Policy Example: Development Fees

  1. DEVELOPMENT FEES
    1. Development fees are charged when any owner expands the finished space of their unit. Development fees are set at attic spaces $15/sq ft; basement $5 (10/1/95) [Main floor space development fee set at $25 by Master Deed]
    2. Rationale: The core reason for maintaining development fees is fairness to those who paid development fees during construction. On the other hand we wanted to create enough flexibility in the fee payment to ease the financial burden on people finishing space after construction. Because many of us value affordability and many of us have questioned the purpose of continuing to collect development fees when construction has been completed, we decided to set aside these funds to support affordability
    3. Payment options:
Pay in full at time of finishing space
Pay over time
Pay at point of sale
Earn up to the full fee through community work
Write off up to the full fee through securing outside grants, labor or resources
Any other creative method that is agreed to by the household and finance committee
    1. Procedure: Representatives of the Finance Committee will sign written contract agreements with house owners detailing the development fee amount and the method of payment. The Finance Committee sets the fee amount using the same criteria used in the original construction. These contracts must be negotiated before development, but may be renegotiated at any time.
    2. To use work exchange as a method of payment, a house owner must negotiate ~ contract ahead of time with the Finance Committee that defines the nature of the work, and the number of hours to be worked for a particular period of time. These work hours will represent work done above the expectations for the community and for meeting community needs. The Finance Committee sets the value of the work. The initial rate is $15/hour.
    3. To use securing resources as a method of payment, a house owner must negotiate a contract ahead of time with the Finance Committee that defines the value and nature of the work or resource.
 

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