Developer to HOA Control Transition – What Now?

The transition from developer control of a community to HOA control can leave Homeowners asking questions like “What’s next?” and “Who does what?”. Moderated by our very own Laura Bryant, Castle Group held a Roundtable in December that was geared toward answering these questions and alleviating the concerns of wary homeowners. Here are some of the most important takeaways from this informative event:

1. Create a Team- The Transition Committee

Homeowners should form a committee designed to ensure that the right people are in the right place prior to the transition from developer control to HOA control. For this team to be successful, it is critical that a “the sooner, the better” approach is taken. This ensures that the homeowners are well prepared to take on the fiduciary duties associated with governing a community.

2. Identify Professionals to Assist

It is no coincidence that people who surround themselves with experts tend to be more successful. While Homeowners can not hire professionals on behalf of the Association until after turnover, most are willing to assist in educating the committee. A property management company can equip homeowners in the early stages of transition with access to accountants, engineers, and other industry experts. Their expertise will ensure that the team is up to speed, thoroughly informed, and ready to govern when it is time for the developer to pass the torch.

3. Review Finances

One of the most critical steps in this process is understanding the Association’s financial records. This will allow the committee to know where the community stands fiscally. Ensure that the committee educates themselves on terms such as “due from developer”, “due to developer” and the various nuances of the financial statement.

Following these key steps will help homeowners who are taking action early on in the transition to create a precedence of preparedness for the future of the community. To learn more about our roundtable events and how you can attend contact info@castlegroup.com.