Cohousing-L Mailing List: Membership fees (WAS Money and Greater Hartford Cohousing)

[Lydia & Ray Ducharme (ducharm1]

All members pay $100 to join and $30 per month to a maximum of $480 (16 x
$30).  This money is non-refundable.  This has been more than enough to pay
our "operating expenses" such as baby-sitting, office supplies, lunch at
workshops, etc.  (I don't think anyone has submitted a bill for the coffee,
tea and snacks that they provide at meetings).

We have two levels of membership - "associate" and "equity" members.
"Equity" members finance the project, agree to purchase a home,  and have
committed to contribute a minimum of $7,500 each although many will be
investing more.    Only equity members can "block" a decision.  If equity
members leave the group they lose their investment.  Members will also
choose their units in the order that they became equity members.

During the high risk phase (before we have secured land) the investors are
paid a flat return of 50% which will eventually reduce the unit cost.  Once
land is secured we will pay a rate of
12%/annum on all additional money needed for the downpayment required to
finance the project.

We have also received an interest free loan from Canada Mortgage and Housing
Corporation (CMHC).  The 50% interest savings on this loan, that would
otherwise have had to be paid during the high-risk phase, will be used to
create some affordable units.

Lydia Ducharme
WholeLife Housing
Calgary, Canada

----- Original Message -----
From: <Tonka444 [at] aol.com>
To: Multiple recipients of list <cohousing-l [at] freedom2.mtn.org>
Sent: Tuesday, April 11, 2000 8:22 AM
Subject: Money and Greater Hartford Cohousing


> Hi everyone--
>
> I have a very nuts and bolts money question for you.  Our group has been
> meeting since July and up until this point each "core" household (11) has
> only put in $100 bucks for expenses.
>
> As of May 1st, we are leveling the membership so that core households will
> now o pay $200 a month "fair share contribution" towards the option of
land.
> We do not have a site or any professionals hired yet.
>
> We have 10 households (!) who want to be core at $200 a month.  But the
> question that held up our group last meeting was...if we have a household
> join four months from now, do they have to pay $1200 down (to catch up to
the
> membership) and then $200 a month and THEN the $100 bucks that the earlier
> core kicked in?  The membership committee who wrote out the new membership
> levels did not include the initial $100 requirement but one household
feels
> that if they had to pay it, why wouldn't the newcomers?
>
> Also, with the new $2000 a month that will be coming in, should that go in
a
> separate account and the initial $100 payment be used for expenses and get
> replenished from the group?  I thought that ALL of the money each
household
> put in is considered predevelopment expenses that will come off the top of
> our mortgages.
>
> Just curious how other groups structure out their initial monetary
payments
> before a site and before professionals.
>
> Thanks,
> Shelly DeMeo
>