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                                            Legal Entities Needed

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         Legal Protection    Holding, Inc.     Financing, Inc.    Leasing, Inc.

                   Operations, Inc.       Health Benefits, Inc.           Library, Inc.

                            Community Land Trust

                                              

 

Several corporations would be required in order to always protect the land and buildings

from a lawsuit and to facilitate financing and securing grants. 

 

Legal protection is gained from using multiple corporations.  In the practical world,

two things must occur in order to get sued for the big payoff.  First you must have

a “deep pocket” (i.e. assets that can be taken), AND secondly, you must do something

to harm another.  Therefore to protect itself, one entity would hold all the assets but

do nothing while another entity would have no assets but perform all activity.

This makes attorneys very reluctant to take a case to go for the big bucks.

 

The suggested corporations are as follows:

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     Co-Op Village Holding, Inc. .             Back to Top

 

Type:               Non-Profit, Community Land Trust

 

As Defined:     The Community Land Trust Handbook    By: The Institute for Community Economics

                           ISBN 0-87857-401-8      www.iceclt.org  

 

Purpose:     To own all land, options to purchase adjacent lands, all buildings

                 and infrastructure attached to the land.  

                 The land and buildings would then be leased to Leasing, Inc.

 

Membership:   All bona fide residents of the Co-OP Village.

 

Voting Rights:  All members would agree that each member would have one vote

                    and each member would have one additional vote for every $1,000 invested in

                    Co-OP Village Financing, Inc., as of January 1 or June 1, prior to voting,

                    whichever is the closest in time.

        

Board Members:     5

 

Board Action:   The Board would be primarily concerned with land acquisition,

                      construction financing, mortgages, and stewardship as spelled out by the

                      Community Land Trust Agreement.

                      Day to day operations would be left to the Focus Groups.

 

 

 

    Co-Op Village Financing, Inc. .             Back to Top

 

Type:               Non-Profit

 

Purpose:          To raise money to finance Co-Op Village Holding, Inc.

 

Membership:   All bona fide residents of the Co-OP Village that invests a

                    minimum of $1,000 in this corporation.

 

Voting Rights:  Each member would have one vote.

        

Board Members:     5

 

Board Action:      The Board would be primarily concerned with borrowing money

                            from investors,  paying dividends, and lending mortgage money to

                            Co-Op Village Holding, Inc.

 

 

   Co-Op Village Leasing, Inc. .              Back to Top

 

Type:               Non-Profit

 

Purpose:          To lease the property from Holding, Inc and sub-lease or give life

                      estates to the residents.  This would shield Holding, Inc. from 

                      lawsuits making Financing, Inc. more attractive to investors.

 

Membership:    All bona fide residents of the Co-OP Village.

 

Voting Rights:  Each member would have one vote.

        

Board Members:     5

 

Board Action:      The Board would be primarily concerned granting leases, life

                          estates and possible managing a HUD Section 8 Rent    

                         Assistance program.

 

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    Co-Op Village Operations, Inc. .             Back to Top

 

Type:               For Profit, Limited Liability Corporation

 

Purpose:          To collect revenue for all operations of the village, excluding rent

                      income.

 

Membership:    All bona fide residents of the Co-OP Village who meet the

                      membership requirements of the corporation.

 

Voting Rights:    Each member would have one vote.

        

Board Members:     5

 

Board Action:      The Board would be primarily concerned with supporting all

                          Focus Groups.

 

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    Co-Op Village Health Benefits, Inc. .              Back to Top

 

Type:               For Profit, Limited Liability Corporation

 

Purpose:          To collect revenue from General Operations, Inc. and provide

                      health benefits to members.

 

Membership:    All bona fide residents of the Co-OP Village who meet the

                      membership requirements of the corporation.

 

Voting Rights:    Each member would have one vote.

        

Board Members:     5

 

Board Action:      The Board would be primarily concerned with budgeting and

                         administration of the group health program.

 

 

    Co-Op Village Library, Inc.              Back to Top

 

Type:               Non-Profit

 

Purpose:          To provide a library for the community and receive grants for that purpose.

 

Membership:    All persons who meet the membership requirements.

 

Voting Rights:   Each member would have one vote.

        

Board Members:     5

 

Board Action:      The Board would be primarily concerned with budgeting and

                          administration of the library.    

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See also:    Community Land Trusts

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