ATTN: Next Tuesday - open virtual town hall on co-ops with newly elected nominee for Ward 5 DC Councilmember Zachary Parker

[Justin Franks]

A conversation on co-ops and policy in DC with newly elected nominee for Ward 5 DC Councilmember Zachary Parker 

You are invited to a meeting to talk through the state of co-ops in DC. Come with any questions, experiences, or legislation you would like to share or start a discourse around.
 

Virtual
Tuesday, Sep. 27th
@ 10AM

RSVP Here:  https://www.addevent.com/event/XJ14915660


Also Read: Zachary Announces His Cooperatives, Community Wealth, and Small Business Development Platform (zacharyforward5.com)

[Justin Franks]

Notes from the discussion:

• Almost no support or recognition for worker co-ops in mainstream business/entrepreneur/startup space as of now.

• Supporting existing housing co-ops - tax abatement, as some are struggling (some are flourishing)

• Kevin Gustafson drafted legislation for worker co-ops, which included provisions on: 

  • Capital gains exclusions for conversions, 

  • Income exclusions (corporate and individual) to incentivize growth and make it easier and more profitable to sell to a worker co-op, 

  • Tax holidays as well. 

             View drafted legislation here: DC Cooperative Ownership and Development Act V1.5.docx

• Biggest issue is access to capital - there are a lot of CDFIs but there could be a DC gov Coop Dev Corp (a way to single source all that work. District could give loans or loan guarantees). 

• Most traditional financial institutions don’t understand and don’t have confidence with co-ops. 

• There could be a business TOPA - right of first refusal for workers to buy the business. Not in America yet, but exists elsewhere. 

• Having a CBE for co-ops, ease of accessing public procurement contracts. 

• The Federal SBA doesn't allow loan guarantees to worker co-ops so a DC co-op loan guarantee system would help level the playing field and provide data on how low the risk is for those loans.

• Worker, Housing, Consumer, Producer, Credit Unions should all work together

• Directory of co-op laws by state: State-Cooperative-Statute-Library-Updated-October-2019.xlsb.xlsx

• Employee Ownership Center - TA and know-how. Already is an Employee-Ownership Exchange that sets these up. WACIF and their GWCEO could interface with it

• Bonds is bringing back a series of housing co-op bills, majority of the Council are co-sponsors. Advisory Council permanent, as well as tax support for LEC with income restrictions. 

  • View more information on DC housing co-op bills at dchousing.coop

• Community Purchase Alliance - focused on buying from minority-owned businesses

• Having Department of Housing and Community Development (DHCD) use LECs more - low hanging fruit would be basic data for development so they are tracking the co-ops - they have a staff person now in place to support this

• Allow LECs to utilize tax credits

• Need an expansive definition of co-ops in the law

• Co-ops should be explicitly added to new bills being reviewed that are relevant to economic development when they are not already included on lists of qualifying entity types.

• Obstacle: Community wealth versus individual wealth conversation - gives access and infrastructure to folks who don’t have the capacity to be a sole landlord or sole business owner

• Will plan to meet with Mr. Parker again in the new year once the next legislative session is underway

• History of co-ops in DC: Home Rule from Below: The Cooperative Movement in Washington, DC by Johanna Bockman