Ownership Outline


I. Physical Structure and Construction

A. Upon completion, the property will consist of two “micro-villages” each with12 guest sleeping cabins and a main house.

(1) Guest sleeping cabins will be about 100 sf and sleep 2-3

(2) Guest sleeping cabins will have no bathrooms or cooking facilities

(3) Main house will have shared bathrooms and communal kitchen (but no sleeping quarters)

B. Purchase price includes funding for the planned construction of the first “micro-village” including its 12 cottages, “main house”, bathhouse, sauna, workshop, playground and landscaping; scope of work will be specified in organizational documents.

C. Owners will have the choice to either contribute a specified amount of construction labor or pay additional amount toward construction costs.

D. Additional fundraising will be needed in order to create the second micro-village, mirroring the first, on the opposite side of the property.

II. Legal Structure

A. The property will be owned by a California nonprofit mutual benefit corporation (the “FOA”)

(1)            FOA will not be entitled to be in the rental business or any other business

(2) Only income will be owner dues

(3) FOA can be converted to non-exempt entity if owners go into business with the property

B. There will be 43 ownership interests in the FOA

C. The 43 owners will, collectively, have complete ownership and control of the property, but will be required to adhere to ownership bylaws

D. All owners will pay cash for their purchase; there will be no mortgage or other debt secured by the property.

III. Usage Structure

A. There will be three types of usage: “Planned”, “Short Notice” and “Last Minute”; while planned usage will be limited, each fractional owner will be able to use the property an unlimited amount (subject to availability) through the Short Notice and Last Minute usage programs

B. Planned Usage

(1) Planned Usage is based on the concept of “Cabin Nights”, which is one cabin for one night

(2) Planned Usage is also based on “High Season” and “Low Season”

(a) High Season is May 1-October 31: 183 nights x 12 cabins = 2196 Cabin Nights

(b) Low Season is November 1-April 30: 181 nights x 12 cabins = 2172 Cabin Nights

(3) Each owner can reserve up to 36 Cabin Nights in each season for Planned Usage

(a) Total of 72 Planned Usage Cabin Nights per owner/per year

(b) Could be all 12 cabins for 6 nights, one cabin for 72 nights, or any combination

(4) Planned Usage reservations will be made during specified month of prior year (e.g. Planned Reservations for 2015 made during October 2014)

(5) Planned Usage Reservations will be made in order of selection priority, which will rotate each year

(a) 1st Round: Nine Cabin Nights in high season

(b) 2nd Round: Nine Cabin Nights in high season and 18 Cabin Nights in low season (in reverse order of selection priority)

(c) 3rd Round: 18 Cabin Nights in high season and 18 Cabin Nights in low season (in original order of selection priority)

(6) An owner who does not want to use his/her Planned Usage can send others to the property; however, advertised rentals and exchanges will be prohibited

C. Short Notice Usage

(1) Short Notice reservations are in addition to Planned Usage, and become available beginning immediately after the Planned Usage Reservation period closes

(2) Each Short Notice reservation is for a maximum of 12 Cabin Nights, and only for consecutive Cabin Nights

(3) Short Notice reservations will be accepted on a first-come-first-served basis

(4) Each owner may hold only one Short-Notice reservation at a time, but may make another one as soon as the prior one is used

(5) Unlike Planned Usage, Short Notice usage is only for owners and accompanied guests only; owners cannot send others in their place

D.            Last Minute Usage

(1) Last Minute reservations are in addition to Planned Usage and Short Notice reservations

(2) Last Minute reservations for a particular date will become available 14 days before that date; Last Minute reservations cannot be made more than 14 days in advance

(3) Each Short Notice reservation is for a maximum of 12 Cabin Nights, and only for consecutive Cabin Nights

(4) Last Minute reservations will be accepted on a first-come-first-served basis

(5) Last Minute usage will be subject to the same owner presence requirement as Short Notice usage

IV. Usage Rules

A. There will be a maximum of six persons allowed to stay on the property for each Cabin Night reserved; for example, if an owner reserves two cabins for a particular night, he/she will have the use of two cabins and his/her party can have a maximum of 12 persons (including people who may be sleeping outdoors)

B. Owners will be able to check themselves in and out of the property, but will pay a cleaning fee for each Cabin Night

C. Due to issues with safety and wildlife pets are not allowed.

V. Owner Dues

A. All expenses, including taxes and insurance, will be expressed in an annual budget

B. Annual budget will also include repair/replacement reserves for all furniture, linens etc.

C. Owners will pay monthly or quarterly dues based on budget

VI. Management and Governance

A. Seller appoint initial manager; thereafter, group will have the right to change managers or continue

B. Manager will live on site during High Season but may be off site during Low Season

C. There will be an annually-elected five-person governing committee of owners to make those decisions not delegated to the manager; the governing committee may appoint sub-committees to handle certain areas

D. A few major decisions will require an owner vote; of these some will require a majority vote, and a few (e.g. sale of the entire property) will require a 75% vote

VII. Exit Strategies

A. Buyers will be permitted to resell at any time, subject to right of first refusal in favor of other owners and a right of the management committee to reject buyers if it has a reasonable basis

B. A 75% vote of owners may trigger a sale of the entire property; if a sale is triggered, those owners wishing to continue may buy out those wishing to sell


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This article has not been revised since publication.

This post was created by Casey Jeppesen on July 19, 2017.