The confesseur process

This post will be updated like a wiki, should we need to make any further changes or clarifications. It is based on a proposal (internal link) that was adopted by consent on 26/03/2023.

1. What’s the objective of the confesseur process?

To make sure that the building of a cohousing can be done in a way that is financially safe for all participants, it is essential to know that everybody is able to pay for their units. This is important, because if it would happen that one or more households won’t be able to pay, either the project gets stuck, partially unbuilt, or the other households need to pay the money that is missing.

Because most people are not comfortable with sharing the details of their financial situation with people they know, in The Reef we work with two “confesseurs”, who will ask each household some questions so as to assess whether a household’s financial means are in line with their desires for their unit. They will also ask for some proof, like for example a copy of your bank statements. All this information is confidential.

Based on the information that the confesseurs receive, they give each household a “score”, along the following lines:

  • A = no issues, go ahead

  • B = probably doable, but some obstacles to overcome and/or it might be tight

  • C = not sure this is possible

  • D = impossible

In addition to the financial verification the confesseurs also offer a bit of financial advise on demand. As Alberto said: “At least for me, meeting with the confesseurs felt like meeting my own personal financial advisors. They had helpful hints about obtaining credit, for example, and they were preparing me to interacting with banks for doing so.”

2. How does the scoring work?

A crucial factor that determines someone’s score is the preferences for their unit. The one and only question is whether your financial means are sufficient to pay for the unit that you would like to buy. Therefore a score should not be taken as an absolute proxy for somebody’s wealth. It is very well possible that a household with an average income gets a C if they want a really big unit, or even a D, if they also want a swimming pool. Likewise, it is also possible that somebody with a relatively lower income can get an A or a B if they only want a rather small unit. For this reason, we recommend that a score is accompanied with an approximate amount the desired unit might cost or square metres (that will help scoring be realistic and comparable).

That being said there are a couple of factors that generally lead to certain scores. Here’s an indicative list:

  • Savings: If you have enough savings to pay for the entire unit, you’ll get an A. Likewise, if you can finance a significant share of your unit (20% or more) with your savings, you are very likely to easily get a mortgage at the bank, and so you’ll likely get an A.

  • Your labour contract: Banks like certainty, so if your labour contract involves some uncertainty (e.g. contract of limited duration, being self-employed) the confesseurs may give you a B and ask you to visit your banker or the Fonds de Logements and inform them of the outcome. Without savings and a full-time labour contract it is possible that you’ll get a D.

Nevertheless, each case is considered individually and with a lot of attention. Because The Reef highly values inclusion, the confesseurs are willing to help you find any possible option to finance your unit and get the green light.

3. How to estimate the cost of your unit?

[this should become a post on its own over time]

3.1. Simple method

1. Estimate how many “carpet” or “net” square meters you want

  • If you find this difficult, you can always have a look on an mmo website (e.g. Immoweb or Immovlan) to get a feel of how many square meters feel good to you.

  • When in doubt, don’t hesitate to take the lower estimate of what you think you’d like, for the following reasons:

  1. You’ll have plenty of common spaces that you can use (e.g. guest room, dining corner etc.)

  2. Our architects are masters at make good use of small spaces

2. Calculate the “gross” square meters

Multiply the number of net square meters by 1.25. This is because everybody needs to pay for the outer walls and isolation around their apartment. This is the so-called “gross number of square meters”.

3. Calculate the cost of the apartment

Multiply the gross square meters with any number between 3600 and 4400. Take a number of the lower end of the price fork if you are happy for your unit to be located anywhere in the building, take a number on the upper end of the price fork if you’d like to be on the upper floors or if you want other features that increase the resale value of the unit.

4. Calculate a 15% safety buffer

Normally we would have worked with a 10% safety buffer to provide for unexpected factors that increase the cost of the project, yet because of the current economic and geopolitical situation, unfortunately we need to take a 15% buffer. Therefore you need to multiply the number you obtained under step 3 with 1.2.

Vice versa, what this means is that if you get the green light from the bank for a budget of x, you need to divide that sum by 1.25 to obtain the maximum budget for your unit. Should there be an unexpected cost, you then don’t need to worry that you won’t be able to borrow the extra money needed.

3.2. Illustrative example

1. Estimate how many “carpet” or “net” square meters you want

A small studio of 30 m².

2. Calculate the “gross” square meters

30 x 1.25 = 37.5 m²

3. Calculate the cost of the apartment

Anywhere is good => 3600 euro / m² => 37.5 x 3600 = 135.000

4. Calculate a 15% safety buffer

135.000 x 1.15 = 155.250 euro

4. How does the confesseur process work?

4.1. First meeting with the confesseurs

For the first meeting, the confesseurs like to meet up in person, but in case of need it’s also possible to meet them online. The meeting is very informal, and the confesseurs will ask you a couple of questions about how big you envisage your unit to be, and then about your financial situation (monthly income, savings, financial assets, …). In general, the confesseurs will then ask you to show them some proof of a couple of things, like for example a printscreen of your savings account.

4.2. Scoring and follow up

Once the confesseurs have all information they need, they allocate each household a score, plus an indicative maximum number of square meters (e.g. “A provided that maximum 70 m²”). This information will be shared with one person in Team Finance in charge of the confesseur process. This person will keep it confidential and inform the Group Coordinator and the Secretary about the scores . The Secretary will be the one sharing the scores with each individual household.

