Cohousing-L Mailing List: Re: legal and financial issues

[Rowena Conkling (rowenac]

hoffice [at] mindspring.com wrote:
> 
> Hi All,
> 
> Can anyone direct us to an outline of choices or options available
> for:
> >  the legal issues regarding setting up a co-housing unit - ie, death
> of a member; their estate, etc.
> >  the financial issues regarding setting up a co-housing unit where
>I'll say it again.  Each state has its own statutes which authorize 
different legal entities and limit options.  YOu really need to get 
local legal advice (and I'm not just drumming up business for my fellow 
attorneys!)

At Cambridge Cohousing under Massachusetts law, we used a Limited 
Liability Partnership as the entity for construction purposes and are in 
the process of transferring to a Condominium Association.  As an LLP 
the liability of individual members was limited as in a Corporation 
but we did not have to deal with the formalities of corporate 
reporting, etc.  As a condominium we have no control over who may 
inherit a unit on the Owner's death, and have only a right of first 
refusal upon sale.  Like many other cohousing groups, we investigated 
the possibility of becoming a cooperative and finally gave up on it - 
it's very hard to create and get financing for a coop in Massachusetts.

But what you need is sympathetic advice from a local attorney on the 
options that may exist in your state based on the precise facts of your 
situation.  
Good luck, RowenaC