Cohousing-L Mailing List: Re: Initial financing by early members

[stuart (stuart]

Tom,

Our situation is a bit different as my wife and I were feiends with our 
landowner. he told us that he wanted to do a co-housing project on his land and 
was looking for someone to help him do it, which is how we got involved.

We worked out a plan to option the land while all of the engineering, 
surveying, and other proceedures for the permits were undertaken, as well as 
marketing and legal fees for us and him as seperate entities.

We talked to friends and got listed on the co-housing directories and began 
signing up memebrs.

We determined that the first 10 folks to sign up would get a discounted price 
and the last ten would pay more. This rewarded the early members for jumping in 
at the beginning.

Anyone that becomes a member will get their money refunded if the project can't 
get permitted or they change their minds.

All of the information can be found in the option agreement that Caer Coburn, 
LLC has with the landowner and you can see it on our website, 
http://www.caercoburn.org. The option agreement spells out how much the 
landowner will receive, what he ill provide, and how the money will be 
disbursed during the initial stages and how he will refund the money if Caer 
Coburn can't get the permits.

If you look at the "costs" and "membership levels and rules" sections on the 
website to find out how the membership money si to be paid and how it will be 
spent.

The members will get interest on the money they have paid in certain 
circumstances (see option agreement), otherwise, there is no interest.
Hope this helps.

Stuart Joseph, 802-463-1954
Project Director
Caer Coburn, a traditional village based upon intentional communities and 
co-housing
Rockingham, Vermont, USA
http://www.caercoburn.org


> -------- Original Message --------
> Subject: [C-L]_ Initial financing by early members
> From: Tom Hammer <thammer302 [at] yahoo.com>
> Date: Tue, August 15, 2006 2:10 pm
> To: cohousing-l [at] cohousing.org
> 
> Hi All,
> 
> We of Concord Village are undergoing some re-thinking
> about how best to reward and encourage the most
> at-risk money that our "Equity Members" are being
> asked to invest in our forming community (we have two
> potential pieces of land that look very attractive and
> potentially feasible.)  We have 7 equity households.
> 
> How does/did your community treat the initial
> investments of your first members, which are obviously
> very much at risk?  Loans?  Discounts on home prices?
> If loans, what interest rate did you offer?  Perhaps
> there are other incentives I haven't mentioned to
> encourage investment.
> 
> Thanks in advance for your input.
> 
> Still glowing from the National Conference,
> 
> Tom Hammer
> for Concord Village
> http://www.concordvillage.org
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