Cohousing-L Mailing List: RE: for-profit entity

[Diane or Douglas (ddhle]

What is an HOA and what is its purpose?

Doug Larson
Songaia



On Saturday, September 23, 2000 3:40 PM, Rob Sandelin [SMTP:floriferous [at] 
msn.com] wrote:
| The only reason to mess with this that I can think of  offhand is for tax
| stuff. Talk  to a local accountant. There seems to be lots of cohousing
| groups that do not set up a separate  accounting and run all the operations
| you spoke of under the HOA accounts just fine. We do.  Our tax guy is fine
| with it. All our billings are done in one set of books. But our state is
| perhaps more loose about this than yours  is, so check a local tax  guy.
| 
| As far as I know, and that's definitely not very  far, only California and
| NY have exceptional stringent rules regarding HOA management and even have
| some sort of report required annually. Up here in the Evergreen state, the
| state doesn't pay attention to HOA's  at all except to collect an annual $10
| registration fee.
| 
| Rob Sandelin
| Sharingwood
| 
| -----Original Message-----
| From: cohousing-l [at] freedom2.mtn.org
| [mailto:cohousing-l [at] freedom2.mtn.org]On Behalf Of Willie Schreurs
| Sent: Friday, September 22, 2000 10:21 PM
| To: Multiple recipients of list
| Subject: Re: for-profit entity
| 
| 
| Howard
| 
| You could talk to someone just up the road, here at Greyrock Commons.  I
| don't
| know the full details, but I could give you a couple of names privately if
| you're interested.
| 
| We've set up an entity called Uncommon, Inc. (which is a wholly-owned
| subsidiary of the HOA) to handle the cash flow for the meal program, the
| LAN,
| the office, and a few other things.  Strictly speaking, the HOA is not a
| "non-profit" in the 501(c)3 sense, but some of the things we do (like meals)
| don't fit well into a HOA budget and are best dealt with separately.  Hence,
| Uncommon, Inc.
| ----------------------------
| 
| Howard Landman wrote:
| >
| > Hi,
| >
| > We at River Rock are looking at setting up the "for-profit entity" that
| > will comprise all the activities in which a non-profit is not allowed to
| > engage.  So for example, our LAN service, our TV service, etc. will have
| > to come under this.
| >
| > My question is, how have other communities dealt with this?  What legal
| > steps did you have to go through and what form of organization did you
| > choose and why?  We've considered various alternatives from just opening
| > a separate bank account to getting a taxpayer ID to incorporating in one
| > of several ways.  What are the good and bad points of each?
| >
| > It might be most effective if answers were sent to me in private email
| > and I summarized to the list, but of course feel free to post if you
| > feel it's of general interest.
| >
| >         Howard Landman
| 
| 
| --
| 
|   /\                        Willie Schreurs                        /\
|  //\\ <Willie [at] Greyrock.org>(H)  <schreurs [at] lamar.colostate.edu>(W) 
//\\
| ///\\\            Greyrock Commons, Fort Collins, CO             ///\\\
| 
| 
|