Cohousing-L Mailing List: Re: HOA reserves investment plan

[Raines Cohen (raines-coho-L]

David Mandel <dlmandel [at] pacbell.net> wrote on 5/8/01 10:01 AM:

> These are state and federal tax free (thus avoiding the 40%
>we'd be paying

I thought that HOA's (at least here in California) are generally 
incorporated as a form of nonprofit that is exempt from federal and state 
income taxes... is investment income considered Unrelated Business 
Income, and thus subject to taxation? Clearly, it makes a big difference 
in the investment strategy you pursue.

Raines

(also curious whether any coho groups are also investing reserve or other 
funds in somewhat riskier but higher yield and 
higher-return-to-the-community-at-large investments: in silent second 
mortgages to members (I believe Pleasant Hill Cohousing is planning this) 
to assist with affordability, or in investments in other communities)

Raines Cohen <coho-L [at] raines.com> <http://www.swansway.com/>
Happy to host a Pleasant Hill coho meeting last night.

  Vice President, Swan's Market Cohousing [Old Oakland, CA]
Where we had a grand time making pavers for our garden.

  Member, East Bay Cohousing [no site yet] <http://www.ebcoho.org/>
Surprised by the interest and response; Next meeting: May 20.

  Boardmember, The Cohousing Network <http://www.cohousing.org/>
Reminding you to register now for the best rates for the North American 
Cohousing Conference, July 20-22, Berkeley, CA.


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