Cohousing-L Mailing List: Re: Cohousing-L Digest, Vol 137, Issue 16

[Lucy Beck (stoltzhouse]

Dear Jerry:  The lawyer does not have to have cohousing experience - this
is a question where your State statutes governing HOA's have to apply. As
far as the state is concerned you are going to be a HOA which is something
they have tax and regulatory rules for.   In Vermont, our documents
specified the percentage of sales at which we needed to transfer ownership
from the LLC to the HOA.

Each owner owns an equal percentage of the common land.

A practical question is actually what purpose would there be for having an
LLC own the remaining commonly owned property, rather than the HOA.  You
could in the future, be in the situation where (we are) new owners are not
members of the original LLC, and a smaller percentage of the owners has the
burden of the taxes and maintenance of the common land.  When there is a
lot of rural land (we have about 115 acres in common), this is a sticky
biggie.
Lucy Beck
Champlain Valley Cohousing
Charlotte VT


>
>
>
> ---------- Forwarded message ----------
> From: Jerry McIntire <jerry.mcintire [at] gmail.com>
> To: Cohousing-L <cohousing-l [at] cohousing.org>
> Cc:
> Date: Mon, 15 Jun 2015 16:55:24 -0500
> Subject: [C-L]_ Legal structure for ownership of common facilities
> We've started talking with attorneys as we plan for development and I was
> asked this question:
>
> Will the LLC continue to exist after selling the individual lots, retaining
> ownership of the common elements? I have assumed it would not, that it
> would dissolve and the HOA would own the common land and facilities, with
> each of the lot owners being part of the HOA.
>
> Where does ownership of the common elements reside? Does each lot owner own
> a percentage, and the HOA simply manages, or does the HOA hold ownership?
>
> Perhaps these questions will be answered if we find an experienced
> attorney. Does anyone know of an attorney with cohousing experience who is
> licensed to practice in Wisconsin?
>
> Thanks,
>
> Jerry
>
>