Cohousing-L Mailing List: Re: cash call

[Merlin Porter-Borden (merlpb]

    At Liberty Village, Maryland (finishing design approvals with
County),  we set $6,000 as the Partner fee.  We set up an equity
dividend system which credits partners at each of three milestones
(purchase, rezoning & preliminary plan approval, and upon securing a
development loan).  The dividends reward the higher risk takers (the
Pioneers).  Those of us who have the cash are supporting (investment)
the design development in order to carry the burden for less endowed
members.  Part of our cash advances are initially credited to lot
purchase, but won't be paid out until toward the end of the project,
with interest.  The equity dividends will be paid out at the end of the
project, if we decide to take them.  We are not "cashing" in all of our
initial investment in order to support cash flow in the development/lot
purchase phase.  In order to support acquiring a development loan, we
are now increasing our investment upwards to 50% of the development
cost.
    Our cash calls have been done by hat-passing.  Individuals write on
a note what they can afford to invest, and the treasurer makes the calls
privately, as the money is needed.  More recently, we have gone public
in the group about individual levels of investment.  We recently passed
the hat to support our goal of 50% investment.  We have nothing in our
operating agreement about cash calls, but we have consensus about how we
do it.  It could be formalized, but we have not.

Merlin Porter-Borden, Liberty Village, Maryland
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NKaten947 [at] aol.com wrote:

> We are wondering what other groups have done about cash calls.
> Also what is the basic buy-in cash amount other groups ask for? We
> were
> thinking $20,000 with the possiblity of an additional $5,000 in a cash
> call.
> what do groups do about people that can't afford that much cash? Do
> you put
> cash call info in your operating agreements?
>
> Katie McCamant left this morning after five intense days. But we now
> have a
>       fantastic site plan that we all consensused to !!!. We are very
> excited
> about moving forward. Katie did a great workshop with us, keeping us
> on track
> as well as doing a fine presentation to city officials.
>
> Kate N. Nichols
> Bellingham CoHousing (WA)