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Ch 8 - CST Orientation

CST Education Series

Created on September 26, 2024

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Transcript

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8. CST Governance

Decisions, Leadership, & Accountability

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together...

We are in this together...

The CST brings together local residents to co-own and steward properties. This means consistently engaging the community. It means building trust among diverse stakeholders, aligning priorities, and making collaborative decisions. Ultimately, our community stewardship work requires a clear, defined governance structure that shares power and responsibility between CST Stewards, CST board leadership, and The Guild.

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Intro to Governance Video

Here's The Guild's Mary Jane to help us get started exploring CST Governance.

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CST

Governance

Diagram

^ Dani walks you through the CST governance diagram.

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Art by Kate Morales, asthecrowfliesdesign.com

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Assign the correct responsibilities, based on the CST Governance Model:

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The Guild's Role & Stake

Community organizer

Hover your mouse over each speech bubble for a brief explanation

Guarantors for property mortgager

Class C, non-financial shares

Most of the risk, none of the return

Asset and property manager

Developer fee, property acquisition equity

awesome team!

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How Governance Works for CST Investors

Art by Kate Morales, asthecrowfliesdesign.com

Learn about the different aspects of our flagship property by clicking on each image below. Once you've viewed all three, click "Continue."

Direct Voting & Decision-Making
Board Circles & Meetings
Dual Board Structure

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VOTE!

VOTE!

Time to VOTE!

Vote

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Vote AGAIN!

Now let’s say you have the option to allocate a percentage of the $38,850 surplus cash to each item. What percentage of the surplus cash would you dedicate to each of the following options that are on the table? (Remember, you can only allocate up to 100% total, not any more!)

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Other ideas?

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Types of Decision-Making in the CST

DECISION TYPE
DESCRIPTION

Proposal passes with no major objections

CONSENT

DEMOCRATIC

Election or vote held

DELEGATION

Responsibilities assigned to a person or committee

CONSULTATIVE

Group opinions gathered to inform a decision

CONSENSUS

Proposals pass when everyone agrees

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CST Decision Matrix

A much more detailed decision matrix is outlined in the CST’s Governance Manual.

DECISION- MAKER
HOW IT'S MADE
DECISION EXAMPLE
TYPE OF VOTE
APPROVER

Allocating Surplus Cash Flow

Class A & Class B

Democratic

Simple Majority

Fiduciary Board (Majority Vote)

Property Manager

NewCommercial Tenants

Consultative

None

Class A & Class B (Majority Vote)

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Art by Kate Morales, asthecrowfliesdesign.com

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Art by Kate Morales, asthecrowfliesdesign.com

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DECISION TYPE
DESCRIPTION

CONSENT

DEMOCRATIC

DELEGATION

CONSULTATIVE

CONSENSUS

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Chapter Eight Check

Did you review all pages and complete all interactive elements in Chapter Eight?

Yes!

For more on "How is the CST governed?" see the CST FAQ

Chapter Eight Completed

Go to Chapter 9

Back to CST Investment Portal

Orientation to the Community Stewardship Trust

Index - Course Chapters

Technology Intro

6. Overview of the CST Investment Portal

1. Objectives

7. CST and Land Development

2. Why Now? The Present Context

3. Introducing Solidarity Economy

8. CST and Governance

4. What is the Community Stewardship Trust (CST)?

9. Challenges & Opportunities

10. Next Moves to Get Involved

5. Investing in the CST

Back to CST Investment Portal

(Re)Start Chapter 8

Course Guide

CST FAQ

© 2025 by David Ferris and The Guild CC BY-NC-SA 4.0

Dual board structure

Fiduciary Board - Financial & Legal (Board of Directors)

  • Manages financial oversight, legal compliance, and fiduciary responsibilities
  • Ensures legal and financial integrity of the organization
CST Stewardship Board - Neighborhood Property & Mission
  • Oversees mission alignment and community impact
  • Manages physical properties and strategic community objectives

Dual Board Structure

Elected by Class A, B, and C investors

5 are elected by community investors 2 are appointed from CST Property Operators 1 also serves on the Board of Directors

7 community leaders who govern the CST's strategic direction, and safeguard its financial and legal health

7 community investors who steward CST properties, guided by neighborhood priorities and purpose.

Direct Voting & Decision-Making

Community Stewards:

  • Decide how to use surplus cash flow (community van, mutual aid, dividends)
  • Elect Board Members
  • Vote on commercial tenants
  • Vote on key decisions called by the CST Stewardship Board (one person, one vote)
  • Help steward local properties

Consent

Different than Consensus

A proposal passes if there are no principled and reasoned objections ("blocks") when the final vote is called. Blocking concerns should be raised and addressed during earlier stages of the proposal process (e.g., understanding, exploration, and initial reaction rounds). Those with blocking concerns bear responsibility for proposing amendments that resolve their objections while honoring the original proposal’s intent. Key distinctions from consensus: - Not unanimity: Participants may "stand aside" (disagree but permit the proposal to move forward) if their concerns are not blocking. - No surprises: Blocks must be justified and ideally resolved through iterative collaboration before the final decision point.

Board Circles & Meetings

Collaborate and govern with neighbors and friends!

  • Community Stewards can apply to join CST Board Circles to engage in the day-to-day collective problem-solving and tasks related to land stewardship.
  • Investor meetings offer transparency and enable direct participation in the organization's strategic direction.
  • Together, these forums strengthen community connections and collective governance.

These are numbers that show how well a building with apartments and stores is doing financially.

OPERATING PARAMETERS

NOI stands for "Net Operating Income." This is how much money the building makes in a year after paying for things like maintenance and utilities, but before paying for big expenses like loans. The word "stabilized" means this is what they expect to make in a normal year, after the building is up and running smoothly.

  • NOI (stabilized): $338,336

This means that 95% of the spaces in the building (like apartments or store areas) are being used or rented out. It's a good sign when this number is high because it means the building is popular and making money from most of its space.

  • Occupancy Rate (stabilized): 95%
  • Cash Flow (stabilized): $163,862

Cash flow is the money left over after paying for everything, including loans. This is the actual profit the owners can use or save. Again, "stabilized" means this is what they expect in a typical year.