|Re: Sale/Resale and Continued Success of Community <FWD>||<– Date –> <– Thread –>|
|From: Fred H Olson WB0YQM (fholsonmaroon.tc.umn.edu)|
|Date: Wed, 13 Jul 94 22:58 CDT|
Message author: Steve Gaarder gaarder [at] anarres.ithaca.ny.us Posted by the COHOUSING-L sysop. Date: Mon, 11 Jul 94 22:25 CDT Sandy Bodzin <sb5i+ [at] andrew.cmu.edu> writes: >Since it has >been generally accepted that there is no legal way to influence who a >house is sold to (is this absolutely the case?) >..... >Is there any kind of neighberhood incorporation >that is legally binding? If you structure the neighborhood as a cooperative, you can have a *lot* of influence on who buys a house. A standard feature of many conventional coops is that the board must approve any sale. In some, but nowhere near all, cases the board is prevented from withholding approval "unreasonably." In our (EcoVillage) case, this was one of the major issues for our nearly-completed bylaws. Some people felt that having the right to refuse a sale was important, while others were concerned about cliquishness. In the end, we settled on language that said that the board could only block a sale if it was in violation of the "corporate purpose." Since the corporate purpose includes fostering community and protecting the environment, we could reject a sale if it would be damaging to either. The ultimate control over house sales is the right of first refusal. This means that the coop (or homeowners' association) has the right to buy any unit that is for sale by matching the purchase offer. Clearly a good-sized cash reserve is necessary for this. We are also providing for a waiting list, whose members also have the right of first refusal. I would expect, in any case, to see that right excercised seldom if at all; if I were to sell, why should I bother looking for an outside buyer if there's a group of purchasers already lined up? Steve Gaarder gaarder [at] anarres.ithaca.ny.us -- Steve Gaarder
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