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* Limits on sales by a member | * Limits on sales by a member | ||
** A member may give notice to the LLC of their intent to withdraw | ** A member may give notice to the LLC of their intent to withdraw | ||
** If a member decides to withdraw their governing shares while maintaining their financial shares, they will receive their fraction of the ultimate value of the LLC upon dissolution. At the time of leaving the LLC, the LLC may propose a successor to purchase the financial shares contributed by the member who is leaving. The valuation of these shares will be the original contribution/current valuation??? This successor may be the LLC itself. | ** If a member decides to withdraw their governing shares while maintaining their financial shares, they will receive their fraction of the ultimate value of the LLC upon dissolution. | ||
** At the time of leaving the LLC, the LLC may propose a successor to purchase the financial shares contributed by the member who is leaving. The valuation of these shares will be the original contribution/current valuation??? This successor may be the LLC itself. | |||
* Limits on use of the property | * Limits on use of the property | ||
Revision as of 01:48, 12 March 2024
Remember to sign your comments. An easy way to sign is to add ~ 4 times. Mika (talk) 22:23, 18 February 2024 (CET)
Draft
- The LLC will operate using consensus decision-making. Every member will need to agree/support a decision and we shouldn't move forward if somebody feels strongly enough that they are absolutely opposed. This will cover decisions around:
- Dispute resolution
- Addition of renters
- Addition of new members
- Addition of pets
- New construction
- Renovation
- Refinancing
- Among other types of house-related decisions
- Governance-related record-keeping
- All actions taken on behalf of the entity will be kept durably by a designated secretary (decided upon by the group), in a shared note-taking app accessible to all members
- Limits on sales by a member
- A member may give notice to the LLC of their intent to withdraw
- If a member decides to withdraw their governing shares while maintaining their financial shares, they will receive their fraction of the ultimate value of the LLC upon dissolution.
- At the time of leaving the LLC, the LLC may propose a successor to purchase the financial shares contributed by the member who is leaving. The valuation of these shares will be the original contribution/current valuation??? This successor may be the LLC itself.
- Limits on use of the property
- The property will not be operated as a hotel or AirBnB.
- The property will not be used as a long-term rental.
- Grounds for expulsion
- A member may request the removal of another member through standard governance process.
- The person who is being decided against shouldn't get a vote in the consensus decision.
Proposed Policies
[Related to all these, I prefer that we make rules only for financial decisions (direct (e.g., mortgage) or indirect (sublet)). Thoughts? Mika (talk) 22:23, 18 February 2024 (CET)]
- How decisions are made
- majority vote proposal
- Any member may propose an action to be taken on behalf of the entity by messaging the action to the full set of members on an approved communication channel.
- If nobody else contests the action within a week from receiving it, it is considered ratified.
- If everyone affirms the action, it can be ratified sooner.
- If anyone else contests the action it will be brought to a vote of the membership.
- In the event of a tie, the proposal fails.
- consensus decision-making or some sort of variant
- I'm happy to propose something more concrete but the idea not that everybody needs to agree/support but that we shouldn't move forward if somebody feels strongly enough that they are absolutely opposed. Probably every should read some aobut consensus decision-making in order to make this work. We could do some modified systems like consensus-minus-one or a situation where a person can block, but only once ever. Basically, if somebody was seriously seriously against something, I don't want to move forward with it as part of a majority vote. —mako๛ 20:05, 18 February 2024 (CET)
- I also like consensus decision-making and knowing us, I feel this is possible to do. I'm averse to the idea of people being able to oppose e.g., once every ten years. Speaking for myself, I'll most likely "ok" any group decisions but want to be heard for my concerns and I ask people to actually consider any concerns raised by any members of the community, regardless of the final decisions. Mika (talk) 22:23, 18 February 2024 (CET)
- Perhaps, all we need to decide is how we make decisions; almost everything in the following could follow the rules in this section? Mika (talk) 22:23, 18 February 2024 (CET)
- Generally speaking, I prefer less rules, more trust in our ability to accommodate and be considerate to other people's needs, as we've done so far. Things will not always be perfect and not equal for all community members but achieving equity through legal rules seems dystopian to me. Mika (talk) 22:23, 18 February 2024 (CET)
- I support consensus decision-making lucy (talk) 01:42, 12 March 2024 (CET)
- majority vote proposal
- Dispute resolution
- Grounds for expulsion
- Governance-related record-keeping
- Renters
- Subleasing
- Additional members
- In general, addition of a new member to the LLC requires unanimous membership approval.
