Re: Bylaws and investments
From: Sharon Villines (sharonsharonvillines.com)
Date: Tue, 27 Aug 2013 09:10:10 -0700 (PDT)
On Aug 27, 2013, at 9:50 AM, John Richmond <johnrichmond50 [at] hotmail.com> 
wrote:

> 1. In the beginning of a cohousing group's history, should it have a 
> substantially different set of bylaws for pre- and post- move-in times (i.e. 
> a non-HOA-type set before and more HOA-like bylaws after move-in?)

Bylaws are an agreement about how you are going to live together. People sign 
on to these agreements as soon as they join the group, not when they move in or 
a year after move in when you get around to writing new bylaws.

The more clearly you define your agreements for living together and your 
financial expectations, the fewer problems you will have later when you begin 
the "but you said...." discussions. You will have several people doing 
orientations, your ideas will evolve over time, not all these ideas will be 
communicated to everyone. The sooner you get it in writing the better off you 
will be. 

Putting off decisions never improves the decision unless you are actively 
investigating specific options. New people or a larger group will only make 
adopting bylaws more difficult. Several cohousing developers are now 
recommending a set of standard bylaws for groups to use until after they are 
moved in and knew what they need to change.

Why you need it in writing. After we moved in there were a million 
understandings about pets. It took us more than 10 years to get a policy 
written. Many of us thought we had an agreement before we moved in but didn't 
write it down out of respect for one member who was upset about the decision. 
Wrong move. We argued and were upset all those years -- some people in favor of 
outdoor cats, for example, and others suffering from them.

Write it down, and keep it isn a safe place.

> 2. How did your group handle allowing people who invest in developments 
> upfront to be paid back their initial investment such that founders and 
> non-founders ended up paying equal proportions of development costs? Was this 
> even identified as a concern in your group?

All expenses were paid out of a central fund so it was clear what expenses had 
been incurred on behalf of the group and no one paid more than anyone else. I 
think it was a $500 non-refundable fee to join. That put you on the list that 
established an order for choosing a unit when the plans were finalized. That 
fee may need ot be higher now -- that was in 1998.

Then when we were ready to apply for a construction loan, everyone had to put 
10% or 20% down on a contract. That was refundable. 

BUT we had a developer who was paying all the upfront permitting and planning 
that had to be done _before_ we could even apply for a construction loan. If 
you don't have the money from a developer, more will have to be invested 
upfront.

In any event, you do it with bookkeeping and agreements about what are 
community expenses and personal expenses. If someone hosts prospective members 
having them over for dinner, is that reimbursable? If they buy a roll of scotch 
tape, is that reimbursable. (Don't laugh - I was very surprised when I saw a 
list of requests for reimbursements one time. People have very different 
understandings about these things.)

Sharon
----
Sharon Villines, Washington DC
"Reality is something you rise above." Liza Minnelli




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