Cohousing-L Mailing List: HOAs and LLCs

[Joani Blank (joani]

At 10:05 PM 9/2/2005,  Pete Holzberg wrote:
> Is the following true about the differences between coho and HOAs?
>
> /Probably the biggest difference, and perhaps most important, is that
> membership is somewhat restricted.  A 'household' must apply for
> membership, which, to me, means they may be turned down.  In some
> communities you **must sign a voluntary agreement** that you won't lease
> or sell your unit to a person who will not participate fully in the
> community.  /

1, If an agreement is voluntary you cannot require people to sign it.

2. Some cohousing groups require new households to apply for 
membership in the LLC or whatever the group is structured as during 
group formation and development.  (And of course then applicants can 
be rejected.  Other groups require that households  prequalify for a 
mortgage in the amount the units will cost in the end, and if you 
prequalify you can join the group.  Yet others (the two I've lived 
in, f'rinstance) never had a any restriction about who could join. 
You didn't even have to formally prequalify for a montage in either 
one. And guess what, just the right people opted in  while others 
self-selected out because they decided cohousing wasn't for them at the time.

3. A community's HOA is formed when we become homeowners, that is, 
when we move in. Then it is illegal in every state, I believe (not 
just California, for an person who is selling their condo who they 
can or cannot sell to. Fortunately, most people who leave cohousing 
are eager to get people who will be good neighbors with the rest of 
us after they leave.  And most communities have a principle, if not a 
"rule" that all potential buyers should attend some community events, 
a couple of common dinners, a business meeting, so they know exactly 
what they are getting into. Usually anyone who doesn't really want 
the particular kind of community we practice, will be one to drop 
away early on. The voluntary participation agreement seems to work 
even if not all the residents sign it.

I've heard of a couple of instances where homes were sold to "just 
anybody" and those people  were some unhappy campers. These were both 
situations where the owner passed away, and his or her heirs didn't 
want to live in cohousing, so finally sold it on the conventional 
market. Finally, I believe the group found another buyer for that 
home from their list of people to be notified in the event of a 
resale, or to a friend of a friend of a current member.

Joani Blank

Joani Blank
510-834-7399
Cell: 510-387-1315
joani [at] swansway.com