Mosaic Commons will not consider allowing an existing Member Household to transfer its membership interest to another party until all non-40B units of the desired size have been claimed.

If there is a new household interested in joining as equity member(s), and there are no longer any non-40B units of the size the potential member desires, and there is one or more stepped-back households with the desired unit size, someone from Finance or Coordinating will inform them of the possibility of an existing stepped-back household transferring their membership interest, and give them a list of the stepped-back households. At the same time, someone from Finance or Coordinating will inform all of the relevant stepped-back Member Households of this possible transfer possibility to see if they are interested in transferring their membership and at what terms. A Finance team member will be appointed to act as a liaison between the stepped-back households and the new interested household to see if an appropriate deal can be worked out in a fair and equitable manner.

If the household interested in joining is able to work out a transfer deal with a Member Household, then the new household must apply for Equity Membership, and must present the transfer terms to Finance during the Equity Membership application process. Finance will then bring this transfer request to the group for approval and signature, per Section 8 of the Operating Agreement. Equity Membership and the transfer request must be approved at the same time, since each one is dependent upon the other.

If the new household is accepted for Equity Membership, the parties to the transfer agreement will provide legally acceptable documentation to Mosaic Commons that documents the transfer of membership interest to the new household. All capital contributions made by the original household will be credited to the new household; interest and unit discounts, however, will not be credited. The new household's date of joining (for unit selection priority) will be considered to be the date of transfer, not the original household's date. Financial arrangements behind the transfer will be handled between the two households, and will not involve Mosaic Commons.