- To keep things simple, I have a slight preference to not add a new member unless it becomes financially necessary (e.g., permanent departure of an LLC member)? We can still rent out a room for temporary housemates but I'm less interested in expanding the coop, at least for now. I may change my mind later though. Mika (talk) 22:23, 18 February 2024 (CET)
- What to do if marriage or divorce?
- What to do if new residents who are partners?
- What to do if one of us has children? Adopts a child?
- What if one of us becomes caretaker to an aging parent?
- What about pets?
- Limits on sales by a member
- A member may give notice to the LLC of their intent to withdraw
- A member may choose to withdraw their governing shares while maintaining their financial stake, such that they receive that fraction of the ultimate value of the LLC upon dissolution.
- The LLC may propose a successor to purchase the stake from the member before it is allowed to be put on the public market. The member may choose to pay for an independent valuation of their shares to be determined. This successor may be the LLC itself.
- I'm not sure if these bits cover it already but Mika thinks it's important that if somebody is in a very bad financial situation and needs money within weeks (a week?) there should be some path for this. Even if it's only the money they have already put in, that seems like something we should be able to support. —mako๛ 20:28, 18 February 2024 (CET)
- As I mentioned before, I prefer that we make an effort to make an offer only for places that any one group can take over (e.g., Mako and Mika together), so that we can be more flexible when emergencies occur to any community member... Mika (talk) 22:23, 18 February 2024 (CET)
- A member may give notice to the LLC of their intent to withdraw
- Limits on use of the property
- I'm not sure what this should be beyond what the house is zoned. I guess there are lots of ways people might use the house (e.g., running a hotel/Airbnb, etc) that I would want to restrict, but I feel like we could deal with that with the normal decision-making process. No?
- +1 no hotel/airbnb
- How do rights apply to new construction on property? ADU?
- Common areas vs private areas?
- Residents can make improvements or alterations to their personal living space area that don't affect the rest of the community
- Two residents may swap personal living spaces without community approval
- Maybe bigger changes to common space and such require consensus? I'm not sure how to define bigger changes but presumably new constructions.
- Do we need to make a rule about this, at least when it's just the core people who've lived together (BLMMW)? Mika (talk) 22:23, 18 February 2024 (CET)
- Contingencies for late / failure to pay
- Planning for high-cost expenditures (renovations, roof, sewer etc)
- We split equally, no? —mako๛ 20:28, 18 February 2024 (CET)
- Sounds good to me Mika (talk) 22:23, 18 February 2024 (CET)
- how do we want to arrange large-cost expenditures? (yearly) upfront contributions? or fundraise at the time? i'm pro contributing to a pot of money for large-cost expenditures, and as an emergency fund for covering yearly expenses if needed lucy (talk) 01:42, 12 March 2024 (CET)
- Do major repairs/replacements need member approval? How many? Costs?
- Contingencies for major unplanned costs not covered by insurance (asbestos, flooding etc)
- Worst case scenarios
- Death of member
- Upon joining, members must designate if they intend for their shares to be willed to the LLC or to another beneficiary.
- If they choose the LLC, their shares are returned to the LLC
- If they choose another beneficiary, their shares are put in trust. The LLC must attempt to buy those shares at fair-market value within the following year, and remit the proceeds to the designated beneficiary. If this cannot be done, procedures for liquidation/insolvency should be followed.
- Incapacitation of member
- Death of member
- What are the options/suggestions here? —mako๛ 20:28, 18 February 2024 (CET)
- Harassment/Protection orders/Restraining orders between members
- A member may request the removal of another member through standard governance process.
- I think this kind of issues may become more important if we add more permanent members? If it's already a problem or if someone thinks it's likey to become a problem among the existing members, we should halt the house shopping process and discuss this first. Mika (talk) 22:23, 18 February 2024 (CET)
- Natural disaster destroys house
- Zombie apocalypse
- Harassment/Protection orders/Restraining orders between members
Resources
Condo Association handbook https://www.condolaw.net/wp-content/uploads/sites/560/2022/02/2019_Condo_Law_Handbook_for_Community_Associat.pdf
WUCIOA https://app.leg.wa.gov/RCW/default.aspx?cite=64.90&full=true
Sample worker coop bylaws https://institute.coop/sites/default/files/SampleWorkerCooperativeBylaws.pdf https://www.co-oplaw.org/knowledge-base/cooperative-bylaws/#Sample_Bylaws
Sample cohousing operating agreement https://docplayer.net/17757078-River-edge-cohousing-llc-1-operating-agreement.html
Misc / Not fully structured thoughts
- Our friends on the east coast thought of a few unlikely scenarios that we may/may not need to think about. For example, if any of us decides to have kids, what kind of rights would the kids have?
