Cohousing-L Mailing List: Re: a slush fund for temporary financial relief

[Shawn Barber (srasb1129]

We at Eno Commons just addressed this issue with our dues increase discussion. 
Our current model follows that people facing financial issues personally 
contact our treasurer and make arrangements on their own to deal with 
unforeseen shortfalls. With no major issues resulting from this practice.
After our recent reserve study, we found that our current saving amount does 
not meet our expected reserve needs. Thus the request to raise dues to fix the 
problem. Some in our community are on tight budgets, so the topic of a relief 
fund came up. Our solution was to create a fund that those who can and want to 
could pay into; knowing that it was going to help a struggling neighbor and 
keep us meeting the reserve funding goal. The structure of the plan was to 
continue with the current model of requesting aid from the treasurer, but the 
fund would be in place so that the person would not be expected to pay 
shortfalls back. Each quarter the treasurer would report our status and whether 
the fund was meeting the needs or not. Then after nine months (three reports) 
we could re-evaluate the plan.
Our community went with an alternative plan that did not include the 
implementation of a financial relief fund. But we have it in our parking lot, 
for possible need in the future.

I personally support the idea of those who can pay more than is asked are 
allowed to balance out those who cannot, in order to keep the community intact. 
Each community has to wrestle with values and issues, and determine what works 
for the community.
Shawn Svoboda-BarberEno CommonsDurham, NC