Now that things are well on their way, we are getting questions about what Membership in Three Groves involves. Since we are trying to build membership, it makes sense to provide a Reader’s Digest version of what is entailed. If you want the full legal document, please email us for it. Don’t worry, it’s written in English, not lawyer-ese. We do want you to read that and understand the whole thing if you are interested in becoming a member, but we’ll start simply. In addition to the Operating Agreement, we have a log of the Meeting Minutes and Decisions that is available for review.
The Financial Stuff
All Full Members of TGE become members in “Three Groves Ecovillage GP, LLC”, a Member-Managed Limited Liability Company. This membership entitles them to fully participate in decisions and design of the community and its bylaws. This entity will exist until we are ready to establish a Home Owners’ Association or Condo Association, and we will create that together. While we exist as an LLC, members will get K-1’s to apply to their personal tax returns. Since we’re not in this to make a profit, you get a loss to write off against your own income.
To apply for membership requires a Capital Contribution of $5,000, and if you want a position on the Lot Selection List, it is an additional $5,000. This is true until June 30, 2010. After that, it goes up to $8,000 and $7,000. Eventually, everyone needs to put in $25,000, but you can do that over time up until we are ready to break ground. Then it is all due. The money will be used to pay lawyers and other professionals, but at closing, the full $25,000 will be credited to you as your down payment on your home.
Other Highlights:
• We use consensus-decision making and request that members participate actively in creating a sustainable community. We need your help.
• We indemnify our members who are acting on our behalf.
• We designate certain members to act as our bookkeeper and to sign contracts with outside consultants.
• Memberships can be sold with the written consent of all other members.
• Memberships can be terminated by the Company or the member. Capital Contributions (less $1500) may be refunded or may be treated as a loan at current Prime Rate at the discretion of the Company.
• If we have to dissolve without building the community, loans are re-paid first and then the remainder pro-rated among members.
• Some older members appear to have made minimal Capital Contributions to the Company. This is because they made Capital Contributions to our prior legal incarnations. We recognize this in our Meeting Minutes, but not in the LLC Operating Agreement since this money was never on the TGE LLC books.
• Unlike a normal developer, our developer is not in this for vast amounts of profit. Monies left over at the end of the project will be split 50/50 between the developer and the homeowners. The homeowners will get rebates based on the amounts and timing of their Capital Contributions. Early money gets better rebates.
Again, If you have questions or would like the full copy, please email or call. TGE's phone number is 610-643-4411. Email link is at the top of the left margin.