Households who receive a B or C will then need to go to the bank and/or the Fonds du Logements to get a more precise picture of how much money they can borrow. They will then have to send this information to the confesseurs, who will eventually give them the green light (or not).

5. What is the deadline for getting the green light?

The ultimate deadline for getting the green light from the confesseurs is the moment you are requesting Full Membership. It is thus recommended to get started as soon as you are seriously considering to join The Reef as an Associate Member.

6. Who gets to know about the scores?

Stage 1: on a need-to-know basis

Until households have become Full Members the scores are known on a need-to-know basis. This will likely include the person in Team Finance in charge of the confesseurs process, the Secretary and the Group Coordinator, but we trust each other enough to not introduce a rigid definition of “need-to-know”. These are not state secrets, and we need to use our energy for things that are more urgent and important.

Stage 2: everybody

Once households have become a Full Member everybody gets access to everybody’s score.

Reasons are the following:

  • The score barely tells you anything we didn’t already know. We are building a cohousing together, and so everybody will know about everybody how much their units will cost. It is also rather likely that it will become known how the unit is financed (savings, bank or Fonds de Logement) because we’ll probably be having small talk about interest rates, and also the hassle of transferring the money to The Reef’s bank account will depend on where the money will come from.

  • Knowing about people’s scores will likely make it easier to empathise with each other when we are talking about money. There is no stigma related to getting a B, a C or a D, but it’s good to know, so that we can accommodate wherever needed.

7. Who are the confesseurs?

  1. Jean-Pierre Fraas: He is a retired banker with a lot of experience, and was indeed the confesseur principale of Brutopia. He is also the father of Serge, the Fraas in Stekke&Fraas.

  2. Marcel Heymans: He is a retired businessman. He is in a sense part of The Reef’s group, as he wants to buy an inclusive unit (he rents below market price to refugees). He is also Lie’s father.

8. What happens to the data when somebody leaves The Reef?

When somebody leaves The Reef, the Secretary takes action to delete all data we have about this household. This includes sending an email to the confesseurs to request the deletion of all data.

Because it is more difficult to delete data in mailboxes (e.g. because all scores are communicated in one go) it is recommended to sign up with the confesseurs with your first name only.

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Should this actually be 15%, going on the advice of the notary the other day?

Well spotted! I had corrected it in the example, but not in the instruction. I have corrected it now. Thanks!

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Hi @reeflings

As you might remember (or not), we are organising another round of confesseurs meetings and they will take place in the following format:

  • online if you’ve met them already (please send your availabilities to me (directly))

  • on site for very new joiners and it will take place on Saturday, 27 May as of 12pm in Brutopia, Av. Van Volxem 381C. To organise things better, can every new reefling @Sebastien, @Julien , @CaroB , @Lea , @Adriana let me know when they could be available on Saturday afternoon. Every meeting is per household and lasts 30min. No preparation needed. Ideally, we would have several back to back meetings not to waste confesseurs’ time.

If you wonder about the confesseur process as such that i presented during the last plenary, please refer to the explanation above (Lee’s post & internal link to proposal).

Look forward for your answer,
Thanks
Ugne

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Hi Ugne,
Thanks for this meeting’s organisation !
If possible i would prefer as early as possible.
Thanks, seb

Hey Ugne, I’m not in Brussels that day :expressionless:

I can do it online another day if possible for the confesseurs.

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Hi Ugne,

Thanks for organising this meeting. For us any time before 15h will suit.
Kind regards, Caroline

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Meanwhile, welcome @CaroB !

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Hi Ugne,
Thank you for organising! We can make it possible anytime that afternoon.
Have a nice weekend,
Lea

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Hi Ugne,

On Saturday I would like to meet as late as possible as I am coming back from the Netherlands early afternoon.

Regards,
Adriana

Dear @Sebas
Would starting at 1pm is too late? Yu would be the first. Should i push for 12:30?

Hi Adriana, it seems there might be only 3 households available, but i can try to push it for 2pm or perhaps 2:30pm at the latest, is that ok?

That’s ok Ugne - I’ll make it work. Just in case of unexpected traffic jams: who can I contact (by phone)?

Regards,
Adriana

HI @Adriana , i will send you a phone on the chat (Signal), if ok.
I see that you haven’t yet registered at the registry

> here

, so i don’t see your phine number :slight_smile: could you please add it and send me a quick note? My phone is +32478719714

Dear Ugne, 1pm is perfect, thanks a lot ! seb

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Hi @Lea , @Ryan, @CaroB & @Peter & @Adriana , would it be possibly to kindly ask you to fill the registry here so i can send the right contact details to the confesseurs. Thank you!

Done :slight_smile:

done too :slight_smile:

Hi everyone involved: @Lea , @Julien , @Sebas , @Adriana , @CaroB
I am so so sorry, but i have just been told that one confesseurs can’t attend Saturday because he is at the event the whole weekend. Is there any way, you would be available on the same times on either Saturday, 3 June or Sunday, 3 June? Apologies for this last minute changes.

Hi Ugne, 3rd or 4th June should work for us.

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