work-or-pay system - legalities? general advice?
From: Kay Argyle (Kay.Argyleutah.edu)
Date: Thu, 14 Apr 2011 17:15:12 -0700 (PDT)
I've read everything I could find in the archives about other communities'
work/participation systems, especially work-or-pay; that is, a system in
which residents are expected either to do a certain amount of community work
or pay for hours not worked, or in which people who work get a rebate on
their HOA fee.

It is certainly possible to have an arrangement totally off the books
(making sure the community's accountant and insurance agent are unaware or
at least have plausible deniability). On the other hand, it would be nice if
the work system can operate aboveboard and openly yet without any undue
burden of paperwork or cost. What are the legal, tax, or insurance
implications of a work-or-pay system?

Very generally, for any community who has tried a work-or-pay system,
- There are potentially a lot of different ways to set up a work-or-pay
system. What has worked well and what hasn't?
- What adjustments has the community made to its system? 
- What adjustments would you personally make if you could persuade everyone
else?
- Have there been pitfalls or unexpected bonuses?
- Has the community tried and abandoned a work-or-pay system, and why? Or
after serious consideration, decided against it in the first place? 
- What advice would you offer a community considering a work-or-pay system? 
- anything else you are willing to share!

Thanks,
Kay
Wasatch Commons
Salt Lake City
 

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