everyone in the pod house sharing a kitchen, living room, and possibly other rooms. Everyone living in the pod house could potentially be an owner or perhaps only some of the people would be owners and others would be tenants.
The potential advantages of building a pod house:
- Affordability / Income Diversity
- Aging in Place
- Companionship
- Flexibility (depending on design)
Mortgage Financing
Here's a list of mortgage lenders recommended by P1 members:
- Michelle Palmer at Churchill Mortgage (703-209-0633) (Mac)
- Josh Groner at Universal Lending in Denver (720-296-1740) (Maria)
- Amerisave (Scott)
- Bank of the San Juans (Barry)
- Credit Union of Colorado (Barry)
- Peter Pritchard at Animas Mountain Mortgage (Alana)
- Anita Nickels at Central Bank (Sondra & Paul)