Cohousing-L Mailing List: Re: Advice about financial incentives

[Jim Snyder-Grant (danasg]

At New View (Acton MA), we had a land fund at the beginning to raise the
large amounts of at-risk capital we had to put down to get our land. We
accumulated interest on those early pay-ins, so those that put more money
in got more interest. The interest was paid as a credit toward house price,
and was not paid to those few that left before houses were built. We did
not pay interest on the minimum amount ($5000, as I remember), to avoid
excessive interest that just cancelled out. Interest charges (additions to
house price) were not deductible, but interest paid was taxable, so we
wanted to minimize it.

If you want to use a system like this, let me know & maybe we can dig up a
copy of the paperwork for your lawyers to review...

-Jim

-Jim