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

[Rowena Conkling (rowenac]

> If anyone could send me a note with advice about financial incentives and your
> group's experience with them I would really appreciate it.
>
> -- Larry Bafus

At CambridgeCohousing we had a combination of incentives and disincentives.
Initially we created a Limited Liability Partnership and all members contributed
$1000.  Once we had identified property, the members again were expected to
contribute from $3000 to $11,000 depending on the size unit they wanted (studio 
to
4-bedroom townhouse).  A Third deposit was required at the time we closed on the
property, again depending on size of unit.  Those who could not come up with the
cash were charged interest until they did - usually at closing.  The incentive 
was
that people putting up the cash were guaranteed units of their choice.  The 
balnce
of the funds we needed were contributed by members who were able (amounts 
ranging
from $10K to $100K).  They were given notes and interest at the going amount for
real estate mortgages.  Some of this money is still owing and is being paid back
out of monthly fees.

Hope this helps.
RowenaC
e