We are in the process of setting up a company limited by guarantee to develop and run the community.

This structure, with individual leases, will facilitate the principles of Cohousing which include:

• Individual responsibility for each home;
• Residents to share control of the neighbourhood and its management, including shared areas and co-house;
• Owner-occupying members to be able to sell their homes;
• Access to membership to be controlled.

The structure is one where all the members can share equally in decision-making and control. It allows for a management committee to be set up to run things on a day-to-day basis, taking account of the long-term interests of the community. During the build phase each committed household may have one person on the management committee. The management committee members will be directors of the company. This model is easily recognised by solicitors and the general public. A form of associate membership of the company will be available to residents who are not owner-occupiers.

Initially the company will purchase the freehold of the site and act as a development organisation until the scheme is operational when it will change its role into one of ongoing management.

The management committee will commission and oversee the building work. It will create a project management sub-committee to oversee the development phase and delegate powers to allow prompt day-to-day decision-making. It is anticipated that the sub-committee will meet weekly during the build phase and report monthly to the management committee.

Members will buy a long-term leasehold interest in their home (probably for 999 years) from the company. The text of the lease will clearly define the relationship between the leaseholder and the company. Most ordinary flats and apartments use this model and it is easily understood by mortgage lenders and the public.

The lease will contain a number of additional provisions over and above those found in a traditional lease. These will reflect the special needs of an ecological Cohousing development. However provisions which would make it impossible to mortgage homes will not be considered for inclusion.

From the first AGM, the management committee will be elected annually by all members. The management committee will delegate defined areas of responsibility to a series of sub-committees. There will continue to be an annual membership fee payable to the Cohousing company. There will also be a service charge, payable per member. Finally, there may also be an external maintenance fund, with contributions by household on a per floor area basis. The level of these fee will be set by the management committee and will depend on a number of factors such as the running costs of the communal facilities, the extent to which repairs and maintenance are the responsibility of individual householders, the extent to which various tasks are shared between members or bought in and the presence of any other income streams. The fee will also cover running costs such as insurance, accounting and audit.

The MC will endeavour to make decisions by consensus (we think consensus is important for understanding each others positions). If a consensus decision is not achieved in 2 meetings it will be voted on. If a majority thinks it's urgent it will be voted on in the first meeting.