Internal Agreement for Equity Ownership in La’akea Community
The following is the process for buying in as a Member of La’akea Community and the process by which a departing Member can recoup their equity. This document is the basis for signed legal agreements between Members and the La’akea Community.
The buy in amount is $50,000. Of the $50,000, the first $20,000 is not considered equity. It is a non-refundable land security fee. In the event that a member leaves before 3 years, the land security fee will be prorated at $4,000 per annum for 5 years.
The La’akea Community may choose to increase or lower the buy in amount for all members if the need arises. The decision to increase the amount and assess members or to reduce the buy in amount and refund money will be made by consensus.
For those who do not have the full buy in amount, it is preferred they get financing outside the Community. The Community will entertain a proposal for a financing variance, which may include interest.
To Buy Out:
When a member gives written notice of their intent to leave the community and to have their equity share returned, the community will have 6 months from the date that written notice was received to develop a repayment plan. When completed, the plan will be signed and notarized by the departing member and a community representative.
The community will endeavor to pay back the departing member as soon as possible. The community will pay the departing member a sum of no less than 10% of their total equity within two years of said members’ date of departure, 50% of their total equity within 4 years, and 100% within 6 years. The community will begin paying interest, at a rate of 3% (simple interest), 2 years after the departing member has left the community.
If a member is asked to leave, the same pay back schedule applies.
When the repayment plan is signed and notarized, the departing member’s name will be deleted from all legal documents.
In the case of the death of a member, their membership status will become inactive. The deceased member’s share will be purchased from the heirs according to the buy out payment schedule, unless other arrangements are made.