Request for Guidance re Equity and other Finance Issues
From: vaness32 (vaness32earthlink.net)
Date: Thu, 23 Aug 2012 07:45:24 -0700 (PDT)
Hey there Cohousing Enthusiasts,

I'm a member of the finance committee for a forming group in Philadelphia.
We're trying to update and fill in the missing holes on the policies related
to member payments.  We're exploring a relationship with a developer who
already owns the property.  Has anyone else gone this route?  Questions we
need to address include but are not limited to the following:

1.  What types of payments should be considered equity and therefore
creditable to the ultimate home purchase?  So far we've collected full and
associate member fees, membership dues, and workshop fees.  We're preparing
to make a request for a significant investment for due diligence.  Should
member dues be considered equity?

2.  Should associate member dues be required or optional?

3.  What defines a dormant member and should they continue to pay a
membership fee?

4.  What defines a defunct or former member and what should happen to any
funds they've paid in?

5.  What incentive models have been used to encourage first movers -- i.e.,
credit multiple at closing (e.g., $2,000 purchase credit for the first 20
members who give $1,000).

Any sample guidance or policies you have to share would be most appreciated.
Also, anyone willing to be on a conference call to share your experience
would be great.  Our committee is meeting tomorrow, Friday, at 1:00pm EST.
We'd love to get more guidance from other folks who've dealt with the
financing of a cohousing development.

Vanessa

Vanessa L. Lowe

Home: (267) 323-2787

 


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