Cohousing-L Mailing List: Re: Group reluctance to incorporate

[Nancy E Wight (wight]

Steve Farley asked:

> I am a new member of the Tucson cohousing group, and we seem to be enteri
> an important stage in the development of the group--the moment when wecut
> and part wants to move more slowly. Even some of the site-option continge
> are reluctant to establish legal status for the group (incorporation,
> partnership, etc.) prior to optioning the land. 
> 
> How have other groups handled this phase of the process?  I know a lot o
> cohousers have been lucky enough to have a member with means just go 
> ahead and buy land on their own to get things going, but even then, some 
> legal status seems to be necessary before anyone buys land to make us  ap
> legitimate in the eyes of developers, banks, and new members.
> 
> Any thoughts?

Yikes!  Don't do it!  Don't even *consider* purchasing land with a group of 
people before working out a legal agreement. 

I wonder what the reluctance is to incorporating.  Is it a reluctance to 
spend the money, or a commitment issue?

We incorporated before we purchased land (I think it was even a year or so 
before?) and this helped us look legitimate.  We got *burned* big time when 
we attempted to purchase a site and the owner (a bank) wouldn't even talk 
to us because they couldn't figure out who *us* was!  We lost a year and a 
few thousand dollars pursuing that site (eventually from the developer who 
bought it), and I'd hate to see this happen to anyone else.

We purchased an option on the land that involved putting out more and more 
money as time went on and as feasilibility studies were complete.  This was 
funded by the members of the group. 

- Nancy

 

Nancy Wight                                   wight [at] world.std.com
New View Neighborhood Development             Acton, MA