In the wild ride that we've had in the month since getting land under
contract and splitting Concord Ecovillage into two legal entities,
there has been a lot of time spent on legal documents. Creating a new
legal structure for Three Groves Ecovillage was really the easy part,
but in addition, we had to revise the Membership Application. While the
Membership Application for Concord Ecovillage had to deal with
abstracts and fuzzy timelines, all of a sudden, we had the privilege of
dealing with concrete realities like real land and a real ProForma
(budget).
The Membership Application not only creates part of the legal union
between us all, but it also defines many of the privileges and
obligations of membership. The Agreements of Sale for our homes will
come much later. I'll outline the important points in the Membership
Application for you here, and if you want a full copy of it, (or the
LLC and LLP documents), please just email us using the Email link in the margin.
1. Each household needs to make a $25,000 downpayment on their
house. (A larger downpayment is welcome, too!) The money can be paid
over time, up until about Ground-breaking and the signing of the
Agreements of Sale (anticipated at August 2010). At that point, it is
all due. This money is not escrowed, but instead, is used during
development to pay various professionals for their services. The money
is therefore at risk.
2. To make up for the risk, there is of course, reward. Early
contributors get to participate in our Rebate Program. At the end of
the project, money that would normally be profit in the developer's
pocket will be split 50/50 with us, the new homeowners. Our half will
be rebated to households based on how early they made their
downpayment. Earlier downpayments get larger rebates. Later
downpayments get no rebate.
3. To further provide incentive for getting money into the project
early, placement on the Lot Selection List costs less now, but will
soon get more expensive. For example, right now, $2000 is due with the
acceptance of a Membership Application, and an additional $3000 means
that an applicant is placed in line to select the location and size of
his or her home. After July 31, 2009, $5000 is due with the acceptance
of a Membership Application, and an additional $5000 is needed for
placement on the Lot Selection List. In either case, the full $25,000
downpayment on the home is eventually needed, but the initial sums
needed to participate in decisions as a member and to get on the Lot
Selection List are less. Amounts go up again after January 31, 2010.
The Membership Application has other information about
participating in decision-making, reading assignments, and legal
clauses about deaths, dissolution, disclaimers and such. The LLC and
LLP documents are hefty tomes drafted by the lawyer and are more about
legal structure and doing business as a real estate company. Again, I'm
happy to send whatever documents you would like to review. New members
are asked to sign the Membership Application and to become Limited
Partners of the LLP. Eventually this all turns into a Homeowners'
Association, but that is much further down the road.
If you've been contemplating membership, now is the time to join! Again, send us an email if you want to review the documents, and remember that the sooner you join, the better lot and house selection you get. Don't be left behind!