Cohousing-L Mailing List: Re: Cohousing and Conference Center

[steve boylan (boylan]

Sue,

You pondered:

> We are at this time considering a joint commercial/cohousing venture similar
> to several that have been done before.  We are looking to pick up about 500
> acres in North Florida near Jacksonville.  On this property we would place a
> small cohousing development, perhaps 10-15 homes, and a conference/learning
> center, hopefully with a summer camp that is sorely needed in this area.  My
> question is whether anybody has any adivce on the set up of the
> corporation(s) as far as homeowners, and business, and how does that balance
> with the 501(c)(3) status if we are a ecological learning center?

Let me point out at the beginning that, though I've done some research
into the legal issues involved in cohousing, and I've worked with and
served on the Boards of Directors of some nonprofits, I sure ain't a
lawyer, so take all of the following with a nice big block of salt!

This may be obvious, but I think you're best bet is to clearly define
where the residential component ends and the educational facility begins.
For instance, you're probably going to need a Home Owner's Association to
manage the common facilities within the residential area, and it sounds
like the educational institution ought to be a distinct and separate
tax-exempt nonprofit corporation.

One way to start might be to create an organization, either a Limited
Liability Company or a "mutual benefit nonprofit", if Florida recognizes
that distinction, which will develop the site, and start now to organize
the educational nonprofit as a separate corporation so it can qualify for
501(c)(3) status.  You might want to write a formal agreement between the
two spelling out your plans for joint use of the land.

You could subdivide the land into a residential area, owned by the
cohousing households, and a separate parcel owned by the nonprofit.
Another approach might be to have the cohousing households own the whole
property, and the nonprofit leases part of the site for their purposes.

I think you'll need advice from professionals to do this right:  lawyers
and accountants familiar with Florida law on property ownership,
condominiums, and tax-exempt nonprofits.  But this might provide some food
for thought!

                                - - Steve

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