Re: Consulting fee assessments
From: Nancy Wight (wightwal.hp.com)
Date: Wed, 5 Jan 94 10:18:45 EST
Our group initially had membership dues (I don't remember exactly how much)
out of which came minor expenses.  When a major expense, such as hiring
a consultant came up, we assessed each household in the following manner:
the fee was divided up equally amongst all of the households, except
if a houshold had only one adult, in which case the fee was 75% of what
the other housholds paid.  This seemed to work fine for awhile because
once we started paying serious money, every cent of it counted towards the
price of the development. On the final day of "reckoning", after a formula
is worked out on the actual house prices, all of the money a household has 
put in will count towards that household's own house and share of common
expenses.  This means that while initially, single adult households paid 75% 
of what the other households paid, that percentage may change in the end, 
depending on the house pricing formula, when all of the expenses are divided up.

The future members will in effect end up paying for their share of almost 
everything the group has spent on the development.  This seems only fair, 
because future members get the benefits of the financial risk (not to mention
the time invested!) of the initial members.  

This has worked for us so far, but I see problems in the near future as
we try to figure out a fair house price formula.  Maybe all we did was 
delay that extremely difficult and complicated decision until we had
to make it!

Good Luck!

- Nancy


> 
> We at Tucson co-housing are having a rather rousing discussion concerning the 
> assessment of fees for a consultant we are bring ing to town.  Does anyone 
> have any experience in this.  Did you assess by household or by a per person 
> basis?
> what about future participoanyts
> 
> ?
> what about future houshold members?
> 
> It's a hot debate and we need some input.
> 
> Thanks.
> 
> Gregg (smithmcc [at] delphi.com)
> 
> P.s
> .
> Thanks for the input on Limited equity.  I think it will help a great deal.
> 

-- 

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Nancy Wight                 (508) 659-4974
                           wight [at] wal.hp.com
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