Cohousing-L Mailing List: Investing reserves and Support Financial

[Joani Blank (jeblank]

OOOPS!. I just accidentally sent Digest #15 back again to the whole list.
Very sorry to clutter your mail box with these e-words. 

Here's the posting I wanted to write BEFORE hitting the Send button

1. I checked with our condo assoc president and former treasurer about our
long term reserves, and inquired about the 30% tax rate on investment income
for a homeowner's association that David Mandel mentioned the other day. She
said that we (Doyle Street Condo Assoc) are a Not For Profit Mutual Benefit
Association and that as such we do not pay taxes on interest or dividends
earned by our long-term reserves. This doesn't mean we shouldn't move the
fundsto a socially responsible place, just that we apparently don't need to
make such a move to reduce our tax liability. 

2. Zev, can you or Bob explain to us whether or not cohousing groups can be
investors/lenders to Support Financial (per Buzz's suggestion)? Do the laws
about what a HOA can do with their reserve funds differ from state to state?
Is it a good idea for these reserves to be as illiquid as they are there?
Here at Doyle St. We've borrowed against our reserves a few times in the
last four years.

Joani Blank
Northern California By Da' Bay