Cohousing-L Mailing List: RE: Language/vehicle for receiving money

[Catya Belfer-Shevett (catya]

> What we are looking for, as soon as possible, is
> language that you have used to start collecting money
> that can be held in
> escrow until the group is ready to put that money down
> on an option.  I assume groups have come up with
> language for: making clear that the money is at risk,
> who decides when the money will be used, for what
> specific purposes can it be used, under what
> conditions one's portion can be returned to an
> individual, if interest is to be paid to the initial
> "investors", etc., etc.

We have basically this, which is based on Cohousing Resources
recommendations and methodology.  I could dig up the legalese if you want,
this is off the top of my head:

- Equity households are committed to putting in at least 5% of their
expected unit cost
- This money will be credited towards their unit purchase
- Decisions about what happens with this money will be made the group (by
consensus, or i suppose by fallback to a vote if we couldn't get consensus)
- If an equity household leaves the group they can get their money back when
the last unit is sold in the project, or earlier if the group chooses to do
so.
- For money over the 5%, you earn either interest or unit credit, 15% now,
12% after we get our zoning, 9% or the equivalent of the construction loan
rate once we get the construction loan

> We need this very quickly since some very special land
> has come up for sale that suits our needs exactly, and
> the seller is motivated to sell to us but has other
> offers.

Good luck!

        - catya

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