Mosaic Commons:
Membership Goals & Payment Schedules

Introduction:

In order to get our construction loan, we need to have 80% of our units presold. Presuming we will have a 28 unit project, this means that in two years from the time we move beyond feasibility with one piece of land (currently we hope this will be next month, 9/02) we will need to have 23 households who have put at least 5% down on their units and have prequalified for the mortgage they will need.

In order to achieve these goals, we have created a timeline with appropriate milestones. The following timeline includes information on when current members will reach their 5% and when current associates will reach their 5% if they choose to join. For a graphical representation, see http://www.mosaic-commons.org/catwork/membership%20goals.pdf

Get land (9/02): 5 paid-up households (18%)

1. San & Kai (small 3 bdrm)
2. Dwight & Steph (large 3 bdrm)
3. Catya & Dave (4 bdrm)
4. Roxanne (2 bdrm)
5. Ken & Christie (small 3 bdrm)

6 mos later (3/03): 9-10 paid-up households (34%)

6. Greg (2 bdrm)
7. Sarah (1 bdrm)
8. possible: associate (1 bdrm)
9. open: ______________
10. open: ______________

12 mos later (9/03): 14 paid-up households (50%)

11. John & Judy (small 3 bdrm)
12. possible: Rosa (1 bdrm)
13. possible: Marty (small 3 bdrm)
14. possible: associate (small 3 bdrm)

18 mos later (3/04): 18-19 paid-up households (66%)

15. open: ______________
16. open: ______________
17. open: ______________
18. open: ______________
19. open: ______________

24 mos later (9/04): 23 paid-up households (80%)

20. Rick & Kim (2 bdrm)
21. open: ______________
22. open: ______________
23. open: ______________

In order to reach these membership goals, we propose the following:

Proposal:

New members will be asked to contribute at least $2,500 up front and sign a promissory note specifying a payment schedule of up to 6 months to reach the projected 5% minimum for their unit type. Upon reaching the 5% mark, all households are required to get a prequalification letter for the projected amount of their mortgage, and provide a copy of this letter to the Finance Team.

Exceptions:

• Current Associates (as of 9/10/02) are grandfathered and may choose a payment schedule ending at the 12-month point (9/03)
  
• As always, households in need may negotiate alternate payment schedules with the Finance team, that must result in meeting the 5% minimum within 2 years (9/04). We will track these households on the timeline above and they will count towards our membership goals for the appropriate milestone as per their arrangement with the Finance team.

Notes:

As now, people may respond to cash calls both before and after reaching their 5% minimum. Money over the 5% minimum will continue to be credited in Bucket 2, at a 15% APR before we have our zoning approved and a 12% APR after we get our zoning approved.