Conventional cooperatives differ from our model in that they: Do not allow for other people from the community to purchase shares in the project. They typically have larger and fewer shares in a project, making it difficult for low-wealth residents to access ownership. They typically do not cap the value increase of the shares, which means that they adjust with the market and do not remain affordable over time.

While our model does not allow residents to experience the same upside they would experience if they purchased a typical home, we do create a pathway to homeownership that currently does not exist for them. Since our share values will increase at a slower rate than the market, they become an extremely secure investment vehicle. This helps protect our residents from the uncertainties of the real estate market over time. Furthermore, and most importantly, by capping the annual increase in share value we keep our units affordable over time. Many affordable homeownership programs are only affordable for the first residents, and become market rate as soon as these residents leave (which can be as short as one year later).

Contingency fund is a part of projects that allow residents to dump their shares to cover payments. Following the first missed payment, one of our staff will engage with the resident to discuss with them their situation and connect them to resources for saving money where possible (transit passes, welfare programs for food and rental support, financial counseling). If 3 months are unpaid and all shares have been exhausted, residents will be evicted and connected with our local partners who provide low-income rental for qualifying residents, and other forms of support. We will use the affordable housing ecosystem, as well as homeless shelter network, to support our residents to the greatest extent possible, with a fast-track on the waiting list for a Frolic project as soon as they are able to afford it.

Cohousing is a form of housing where residents live in their own fully-equipped units while sharing a common house, which may be a separate structure or floor of a multi-story building. The common house can include: a kitchen and dining area for communal meals, work space, shared guest rooms, laundry facilities, teenage hang out room, bathroom with large bathtub for bathing children, media room, pantry for bulk food items, and/or play space for children. These shared spaces increase the chances of members of a project to form relationships with one another, by reducing barriers for everyday interaction. They can also reduce the cost of each individual unit by offering an alternative to individual amenities.

We spoke with a couple (Carol and William Zosel) who redeveloped their lot in a process similar to the one we are proposing and remained on site during the entire construction process. They explained the impact was even less on them than when their other neighbors redevelopment their lots. “We knew they were doing a good job. Made it easier to accept.” -- William Zosel

We will be building in areas that will experience development and many of its negative consequences regardless. By crafting a thoughtful development process, we will limit many of the negative consequences and create an opportunity for neighborhoods to respond to new development pressure in a way that is most advantageous for the local community. With our dedication to helping neighborhoods transform through a thoughtful development process, we will engage local community members early on in the development process. This will allow us to identify and address many of their main concerns. To limit the impact on parking and traffic, we are choosing sites that are within walking distance to a high capacity local transit system in order to limit resident’s car usage. Our pilot, for example, will be located in a neighborhood that is about to receive a new light rail station connecting residents to downtown Seattle. By allowing residents to age in place, Frolic projects will have a lower impact on the local school system than other projects that might attract more young families.

Core to Frolic’s central mission to help neighborhoods transform gracefully under development pressure, we will not ask towns or cities to change their zoning for us. Instead, we will focus on areas where the zoning was recently increased. Our pilot will be in Shoreline, WA - a town that just recently upzoned many parcels as a response to the new light rail station. A few weeks ago, Seattle,WA just upzoned the entire city as a response to the current housing crisis and desperate need for more units.

Low wealth refers to residents who have not accumulated large savings. Often they are middle income residents earning between 80 and 120% AMI.

Contingency fund is a part of projects that allows residents to dump their shares to cover payments. Following the first missed payment, one of our staff will engage with the resident to discuss with them their situation and connect them to resources for saving money where possible (transit passes, welfare programs for food and rental support, financial counseling). If 3 months are unpaid and all shares have been exhausted, residents will be evicted and connected with our local partners who provide low-income rental for qualifying residents, and other forms of support. We will use the affordable housing ecosystem, as well as homeless shelter network, to support our residents to the greatest extent possible, with a fast-track on the waiting list for a Frolic project as soon as they are able to afford it.

Our model will allow small parcels, that might otherwise remain as they are, to be redeveloped. Often big developers are not able to redevelop small parcels because they will not make enough profit for it to be worthwhile for them. By partnering with a landowner, our model allows smaller developers to redevelop these lots. If other less-sensitive developers were to try to copy our model and are able to partner with property owners, they could create development that has a less-positive relationship with the community. Still, we believe that the type of development that would result in this case would be better than conventional development in that it would allow homeowners to stay in their neighborhood. Another possible consequence is that residents moving out of our developments will have less buying power than if they had owned a home that did not cap the increase in value on its shares. As discussed in our project proposal, there are few other options that the market provides for lower and middle-income residents. Our hope is to mitigate this risk by connecting our residents with financial counseling services for other ways of making sound investments outside of their home.