Cohousing-L Mailing List: Re: work-or-pay system - legalities? general advice?

[Daniel Lindenberger (daniel]

One idea a couple of us have been talking about in our community (which 
has a work-or-pay system described in Communities #148) is the 
possibility of framing it as a pure and simple strata fee, with the 
option for people to work in lieu of paying. In terms of our community 
culture, most folks do the work instead, and paying is the exception, 
but by having it on the books as Strata fee, it makes it clear that this 
isn't an additional burden on the owners (of the sort that could get you 
designated as "limited marketability" in the eyes of lenders).

I look forward to hearing what other approaches folks are using!


--
-----------------------------------------

Daniel Lindenberger
Windsong Cohousing
www.daniellindenberger.com




On 14/04/2011 5:15 PM, Kay Argyle wrote:
> 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
>
>
> __________ Information from ESET Smart Security, version of virus signature
> database 6042 (20110414) __________
>
> The message was checked by ESET Smart Security.
>
> http://www.eset.com
>
>
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://www.cohousing.org/cohousing-L/