Re: HOA acting as distributor
From: normangauss (normangausscharter.net)
Date: Sat, 18 Dec 2004 11:00:39 -0800 (PST)
Rob:

   The way you described it, each club makes its own rules, decides how to
spend money it has coming in, but arranges to have the billing and
collection of funds performed by the HOA.

    Is anyone aware of a situation where a contract is made between an
outside vendor and the HOA on behalf of the buyers club?  In such a case,
the HOA would be accepting liability for any breach of contract that the
buyers' club was responsible for.  Also, in case of any suit for breach of
contract or non-payment of bills, the entire HOA could be sued by the vendor
for a contract violation perpetrated by only a subset of the membership.

Norm Gauss

----- Original Message ----- 
From: "Rob Sandelin" <floriferous [at] msn.com>
To: "'Developing cohousing - collaborative housing communities'"
<cohousing-l [at] cohousing.org>
Sent: Saturday, December 18, 2004 9:17 AM
Subject: RE: [C-L]_ HOA acting as distributor


> At Sharingwood we have a number of "clubs" which are defined as
> non-community financially supported activities. Some of these clubs formed
> in order to provide services such as a community LAN without having to
deal
> with large group bureaucracy, the club makes the decisions how it wants to
> be. We have had a hot tub club, a truck owners coop, a beer making club,
> etc. Sometimes, like the lan, the funds are collected as part of the
monthly
> condo fees, with only club members being billed and a separate line item
in
> the budget being maintained in the account. Since we are entirely self
> audited, we can do stuff like this.
>
> Rob Sandelin
> Sharingwood
> Snohomish County, WA
>
>
> -----Original Message-----
> From: Sharon Villines [mailto:sharon [at] sharonvillines.com]
> Sent: Saturday, December 18, 2004 6:07 AM
> To: normangauss [at] charter.net; Developing cohousing - collaborative housing
> communities
> Subject: Re: [C-L]_ HOA acting as distributor
>
> On Dec 17, 2004, at 11:32 PM, <normangauss [at] charter.net> wrote:
>
> > The business activity would be in the nature of a distributor, that
> > is, acting as an agent buying a package of services to individual
> > households ("Separate Interests") and collecting individually from
> > those households for those services.  This is, in effect, a "Buyer's
> > Club" administered by the HOA.
>
> Large condominiums do often house and facilitate services of all kinds
like
> dry cleaners in the basement and favored delivery services but the condo
> just facilitates the services, doesn't provide it. Members could have a
> buyers club but it would be separate from the official HOA business,
> although the HOA could raise objections or giver permission for use of
> common space (using the kitchen to distribute food).
>
> Sharon
> -----
> Sharon Villines
> Takoma Village Cohousing, Washington DC
> http://www.takomavillage.org
>
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